Understanding Strategic Management: Robin Hood Case - Essay Example

? Topic: Lecturer: Presentation: Robin Hood Case Robin Hood started his organization by mobilizing a group of discontented individuals especially farmers and peasants, who were resented with the way Nottingham sheriff was handling affairs. Every organization has a strategy that it tries to pursue in order to achieve effectiveness. Barnes (22) strategy is defined as “the direction and scope of organization over the long-term, which achieves advantage in a changing environment through its configuration of resources to fulfill stakeholder expectations.” Strategic management thus involves making decisions on strategies that would enable the firm to gain sustained competitive advantage. Strategy can be at the corporate, business unit or functional level. The operational strategy on the other hand is “the process of making key operational decisions consistent with overall strategic objective of organization” (Mahadevan 26). Robin Hood organization aimed at removing the sheriff from office and freeing King Richard to take over office. At first he considered killing the sheriff but decided removing him from office was more viable as killing would attract serious consequences. To achieve this he mobilized a gang whose mission was to “rob from the rich and give to the poor” (Lampel, n.p.). The operation strategy involved confiscating goods of wealthy merchants and giving to the poor and as such it was unlawful. In this organization, Robin Hood was supreme and delegated responsibility to three individuals. Gang members’ recruitment was based on willingness to ensure justice is achieved. The goods confiscated were a source of revenue for the merrymen. This strategy was inappropriate first because it was unlawful. Secondly, the overall strategy did not match with operational strategy; removing sheriff from office could not be achieved by confiscating goods from merchants. Furthermore, the sheriff was highly connected and powerful hence more competitive than the gang. Recruitment of the gang was also inappropriate as some could have been spies for the king or sheriff. The strategy was thus not effective. Q2: Organizational and Environmental Characteristics As he entered 2nd year, Robin Hood deemed it fit to change strategy since the strategy in place was ineffective. Various organizational and environmental factors informed him while making this decision. The organization strategy should be aligned to operational strategy (Mahadevan 33). He thus had to devise alternative strategies that would ensure the main goal of removing sheriff from office was achieved. Due to poor recruitment practices, the gang was growing large and indisciplined hence need to develop better recruitment policies. He would also have developed an organization design or structure to ensure all functions are properly conducted instead of making all decisions by himself (Barnes 29). Another issue was the change of route by travelers to avoid looting of their goods leading to loss of revenue. New ways of collecting revenue such as fixed taxation were inevitable to counter the increasing strength by the sheriff who had money and men in addition to support by friends at the courts, and the prince. Proper management of resources ensures success of strategy (Barnes 22). As such, Robin Hood needed to ensure skilled manpower through training, availability of proper and cheap housing for the gang instead of encamping, availability of cheap food by forging alliances with the farmers for the growing number of gang members. Moreover, its operations were illegal and to be granted amnesty, Robin Hood had an option of supporting barons in their attempt to free king Richard. This was a good strategy to ensure removal of sheriff from office and installation of King Richard. Although it a risky affair, it was worth consideration as an effective strategy. It was therefore, wise for him to consider a change of strategy in the campaigns for 2nd year. Q3: Factors to Consider in Revising Strategy In formulating strategy, it is important to carry out an analysis of the internal and external environment to determine the strengths and weaknesses as a well as opportunities and threats (Mahadevan 31). This helps to make decision on the most appropriate strategy to ensure sustained competitive advantage. For example, taking advantage of the gangs’ popularity to gain resources such as food and shelter for the merrymen. Taking the opportunity offered by the barons to free the king could also ensure the organizational objective is achieved. First, a strategic plan is needed to enable the organization to respond effectively to changes in environment. Another factor to consider is costs and benefits. Each alternative strategy has benefits and costs and should only be undertaken if benefits outweigh costs (Heizer and Render, ch. 6). For example, Robin Hood had various options such as killing the sheriff, accepting barons offer to rescue King Richard, enter into new markets to acquire resources needed, or institute fixed taxation. Each of these alternatives needs to be evaluated before any decision can be made. For example, killing the sheriff is risky and costly since he has strong men and resources as well as spies everywhere. If the attempt fails, it would be detrimental to the gang. Besides, there is no guarantee that the next sheriff would not be unjust. Though fixed taxes would be oppressive to the poor, it is the only way of ensuring consistent revenue and the damage could be reversed by educating people on benefits of paying fixed taxes. Considering the benefits of maintaining a large untrained army or recruiting few individuals and training them to be effective is crucial as it affects the performance and success of the organization. Another factor to consider is how to manage change. Some people are conservatives and would rather stick to the old ways thus are a barrier to change by resisting any new ideas (Barnes 25). Changes affect everyone in different ways and learning how to manage change is vital for business success. One way to avoid resistance is by setting clear goals and objectives hence a clear direction for the organization. Constant communication is also crucial in minimizing any doubts and avoiding romours that can affect performance. For example, Robin Hood can create at atmosphere where all members can contribute to decision making by forming a flat organization structure instead of making all decisions. Considering how the competition is handling its affairs is also essential in developing and implementing strategies. Razorfish It was established January 1995. Its main focus is growing in size and expanded business scope. It provides wide range of digital communications solutions (Razorfish, Inc). The technology industry is faced by a lot of challenges especially due to increased competition as well as technological innovations rendering old technologies obsolete. However, new firms in industry specializing in new products enjoy the benefits of lack of competition (Razorfish, Inc). Technological advancements push businesses to adopt new methods of conducting their operations hence giving opportunity for businesses to start up (Henry 54). There is also increased pressure for businesses to operate efficiently and to ensure satisfaction of customer needs thus increased reliance of businesses on information technology providers and more emphasis on core business areas (Razorfish Inc., n.p.). This is an advantage to start up businesses like Razorfish who provide a variety of services to such businesses. Razorfish provides integrated full-service offering and also combine international and local presence giving it an advantage over competitors. It also focuses on multiple aspect of service offering instead of single offering giving an edge in the industry. However, it engaged in ambitious acquisitions leading to its decline. Political pressure and economic factors may also lead to decline of new entrants in the industry as well as shortage of resources (Henry, 124). In the context of dynamic global environment, most companies deem it fit to expand their businesses by entering into new markets. A company can either enter in an industry where other businesses dealing with such products exist or in new markets. A company has to weigh the costs and benefits of any expansion strategy it wants to undertake. It can also sell existing products in new markets or new products in new markets either locally or abroad (Henry, 186). There are also various marketing entry strategies such as exportation, licensing, franchising, joint ventures, mergers and acquisitions among others. It is upon the company to decide on the market entry strategy into international markets as there are various factors involved that can hinder successful operations (188). For example, mergers and acquisitions may be hindered by cultural of political factors. Some governments prohibit setting up of foreign firms and in such a case acquisition would not be appropriate but exporting would be. Deciding on the market entry strategy is thus vital for organizations wishing to expand abroad. Razorfish was one such company implementing its entry and growth strategy. It adopted the acquisition entry strategy b acquiring various firms. Acquisition involves taking up the new firm and including it into its operations. This is usually challenging, since the workers have to adapt to a new organizational culture leading to resistance to such a change (Barnes 122). The company also acquires the problems of the bought company, thus, increasing its risks. Moreover, it has to adapt to new culture of the country where the firm is situated. Furthermore, acquisitions involve a lot of investments for the company and there is no guarantee that the company would be successful, since what works in one country may not work in another environment. Since it was entering an uncharted territory, it would have considered less ambitious strategies such as licensing. Despite the environmental and industrial characteristics of technology firms, investors are still willing to invest in companies in such a loosely defined industry. The industry requires unique resources such as human knowledge for innovation and creativity and this is a source of advantage and profit for investors (Henry, 128). Besides, it requires a lot of resources to keep updating with current knowledge and developing new products hence some competitors would find it difficult to cope. However, as Henry (128) notes “it is not availability of resources that matters but the efficient configuration of resources that provides an organization with competencies.” Works Cited Barnes David. Operations Management: An International Perspective. Mason, OH: Cengage, 2008. Print. Heizer Jay and Render Barry. Principles of Operations Management. 8th ed. Upper Saddle River, NJ: Harlow, Pearson, 2010. Print. Henry Anthony. Understanding Strategic Management. Oxford: Oxford University Press, 2008. Print. Lampel Joseph. “Robin Hood Case Study.” N.d. Web. 9 Jan, 2012. www.huizenga.nova.edu/5012/cases/RobinHood.html Mahadevan, B. Operations Management: Theory and Practice. India: Dorling Kindersley, 2010. Print. Razorfish, Inc. “Company Overview.” N.d. NASDAQ. Web. 9 Jan, 2012. www.nasdaq.com/markets/ipos/company/razorfish-inc-7503-4604 Read More