Strategics for Strategic Decision Making

Strategics for Strategic Decision MakingWhat key lessons may be learned from any parity of these two quite polar accounts of the same strategic finish?Strategic decision Chosen substitute that affects key f tourors which determine the success of an organizations strategy. In comparison, a tactical decision affects the day-to-day implementation of step required to reach the goals of a strategy.1From these two accounts there are key lessons which can be learnt as far as strategic decision is concerned.Strategy flexibility. Since strategy is not written on stones, sometimes it has to undergo some changes so as to be able to match with the real market purlieu at particular entry moment. Sometimes one strategy only fails unless a combination of two i.e. emergent strategy as well as deliberate strategy.2Ability to turn-on customer inscription and tastes toward a product whose image is totally spoiled. While most motorcyclists were no doubt de cent people, separates of rowdies who went slightly on motorcycles and called themselves by such chance upons as Hells Angels, Satans Slaves, gave motorcycling a bad image. Some locomote Hondas took were re-designing of their product to match with the market inevitably i.e. from larger machines to smaller lightweight motorcycles.The inevitability of proper and streamlined market scanning. Its possible to enter the market with a real wrong strategy due to some reasons including failure to effectively scan the market needs. At start Hondas failed to know what US market inevitable and unfortunately they brought a wrong product of bigger machines while Americans needed smaller ones.Difficulties in the start-off entry to the market are not the end of pedigree .Difficulties can be physical exertiond as crucial mirrors for re-defining the strategy to a successful one.References pillowcase translate 2 LAURA ASHLEYQuestion 1 lay out Laura Ashleys stakeholders using a magnate/interest matrix.Stakeholders are those individuals or hosts who depend on the organisation to put to death their own goals and on whom, in turn, the organisation depends.3(Johnson et al, pp.132)Laura Ashley authority-interest matrix is as follows low-spirited POWER HIGHLOW INTERST HIGHHarmless stakeholders THE 11 CEOs,Media GroupBusiness AnalystsLaura Ashley CustomersChief executive of PearsonLaura Ashley and the husband BernardAnn Iverson a brisk CEO in 1995Richard Pennycook a newly FD in 1997Shareholders like Malayan United Industries (MUI)LOW delight LOW POWER This is a harmless stakeholder theme which requires less attention. This group is represented by the retired CEOs e.g. The 11 CEOs all over the last 14 years. Id really kinda focus on parkway the vexation forward, he says.LOW INTEREST HIGH POWER This group is not always bad but needs to be watched because when not satisfied it turns out to be harmful to the fear.Laura Ashleys Customers Customers concur very high power to the business because without customers there is no business at all.HIGH INTEREST LOW POWER This group is crucial to the business because it contains stakeholders with interest with what is done by the business including core customers of the business products and/or services. This group is represented byMedia groups likes to know about the operations but has got less power.Business Analysts likes to get schooling for analysis although they have less power.HIGH INTEREST HIGH POWER Here you can hold all key business stakeholders whose expectations and interests are always in the high side. This group is represented by Chief executive of PearsonLaura Ashley and the husband BernardAnn Iverson a new CEO in 1995Richard Pennycook a new FD in 1997Shareholders like Malayan United Industries (MUI) its chairman Dr Khoo Kay Peng, David Cook, Lauras Finance director oddball STUDY 3 THE equilibrate SCORE CARDQESTION 1 Why do you think organizations often find the Balanced bill difficult to implement in practice?Defini tion The equilibrate scorecard is a strategic preparedness and trouble system that is used extensively in business and industry, government, and nonpro meet organizations worldwide to align business activities to the vision and strategy of the organization.4Among various methods for measuring business performance, scorecard seems to be superior due to its profits over other traditional fiscal methods. Balanced Scorecard incorporates future variables as well as double measures of performance compared to other methods. in that location are about four perspectives under this method which are financial perspective, Customer Perspective, Internal perspective and innovation Learning perspective. The following are reasons for organizations difficulties toward implementation of a balanced score cardThe main problem facing organizations on implementing a balanced scorecard is the computer architecture and assumptions applied especially on selecting appropriate measures and offspring of measures to incorporate toward improving corporate performance as can be seen in the Shell crisis concerning overstatement of its oil reserves. Research from the Hackett Group shows a very small percentage of companies with mature and good incorporate of financial and operational metrics in their scorecards.There are processes in setting and implementing the scorecards known as translating the vision, communication and linkage, setting targets through formulatening and in the long run getting the feedback. Failing to follow this process organization faces the difficulty of failing to translate the strategic objectives to fit with measurements incorporated in the balanced scorecard which causes confusion than serving the purpose.The persuasion I would use to bring over the organization to adopt balanced scorecard is to talk about its advantages over other methods which are as followsMultiple measures of performance incorporates a range of variables that measure performance aga inst a multiple set of goals. antecedent Looking incorporates variables that are indicators of future performance including profitability.ReferencesCASE STUDY 4-FIATQuestion Post at to the lowest degree 4 factors, ie a Strength, a Weakness, an Opportunity and a Threat, from one or both of your SWOTs (2004 or 2008). Briefly explain your analysis.SWOT analysis is a strategic planning method used to pass judgment the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective.5The following is the analysis using SWOT tool of a FIAT Company showing its different milestones in business within two periods of 2004 and 2008.SWOT20042008STRENGTHSStrong management team, e.g. CEO Mr. Marchione.Young and energetic force-out with strong produce. The kids are truly devoted t o the cause. They are the heart of the success.Having cars with relatively lower average emissions crossway innovation rescript is the market leader in Brazilian market.WEAKNESSESUnappealing models or Odd cars which Mr. Marchione refers it as an arrogance of thinking.Limited resources.Licensing innovation to other manufacturers.A truck-making joint venture between Iveco and SAIC in China, it is listless in China, India and Russia.OPPORTUNITIESNew products -Alfas immediate future i.e. the new MiTo, which is base on the Punto and has been designed to match the driving dynamics of BMWs Mini, and the 149, successor to the compact 147 hatchback.Divorce from a 5-years GM partnership and becoming an independent player. union with other strong manufacturers like TATA and SAIC.THREATSImmergence of new Innovative specks in the car market by new rivals.Its five-year partnership with GM. It had not worked, for several reasons. Sharing platforms, engines and purchasing had not produced the ex pected economies of scale and Fiats ability to act independently.When new European Union rules on carbon-dioxide emissions come into forceAt the time when Marchione chipped in Fiat witnessed a clear future as can be shown through re-shuffle of very old workforce.CASE STUDY 6 THE NOVOTEL VALUE CHAINQuestion 1 What are Novotels competitive advantages?competitive advantage is an advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher prices.6Novotel Competitive advantagesMulti skilling Multi-skilling is to uprise staff as a team able to perform tasks and work as needed in a flexible manner, this would have umteen advantages for hotel management, especially in smoothing the need for certain types of staff at peak bottleneck periods of the day or evening.Standardized levels of its services A system to monitor standard procedures was introduced in 1987 which became known as the 95 Bolts. This system was intended to be a template for encyclopaedism whose standards was carried out by an internal team of inspectors who visited each hotel approximately twice each year. They worked as mystery shoppers in that they made reservations, arrived, stayed and departed unnoticed. advanced(a) marketing and distribution systems Novotel operates within both the individual and corporate business and leisure markets. Novotel usually have special promotions and advertising themes done in different locations and in different countries with tailored promotions to local holidays and lifestyles.alliance programs Novotel united programs strengthening relationship marketing especially the supplier partnership programmes, linked with purchasing and learning efficiencies delivering both scale and scope economies.Staff exchanges There was Exchange between countries, locations and type of customer mix which contributed to multi-culture is essential to getting customers. The exch ange provides means for staff motivation especially in the industry whose tire turnover is critical.ReferencesCASE STUDY 8 THE VIRGIN GROUPQUESTION 3 Does the Virgin Group, as a corporate parent, add value to its businesses? If so how?Corporate parent Is a business which owns and controls the operations of other businesses by either possessing outright ownership or controlling a majority of the choose stock.7Virgin was founded in 1970 as a mail-order record business and developed as a hole-and-corner(a) party in music publishing and retailing. However, by 2002, the group included over 200 businesses spanning lead continents and including financial services, planes, trains, cinemas and music stores.The group succeeded on adding values to its businesses regardless of decentralization of decision making. How does Virgin group add values to its businesses?Standards The group had standards which enabled the businesses to perform toward the same goals. There were performance reviews w hich made employees being held responsible for their performance as well as promotions from within. For example by using stock options, bonuses and profit sharing. fend services This involves centralised support services. For example, providing HRM, marketing, financial, etc support services and human resource management systems were in step forward to keep people committed.Corporate development Branson espouse his own personal style of management within units, boosting himself on effectively adding value to customers through employee involvement and taking their ideas.Managing linkages In the early 1970s Branson fatigued his good time soliciting funds for the company to become solvent.ReferencesCASE STUDY 11 RESTRUCTURING SONYQuestion 1 How many times did Sony re building itself during the period covered by the case study?Restructuring is the corporate management term for the act of reorganizing the legal, ownership, operational, or other structures of a company for the purpose of making it more than profitable, or discover organized for its present needs.8IntroductionOn 7 May 1946, Masaru Ibuka and Akio Morita (4) co-founded a company called large(p) of Japan Tsushin Kogyo Kabushiki Kaisha (Tokyo Telecommunications Engineering Corporation) with an initial capital of 190, OOOin the city of Nagoya, Japan. By the 1960s, the company had established itself in Japan and changed its name to Sony Corporation.In its milestones Sony underwent several business restructuring aiming at improving the companys focus on high potential products and expediting the decision making process to make the company more responsive to changing market conditions.Restructuring of electronics business (1994) In this new structure, the regrouping of electronic businesses were adopted getting into eight divisional companies. These eight companies are the Consumer Audio photo Products Company, the Recording Media Energy Company, the Broadcast Products Company, the Business Indus trial Systems Company, the InfoCom Products Company, the Mobile electronics Company, the Components Company, and the Semiconductor Company.Leadership by team of executives Here the new framework required Sony to be led by a team of executives at the top management level.The Ten-Company Structure (1996) In January 1996, a new ten-company structure was announced, replacing the previous eight-company structure whereby the previous Consumer Audio Video (AV) company was split into three new companies the Display Company, the Home AV Company and the Personal AV Company.The Unified-Dispersed Management Model In April 1999 another change was announced aiming at changes in its organisational structure. The new framework required the company to streamline its business operations to be able to exploit the internet technology opportunities.Restructuring Efforts in 2001 Once more in March 2001 Sony provided resolve about another round of organizational restructuring. This was about transformi ng itself into a Personal Broadband Network Solutions company by launching a wide range of broadband products and services for its customers across the world.ReferencesCASE STUDY 12 SAMSUNG ELECTRONICSQustion 2 How significant was Jong-Yong Yuns role in the change process?Change process It is an organizational process aimed at empowering employees to accept and embrace changes in their current business environment.9INTRODUCTIONSamsung is an Asian Electronic Company based in Suwon South Korea.The firm has experienced stiff rival from rivals such as Sony, Nokia, and Motorola on the basis of its revolutionary products.Jong-Yong Yuns role in the change processReorientation This helped the firm to develop new capabilities. He recruited new capable employees such as managers and engineers, many of whom had developed considerable experience in the United States.Retrenchment There was a layoff of a number of employees amounting 30,000, representing well over a third of its entire workforc e.Reduction of number of factories.Discarding a Failing Strategy Although the firm was making profits, Yun was concerned about the future prospects of a firm that was relying on a strategy of competing on price with products that were based .The success of this strategy was tied to the Samsungs ability to continually scout for locations that would allow it to keep its manufacturing costs down. maturation a Premium Brand Having managed to cut down the losses, Yun planned to shift Samsung away from its strategy of competition which based mainly on the lower priced products. Consequently, he began to push the firm to develop its own products rather than to copy those that other firms had developed.Pushing for New Products Through its new product development processes Yun struggled a apportion to make it happen ensuring higher margins as compared to its rivals.Designing for the Digital Home Yuns long term plan is to ensure Samsungs dominance in digital home technologies. He believes th at his firm is in a repair position to benefit from the day when all home appliances, from handheld computers to intelligent refrigerators, will be linked to each other and adapt to the personal needs of consumers.ReferencesCase Study 10 Mantero Seta Spa a strategy for ChinaQuestion 1 Would you exhort Mantero Seta Spas entry into the Chinese market? foodstuff suppuration An increase in the prerequisite for a particular product or service over time. Market growth can be slow if consumers do not adopt a high demand or rapid if consumers find the product or service useful for the price level.10YES I would recommend Montero Seta Spas entry into the Chinese market due to the following scenariosMarket Growth Chinese market promises for the lasting growth of the fashion business as you can see In the mid 2000s, stable economic growth had brought substantial income to many groups of people, and with it a growing demand for the satisfaction of higher level needs. withal Upper-class an d middle-class people became increasingly interested in their social life, and chose to spend money to better enjoy their spare time. There was a huge potential to sell luxury goods to these groups 2 per cent of the 1.3 billion people living in China.Identifiable retail Distribution The government of China had adopted a series of policies to propel the retail industry through a process of fundamental transformation. The force out had sparked dramatic changes in Chinese retailing, with market growth reshaping purchasing habits. As a result in the mid 2000s there were many different types of retailing methods, based on different products and market strategy. geographical Differences The reasons for the differences were various. In northern China consumers made choices based on seasonal factors. Values and beliefs of people in north China were based on their imperial history and social traditions, with clear distinctions between different social groups and classes. The distinction was underlined in many ways, including clothing. People in the north were aware of their appearance, and wanted others to contend their wealth and ability. In the south the climate was temperate therefore consumers chose lighter, more comfortable and durable satisfying for everyday wear.Marketing Communications Communication processes in the fashion business focused on the brand image and the values embodied in the product, rather than on the product itself. Processes included photographs, shows, showrooms, models, displays, videos and sample collections.ReferencesCASE STUDY 5 THE PROFITABILITY OF UK RETAILERSQuestion Are British supermarkets more profitable than their European and US counterparts?Profitability is the ability to gain profitProfit is the positive gain from an investment or business operation after subtracting for all expenses.11Profitability = TR-TC ( TR = Total Revenue, TC = Total cost)Return on capital employed ( ROCE ) is the ratio that indicates the efficiency and profitability of company capital investments.12British supermarkets are profitable compared to US and other European countries because of the following reasons-Cost of labor Labor costs are lower in the UK due to lower social cost borne by employers. This reduces operation cost and makes the British firms to be more profitable.Technology British companies have a lead in applying IT in their distributions systems with deliveries in small number of companies warehouses, the use of technology in distribution system reduce the cost of operation contributing to higher profits.Buying power The British supermarkets have high buying power and tend to be more centralizing than some of the US and other European countries. This help them in reducing cost and too the British firm are more experienced and skillful in using their buying power to negotiate better terms or price from their supplier.Because they have dominated the market the British supermarkets trim down the higher than a normal price to consumers (oligopoly power). Because the British supermarkets have high buying power and the use of oligopoly make them more profitable compared to the US and other European counterparts.