Role of Politics and Power in the Management of Operations - Assignment Example

Strategic Management Currently, the level of globalization, which is mainly resulting from the liberalization of markets, efficient flow of information, and integration of economies has increased tremendously. This results from the entry of multinational companies which have a huge financial base to segment the market, position their products or services strategically in the market, and attract the loyalty of the customers towards their products and services. Therefore, in order for the businesses to remain competitive, they must ensure that subordinates are working as a single unit that is determined to achieve the organizational goals. This can only be achieved if there is coordination of activities in the organization. As a result, organizational power plays a critical role of giving some employees powers to oversee the activities of the rest of the subordinates (Schermerhorn 2013). As a result, they are able to make critical decisions that ensure that the employees remain committed towards the organizational goals and objectives. Many organizations have diversified their products and services in order to reduce the risks and uncertainties associated with concentrating on a single product or service. However, in order for different department to work together as a common unit, organizations have divided power to different employees who are at different levels of governance. This has made it easier for the top-level managers to monitor and control the operations of the organizations and its subsidiaries (Witcher & Chau 2010). This has been critical in ensuring that even the organizations’ branches which are located in different parts of the world are well managed in order to record growth and development. Organizations are expanding their operations in different parts of the world. With the increasing levels of competition in the local market, organizations are looking to segment less competitive markets. However, in some of these markets, the organizations are facing a major challenge of overcoming the barrier or entry which has been put by the competitors in order for them to dominate the market. However, overcoming this challenge without losing focus on the market is a major step towards the growth and development of the business. Therefore, power in the organization ensures that the top management are dealing with external challenges while at the same time, supervisors are working hard to ensure that external challenges do not affect the performance of the employees (Hitt, Ireland, & Hoskisson 2005). Organizations are made up of formal and informal rules. Therefore, in order for these rules to be followed, organization, power gives some employees a role of ensuring that the rules and regulations set by the top-level managers are followed to the letter. In addition, it gives some employees the authority to take action to those who violate these rules. This creates order in the organization and ensures that all employees are working within the set guidelines. In an attempt to have societal outlook, organizations are employing subordinates who emanate from different religious, racial, gender, and cultural background. However, each of this group has their unique way of doing things. This strategy is being employed by the management in order to ensure that organization is in a pole position to deal with varying challenges. This is because a diversified workforce can be able to deal with a problem using different dimensions. Therefore, organizational power makes it possible for the managers to unite these employees and provide with the guidelines to be followed in order to enhance the spirit of team work. This is critical in avoiding conflicts which might slower the achievement of strategic goals. Positive power in the organization plays a critical role in encouraging productivity. Subordinates like to be associated with a firm that recognizes their effort. However, the decision to decide who to reward is made by the top officials with the help of performance appraisal (Truss, Mankin & Kelliher 2012). These decisions are very critical because failure to award the best performing employees would affect the morale of the employees. Therefore, effective utilization of organizational powers plays a critical role in motivating the rest of the employees. Moreover, the organizational power creates a synergy between the top-level management and the rest of the employees. This is mainly through enhancing the level of communication. This makes it possible for the managers to solve any conflict or grievances before they get out of hand. Organizational power plays a critical role in building the employees’ confidence. Currently, the market has become dynamic with new challenges arising each day (Mello 2006). Therefore, the employees need to remain focused in order for them to pursue challenging paths so as to achieve the organization’s goals. In addition, the power enabled the top-level managers to earn the trust of the employees. Organizational politics is a process of mobilizing powers. It happens when the subordinates act in ways that are potentially authoritatively illegitimate. In an example, politics happen when some organizational members make a claim in support of a resource sharing system. However, although politics are a major nightmare for those in power because many protagonists use this opportunity to push for their personal agendas, it improves the level of governance in the organization. For instance, through politics, the top-level management is able to know the areas that need some improvements in order to address the issues that affect the performance of the employees. The expanding sizes of the organization are making it hard for the top-level management to understand the issues that are affecting the employees. However, through politics, the managers are able to share ideas with the employees. This plays a critical role in improving the relationship between the employees in the organization. Politics enable the organization to set up policies that serve the interests of all employees. Currently, organizations have become more complex. For example, global firms such as Apple Inc, Google, Microsoft, and Toyota have expanded their operations in different parts of the world. However, many of these organizations are yet to make changes in their policies in order to meet the varying interests of their members (Drejer 2002). However, through politics, these organizations have made sever changes in order to improve the working environment. In addition, they have set new guidelines to enable the employees to perform to their full potential. This has played a significant role in improving the employees’ motivation. Question 2 The five forces framework is a platform to analyze the competition levels in the industry and business strategy development. Initially, the market was dominated by a few players. These firms were complacent because the level of competition was very low. However, with the increasing levels of liberalization of markets, which has mainly resulted from the removal of tariffs, the level of competition in the local and international market has increased tremendously. Therefore, in order for the business to decide whether to venture in a certain market, it is critical to analyze the viability of the market. As a result, Porters Five Forces analysis plays a critical role in enabling the organization to decide whether the business will be able to penetrate the market and whether the investment is worth it. Threats of new entrants are one of the important aspects that the business should consider before venturing into the market. Every profitable market attracts new investors who eye a segment of the profit. This leads to the new entrants, an aspect that reduces the profitability of the existing firms. However, unless the new entrants are blocked from entering the market, the competition will affect the market share of the business. This element, therefore, enables the business to establish the level of competition in the market and whether there are effective strategies that the business can use to reduce the level of competition by the major players in the market. In addition, the business is able to analyze the option of creating a barrier of entry for any interested investors (Pettinger 2004). This can be achieved through the accumulation of funds or segmenting the market in order to prevent loyal customers from being lured by the competitors products in the market. The threat of substitute products or services enables the company to outline possible substitutes that can attract the company’s loyal customers. For instance, tap water can be considered as a possible substitute for the coca-cola products. Understanding the substitutes is significant in enabling the firm to develop a strong marketing campaign which will enable the business to improve its competitive advantage in the market (Etemad 2004). In addition, it will make it easier for the firm to keep on observing the performance of these products in order to intervene when necessary. This is to ensure that the company makes the necessary changes once the customers change their consumption behavior, an aspect that might affect the overall sales of the business. In some markets, the bargaining power of the customers is very high. This is because there are many substitutes to select from in the market. As a result, it becomes very hard for the company to make immense profits because the customers dictate the prices of the products or services in the market. Therefore, understanding this element enables the company to decide whether the new product will be able to compete with the existing market and the overall market share that the business will target. This is through analyzing the buyer to company concentration ratio, the information available to buyers, and the sensitivity of the customers towards the prices of the products in the market. In addition, this element makes it possible for the firm to analyze on the extent at which buyers switch their costs relative to organization switching costs. This is significant in determining the best strategies to apply in order to improve the competitive advantage of the business in the market. Suppliers play a critical role towards the success of the business. In some cases, they have been used by the competitors to reduce the competitive advantage of the business in the market. This is through causing delays or conspiring with the competitors to create a temporary deficit in the market (Chau & Witcher 2013). This is to make the customers to turn towards the competitors products, an aspect that affects the performance of the business. Therefore, analyzing the bargaining power of the suppliers is critical in enabling the organization to determine the extent at which the suppliers will be affecting the operations of the business. In many cases, the competitors have been accused of hiking the prices of the raw materials in order to make mega profits. In addition, they have been said to increase the prices of the products in the market. This has a major impact on the overall sales of the business. In order for the business to sustain its competitive advantage in the market, it must analyze the competitive rivalry in the market. This can be achieved through analyzing the costs of advertising and the degree of transparency in the market, and competition between the online and offline companies (Witcher & Chau 2010). This element is significant in enabling the organization to analyze the prospects of the market and whether it will be possible to penetrate and position the products and services strategically in it. Question 3 With the increasing levels of competition in the market, companies are using innovation to keep the loyal customers. For instance, Apple Inc has been developing new products, an aspect that keeps its customers waiting for new models. This has made the firm to become the best company in the world. This has been achieved through developing a platform with the institutions of higher learning whereby, the company will be supporting innovative students and guide them during the incubation period. This has enabled the company to tap into the market and get the best minds in these institutions (McFarlin & Sweeney 2011). These are young people who have been able to come up with innovative ideas that have spearheaded the growth and development in the company. With the increasing levels of outsourcing of the major operations of the company, the companies have been able to produce products at very low rates. This has increased the number of similar products in the market. However, innovation plays a critical role in enabling the company to differentiate its products to those of the competitors. This has been critical in making it easy for the customers to identify the company’s products in the market. Innovation develops a unique selling point. Many customers look at innovation as a way of adding value to a company or its products. Customers are willing to pay a higher price for well designed and high quality products. As a result, innovation enables the business to craft new designs for its products (Analoui, & Karami, 2003). Furthermore, it makes it possible for the business to eliminate inefficiencies through implementation of new ideas. This lowers the cost of production while at the same time improving the performance of the business in the market. Every firm’s strategy aims at improving the operations of the business. Many businesses have failed to achieve success using these strategies because they are not keen on ensuring that strategies improve the overall performance of the business. Entrepreneurial approach enables the business to look at firm’s strategy as a way of improving the current operations of the business while at the same targeting new markets which will expand the revenue base of the business (Wheelen & Hunger 2004). In conclusion, politics and power plays a critical role in the management of operations in the organization. This is through enhancing the relationship between all employees. This enables the organization to deal with various challenges that might affect its competitive advantage in the market. In addition, innovation is critical in enhancing growth and development of the business through bringing in new products and services or new ways of achieving the organizational goals and objectives. References Analoui, F., & Karami, A. 2003. Strategic management in small and medium enterprises. Australia: Thomson Learning. Chau, V. S., & Witcher, B. 2013. Strategic management: Principles & practice. Drejer, A. 2002. Strategic management and core competencies: Theory and application. Westport, CT: Quorum Books. Etemad, H. (2004). International entrepreneurship in small and medium size enterprises: Orientation, environment and strategy. Cheltenham, UK: Edward Elgar. Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. 2005. Strategic management: Competitiveness and globalization. Mason, OH: Thomson/South-Western. Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. 2011. Strategic management: Competitiveness & globalization : concepts and cases. Mason, OH: South-Western Cengage Learning. McFarlin, D. B., & Sweeney, P. D. 2011. International management: Strategic opportunities and cultural challenges. New York: Routledge. Mello, J. A. 2006. Strategic human resource management. Mason, OH: Thomson/South-Western. Morden, T. 2007. Principles of strategic management. Aldershot, England: Ashgate. Müller, A. P., & Becker, L. 2013. Narrative and innovation: New ideas for business administration, strategic management and entrepreneurship. Wiesbaden: Springer VS. Pettinger, R. 2004). Contemporary strategic management. Houndmills, Balsingstoke: Palgrave. Schermerhorn, J. R. 2001. Management. Hoboken, NJ: John Wiley & Sons. Truss, C., Mankin, D., & Kelliher, C. 2012. Strategic human resource management. Oxford: Oxford University Press. Wheelen, T. L., & Hunger, J. D. 2004. Strategic management and business policy. Upper Saddle River, NJ: Pearson Prentice Hall. Witcher, B., & Chau, V. S. 2010. Strategic management: Principles and practice. Andover: Cengage. Read More