Business Integration - Competencies for Successful Business and Competing for Duopolies - Case Study Example

Heading: Business Integration Your name: Course name: Professors’ name: Date Introduction This paper intends to explore the two selected topics on Woolworths’ strategy and its implementation situation, which include: competing duopolies and competencies for successful retailing. It also seeks to explain the rationale behind the choice of the topics and the way their issues have been described in the chosen articles. Secondly, the essay will provide a summary of the selected articles, as well as explaining the reasons for their relevance to the Woolworths situation. Besides, this essay intends to provide a critical analysis of the articles, as well as to apply lessons from the selected articles on the firm’s situation. Selected topics In the essay, the two selected topics in relation to Woolworths’ situation include competing duopolies and competencies for successful retailing. To begin with, the topic regarding competencies for successful retailing has issues well-outline in the article found in http://www.hkqf.gov.hk/guie/SCS_list_Banking1.asp. This article is entitled “Major Functional Areas of the Banking Industry-Retail Banking”. In this article, some of the issues discussed relate to competencies for successful retailing. In this case, the article describes the competencies in form of functional areas of a banking industry, and that each of these functional areas calls for specific competencies or skills among the employees so as to facilitate effective retailing in the banking industry (Education Bureau 2012). Secondly, another selected article concerning competencies for successful retailing is article is found in http://www.iedp.com/Executive_Competency_Models. The article is relevant to the topic in that it describes issues concerning executive competency models that an organization ought to use in order so as to succeed in its operations (Thomas, Group & Mole 2002). The article basically demonstrates that for an organization to prosper; there are certain abilities or attributes that the executive must possess. According to Thomas, Group and Mole (2002), competencies are normally seen as solution. Besides, it shows ways in which competency models are essential for successful organizations. For instance, the article says that competency model are highly efficient in the both micro and macro levels of business and that competencies are appropriately contextualized (Thomas, Group & Mole 2002). The third article that is associated with competencies for successful retiling is “Core Competencies - An essential for Organizational Success” found in http://www.managementstudyguide.com/core-competencies.htm. Here, the issues brought out are relevant to the selected topic in that key competencies are essential for business success. The article outlines that a company’s exclusive capabilities are majorly personified in a comprehensive people’s knowledge. Besides, it says that these key competencies develop with time and are flexible; hence, an organization can maximize them and link them to the opportunities that the environment provides (Management guide, 2008). The second topic selected in from Woolworths’ situation is competing duopolies. The first article chosen that relates to this topic is from the “Encyclopedia of Business, 2nd ed.” in http://www.referenceforbusiness.com/encyclopedia/Dev-Eco/Duopoly.html. This is a relevant article for the topic because it describes certain issues regarding competing duopolies. In the article, Bianco (2012, p.1) defines a duopoly as a market in which two organizations sell a given service, commodity, or product. It also explains that duopolies influence a firm’s competitive behavior. It also explains that in such a kind of business, one organization should consider the impacts of its actions on the other organization. This is because of the natural reaction that ensues from another company concerning another company’s actions (Bianco 2012, p.1). The second article found appropriate to use in relation to the topic; competing duopolies is in http://www.dice.hhu.de/fileadmin/redaktion/Fakultaeten/WirtschaftswissenschaftlicheFakultaet/DICE/Discussion_Paper/007_Herr.pdf, which concerns welfare and qualities within a mixed duopoly with controlled prices (Nishijima 2005, pp. 3-20). The article is significant in this case in that it describes issues that relate to the topic, as well as the Woolworths situation. The article is based on a case of a private and a public hospital. Besides, the article explains that both public and private hospitals compete in Germany, and that there are many privatized hospitals in the country in the last decade. It also explains how a duopoly as special form of an oligopoly operates, particularly as regards competition (Nishijima 2005, pp. 3-20). Additionally, the article addresses the issue by using a case study, in which a problem is stated, literature is reviewed, methods are described, results are presented and analyzed, and results are discussed so as to draw a relevant conclusion. The third article used in addressing the issue of competing duopolies is found in http://www.mendelu.cz/dok_server/slozka.pl?id=51329;download=79958 that regards the issue of duopoly price competition on agricultural products’ markets. Similar to the aforementioned articles in this topic, this article also addresses the issues of competing duopolies, especially in terms of prices. Apart from defining the term ‘duopoly’ the article describes some of the duopoly models. It also describes a study that was conducted on the impact of duopolies form on the agricultural products’ market in terms of prices and consumer demand. Some of the duopoly models that are discussed in the article include Chamberlin model and Edgeworth or Bertrand model (Prášilová, Severová & Svoboda 2010, pp. 242-250). Summary of the articles All the selected articles above are relevant to the two chosen topics of competing duopolies; and competencies for successful retailing. The first three articles discussed above are associated to the topic; competencies for successful retailing. To begin with, “Major Functional Areas of the Banking Industry-Retail Banking” article entails the functional areas that a banking industry, especially retail banking handles. According to Education Bureau (2012), there are ten main functional areas that a retail bank operates that include retail banking service delivery, credit management, retail banking support and operations, compliance and risk management, technology management, relationship and sales management, brand marketing and product development, and general management and strategic business, and other generic operational areas. It further explains that these functional areas require the appropriate competencies that will help in the successful operation of the business. Besides, Education Bureau (2012) emphasizes that for retail banking operation to succeed; appropriate personnel equipped with the necessary competencies must be employed in the organization involved. Secondly, the second article on the same topic is about executive competency models. This article is relevant to the topic in that it outlines the significance of developing executive competency models in organizations (Thomas, Group & Mole 2002). Further, it describes some of the benefits of the competency models in an organization. The article says that competency models are valuable in both micro and macro levels of business; they are appropriately contextualized; they are a means to an end, which is often high performance; they offer an integrative structure for other operations; and that there is an explicit between business priorities and competencies. Basically, the article focuses on the development and adoption of executive competency models in every organization that desires to prosper (Thomas, Group & Mole 2002). Thirdly, another article concerning competencies for effective retailing concerns the core competencies indispensable for a successful business. In the article, core competency is defined as an exclusive technology or skill that forms a different customer value. It provides an example of Federal express (Fed Ex) as logistics management (Management guide, 2008). It also says that company unique competencies are majorly personified in the people’s integrated knowledge, as well as firm’s system that affects its employees’ behavior. Furthermore, the article explains that resources entails firm inputs used in the production process, and they can be financial, human, physical, technological or organic. Management guide (2008) says that capabilities involve organizational skills at incorporating its team of resources in order to be utilized more effectively and efficiently. It further says that core competencies aid a firm to differentiate its products from competitors, as well as lower its costs than its rivals; hence gaining a competitive advantage. What is more, the Management guide (2008) stresses on the importance of competencies in a firm that include, creation or customer value; creation of competitive advantage; deciding on firm’s future; deciding on structure and features of international competitive firm; promotion of innovation; development of new technologies; and delivery of quality services and products to customers. In the second topic of the essay, three topics are selected in relation to competing duopolies. The first article used in this case is “Encyclopedia of Business, 2nd ed.” In the article, a definition of the duopoly is given as a market in which only two organizations that sell a given service, product, or a commodity (Bianco 2012, p.1). It also notes that a duopoly is a special type of an oligopoly, which entails a market situation in which the production of similar or identical products is concentrated in few huge organizations. It also indicates that there is a rare unregulated competition in the duopolies as compared to an oligopoly. The article also says that the prices in duopolies are artificially high as compared to oligopolies. It also says that under the US antitrust laws, collusion between organizations to set prices is prohibited; hence duopolies must agree on pricing indirectly. It emphasizes that firms ought to notify their pricing decisions indirectly in diverse ways including speeches by firm leaders, press releases, or comments during interviews (Bianco 2012, p.1). In the second article relating to competing duopolies concerns welfare and qualities within a mixed duopoly with controlled prices. Here, a case concerning two organizations is used, which are the public and private hospitals (Nishijima 2005, pp. 3-20). According to the article, that privatization of the hospitals is increasing in Germany. It also shows that this is possible if the public hospital is the same as private, or less effective, and if there is a low competition. The besides, the article demonstrates that first-best may be attained in both private and public duopoly with little quality differentiation if these organizations are similar. Additionally, mixed duopoly, the regulated price can only be induce first best if public hospital is adequately more effective than the private hospital. Furthermore, the article shows that, in comparison to the mixed duopoly, a private duopoly is likely to be chosen if public hospital, which would be privatized experiences the same or greater marginal costs than private rival (Nishijima 2005, pp. 3-20). The third article used with respect to competing duopolies is the one that concerns issue of duopoly price competition on agricultural products’ markets. Here, duopoly models are described as situations in which two companies at the market compete with each other. The article addresses the issues of decision making by one of the firm and its effects. It also shows that the connection between the organizations at the market can have different appearances, to which specific duopoly models are linked. Furthermore, the article shows that organizations can maximize their profits as per their deficient competition condition; that involve selecting supply quantities, and selecting the market price. Besides, the article describes some of the duopoly models like Chamberlin model, Sweezy model and Edgeworth or Bertrand model (Prášilová, Severová & Svoboda 2010, pp. 242-250). It also demonstrates a research that was carried out in order to find out if the agricultural products market substantially affected by the appearance of duopolies, what type they have and if they can basically affect price levels and clients’ demand for the products. Relevance of the articles to Woolworths’ situation The articles that have been selected in this essay are some relevance to the Woolworths situation in a variety of ways. To begin with, in the topic that concerns competencies for successful business, three articles were chosen to portray the importance of competencies for effective business (Education Bureau 2012). In the first article, the functionalities that a retail banking industry has are different from the ones at Woolworths. Nevertheless, Woolworths needs to apply the principles provided in the article so as to excel in its operations. Education Bureau (2012) says that for each and every functional area in it, it is imperative that the company employs the right personnel that are equipped with appropriate competencies so as to boost the company’s performance over its competitors. These competencies are crucial in the development of the business strategies. Therefore, the article is quite relevant to the issues that are going on in Woolworths. Still on competencies for successful business, there is an article concerning essential executive competency models in an organization. With Woolworth’s situation, it is imperative that the management considers the development of these competency models so as to improve its performance (Thomas, Group & Mole 2002). Woolworths’ condition is that it is lacking a differentiated strategy of handling competition. In fact, it lacks key retail values in terms of service and price. It also has poor client insights abilities; minimized store level service; under-used loyalty ability; lack of client centricity in pricing and ranging. All the aforementioned deficiencies imply that the company does not have the right competencies for its functional areas. Consequently, the article is timely, as it emphasizes on the importance of developing executive competency models. This also applies to Woolworths so as to enhance its performance in the market (Thomas, Group & Mole 2002). The third article on competencies to effective business concerns core competencies that are indispensable for an organization (Management guide, 2008). Here, the article stresses on the vital competencies that every organization must have in order to succeed in the market. In the case of Woolworths, there are insufficient competencies that could propel the company towards success. Therefore, the article outlines some of the benefits of core competencies in to a firm. For instance, value creation; delivery of quality services and products to clients; creation of competitive advantage; and promotion of innovation (Management guide, 2008). In the other selected topic, competing duopolies, from Woolworths’ situation, the articles chosen are very relevant to Woolworths’ condition. These articles are pertinent to the company because Woolworth and Coles are in a duopoly. This means that they have similar products or services, and that they are the only existing firms in the market. The first article concerning competing duopolies relates to Duopoly is found in the “Encyclopedia of Business, 2nd ed.” This article is relevant to the company because it discusses particular issues that duopolies like Woolworths and Coles organizations face in their operations. For instance, the article talks about price regulation strategy that is used in gaining competitive advantage (Bianco 2012, p.1). The next selected article on the same topic is about welfare and qualities within a mixed duopoly with controlled prices. This article is relevant to the Woolworths’ situation because it talks about issues regarding welfare and qualities in two forms of business; private and public hospitals (Nishijima 2005, pp. 3-20). Here, prices are regulated by the firms so as to maintain their performances in the market. The two firms relate to Woolworths and Coles competition for clients in the market through price control and competitive advantage strategies. Thirdly, the topic is also addressed through an article relating to duopoly price competition on agricultural products’ markets. The price competition issues brought out in the article are pertinent to Woolworths’ and Coles’ condition. This is because both companies are competing for clients in the market by regulating their prices. Besides, the article describes a study on the impact of duopoly appearance on customer demand and price level (Prášilová, Severová & Svoboda 2010, pp. 242-250). Therefore, it is explicit that the aforementioned, selected articles are relevant to Woolworths’ case since they address most of the issues that the company faces. Critiquing the articles The first three articles concerning the competencies for successful business help in the understanding of the topic since they bring out the relevant issues clearly. The first article talks about functional areas of a retailing bank that must be handled with the suitable competencies. However, the article fails to clearly define what competencies are, as well as providing some examples of the key competencies in the retail banking. Besides, it does not provide adequate evidence for its arguments. The second article helps in the understanding of the topic area by providing background information of executive competency models. It also lists the importance of these models in an organization, but has no sufficient evidence for its arguments. Thirdly, core competency article is the most effective one since it defines what core competencies are, as well as their benefits in a firm. Nonetheless, like the other two articles, the paper has failed to give sufficient proof for its arguments. The other set of articles in light of the second topic, competing duopolies, provide vital information for the understanding of the topic area. The first one clearly addresses the issues of competition in a duopoly like price regulation and competitive advantage through differentiation. It also has adequate evidence to support its arguments. The next article in this case concerns welfare and qualities within a mixed duopoly with controlled prices. This demonstrates how firms compete for clients through competitive advantage and price regulation. It also has sufficient evidence for its arguments in that it uses a case study. The third article is also significant in the understanding of competing duopolies. The article uses a case study of private and public hospitals, as well as references to support its arguments. It also brings out issues of competition in firms that have controlled prices in the market. Lessons applicable to the Woolworths To start with, the first selected topic, competencies for successful business, offers great lessons to Woolworths through the articles. Some of these lessons include the need for the company to ensure that each of its functional areas is equipped with the core competencies so as to enhance its performance (Management guide, 2008; Education Bureau 2012). The firm should also ensure that it develops a viable business strategy so as to overcome competition from Coles. In addition, it is imperative for Woolworth to develop executive competency models so as to be effective its operations (Thomas, Group & Mole 2002). In light to the second topic regarding competing duopolies, the company ought to develop a competitive advantage by differentiating its services and products from Coles’. This is possible by enhancing its innovation and business strategy (Prášilová, Severová & Svoboda 2010, pp. 242-250). It also ought to tactically regulate its prices in order to overcome competition from Cole. This is worthwhile since it facilitate its success in the competitive market (Bianco 2012, p.1). It is also imperative that the company improves its quality so as to meet customer needs; hence high performance (Nishijima 2005, pp. 3-20). Conclusion The essay has handled two topics relating to Woolworths’ situation and they include competencies for successful business, and competing for duopolies. Each topic has three articles selected to address the issues of the topic areas. These articles are relevant to the company’s situation in that they handle most of the vital issues that the firm is facing. They also help greatly in the effective understanding of the topic areas, despite the insufficient evidence by some articles to support their arguments. Additionally, these articles are instrumental because they offer critical lessons to the company’s approach to its current situation, such as, the importance of having competencies and competency models, and development of competitive advantage through price regulation, innovation, and delivery of quality goods. References Bianco, DP 2012, Reference for Business; Encyclopedia of Business, 2nd ed. Duopoly. P.1, http://www.referenceforbusiness.com/encyclopedia/Dev-Eco/Duopoly.html Education Bureau, 2012, Major Functional Areas in Banking Industry-Retail Banking. http://www.hkqf.gov.hk/guie/SCS_list_Banking1.asp Management guide, 2008, Core Competencies - An essential for Organizational Success, http://www.managementstudyguide.com/core-competencies.htm Management guide, 2008, Core Competencies - An essential for Organizational Success, http://www.managementstudyguide.com/core-competencies.htm Nishijima, M 2005, Quality and Welfare in Mixed Duopoly: Effects of Capacity Reduction, Department of Economics and Business Administration, Yokohama City University, pp. 3-20. http://eba-www.yokohama-cu.ac.jp/~higashida/subdp/dptext-200702.pdf Prášilová, M, Severová, L & Svoboda, KRS 2010, ‘Duopoly Price Competition on Markets with Agricultural Products’, Business Journal, vol. 28, no. 4, pp. 241-250. http://www.mendelu.cz/dok_server/slozka.pl?id=51329;download=79958 Thomas, K, Group, H & Mole, G 2002, Executive Competency Models: Do They Really Add Value? Monitoring World Class Executive Development, http://www.iedp.com/Executive_Competency_Models Read More