Welcome to Law-Forums.org!   

Advertisments:




Sponsor Links:

Discount Legal Forms
Discounted Legal Texts


Strategic Management

Patents & Trademarks Discussion Forum

Strategic Management

Postby Dowle » Sun Nov 06, 2016 2:03 pm

Q1.     Select a company of your choice. Explain how politico-legal factors have created an opportunity as well as constraint for that particular industry or a business organization.

Q2.     Choose an organization that has a mission statement. Evaluate the statement based on the following criteria:

a.      Does the statement define the organization in brief terms?

b.      Does it define the organizations geographical operations?

c.      Is it consistent for all its business units?

d.      Does it conform to the objectives of the organization?

Q3.     Select an organization and discuss its strategic profile. This should cover the type of generic strategy chosen by the organization and why?

Q4.     Using the published information, select an organization which has gone for a strategic alliance. Explain the reasons because of which the organization chose to form a strategic alliance.

Q5.     Why is strategic control important to organizations? Explain with the help of an illustration.
Dowle
 
Posts: 51
Joined: Tue Mar 11, 2014 3:34 pm

Strategic Management

Postby Suffield » Sun Nov 06, 2016 7:07 pm

Q1.   Select a company of your choice. Explain how politico-legal factors have created an opportunity as well as constraint for that particular industry or a business organization.

The  organisation I  am  referring to, was  facing

a  problem of  declining  sales/ market  share  for  2  

consecutive  year.

-a  large  manufacturer/ marketer of  safety products

-the products  are  used  as  [personal  protection safety] [ industrial  safety]

-the products  are  distributed through  the distributors as well as  sold directly

-the  products  are  sold  to various  industries like  mining/fireservices/defence/

as  well  as  to  various  manufacturing  companies.

-the  company employs  about  235  people.

-the  company  has  the following  functional   departments

*marketing

*manufacturing

*sales

*finance/ administration

*human resource

*customer  service

*distribution

*warehousing/  transportation

*TQM  

==============================================

THE  COMPANY  ANALYSES  THE  FOLLOWING   DATABASE

AND  APPLYS   THE  PROBELM  SOLVING/ DECISION MAKING   APPROACH   /   FINALIZES   THE  PLAN.

-apply  the  pestel  analysis with  respect  TO ITS BUSINESS

1.Political(incl. Legal)   

-Environmental regulations and protection ENFORCEMENT  OF  SAFETY /PROTECTION LAWS  

-Tax policies

TAX  INCENTIVES  FOR  THE  USE  OF  PERSONAL SAFETY

PRODUCTS.

-International trade regulations and restrictions

REDUCTION  IN TARIFFS  ON  IMPORTS  OF  

PERSONAL  SAFETY  PRODUCTS.

-Contract enforcement law/Consumer protection

The  government  enforcement   on  consumer  protection -Competition regulation

NO LIMITS  ON  COMPETITION -Safety regulations

the  government      adopted  some  of  the  

modern  safety regulations

================================================================= 2.Economic     

-Economic growth

SOUND ECONOMIC  GROWTH

-Interest rates & monetary policies

interest  rates    under control /  a  sound  monetary  policies]

-Government spending

government  spending  is  significant   and  is it   under control -Taxation

the  taxation  HAS    encouraged  the  industry .

-Exchange rates

there  well  managed   exchange  controls  and  is it  helping  the  industry.

-Inflation rates

[ THE  inflation  is well   under  control ]

================================================== 3.SOCIAL -Health consciousness & welfare, feelings on safety

the  people  are   becoming  safety  / health  consciousness.

=========================================================

4.Technological  

Industry focus on technological effort

the   industries    focused  on  using  improved  technology.

New inventions and development

new  inventions  are    being   encouraged  for  developments.

=========================

THE  NEWLY  ADOPTED  OBJECTIVES  

-to  increase  sales volume  by 20%  every  year

over  the  next 5  years.

THE  STRATEGIES   ADOPTED  BY  THIS  ORGANIZATION   TO

ACHIEVE   ITS  OBJECTIVES.   1. Basic question: How is organizational direction determined? Every organization takes on some direction, in terms of what customers/clients it serves and what functions it performs for these customers. This direction is often called its purpose, Mission or realized strategy. An organization's mission is a set of statements that define the exchange relationship between the organization and its stakeholders or claimants. More specifically a mission defines the population served and the function it fulfills or the need it satisfies for that claimant. This direction, or mission, may be the result of a deliberate planning process or it may emerge as the result of a set of incremental decisions. THIS  ORGANIZATION   Realized Strategies are the result of a combinations of Purely Deliberate and Purely Emergent Strategies. 1.THIS  ORGANIZATION'S  Deliberate Strategy- This process starts with an analysis of a company's current mission and strategies. The most popular tool used in this process is the SWOT(Strengths, weaknesses, opportunities, threats) model. The external environment in terms of opportunities and threats, is analyzed by examining threats to the company's current position and new opportunities(new customers, new applications, unfulfilled customers needs, etc.). The analysis proceeds by examining the company's internal environment in terms of its strengths and weakness. A mission and competitive strategy is formulated that matches opportunities with strengths and plans are made to strengthen areas of weakness. The next step is to develop functional strategies that support the overall business level competitive strategy. Marketing, Human Resource, Financial, Operations, Information Systems, and R & D strategies are developed that support the business unit strategy. Finally, a control system(organizational structure) is designed to insure that operational decisions are made consistent with the business and functional strategies.         2. Emergent Strategy

- Emergent Strategies are the result of incremental decision making that achieve some degree of consistency over time and launch the organization into a direction. When decisions are made or problems are solved, they have potential strategic impact.   2. Levels of Strategy         1. Mission/Domain- Before identification of strategy can occur, one must clearly identify the mission or domain of the organization.  The domain of an organization consists of the population it serves and the functions it performs(satisfies) for that population.  Sometimes the domain is defined in terms of products or services offered(rather than functions performed), but this tends to be more limiting because it defines the mission more in terms of means rather than ends.         2. Corporate Level Strategy.                    1. Market Penetration STRATEGY

- Seeking increased market share for present products through greater marketing efforts          2. Market Development  STRATEGY

- Introducing present products in new markets          3. Product Development  STRATEGY - Seeking increased sales by improving present products                      4. Diversification STRATEGY          1. Concentric- Adding new or related product lines          2. Conglomerate- Adding new, but unrelated product lines                             3. Competitive or Business Level Strategy

- How should we compete in our chosen business(es)? Competitive strategies involve determining the basis of costumer or client decision making.  Generally, they are based on some combination of quality, service, cost, time, and quality of the experience.          1. Cost Leadership Strategies

- With this strategy you are competing on price. Your various functional strategies all emphasize cost reduction. This is an effective strategy when the market is comprised of many price sensitive buyers, when there are few ways to achieve product differentiation, when buyers do not care much about differences from brand to brand , or when there are a large number of buyers with significant bargaining power.          2. Differentiation Strategies

- Differentiation strategies rely on some basis of product differentiation such as flexibility, specific features, service, time and availability, low maintenance, etc. as the basis for competition. Product development and market research are generally necessary components of a differentiation strategy. Generally, a successful differentiation strategy allows a firm to charge a higher price for its product. Organizations generally need strong R & D departments with strong coordination between R & D and marketing departments. Human Resource strategies must place emphasis maintaining a competitive skill base and motivating employees toward the basis for differentiation.          3. Focus or Niche Strategies

- A successful focus strategy depends upon an industry segment that is of sufficient size, has good growth potential, and it not crucial to the success of other major competitors. Focus strategies are pursued in limited markets in conjunction with cost leadership and/or differentiation strategies. Focus strategies are the most effective when consumers have distinctive preferences or requirements and when rival firs are not attempting to specialize in the same target segment.                   4. Functional Strategies

- How do organizational functional units contribute to the business level strategies? How can functional strategies be integrated to achieve competitive advantage?          1. Marketing Strategies- How do we communicate our strengths to the customer? How do we identify customer requirements and changes in customer requirements?          2. Human Resource Strategies- How do we recruit, train, develop, motivate, compensate, and place employees so that behavior is directed toward the competitive strategy and works to build competitive advantage?          3. Financial Strategies- How do we secure financial resources necessary to carry our competitive strategy?          4. Operations Strategies- How do we design our processes to produce products and/or service that meet customer requirements as specified in our strategy?          5. Information System Strategies- How do we provide decision makers, at all levels, with information necessary to make decisions consistent with strategy?          6. Technological(R & D) Strategies- How do we develop products consistent with customer requirements as specified in strategy? ####################################

Q2.   Choose an organization that has a mission statement. Evaluate the statement based on the following criteria:

a.   Does the statement define the organization in brief terms?

b.   Does it define the organizations geographical operations?

c.   Is it consistent for all its business units?

d.   Does it conform to the objectives of the organization?

Methodical control of an organization's operations through establishment of  OBJECTIVES  / standards and targets , and a continuous monitoring and adjustment of performance against the OBJECTIVES.

Vision

Members of the organization often have some image in their minds about how the organization should be working, how it should appear when things are going well. Mission

An organization operates according to an overall purpose, or mission. Values

All organizations operate according to overall values, or priorities in the nature of how they carry out their activities. These values are the personality, or culture, of the organization. Strategic Goals

Organizational members often work to achieve several overall accomplishments, or goals, as they work toward their mission. ORGANIZATIONAL   objectives are the stated, measurable targets of how to achieve business aims. For instance, we want to achieve sales of €10 million in  in 2009. A mission statement sets out the business vision and values that enables employees, managers, customers and even suppliers to understand the underlying basis for the actions of the business.

Business Objectives

Objectives give the business a clearly defined target. Plans can then be made to achieve these targets. This can motivate the employees. It also enables the business to measure the progress towards to its stated aims.

The most effective business objectives meet the following criteria:

S – Specific – objectives are aimed at what the business does, e.g. a hotel might have an objective of filling 60% of its beds a night during October, an objective specific to that business.

M - Measurable – the business can put a value to the objective, e.g. €10,000 in sales in the next half year of trading.

A - Agreed by all those concerned in trying to achieve the objective.

R - Realistic – the objective should be challenging, but it should also be able to be achieved by the resources available.

T- Time specific – they have a time limit of when the objective should be achieved, e.g. by the end of the year.

The main objectives that a business might have are:

Survival – a short term objective, probably for small business just starting out, or when a new firm enters the market or at a time of crisis.

Profit maximisation – try to make the most profit possible – most like to be the aim of the owners and shareholders.

Profit satisficing – try to make enough profit to keep the owners comfortable – probably the aim of smaller businesses whose owners do not want to work longer hours.

Sales growth – where the business tries to make as many sales as possible. This may be because the managers believe that the survival of the business depends on being large. Large businesses can also benefit from economies of scale.

Strategies

Organizations usually follow several overall general approaches to reach their goals. Systems and Processes that(Hopefully) Are Aligned With Achieving the Goals

Organizations have major subsystems, such as departments, programs, divisions, teams, etc. Each of these subsystems has a way of doing things to, along with other subsystems, achieve the overall goals of the organization. Often, these systems and processes are define by plans, policies and procedures. How you interpret each of the above major parts of an organization depends very much on your values and your nature. People can view organizations as machines, organisms, families, groups, etc.(We'll consider more about these metaphors later on in this topic in the library.) What is a Mission Statement?

You should think of a mission statement as a cross between a slogan and an executive summary. Just as slogans and executive summaries can be used in many ways so too can a mission statement. An effective mission statement should be able to tell your organization  story and ideals in less than 30 seconds. Here are some basic guidelines in writing a mission statement: 1   A mission statement should say who your organization  is, what you do, what you stand for and why you do it. . 2   The best mission statements tend to be 3-4 sentences long. 3   Avoid saying how great you are, what great quality and what great service you provide.

4   Make sure you actually believe in your mission statement, if you don't, it's a lie, and your customers will soon realize it. =========================================================================

McDONALD   MISSION   STATEMENT

"McDonald's vision/ MISSION  is to be the world's best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile." a.   Does the statement define the organization in brief terms?

YES, it  does  define  the  organization  and  its aim.

----------------------------------------------------------------------

D]Does it conform to the objectives of the organization?

YES,  IT  conforms  to  the  objectives/ goals  of  the  organization.

IF  YOU  ANALYZE  THE  MISSION  STATEMENT

and  THE  SIGNIFICANT  WORDS  IN  IT.

*BEST  QUICK  SERVICE.

*OUTSTANDING  QUALITY

*OUTSTANDING  SERVICE

*CLEANINESS

*VALUE

*MAKE  THE  CUSTOMER  SMILE.

B]Does it define the organizations geographical operations?

YES,  it  outlines   the  universal   approach  and  covers  all  countries.

--------------------------------------------------

McDONALD   has  taken  these elements  to  every

corner  of  the  world.

-usa, canada,mexico

-brazil, argentina

-uk, west  europe

-russia, east  europe

-china

-west asia

-africa  continent

-india,south  east  asia

-australia / new zealand

THEY  HAVE  APPLIED   THE  COMPANY  MISSION

EVERYWHERE  UNIFORMLY.

C]Is it consistent for all its business units? YES, it  is  uniform  and  consistent  everywhere around  the  world.

-----------------------------------------------------------------

AT  THE  SAME  TIME,  THEY HAVE  ADOPTED

THE  TASTE /CUSTOMS  OF  THE LOCAL  REGION.

THAT  IS  THE  REASON  THEY   ARE  SUCH

A  WONDERFUL/  SUCCESSFUL  COMPANY.

THEIR  MISSION   DRIVES  THE  BUSINESS.

################################

Q3.   Select an organization and discuss its strategic profile. This should cover the type of generic strategy chosen by the organization and why?

the organisation I  am referring to

The  organization, I am  familiar  with  is  a -a  large  manufacturer/ marketer of  safety products

-the products  are  used  as  [personal  protection safety] [ industrial  safety]

-the products  are  distributed through  the distributors as well as  sold directly

-the  products  are  sold  to various  industries like  mining/fireservices/defence/

as  well  as  to  various  manufacturing  companies.

-the  company employs  about  235  people.

-the  company  has  the following  functional   departments

*marketing

*manufacturing

*sales

*finance/ administration

*human resource

*customer  service

*distribution

*warehousing/  transportation

*TQM  

============================================== THE  COMPANY  ANALYSES  THE  FOLLOWING   DATABASE

AND  APPLYS   THE  PROBELM  SOLVING/ DECISION MAKING   APPROACH   /   FINALIZES   THE  PLAN.

1. External Assessment

Areas for opportunities and threats

* Markets [ what  is  the market  situation, which is forcing the change requirements *Customers [ how can service the customer -internal / external -better .          

* Industry  [ is  the  industry  trend ]

* Competition [ is  it the  competitive situation       *Factors of  business [ causing  the change]

* Technology [ is  it  technology  change ]

2. Internal Assessment

Areas  for strengths, weaknesses, and barriers to success

ORGANIZATION DIMENSIONS *Culture  [ is the  working  culture  change ]

* Organization [  is the  organization  demanding  change ] * Systems  [ is it  the  systems change ] * Management practices  [ change in  managemement process]

OTHER KEY DIMENSIONS

*Cost efficiency[  is it for  cost efficiency ]

* Financial  performance  [ is  it for  financial  performance improvement ]

* Quality [ is  it for  quality  performance improvement *Service [ is  it for  service   performance improvement *Technology[ is  it for  technology   performance improvement * Market segments [ is  it for  sales  performance improvement * Innovation[ is  it for    performance improvement *new products[ is  it for new product   performance improvement *Asset condition[ is  it for  financial  performance improvement *productivity[ is  it for  financial  performance improvement 3. Source  Strategic  objectives  and  programs

The critical issues that must be addressed if the organization Is  to  succeed Strengths

Weaknesses   Opportunities   Threat

PRIORITY   ISSUES

FROM  THE  ABOVE , DETERMINE   THE  CORE  ISSUES

WHICH  NEEDS  TO  SOLVED  WITH  YOUR  INVESTMENT.

STRATEGIC  PROGRAMS

FROM  THE  ABOVE  CORE  ISSUES , DETERMINE  YOUR

STRATEGIC  PROGRAMS.  Mission  STATEMENT VISION    STATEMENT   Your CORE  PURPOSE      Your   CORE   OBJECTIVES    Your   Core markets;   Your  CORE  strategic thrusts.

======================================

NOW  THE  QUESTION IS  

-BASED  ON  THE ABOVE  WHAT  ARE THE  STRATEGIES NEEDED.    1. Basic question: How is organizational direction determined? Every organization takes on some direction, in terms of what customers/clients it serves and what functions it performs for these customers. This direction is often called its purpose, Mission or realized strategy. An organization's mission is a set of statements that define the exchange relationship between the organization and its stakeholders or claimants. More specifically a mission defines the population served and the function it fulfills or the need it satisfies for that claimant. This direction, or mission, may be the result of a deliberate planning process or it may emerge as the result of a set of incremental decisions. THIS  ORGANIZATION   Realized Strategies are the result of a combinations of Purely Deliberate and Purely Emergent Strategies. 1.   Every organization takes on some direction, in terms of what customers/clients it serves and what functions it performs for these customers. This direction is often called its purpose, Mission or realized strategy. An organization's mission is a set of statements that define the exchange relationship between the organization and its stakeholders or claimants. More specifically a mission defines the population served and the function it fulfills or the need it satisfies for that claimant. This direction, or mission, may be the result of a deliberate planning process or it may emerge as the result of a set of incremental decisions. Most Realized Strategies are the result of a combinations of Purely Deliberate and Purely Emergent Strategies. Brief descriptions of these two types of strategies follow: A.   Deliberate Strategy- This process starts with an analysis of a company's current mission and strategies. The most popular tool used in this process is the SWOT(Strengths, weaknesses, opportunities, threats) model. The external environment in terms of opportunities and threats, is analyzed by examining threats to the company's current position and new opportunities(new customers, new applications, unfulfilled customers needs, etc.). The analysis proceeds by examining the company's internal environment in terms of its strengths and weakness. A mission and competitive strategy is formulated that matches opportunities with strengths and plans are made to strengthen areas of weakness. The next step is to develop functional strategies that support the overall business level competitive strategy. Marketing, Human Resource, Financial, Operations, Information Systems, and R & D strategies are developed that support the business unit strategy. Finally, a control system(organizational structure) is designed to insure that operational decisions are made consistent with the business and functional strategies. When every day decisions do not conform with the business and functional strategies, the Intended Strategy becomes an Unrealized Strategy. Many strategic plans have taken this route as they sit on shelves of corporate offices in nicely bound volumes. B.   Emergent Strategy- Emergent Strategies are the result of incremental decision making that achieve some degree of consistency over time and launch the organization into a direction. When decisions are made or problems are solved, they have potential strategic impact. As you remember from the Political Model of decision making, decision making is, by nature, a political process with various claimants attempting the influence each decision. When there is a strong control system(powerful hierarchy) that insures that decision makers satisfy managerial constraints, intended strategies tend to become realized. However, when other influences are stronger, or there is not clear direction from above, decisions are made without regard to intended strategy and the organization takes on direction that is a result of the combined affect of these incremental decisions. 2.   Levels of Strategy A.   Mission/Domain- Before identification of strategy can occur, one must clearly identify the mission or domain of the organization.  The domain of an organization consists of the population it serves and the functions it performs(satisfies) for that population.  Sometimes the domain is defined in terms of products or services offered(rather than functions performed), but this tends to be more limiting because it defines the mission more in terms of means rather than ends.  Note: One should distinguish Mission/Domain from a Mission Statement in that Mission statements often contain visions, goals, competitive strategies, and even human resource strategies. B.   Corporate Level Strategy- For multi-business organizations addresses the question: In what particular businesses or industries should we be operating? What is the purpose of each of these businesses? The following are generic strategies: a.   Vertical Integration 1.   Forward Integration- Gaining ownership or control over distributors or retailers. 2.   Backward Integration- Seeking ownership or control of suppliers b.   Horizontal Integration- Seeking ownership or control over competitors c.   Market Penetration- Seeking increased market share for present products through greater marketing efforts d.   Market Development- Introducing present products in new markets e.   Product Development- Seeking increased sales by improving present products f.   Diversification 1.   Concentric- Adding new or related product lines 2.   Conglomerate- Adding new, but unrelated product lines g.   Joint Venture- Two or more sponsoring firms forming a separate organization for cooperative purposes h.   Retrenchment- Regrouping through cost and asset reduction to reverse declining sales and profits i.   Divestiture- Selling a division or part of organization j.   Liquidation- Selling off tangible assets, in parts for their tangible worth. C.   Competitive or Business Level Strategy- How should we compete in our chosen business(es)? Competitive strategies involve determining the basis of costumer or client decision making.  Generally, they are based on some combination of quality, service, cost, time, and quality of the experience.   There are many typologies of competitive strategies. Porter's generic strategy typology has received the most attention a.   Cost Leadership Strategies- With this strategy you are competing on price. Your various functional strategies all emphasize cost reduction. This is an effective strategy when the market is comprised of many price sensitive buyers, when there are few ways to achieve product differentiation, when buyers do not care much about differences from brand to brand(Coke vs. Pepsi), or when there are a large number of buyers with significant bargaining power. Some risks(potential threats) of pursuing this strategy are that competitors may imitate the strategy, thus driving overall industry profits down, technological breakthrough in the industry by other firms(generally firms pursuing this strategy have low R & D budgets), or buyer interest may swing to other differentiating feature besides price. Firms know for this strategy are Wal-Mart, MacDonald's, Black & Decker, Lincoln Electric, Briggs and Stratton, and 47th Street Camera. b.   Differentiation Strategies- Differentiation strategies rely on some basis of product differentiation such as flexibility, specific features, service, time and availability, low maintenance, etc. as the basis for competition. Product development and market research are generally necessary components of a differentiation strategy. Generally, a successful differentiation strategy allows a firm to charge a higher price for its product. Organizations generally need strong R & D departments with strong coordination between R & D and marketing departments. Human Resource strategies must place emphasis maintaining a competitive skill base and motivating employees toward the basis for differentiation. Common risks(potential threats) include there may not exist the necessary price/feature trade-off among customers to justify higher prices, development of a quick copy of the differentiating features without the expensive R & D. Firms pursuing differentiation strategies include Dr. Pepper, Jenn-Air, The Limited, Cross. c.   Focus or Niche Strategies- A successful focus strategy depends upon an industry segment that is of sufficient size, has good growth potential, and it not crucial to the success of other major competitors. Focus strategies are pursued in limited markets in conjunction with cost leadership and/or differentiation strategies. Focus strategies are the most effective when consumers have distinctive preferences or requirements and when rival firs are not attempting to specialize in the same target segment. Risks of pursuing a focus strategy include the possibility that numerous competitors recognize the successful focus strategy and copy the strategy, or that consumer preferences drift towards those of the market as a whole. Customer groups, geographic areas, and specific product lines are some bases of focus strategies. Firms using the focus strategy are Red Lobster, Federal Express, MCI, Coors, and URI(EMBA). d.   Multiple Strategies- Combinations of the above competitive strategies. o   Functional Strategies- How do organizational functional units contribute to the business level strategies? How can functional strategies be integrated to achieve competitive advantage? a.   Marketing Strategies- How do we communicate our strengths to the customer? How do we identify customer requirements and changes in customer requirements? b.   Human Resource Strategies- How do we recruit, train, develop, motivate, compensate, and place employees so that behavior is directed toward the competitive strategy and works to build competitive advantage? c.   Financial Strategies- How do we secure financial resources necessary to carry our competitive strategy? d.   Operations Strategies- How do we design our processes to produce products and/or service that meet customer requirements as specified in our strategy? e.   Information System Strategies- How do we provide decision makers, at all levels, with information necessary to make decisions consistent with strategy? f.   Technological(R & D) Strategies- How do we develop products consistent with customer requirements as specified in strategy? o   In addition to supporting competitive strategy through the development of the functional strategies, functional specialist also provide tools and information used in the development of strategy? For example a number of marketing tools are used to identify and evaluate opportunities, financial and human resources tools are used to examine strengths and weaknesses. 3.   Changes in the Strategic Planning Process- Over the years, approaches to the planning paradigm have changed significantly. Listed below are two of these trends. o   Planning as an Event versus planning as a continuous Process. Traditional models of planning consisted of a specific planning cycle with data collection, analysis and decision making taking place every couple of years. The intervening years were periods of strategy implementation. Current thinking views strategy development as a continuous process where systems are put in place to continually monitor the environment and make changes and improvements on an ongoing basis. o   A move from Transactional approaches to strategy implementation to Transformational approaches. Often referred to as empowerment or employee participation, a process of employee involvement in the planning process which attempt to build commitment to the mission and strategy is replacing transactional processes. Transactional processes are typified by planning departments and top management(or consultant) developed plans which are implemented through a reward based control system. Transactional processes tap instrumental sources of employee, while transformational processes are based on Internal and External Self Concept, and Goal Identification bases of employee motivation. @@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@

BASED  ON  THE  ABOVE  ANALYSIS  THE  ORGANIZATION   HAS  CHOSEN  THE   Differentiation strategy. Differentiation Strategy Defined

Your differentiation strategy is an integrated set of action designed to produce or deliver goods or services that customers perceive as being different in ways that are important to them. It call for you to sell nonstandardized products to customers with unique needs.

Why Differentiate?

The concept of being unique or different is far more important today than it was ten years ago. The key to successful marketing and competing is differentiation.

Hypercompetition is a key feature of the new economy. What used to be national markets with local companies competing for business has become a global market with everyone competing for everyone's business everywhere. With the enormous competition markets today are driven by choice - your targeted customers have too many choices, all of which can be fulfilled instantly. Choosing among multiple options is always based on differences, implicit or explicit, so you ought to differentiate in order to give the customer a reason to chose your product or service. Thus, "differentiation is one of the most important strategic and tactical activities in which companies must constantly engage. It is not discretionary".1

Differentiation should  be  aimed at the broad market that involves -the creation of a product or services that is perceived throughout its industry as unique. *The company or business unit may then charge a premium for its product. *This specialty can be associated with design, brand image, technology, features, dealers, network, or customers service. Differentiation is a viable strategy for earning above average returns in a specific business because the resulting brand loyalty lowers customers' sensitivity to price. Increased costs can usually be passed on to the buyers. Buyers loyalty can also serve as an entry barrier-new firms must develop their own distinctive competence to differentiate their products in some way in order to compete successfully.

A differentiation strategy is more likely to generate higher profits than is a low cost strategy because differentiation creates a better entry barrier. -Positioning and differentiating the business .

-Positioning and differentiating the products against rivals -USING  the Business-level cross-functional process management -Anticipating changes in technology and customer perceptions and adjusting the strategy to accommodate them. -Influencing the nature of competition through strategic actions such as virtual integration and through political actions -Building strategic partnerships and co-innovating with other business units, partners, and customers. PROVIDING  CUSTOMERS  WITH MORE  

VALUE-ADDED  [ MVA ] "MVA  means that you give the customer more, perhaps far more, than you ever have before. It goes beyond simplifying your customers' interactions with you to delivering solutions to your customers' problems, of which your products and services in their native forms are but small pieces... You can visualize the principle of MVA as a ladder with your product at the bottom and the solution to your customer's problems at the top. The more help you provide your customers to fill that gap, the more value you add to them, which, of course, differentiates you from your competitors who are still scrambling around at the bottom of the ladder. Also, it is to your advantage to control as much of the ladder as you can – customers will be less likely to abandon you in favor of someone else, lower down the ladder, who offers less value. At the same time, your opportunity for margin and profit increase."7

KEY  ELEMENTS  OF  DIFFERENTIATING  STRATEGY

•   reflect the spirit of the Business •   be symbolic and intuitive •   be distinctive •   catch eye •   stay in memory •   connect to different cultures •   be adaptable..

ETC  ETC

==============================================

AN  ORGANIZATION  CAN  DEVELOP  A  SERIES  OF  

DIFFERENTIATION  STRATEGIES

DEPENDING  ON ITS  PRODUCT/ MARKET  SITUATIONS  AND THE  ORGANIZATION  RESOURCES.

============================================

*CHANGING  PRICES   STRATEGY

-develop  a  pricing  strategy  which  will allow  the  organization  to  lower  prices

to  gain market monoploy  and / or prevent competition from entering.

================================================

*IMPROVING  PRODUCT  DIFFERENTIATION  STRATEGY

-improve  the  product  features/ benefits  to gain significant  advantage in the  market.

-----------------------------------------------------------------------------

-develop  and  implement  innovations  in  the  manufacturing  process  to gain

advantage  for  the  product  cost/ distribution.

-----------------------------------------------------------------------------

-develop  a  brand  consciousness  in the  market  to  reduce  substitution  from  

entering  the  market.

=============================================

*CREATIVELY  USING  CHANNELS  OF  DISTRIBUTION   STRATEGY

-using  vertical  integration, to  acquire  a  channel  and dominate.

------------------------------------------------------------------------------

-developing   a   new / unique distribution channel  which  is  a  novel

to  the  industry.

--------------------------------------------------------------------

*EXPLOITING  RELATIONSHIP  WITH  SUPPLIERS  STRATEGY

-developing  /  setting   E-COMMERCE   with suppliers.

------------------------------------------------------------------------

-developing/ extending  TQM [total  quality management]  and JIT [just in time]

with  suppliers to  meet  the demands  of  product specifications / price.

================================================

*COST  LEADERSHIP

-develop  the  manufacturing  to  achieve  a  gross  margin, which

could  be  used  to cut price  to  gain  market  share, if/when required.

------------------------------------------------------------------------------

-develop  the  product  sourcing  from   anywhere,   to  achieve  a  gross  margin, which

could  be  used  to cut price  to  gain  market  share, if/when required.

------------------------------------------------------------------------------

-develop  a   trade  rebate system  for  large  quantity  buyers

which  could  block  competitors  entry.

==============================================

*PRODUCT  DIFFERENTIATION  STRATEGY

-develop  unique  patented  or  proprietary  product  know-how

which  is hard  to copy/ compete.

---------------------------------------------------------------------

-develop   an   unique  customer loyalty program

which will  make  brand  switching   difficult.

------------------------------------------------------------------------

-develop   a  incentive  strategy  for  major buyers, so  that

they  would  always  use  your  brand.

============================================

*FOCUS   STRATEGY

-within  your  organization, develop  your  core competences

which  are  unique  for  your  product  /  market.

----------------------------------------------------------------

-develop  a  strategy  to  lift  the  profile/ image  of  

your  organization.

===================================

###################################

Q4.   Using the published information, select an organization which has gone for a strategic alliance. Explain the reasons because of which the organization chose to form a strategic alliance.

COMPANIES   look  for like-minded companies that understand  the complementary value  and  content solutions can bring to their customers. By combining each company’s products and services, turn-key solutions  can be developed to efficiently address market needs and tap into new technologies. Ultimately the  Strategic Alliance Program really means one thing: by participating in the alliance program your company has the potential to increase its revenue and grow its sales and business opportunities.

The  Strategic Alliance Program offers excellent opportunities -- regardless of company type and size – by enabling companies to: 1   Expand the market opportunity for your business in the fast-growing collaboration market space 2   Increase your company's knowledge base through access to collaboration experts 3   Partner with a proven, x-year leader in the content space. ALLIANCE  goal is to ensure the success of our combined efforts to grow our businesses together by identifying and acting on ways to increase mutual revenue opportunities, including:

1   Introductions to new customers and new markets 2   Issuance of joint press releases 3   Development of joint marketing collateral 4   Joint participation in tradeshows 5   Speaking opportunities at  PUBLIC  symposia 6   Preparation of joint proposals 7   Logo placement on corporate web site SAMPLE  ‘’STRATEGIC  ALLIANCE’’.

Unisys Corporation(NYSE: UIS) and Oracle today announced that the two companies are working on several combined global initiatives in areas such as financial services, outsourcing solutions, public sector and enterprise computing.

"We are pleased to count Unisys as a global strategic systems integrator alliance partner," said Andy Bailey, senior vice president, Global Systems Integrator Alliances at Oracle. "Because Oracle and Unisys have been trusted alliance partners since 1984, it's natural that we now begin working on global initiatives that bring additional customer benefit by allowing us to focus on global solutions for secure business operations."

The two companies are building upon Unisys newly announced plan to deliver solutions for secure business operations. The solutions are energized by Unisys 3D Visible Enterprise strategy, which is designed to enable a client to see the links among business strategy, processes and IT requirements throughout the entire enterprise and gain visibility into the impacts and costs of strategic decisions at all levels even before making them. To support its strategy for solutions delivering secure business operations, Unisys is aligning with an exclusive list of the world's leading technology providers to deliver customer solutions that harness its partners' expertise with the power of 3D-VE.

"This focus on global initiatives with Oracle opens up new opportunities for Unisys and our clients around the world," said Jean Michel Fournier, vice president and general manager, Worldwide Alliances at Unisys. "Our companies share a vision of helping clients build visible and secure business operations."

Unisys and Oracle are currently working together on several major initiatives, including:

* Financial Services Solutions. Unisys and Oracle are working together on several initiatives to help financial institutions obtain more visibility into their business, in both the front and back office, to improve operations and increase service. These joint solutions address retail banking, payments, customer relationship management, and other pertinent areas, drawing on both Unisys and Oracle's strengths in financial services. For example, by combining Unisys deep expertise in payments with Oracle's robust database capabilities, the two companies can help a bank better manage payments throughout its enterprise to maximize efficiencies across product channels, identify new revenue streams and improve customer service.

* Outsourcing Solutions. This initiative will focus on mapping and integrating Oracle and Unisys service definitions for seamless delivery of complete outsourcing solutions to clients with requirements such as network and security management, asset management and call center support.

* Public Sector Citizen Interaction(311) Centers Solution. Unisys and Oracle are working together on a broad range of initiatives in the public sector, most recently on joint development of a core CRM application for 311 contact centers, which provide a non-emergency contact solution for citizens to obtain government services.

* Application Scale-Up and Validation Testing. Unisys and Oracle will develop application-specific proof points, testing benchmarks, sizing guides and validated configurations for Oracle databases and applications running in both Linux and Microsoft Windows environments. Unisys is a Certified Advantage Partner in the Oracle PartnerNetwork.

About the Oracle PartnerNetwork

Oracle PartnerNetwork is a global business network of 15,000 companies who deliver innovative software solutions based on Oracle software. Through access to Oracle's premier products, education, technical services, marketing and sales support, the Oracle PartnerNetwork program provides partners with the resources they need to be successful in today's global economy. Oracle partners are able to offer customers leading-edge solutions backed by Oracle's position as the world's largest enterprise software company. Partners who are able to demonstrate superior product knowledge, technical expertise and a commitment to doing business with Oracle can qualify for the Oracle Certified Partner levels.

About Oracle

Oracle(NASDAQ: ORCL) is the world's largest enterprise software company. About Unisys

Unisys is a worldwide technology services and solutions company. Our consultants apply Unisys expertise in consulting, systems integration, outsourcing, infrastructure, and server technology to help our clients achieve secure business operations. We build more secure organizations by creating visibility into clients' business operations. Leveraging Unisys 3D Visible Enterprise, we make visible the impact of their decisions-ahead of investments, opportunities and risks.

Trademarks

Unisys is a registered trademark of Unisys Corporation. Oracle, JD Edwards, and PeopleSoft are registered trademarks of Oracle Corporation and/or its affiliates. All other brands and products referenced herein are acknowledged to be trademarks or registered trademarks of their respective holders.

WHY –THE  REASONS  FOR  THIS  ALLIANCE.

The decision to form a strategic alliance depends on the needs and goals of the companies involved and on the laws of the countries in which the companies are doing business. MARKET ENTRY. A strategic alliance can ease entry into a foreign market. First, the local firm can provide knowledge of markets, customer preferences, distribution networks, and suppliers. This is especially true in Eastern Europe. Bestfoods is a food-processing firm that sells products such as Mazola corn oil. Bestfoods has formed strategic alliances with firms in several Eastern European countries that, in turn, market its products. A strategic alliance between British Airways and American Airlines was created in 1993 and designed to give the two airlines increased access to North American and European markets, respectively. Sometimes, foreign countries require that a certain percentage of ownership remain in the hands of its citizens. For example, in Mexico, foreign investment is limited by law to 49 percent in specified areas, including bonding companies, firms that print and publish periodicals for national distribution, engine and car repairs, and operation of railway terminals. Thus, foreign firms cannot enter such markets alone; a joint venture is required. SHARING RISKS AND EXPENSES. Another major benefit of a strategic alliance is that the firms involved can share risks. For example, in the early 1990s, film manufacturers Kodak and Fuji joined with camera manufacturers Nikon, Canon, and Minolta to create cameras and film for an "Advanced Photo System." The strategic alliance(which was not based on a strategic alliance) was terminated in 1996 after the film and camera were developed. But it benefited the parties, because, by developing a common product for the market, they shared expenses and they minimized the risks that would have been involved if two or more of them had developed new, but noncompatible, formats. They avoided the potential for the kinds of losses suffered by the Sony Corp. when its Betamax format for videocassette recorders was rejected by the public in favor of the VHS format. SYNERGISTIC EFFECTS OF SHARED KNOWLEDGE AND EXPERTISE. A strategic alliance can help a firm gain knowledge and expertise. Further, when partners contribute skills, brands, market knowledge, and assets, there is a synergistic effect. The result is a set of resources that is more valuable than if the firms had kept them separate. For example, in the early 1990s, Motorola initiated an alliance among various partners, including Raytheon, Lockheed Martin, China Great Wall, and Nippon Iridium, to develop and build a global satellite-based communications network. This new network, called Iridium, allowed the partners to develop and implement a worldwide, space-based communications network. GAINING COMPETITIVE ADVANTAGE. Similarly, a strategic alliance can help a firm gain a competitive advantage. For example, a strategic alliance can be used to take advantage of a favorable brand image that has been established by one of the partners.(Establishing a brand image is a lengthy, expensive process.) It can also be used to gain shelf space for products. For example, PepsiCo formed a joint venture with the Thomas J. Lipton Co. to market readyto-drink teas throughout the United States. Lipton contributed brand recognition in teas and manufacturing expertise. PepsiCo, as the world's second-largest soft-drink manufacturer, shared its extensive distribution network.

##########################################

Q5.    Why is strategic control important to organizations? Explain with the help of an illustration.

Three fundamental perspectives-strategic control, continuous improvement, and the balanced scoreboard-provide the basis for designing strategy control systems. Strategic controls are intended to steer the company toward its long-term strategic goals.

- Premise controls, -implementation controls, -strategic surveillance, and -special alert controls are types of strategic control. All four types are designed to meet top management's needs to track the strategy as it is being implemented, to detect underlying problems, and to make necessary adjustments. These strategic controls are linked to the environmental assumptions and the key operating requirements necessary for successful strategy implementation. Ever-present forces of change fuel the need for and focus of strategic control. Operational control systems require systematic evaluation of performance against predetermined standards or targets. A critical concern here is identification and evaluation of performance deviations, with careful attention paid to determining the underlying reasons for and strategic implications of observed deviations before management reacts. Some firms use trigger points and contingency plans in this process. The "quality imperative" of the last 20 years has redefined global competitiveness to include reshaping the way many businesses approach strategic and operational control. What has emerged is a commitment to continuous improvement in which personnel across all levels in an organization define customer value, identify ways every process within the business influences customer value, and seek continuously to enhance the quality, efficiency, and responsiveness with which the processes, products, and services are created and supplied. This includes attending to internal as well as external customers. The "balanced scorecard" is a control system that integrates strategic goals, operating outcomes, customer satisfaction, and continuous improvement into an ongoing strategic management system. THE  FOLLOWING   CONTROLS - Premise controls, -implementation controls, TO  TRACK /MONITOR/ ACTION  PLANNING

BUSINESS  INTERNALS.

1.HOW  THE  COMPANY  MAXIMIZES   THE  STRENGTHS

AS  PART  OF  BUSINESS  STRATEGY

Criteria examples

Advantages of proposition? Capabilities? Competitive advantages? USP's(unique selling points)? Resources, Assets, People? Experience, knowledge, data? Financial reserves, likely returns? Marketing - reach, distribution, awareness? Innovative aspects? Location and geographical? Price, value, quality? Accreditations, qualifications, certifications? Processes, systems, IT, communications? Cultural, attitudinal, behavioural? Management cover, succession?

Philosophy and values?

-------------------------------------------------------------------

2.HOW  THE  COMPANY   OVERCOMES    THE  WEAKNESSES

AS  PART  OF  BUSINESS  STRATEGY

Criteria examples

Disadvantages of proposition? Gaps in capabilities? Lack of competitive strength? Reputation, presence and reach? Financials? Own known vulnerabilities? Timescales, deadlines and pressures? Cashflow, start-up cash-drain? Continuity, supply chain robustness? Effects on core activities, distraction? Reliability of data, plan predictability? Morale, commitment, leadership? Accreditations, etc? Processes and systems, etc? Management cover, succession

---------------------------------------------------------------------------

3.HOW  THE  COMPANY  TAKES  ADVANTAGE  OF    THE  OPPORTUNITIES

AS  PART  OF  BUSINESS  STRATEGY

Criteria examples

Market developments? Competitors' vulnerabilities? Industry or lifestyle trends? Technology development and innovation? Global influences? New markets, vertical, horizontal? Niche target markets? Geographical, export, import? New USP's? Tactics: eg, surprise, major contracts? Business and product development? Information and research? Partnerships, agencies, distribution? Volumes, production, economies? Seasonal, weather, fashion influences?

----------------------------------------------------------------

4. HOW  THE  COMPANY  MANAGES    THE  THREATS

AS  PART  OF  BUSINESS  STRATEGY

Criteria examples

Political effects? Legislative effects? Environmental effects? IT developments? Competitor intentions - various? Market demand? New technologies, services, ideas? Vital contracts and partners? Sustaining internal capabilities? Obstacles faced? Insurmountable weaknesses? Loss of key staff? Sustainable financial backing? Economy - home, abroad? Seasonality, weather effects?  

-------------------------------------------------------------------------------

THE  FOLLOWING CONTROLS

-strategic surveillance, and -special alert controls TO  TRACK /MONITOR/ ACTION  PLANNING

BUSINESS  EXTERNALS.

Political(incl. Legal)  

-Environmental regulations and protection [what  are  the  government regualtions/ protection laws  that  must be  observed ]

-Tax policies

what tax  hinder the business and what  taxes  incentives  are available]

-International trade regulations and restrictions

[ does  the  government    encourage  exports / with  high tariffs  on  imports]

-Contract enforcement law/Consumer protection

[does  the  government  enforce  on  consumer  protection ]

-Employment laws]

[ is the  government    encouraging  skilled  immigrants  with  temp. permits]

-Government organization / attitude

[ does  the  government  have  a   very  positive  attitude  towards  this   industry]

-Competition regulation

[ are  there   regulation  for  limiting  competition]

-Political Stability

[ politically ,  does the   government    have   a  very   stable  government ]

-Safety regulations

[ has  the  government      adopted  some  of  the  modern  safety regulations]

================================================================= Economic    

-Economic growth

[  what  is  the economic growth rate  /  what  are  the  reasons ]

-Interest rates & monetary policies

[ are  the  interest  rates    under control /  is there   a  sound  monetary  policies]

-Government spending

[is  government  spending  is  significant   and  is it   under control ]

-Unemployment policy

[what  is  the  employment / unemployment  policies  of the government ]

-Taxation

[  has  the  taxation    encouraged  the  industry ]

-Exchange rates

[ is   there  well  managed   exchange  controls  and  is it  helping  the  industry]

-Inflation rates

[ is  the  inflation  well   under  control ]

-Stage of the business cycle

[ is  your    industry  is  on  the   growth  pattern]

-Consumer confidence

[ is  the  consumer  confidence   is   high/ strong and  if  not, why ]

==================================================

Social  

-Income distribution

[is there   balanced   income  distribution   policy ]

-Demographics, Population growth rates, Age distribution

[ what  is   population   growth  and  why ]

-Labor / social mobility

[ what   are the  labor  policies  and  is  there  labor  mobility]

-Lifestyle changes

[ are  there  significant  lifestyle   changes     taking  place--more  modernization/ why  ]

-Work/career and leisure attitudes

[ are  the  population      career  minded  and  are  seeking  better  lifestyle]

-Education

[ what  are  the  education  policies /  is  it  successful ]

-Fashion, hypes

[are  the   people    becoming  fashion  conscious ]

-Health consciousness & welfare, feelings on safety

[ are  the  people     becoming  health  consciousness]

-Living conditions

[ is the  living  conditions   improving  fast  and  spreading  rapidly]

=========================================================

Technological  

Government research spending

[is  the  government    spending  on research  and  development]

Industry focus on technological effort

[are  the   industries    focused  on  using  improved  technology]

New inventions and development

[ are  new  inventions     being   encouraged  for  developments]

Rate of technology transfer

[ is  the  rate  of  technology  transfer  is  speeding  up ]

(Changes in) Information Technology

[ is  the   information  technology    rapidly  moving  and  is  there  government  support]

(Changes in) Internet

[ is the   internet  usage    rapidly  increasing   and  why]

(Changes in) Mobile Technology [is  the   Mobile   technology    rapidly developing  and  is there  government  support]

=========================================###########################################  
Suffield
 
Posts: 44
Joined: Mon Jan 06, 2014 5:31 am

Strategic Management

Postby Fearchar » Mon Nov 07, 2016 6:41 pm

Q1.     Select a company of your choice. Explain how politico-legal factors have created an opportunity as well as constraint for that particular industry or a business organization.

Q2.     Choose an organization that has a mission statement. Evaluate the statement based on the following criteria:

a.      Does the statement define the organization in brief terms?

b.      Does it define the organizations geographical operations?

c.      Is it consistent for all its business units?

d.      Does it conform to the objectives of the organization?

Q3.     Select an organization and discuss its strategic profile. This should cover the type of generic strategy chosen by the organization and why?

Q4.     Using the published information, select an organization which has gone for a strategic alliance. Explain the reasons because of which the organization chose to form a strategic alliance.

Q5.     Why is strategic control important to organizations? Explain with the help of an illustration.
Fearchar
 
Posts: 41
Joined: Sun Mar 09, 2014 12:12 pm


Return to Patents & Trademarks

 


  • Related topics
    Replies
    Views
    Last post