...Employing Strategy in a Competitive Environment Strayer University BUS59920 [ May 26, 2013 ] Introduction Strategic management is a vital part of managing today’s businesses. Environmental scanning is one component of strategic management where various economic, political and social factors are studied, that might affect the business. Environmental scanning can help businesses identify untapped markets and make costly mistakes. Two common strategic management tools used by managers are; SWOT analysis and PESTLE analysis. “PESTLE is an acronym for "political, economic, social, technological, legal and environmental." The purpose of a PESTLE analysis is to identify all of the various external political, economic, social, technological, legal and environmental factors that might affect a business. Managers then assess the risks that the identified factors pose and use that knowledge to inform decisions. SWOT is an acronym for "strengths, weaknesses, opportunities and threats." The goal of a SWOT analysis is to create lists of all of the internal and external strengths, weaknesses, opportunities and threats to inform strategic planning decisions. SWOT is meant to help businesses double down on strengths, eliminate weaknesses, pursue opportunities and avoid or prepare for threats.” (Hamel) Environmental Scan Indicating the Most Significant Environmental Threats An environmental scan was completed for the software and IT Service Company in the Washington, DC area. Politics...
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...Manager of this company has a bright vision on future, which he proved by trying his hand in production of new and innovative products. The marketing and pricing decision making environment of the company was mainly centralized but the General Manger also encouraged creativity by flexible working environment with in the company. First of all let's see what strategy is and why it is important? Basics of Strategy: Strategy decisions are different from other decisions taken for the company. They are distinguished on three levels; Scale: A strategic decision covers the whole circle. Strategy decisions are big decisions and concerns competitors, suppliers as well as customers. Time-span: These decisions mostly impact the medium term and long term objectives of the company although there out come can also be seen in short term. Dedication: This means resources commitment and investment that cannot be undone simply. This is done in the marketing of the company, operation changing etc. (Haberberg A. and Rieple, A. 2008) A company's strategy refers to the when, how and why of its existence and working. It basically entails the efforts that the company's management put in to achieve its objectives that pertains to selection of type of clientele, market situation and market form, what competitive advantage to follow and how to perform successfully in long term with taking into the its implications in short term. (Thompson, A.A. and Strickland, A.J. 2003) Strategic Analysis ...
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...out of this issue. The first challenge that employing mature worker concerns with an unavoidable effect of aging. Aging inevitably brings deterioration in physical, physiological and psychosocial capacities. Loss of physical strength, vision, hearing and mental agility becomes a major challenge in the employment issue of mature workers, since these will cause unwilling problems in having the job done efficiently and effectively in always demanding working environment. Auspiciously, there are two strategies that can to help to overcome the challenge; administrative solution and engineering solution. Administrative solution, done by the management, means limiting the harmful effects due to the stressful job by job redevelopment, job rotation, flexible work scheduling, etc. Engineering solution, on the other hand, takes care of the job and work environment. With the aim of controlling the risks of physical harms, this strategy is to redesign the tools, equipment and even the job and working environment more suitable for mature worker. This modification will lead to improvement in mature workers’ job performance such as higher productivity. Implementation of these strategies may not completely solve this complicated issue but it will result an obvious improvement. As technology is one of the giant factors that influence the business world, the lack of technology skills is quite challenging for the aged worker to enter the competitive business world. Even though some mature...
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...and Strategy NAME: Professor: Institution: Course: Date: Introduction Xactly is a software company offering science oriented solutions on incentive compensation programs and performance management. The company develops software that enables other companies survive in this fast changing technological environment by enabling them shift from the old complex paradigm of using sales compensation incentives based on spreadsheets to cloud based sales compensation incentive programs. This helps them manage, design, and optimize sales compensation incentives hence saving on costs, time, reducing risk, and aligning workers behaviors with company goals. Magal and Word (2009) argued that, “business processes are the tasks of activities that companies use to produce goods or services, and these activities are supported by Information and Communication Technology (ICT), such as computers, the internet and information systems." Therefore, it is imperative that the company’s business processes are aligned to its business strategies. Xactly’s business strategy of mass customization lieu industrial standardization calls for targeted focus and stringent campaign co-ordination, which are essential for promoting an enabling environment for continuous growth and improvement. Xactly also recognizes that constant communication is imperative for building profitable relationships. Therefore, the company adopted a proactive social strategy as another business strategy to steer...
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...STRATEGY Concept & Process By Ambarish | Amit | Hemant | Prasanth Its all about where do you want to go and how you mean to get there. Definition : Strategy A set of decisions and actions used to formulate and implement strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals. The Concept of Strategy • Innovation • Quality • Cost Leadership Competitive Advantage Strategy Distinctive Capabilities • • • • Value Creation Rarity Non- Imitability Non-Substitutability Strategic Fit • Strategy renewal • Internal resources should be in-sync with the external environment The Fundamentals of Strategy • Long term objectives and goals of organizations. • Expression of the leadership position the organization wants to attain & establishes a clear criterion on how progress towards its achievement would be measured. - Hamel & Prahalad (1989) Strategic Intent Resource based strategy • The Strategic Capabilities of a firm depends on its resource capability. • Sustained competitive advantage stems from the acquisition and effective use of bundles of distinctive resources that competitors cannot imitate. – Barney (1991) Strategic Capabilities • Ability of an organization to develop and implement strategies that will achieve sustained competitive advantage. • It depends upon the strategic capability of the managers of the organization. • Its important to know...
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...BUSINESS Micro environment factors, are factors close to a business that have a direct impact on its business operations and success. Before deciding corporate strategy businesses should carry out a full analysis of their micro environment. The following are the micro factors affecting business- Customers As all businesses need customers, they should be Centred (Orientated) around customers. The firm's marketing plan should aim to attract and retain customers through products that meets their "wants and needs" and excellent customer service. Employees Employing staff with relevant skills and experience is essential. This process begins at recruitment stage and continues throughout an employee's employment via ongoing training and promotion opportunities. Training and development play a critical role in achieving a competitive edge; especially in Service Sector Marketing. If a business employs staff without motivation, skills or experience it will affect customer service and ultimately sales. Suppliers Suppliers provide businesses with the materials they need to carry out their business activities. A supplier's behavior will directly impact the business it supplies. For example if a supplier provides a poor service this could increase timescales or product quality. An increase in raw material prices will affect an organization’s Marketing Mix strategy and may even force price increases. Close supplier relationships are an effective way to remain competitive and secure quality...
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...Approaches to Global Strategy Riordan Manufacturing is a global plastics producer employing 550 people with projected annual earnings of $46 million. The company is wholly owned by Riordan Industries, a Fortune 1000 enterprise with revenues in excess of $1 billion. Production is divided among three plants: plastic beverage containers in Albany, Georgia; custom plastic parts in Pontiac, Michigan; and plastic fan parts in Hangzhou, China. Research and Development is conducted at corporate headquarters in San Jose, California. Riordan's major customers are automotive parts manufacturers, aircraft manufacturers, the Department of Defense, beverage makers and bottlers, and appliance manufacturers (Scenario: Riordan manufacturing, 2006). Riordan is looking to expand further internationally in Australia. In order for Riordan to do so there needs to be a successful plan in place. The steps involved are called the strategic management process. If Riordan follow these steps, the expansion plans should be successful. Strategic Management Process Strategic management is the set of managerial decisions and actions that determines the long-run performance of an organization. It involves all the four functions of management. Strategic plans provide a common vision for the whole organization. The strategic management process is a series of steps that formulates the strategic planning, implementation and evaluation. Step 1: The first step is identifying organization’s current mission, objectives...
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...1. Which one of the five generic competitive strategies discussed in Chapter 5 most closely approximates the competitive approaches that Built Build-a-Bear is employing? Build-a-Bear Workshop closely approximates by employing a Focused Differentiation Strategy which concentrating on a narrow buyer segment by meeting specific tastes and requirement of niche members. A focused strategy keyed to differentiation aims at securing a competitive advantage with a product offering carefully designed to appeal to the unique preferences and needs of a narrow, well-defined group of buyers (as distinguished from a broad differentiation strategy aimed at many buyer groups and market segments). Successful use of a focused a differentiation strategy depends on the existence of a buyer segment that is looking for special product attributes or seller capabilities and on a firm’s ability to stand apart from rivals competing in the same target market niche. Build-a-Bear Workshop employs successful differentiation-based focused strategies targeted at upscale buyers wanting products and services with world-class attributes. Indeed, most markets contain a buyer segment willing to pay a big price premium for the very finest items available, thus opening the strategic window for some competitors to pursue differentiation-based focused strategies aimed at the very top of the market pyramid. 2. Critic the chosen strategy in terms of effectiveness, suitability and competitiveness for a...
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...tools/choice: Every company use some strategy to improve their business same as IKEA use some effective strategy to improve their business such as: # Low price strategy # Product strategy # Promotion strategy # Market development strategy Low price strategy: IKEA offers a wide range of well-designed, functional home furnishing products in low price. So that, many people can afford them. Low prices are the main keystone of the IKEA concept and help to make customers want to buy from IKEA. This low price strategy is attached with a wide range of well designed, functional products. IKEA’s products are available for every lifestyle and life stage of its customers. Product strategy: * Wide range of product according to the need of customers. * Product available for different section of the society. * Product adaptation according to the need of different market. * Most of the IKEA products are stylish that makes the company unique. * IKEA designs its own furniture. * IKEA offers a Varity of style. Promotion strategy: * High profile advertisement campaigns. * Online shopping. * Online advertisement. * IKEA provide home delivery service to its customers. Market development strategy: Target new segment and enter new markets with existing products. The potential benefits of international expansion are increased market share, revenues, profit and buyer awareness. Cost leadership: Cost leadership strategy increasing common over the period...
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...word counts: 2960 Questions: Question 1 You have been asked to advise two entirely different businesses about the benefits and problems associated with what is termed the “traditional approach to budgeting and budgetary control”. One of the businesses operates in a very stable and static market place, where there is little change in either products or demand year on year, whereas the other business operates in a very dynamic, rapidly changing, innovative environment. If your findings suggest that the traditional approach is inappropriate for one or both of the businesses, please summarise some alternative approaches. The “traditional approach” typically involves the following processes: 1) Development of assumptions and plans about the factors influencing next year’s budget in advance of the budget year starting; 2) Approval of the budget before the commencement of the budget year; 3) Once the budget year has started, there are monthly comparison reports which compares budget and actual performance on both a monthly and cumulative basis; 4) Action being taken (where necessary) to correct large variances or differences. Question 2 XYZ Limited is a medium sized manufacturing business which makes and sells products to a range of industrial customers who use XYZ’s products in their own products. The working capital of XYZ is typical of a manufacturing organisation in that at any point in time they have cash, debtors, stocks of raw materials...
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...head: Assignment 2 – Employing Strategy in a Competitive Environment - Fitness Connection Assignment 2 – Employing Strategy in a Competitive Environment - Fitness Connection Sample Student Strategic Management BUS 599, Winter 2013 Dr. Ingrid Wright February 3, 2013 Abstract As a business professional in the physical fitness industry, I have created an environmental scan for Fitness Connection in order for them to assess the threats and implement a plan of action to ensure that the impact is minimal. The components of the environmental scan are comprised of information addressing the following: 1) Create an environmental scan for the company indicating the most significant environmental threats and discuss how the company should respond to each threat to ensure that the impact to the business is minimal. 2) Based on the environmental scan, evaluate the company’s strengths and evaluate how the company can leverage these strengths so as to yield a competitive advantage in the marketplace. 3) Identify a significant competitor for the company and assess how your company will compete against it to maximize profits and create value for stakeholders. 4) Assume that the U.S. economy is in a state of decline requiring modifications to the strategy. Evaluate how the strategy should be modified. Provide a justification of how this will help the company continue to compete in the marketplace. 5) Evaluate how global competition may impact the business strategy and determine how...
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...BUSINESS Micro environment factors, are factors close to a business that have a direct impact on its business operations and success. Before deciding corporate strategy businesses should carry out a full analysis of their micro environment. The following are the micro factors affecting business- Customers As all businesses need customers, they should be Centred (Orientated) around customers. The firm's marketing plan should aim to attract and retain customers through products that meets their "wants and needs" and excellent customer service. Employees Employing staff with relevant skills and experience is essential. This process begins at recruitment stage and continues throughout an employee's employment via ongoing training and promotion opportunities. Training and development play a critical role in achieving a competitive edge; especially in Service Sector Marketing. If a business employs staff without motivation, skills or experience it will affect customer service and ultimately sales. Suppliers Suppliers provide businesses with the materials they need to carry out their business activities. A supplier's behavior will directly impact the business it supplies. For example if a supplier provides a poor service this could increase timescales or product quality. An increase in raw material prices will affect an organization’s Marketing Mix strategy and may even force price increases. Close supplier relationships are an effective way to remain competitive and secure quality...
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...In recent business publications, find a case study in which changes in the macro environment play a major role in influencing a firm's competitive strategy. In your answer, identify the macro environment(s) and explain how it influence a firm's competitive strategy. List sources that you used to answer this question. I have chosen to look at the case of FirstGroup plc (First), the UK's largest surface transportation company. With revenues of over 5 billion pounds a year and employing more than 135,000 it is an important company for the UK's economy. The main macroeconomic factor that has come into play recently for First are political influences and governmental policy changes. These changes have required First to alter it's policies and future business plans in a significant way. In 1997 the UK signed the Kyoto protocol that is designed to reduce the CO2 emissions of partnering nations. First's main source of revenue are rail and bus systems which are the number four and three contributors to co2 emissions in the UK, respectively. The UK realizes that it would not be able to achieve its objective emission rate without partnering with the businesses that create a large portion of those emissions. Along with the Kyoto protocol there has also been a social change happening in which society as become more aware of the harmful effects of engine emissions which have changed First's strategy as well. While rail and bus systems definitely emit co2 emissions, they are far...
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...people from different cultural and ethnic backgrounds are entering the workforce. Valuing diversity is becoming increasingly important for businesses. Publisher Malcolm Forbes once said that 'diversity is the art of thinking independently together.' Organisations can't thrive and grow if everyone in them thinks and behaves the same way. Having a diverse workforce with people from different racial, educational and social backgrounds and a diverse age range opens up a wealth of possibilities and helps to encourage creativity and foster innovation. There's also a clear competitive advantage to be gained from employing a diverse workforce. An organisation with a diverse range of employees is well placed to understand the needs of a wide range of customers, and can interact with a broad client base. Not only that, but it is also in a good position to recruit and retain staff in an increasingly diverse and competitive labour market. Embedding diversity of thought throughout an organisation also means that talent can be properly recognised and nurtured - wherever it may be. The best starting point for any organisation is to develop a good equality and diversity policy, backed up by a concrete plan of action. Acas experts can visit your organisation to help you understand what needs to be done to address a range of issues related toequality and diversity and then work with you to develop practical In this era of economic globalization, many companies are making efforts to achieve...
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...Marketing Strategies Sherris Mundell Dr. Bagher Fardanesh Contemporary Business (508) 03 May 2014 ABSTRACT Since it’s inception in 1977, Apple, Inc. has taken to task, the business of balancing social and ethical responsibility to include the impact of violations on the company. Apple has employed standards for suppliers to adhere to wage and benefits standards developed by its company and made itself a brand of value in the world market through diversity and innovation in its marketing strategy. In 2011, Apple, Inc. stated on their website that “Apple is committed to ensuring the highest standards of social responsibility wherever our products are made. We insist that our suppliers provide safe working conditions, treat workers with dignity and respect, and use environmentally responsible manufacturing processes.” (Klein, 2011) According to Boone & Kurtz, social responsibility is “management’s acceptance of the obligation to consider, profit, consumer satisfaction, and societal well-being of equal value in evaluating the firm’s performance.”(2013) According to their website, Apple, Inc. demonstrates that they have met the standard in regard to social responsibility as they provide the following: free education and development programs to train employees in Workers’ Rights; monitoring outsourced work through suppliers with compliance with the 60-hour workweek; safeguarding worker health and safety by sponsoring an 18-month program for environment, health and...
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