Strategic Management: Tools and Techniques Used to Assess Organization Resources and Capabilities - Assignment Example

Strategic Management Table of Contents Tools and techniques used to assess organization resources and capabilities………...………3 2. Application of Value Chain Analysis in UK…………………………………………………..3 3. Organizational Capabilities…………………………………………………………………….3 3.1 Development……………………………………………………………………………….3 3.2 Implementation…………………………………………………………………………….4 3.3 Management…………………………………………………………………..……………4 4. Dysons Competitive Advantage………………………………………………………………...4 5. Commentary…………………………………………………………………………………….4 6. Reflective Commentary…………………………………………………………...……………5 7. Reference concepts and competitive advantage tools…….………………………..….……….6 8. SWOT analysis……………………………………………………………………….…….…..6 9. SWOT analysis discussion……………………………………………………………..…….....7 10. Strengths………………………………………………………………………………….……..7 10.1 High financial base…………………………………………………………...………...7 10.2 Qualified personnel…………………………………………………………..………...7 10.3 Strong brand name…………………………………………………………..……..…..7 10.4 Young fleet…………………………………………………………….……..……......8 11. Weaknesses…………………………………………………………………….………….…....8 11.1 Poor labor relationships…………………………………………………………..…....8 11.2 Incomplete China Strategy……………………………………………………..……....8 11.3 Joint ventures………………………………………………………..……...…………..9 12. Opportunities……………………………………………………………………………..……..9 12.1 New markets………………………………………………………………...………….9 12.2 Forming partnerships………………………………………………………..……….…9 13. Threats…………………………………………………………………………………………10 13.1 High competition………………………………………………………………….…..10 13.2 Fuel costs……………………………………………………………….……….….…10 13.3 New Entrants in the market………………………………………….…………….….10 14. Differentiation Strategy………………………………………………….……………...….….10 15. Commentary………………………………………….……………………….………...….….11 16. Reflective commentary…………………………………………………..………………...….12 17. References….............................................................................................................................13 Patch 2 Tools and techniques used to assess organization resources and capabilities Key tools Key Techniques Value proposition High quality Innovation Use of modern technology Extemporary designs Promotions Creativity Outsourcing operations Application of Value Chain Analysis in UK Inbound Logistics The company receives and stores raw materials in Malaysia Operation The operations of transforming the raw products into finished goods takes place in Malaysia Outbound logistics Warehousing and distribution occurs in the East Service The services are offered mainly in the company’s headquarters at UK Human resource Hiring, recruitment, firing, etc happens in UK Organizational Capabilities Development Organization capability is developed in the human resource sector. Employees are the ones who interact with the customers in a daily basis. As a result, the company ensures that they are competent enough to deal with issues that affect the customers. This has been significant in ensuring that the firm producing products that meet the requirements of the customers (Rimmer 2015). In addition, the company has integrated the employees in the decision making process. Therefore, they feel appreciated, an aspect that has acted as a motivational factor. Implementation Organization capabilities are implemented through an open office policy. This is significant in ensuring that all employees are able to air their grievances to the top management without the use of the intermediaries. This encourages innovation. These aspects have enabled the company to develop a close relationship with the customers. In addition, it has made it easy for the business to outsource some of its operations to Malaysia and other Eastern countries without affecting stability of the business (Lindström 2005). This is because the top management has the support of the subordinates. Management The organization capabilities are managed through keeping close contacts with all employees. This enhances the relationship between the top level managers and the subordinates. Moreover, the capabilities are managed through constant training of the employees. This entails training the workers on how to handle the customers, i.e. their queries, concerns, and grievances. This plays a significant role in improving the customer relationship with the business. Dyson’s Competitive Advantage Innovation and use of technologies are some of the aspects that have made it possible for the company to remain competitive in the market. This has been achieved through integrating the employees in the innovation process. As a result, they feel appreciated and as an integral part towards the success of the organization. In addition, the employees are offered support by the top-level managers to come up with innovative products (Lovegrove 2000) & (Williams 2008). This aspect has played a significant role in ensuring that the organization retains its competitive advantage in the market. The company strategy of outsourcing some of its operations has enabled it to retain its competitive advantage. For instance, its testing facility which is located in Malaysia has been significant in ensuring that the business in UK has a constant supply of products. Moreover, manufacturing part of hand dryers in Nanjing in China has been significant in ensuring that the business is able to offer the target market with cheap products. This has made it possible for the business to dictate the prices in the market, an aspect that has improved its competitive advantage (Bradley 2010). Commentary With the increasing levels of competition in the local market, businesses are diversifying their operations to different parts of the world in order to reduce risks and uncertainties associated with concentrating on a single market. In addition, branding, intensive advertising, and franchising are some of other strategies that are being used by various organizations in order to increase their revenue. This patch is very significant in enlightening on how the business can use some of these strategies in order to remain competitive. This patch is very significant in highlighting some of the challenges that business undergoes in their attempts to improve their performances. For instance, Dyson faced a lot of critics from the local population due to its decisions to outsource some of its operations to Malaysia and China. In addition, the government did set up several barriers that forced the company to do away with the plan to support Dyson School of Design Innovation. Reflective Commentary Production of this patch has enlightened me on importance of outsourcing some of the operations to different countries. In addition, I am now well versed with how to develop organization capabilities. This is important in shaping my future career. This patch has given me an opportunity to understand some of the important aspects that need to be encouraged in the modern market in order for the business to succeed. In addition, I have been enlightened on different areas that I need to focus on in order to improve my skills. For instance, I need to learn how to communicate effectively, adapt to changes more easily, and sharpen my teamwork skills. This will be significant in enabling me to integrate with the working environment. Patch 3 Reference Concepts and Competitive Advantage Tools Reference Concepts Competitive advantage tools Quality services Customer loyalty Cost-cutting operations Low costs of operations Managing human resource Differentiation of its products and services offered Training of the personnel Innovation Proper management of operations SWOT ANALYSIS Strengths Weaknesses High financial base Poor labor relations because of cutting the wages of its employees Qualified personnel Incomplete China strategy Differentiated its products and services Joint ventures have been a weak point for the company (Sheth, Parvatiyar, & Shainesh 2001). A strong and proven management and strategy team (Schmitt 2000). A strong brand name Has the youngest fleet of aircraft in the industry (Roll 2006). Opportunities Threats New markets High competition from gulf carriers The company can form partnerships Fuel cost is rising Premium economy product can boost the company’s competitiveness New entrants in the market (Tan 2002) Low-cost operations can become a long-term evolution (Rimmer 2015) SWOT Analysis Discussion Strengths High financial base Over the years, Singapore Airlines has been accumulating funds in order to support its growth strategy. With the increasing levels of globalization resulting from liberalization of markets, efficient flow of information, and integration of economies, the level of competition in the local market has increased tremendously (Lindström 2005). Therefore, in order for the airline to remain competitive, it must create a strong barrier of entry for any interested investors. Therefore, a strong financial base has enabled it to segment the market, position its products and services strategically in the market, and attract customers’ loyalty towards its products and services (Liou 2002). This aspect has played a significant role in increasing its competitive advantage especially in the local market. Qualified Personnel Unlike its competitors, Singapore Airline has been setting up a huge part of its budget to train its employees. This aspect has been significant in enabling the company to expand its operations in other markets (Lovegrove 2000) & (Williams 2008). For instance, the airline has struggled to position itself in the Chinese market. However, with the constant training which focuses on understanding the cultural aspect of the local population, the airline is making some remarkable strides in the Chinese market (Mancini 2008). Strong Brand Name Over the years, Singapore Airlines has been investing heavily on advertising. The company has established a very strong marketing department. This has enabled the airline to enter the global market with ease (Peng 2014). In addition, it has become easy for the company to create a close customer relationship, an aspect that is being replicated in its overall returns. Young Fleet The safety of the passengers has become a great concern for many airlines. The Airline has addressed this issue by ensuring that its fleet is young and well serviced. This has played a significant role in increasing customer confidence concerning the services being offered by the company (Poitras 2002). Weaknesses Poor Labor Relations In the past five years, the company has been implementing various measures to reduce the cost of operations. One of these measures includes reducing the salaries of its workers. This has not augured well with the labor unions (Pham 2009). This tussle is increasing the rate of turnover. In addition, it is tarnishing the reputation of the business in the market. Incomplete China Strategy Every global player is trying to segment the Chinese market. However, Singapore is facing numerous challenges in trying to position itself in this market (Lim & Singapore 2009). For instance, the growth in this market is about 30% over the last eight years. This is unlike Cathy Pacific Airlines which continues to increase its market share in China (Ornbo, Sneppen, & Würtz, 2008). One of the major weaknesses lies in the financing of the company’s subsidiary in China. Joint Ventures In order for the companies to increase their financial strengths, they are merging together, an aspect that is increasing their strengths in the market. However, Singapore policies make it hard for the company to form a joint venture with other businesses (Marquardt & Berger 2000). This is making the business to struggle in some market. For instance, the company should have merged or acquired a local firm in China which has already penetrated the market (Heracleous, Wirtz, & Pangarkar, 2009). This could have boosted the presence of the business in the Chinese market. Opportunities New Markets Singapore Airlines has already created a name for itself. This is through providing high quality services and products at very low costs (Herrmann, Krajewski, & Terhechte, 2013). As a result, many markets will welcome the entry of the company. Therefore, there is a major opportunity for the company in US, Asia, and European market (Nankervis 2005). This will play an important role in increasing the profitability of the business. Forming Partnership Every investor will be willing to form a partnership with the company. This is the best strategy for the markets that are reluctant to absorb the operations of the business (Flouris & Oswald 2006). In addition, this would be the best move to enter in markets where the locals want to be associated with local companies only (Hax 2010). This would enable the business to have a local image. Threats High Competition High competition from major gulf carriers has shrunken the Singapore Airlines’ market share. This is threatening the competitive position of the business in the market (Kreitner & Cassidy 2011). Groups such as Indonesias Lion Air are advancing and expanding to new markets. This is posing a major threat to the airline. Fuel Costs In the past one decade, fuel costs have been rising in an alarming rate. Many airlines are implementing cost-cutting measures some of which are threatening their competitive advantage in the market (Dwyer & Forsyth 2006). Although the airline has increased the efficiency levels through investing in young fleet which are fuel efficient, rising fuel costs continues to be the largest concern for the business (Inderwildi & King 2012). New Entrants in the Market More companies are eyeing the same market with Singapore Airlines. Some of these firms have diversified their markets in different markets across the world. As a result, they are able to offer the customers with high quality services at very low costs (Doganis 2002). Therefore, their entry in markets that are held by Singapore Airlines will affect the competitive ability of the company. Differentiation Strategy The company has invested heavily in differentiating its products and services with those of the competitors. This is through service excellence, continuous innovation, and cost leadership. Through ensuring that all its fleet is well serviced, young, and in good form, the company has been able to win the loyalty of the customers. As a result, they are willing to pay any amount in order to use the services being offered by the airline (Lim & Singapore 2009) & (Tyagi & Gupta 2008). In addition, through setting 30% of its budget towards innovating new products and services, the airline has been able to differentiate itself from the rest of the competitors. As a result, the customers are always eager to test the new products and services (Kearney 2000. Moreover, through investing in the modern technology which has enabled the business to reduce the cost of operation, the cost leadership strategy has become so efficient, an aspect that makes the company to be unique among its competitors. This is having a made it possible for the business to retain its loyal customers (Bamber 2009). The competitive advantage strategy is sustainable. This is because it focuses on the long-term success of the company. For instance, training of the employees is a long-term strategy that focuses on the growth and development of the business (Beiske 2007). In addition, cost leadership strategy ensures that the company retains its competitive position in the market. In addition, it forces the employees to keep on innovating new products in order for the business to retain its top position (Bradley 2010). Commentary This task is very significant in helping me understand the operations of the business and how efficiency, good leadership, and innovation can contribute towards the success of the business. It has been able to expound my thinking on leadership aspects and strategies that can be implemented in order for the business to remain competitive in the market. Currently, each business is trying to have an upper edge in the market (Taneja 2014). The tastes and preferences of the target market keeps on changing, an aspect that has made the market to become more dynamic than a decade ago. In addition, globalization and liberalization of markets have made it easy for the global businesses to increase their presence in the global market (Temporal 2012). Therefore, this task is an eye opener on how to keep on improving the competitiveness of the business while still enhancing the level of effectiveness. The marketing environment has become more challenging. Technology is always changing. This task has enlightened me on how to utilize the new technology in order to satisfy the interests of the target market while at the same time safeguarding the profits of the business through innovation and cost-cutting measures. Reflective Commentary Producing this patch has improved my research skills. In addition, it has given me an opportunity to analyze and understand the operations of the business. As a result, I am more equipped with better management skills that will enable me to tackle challenging business environment. In addition, it has enlightened me on how to maximize the returns from the subordinates through providing a serene environment. Moreover, the task has been significant in learning on different aspects related to global business and market. As a result, I am better equipped to make decisions that will lead to growth and expansion of the business to different markets across the world. Furthermore, I now know how to analyze the situation of the business, advice the management on how to take advantage of the strengths and opportunities of the business and how to work on the weaknesses and tackle threats that are facing the business. References Bamber, G. 2009. Up in the air: How airlines can improve performance by engaging their employees. Ithaca: ILR Press/Cornell University Press. Beiske, B. 2007. Loyalty management in the airline industry. München: GRIN Verlag GmbH. Bradley, A. L. 2010. The independent airport planning manual. Oxford: Woodhead Pub. Doganis, R. 2002. Flying off course: The economics of international airlines. London: Routledge. Dwyer, L., & Forsyth, P. 2006. International handbook on the economics of tourism. Cheltenham, UK: E. Elgar. Flouris, T. G., & Oswald, S. L. 2006. Designing and executing strategy in aviation management. Aldershot, England: Ashgate. Hax, A. C. 2010. The Delta Model: Reinventing Your Business Strategy. (The Delta model.) New York, NY: Springer Science+Business Media, LLC. Heracleous, L. T., Wirtz, J., & Pangarkar, N. 2009. Flying high in a competitive industry: Secrets of the worlds leading airline. Singapore: McGraw Hill. Herrmann, C., Krajewski, M., & Terhechte, J. P. 2013. European yearbook of international economic law 2013. Berlin: Springer. Inderwildi, O., & King, D. 2012. Energy, transport, & the environment: Addressing the sustainable mobility paradigm. London: Springer. Kearney, 2000. Sustaining corporate growth: Harnessing your strategic strengths. Boca Raton, FL: St. Lucie Press. Kreitner, R., & Cassidy, C. 2011. Management. Mason, OH: South-Western Cengage. Lim, P. H., & Singapore. 2009. Chronicle of Singapore, 1959-2009: Fifty years of headline news. Singapore: Editions Didier Millet in association with National Library Board. Lindström, M. 2005. Brand sense: Build powerful brands through touch, taste, smell, sight, and sound. New York: Free Press. Liou, K. T. 2002. Managing economic development in Asia: From economic miracle to financial crisis. Westport, CT: Praeger. Lovegrove, K. 2000. Airline: Identity, design and culture. New York, NY: TeNeues. Mancini, M. 2008. Selling destinations: Geography for the travel professional. Clifton Park, NY: Delmar Learning. Marquardt, M. J., & Berger, N. O. 2000. Global leaders for the twenty first century. Albany, NY: State University of New York Press. Nankervis, A. R. 2005. Managing services. Cambridge [England: Cambridge University Press. Ornbo, J., Sneppen, C., & Würtz, P. F. 2008. Experience-Based Communication. Berlin, Heidelberg: Springer-Verlag Berlin Heidelberg. Peng, M. W. 2014. Global strategy. Mason, OH: South-Western. Pham, S. 2009. Frommers Southeast Asia. Hoboken, NJ: Wiley Publishing. Poitras, G. 2002. Risk management, speculation, and derivative securities. Amsterdam: Academic Press. Rimmer, P. J. 2015. Asian-Pacific Rim Logistics: Global Context and Local Policies. Cheltenham: Edward Elgar Publishing. Roll, M. 2006. Asian brand strategy: How Asia builds strong brands. Basingstoke [England: Palgrave Macmillan. Schmitt, B. 2000. Experiential marketing. Bilbao: Deusto. Sheth, J. N., Parvatiyar, A., & Shainesh, G. 2001. Customer relationship management: Emerging concepts, tools, and applications. New Delhi: Tata McGraw-Hill Pub. Co. Tan, F. B. 2002. Advanced topics in global information management: Vol. 1. Hershey, PA: Idea Group Pub. Taneja, N. K. 2014. Designing future-oriented airline businesses. Temporal, P. 2012. Asias Star Brands. Chichester: Wiley. Tyagi, R. K., & Gupta, P. 2008. A complete and balanced service scorecard: Creating value through sustained performance improvement. Upper Saddle River, NJ: FT Press. Williams, J. R. 2008. Renewable advantage: Crafting strategy through economic time. New York, NY: Free Press. Read More