Strategic Reputation Management - Assignment Example

Running Head: Operations management assessment Operations management assessment Customer’s Name: Institution: Customer’s Course Tutor’s Name January 11, 2013. Assessment 1 Internal and external factors There were several factors both internal and external that affected Razor fish rise in the market and a sudden decline. In examination of these variable is the pestle analysis .To begin with is the political factor where Razor fish as a company had to consider the environment in which they were holding their business in. In a political environment that is peaceful, it is presumed that even the economy is successful as the government is cooperating with investors on economic decisions to be made for a successful market (Chaffey et al, 2000). On the other hand, what might have contributed to a decline might be the change in the political situation that made investors quite the market and rely on other companies where their political situation was peaceful and stable. For the company to prosper in the initial stages there might have been government support where it offered incentives making it easier for the company to reach out to its customers. Economic factors are also another variable that might have lead to its prosperity in the beginning because through the economy the firm would be shaped through its behaviours. The economy they were investing in might have had lowered taxing rates enabling the company to easily pay the internet subscription and provide it to every consumer at affordable costs, In a country that has strong currency, Razor fish was able to compete against other competitors and even serve a larger number of people in an international environment. As a result of high income being experienced in a national context, Razor fish had the ability to boost its products demands hence a wide market (Fillis, Johannson and Wagner, 2004) .What might have lead to its decline in the economic factor is the inflation that might have been experienced in the country of investment where there was the weakening if the currency and high interest rates being charged on their services where the company would not handle it hence reduction in profits. Social factors is also another external factor that is attributable to its rise as with the frequent use of internet and appreciation of technology, there was much use of services from Razor fish. New technology means employment of new ideas hence with the fresh ideas generated by young people cut on costs that would be set aside to cater for pension payments. That meant more concentration on paying for new ides rather than paying for employee expenses. What might have lead to the decline of the company might be the concentration of employing young employees who always seek for greener pastures. This acted as a contribution to the decline as there was a high employee turnover hence people had no trust in the continuity of the company. Technological factors are one of the variables that saw the company prosper in its early stages. This is because with it being a new established company, many consumers shifted to their service to find out how effective they were (Bharadwaj and Soni, 2007). With a large variety of internet services, this promised Razor fish a wide market through their technology. What might have brought about to their downfall is the emergence of another company that produced better technology at an affordable rate making people opt for other companies as opposed to Razor fish. Environmental factors might have brought about its success as most companies now appreciate the use of internet services at an affordable rate. With the use of internet to search for information and it being a resource that is not causing any damage to the environment, this might have attributed to its success. Lastly, the legal factors might have attributed to its downfall as with strict measures on where the internet can be used caused limitation and this in turn gave out reduced profits and a reduced number of potential consumers. If in the legal factors there were employment laws and the company would not afford to sustain the aged in their company that is one of the factors that lead to its decline. Entry and growth strategy and what they might have done differently Razor fish was aware that there had to be other competitors in the market providing similar services as them and in their strategy, they had to come up with strategies that offered both industrial and global competition and through this they created competitive products that enhanced growth. In their strategies they greatly emphasised on customer satisfaction where there was formulation of preference changes on various methods the internet services would be used (Broadband Residential Internet Access Industry Profile, 2002). In their strategies, there was also the formulation of how demographic changes would affect the consumers which helped them implement an approach that would cater for a large population. In the resources allocated, the company was aware that it needed skilled workers, sufficient raw materials that would serve a wide variety o f customers and a wide pool of capital to cater for all the expenses that it needed. What they would have done better to ensure continuity of the business in the long term was to strengthen the environmental operations where there would be a bouncing back decision if the internet services did not work well. In their service provision, the company should have come up with a strategy of branding and making the service unique compared to other competitors. They should also have come up with competing market strategies such as price wars which would work well in situations of uncertain changes in the market. Characteristics of the environment and industry In the discussion of the industrial analysis are the porter’s five forces that respond to the previous questions and why investors would risk in such a company. To begin with is competitive rivalry. To succeed in the industry, one has to be faced with a situation where at times the company has to lower the costs so as to attract customers. Through it might threaten the survival of the company, profits will be gotten in the short term when with a little increase in price, it will not be felt by the consumer though in the long run it will (Five forces analysis, 2012). Availability of substitutes might be rare to find in the internet industry hence this becomes an advantage to the company for reduced competition. The power of buyers plays a fundamental role as through them, investors rely on the profit being generated by the company. It also deals with the currency being used and through the buyer’s commitment; more investors will prefer investing in the company even if for a short duration of its existence. Internet suppliers are limited hence an advantage. As for Razor fish, there is a probability that it is supplying internet to a large number of companies and once subscribed to a certain internet provider, there has to be a contract for a specified duration. Before it expires, the company will have created a lot of profit hence another reason why investors will prefer the company. Finally thereat to new entrants is another advantage to the company. The capital base required for one to be in the industry is a lot and so is the upkeep capital. Razorfish had the capital and the resources and this kept it ahead of other companies (Five forces analysis, 2012). Even with the downfall of the company, if it was to quit and sell the business to another new entrant, there would be payment of goodwill which will guarantee the initial investors of profits earned while closing the company. Assessment 2 Strategy formulation and implementation In a small but growing business, strategy formulation is a key aspect that determines if the business has a prospective positive future or not. Robin Hood in his initial strategy comes up with a strong strategy formulation where there was development of plans that will serve an effective purpose for the long term existence of the business (Aula and Mantere, 2008). The supposed strategy formulations that Robin Hood planned took into consideration the environmental strengths and weaknesses and this will be backed up by the businesses mission of achieving and developing strategies which would ensure a quick yet efficient implementation. In the formulation process, there was a situational analysis that focused on the strengths, weaknesses, opportunities and threats that were likely to face the business even when it is in its infant stages. In the formulation, Robin Hood also looked at the threats and opportunities facing the external environment and at the same time look at the strengths and weaknesses that the business as a single unit faces. That way Robin Hood was able to come up with strategic alternatives that can suite his business and be in a better position to compete with even bigger businesses such as Sherriff. Still ion the strategy formulation, Robin Hood in his mission came up with a creative and outstanding purpose outlining why he had to start the business and that way it made his company unique in terms of the products offered and the market that it would be serving. With formulation of strategy, Robin Hood has a set time when his company’s objectives would be achieved and as a mission what product line can be invested and is likely to gain more customers. To implement on the strategies formulated, there has to be development of programs which Robin Hood will conduct to ensure that change has been done in the most effective manner (Le Cornu and Luckett, (n.d)).This will be in reference to culture and the overall management structure. To make the implementation possible, Robin Hood as the overall manager has to be in charge of the evaluation and control of the performance and in this, he is in charge of all managers who are in charge of the formulated goals to be achieved. In his implementation, Robin Hood is to come up with an evaluation of current performance and see if there is any profit being earned following the mission stated in the strategy formulation. In his implementation, he is to decide of the factors that can affect his business externally and focus on the opportunities and strengths that are in the business as internal factors. Robin Hood has come up with budgets and programs that are to be used as reference points in their strategic goals achievement (Ireland and Hitt, 2005). Though he is so much focused on the business success, Robin Hood should be aware that there are different economic life cycles hence in his implementation; he should also device for different ways of survival. In the goals to be achieved, he should not come up with the goals alone but should incorporate all staff where many ideas will be generated to implement the strategies successfully. In his planning, Robin Hood should come up with a flexible budget where it can accommodate for any change that might be difficult to experience. Organisational and environmental characteristics In both organisational and environmental characteristics, it is a sure way that Robin Hood will effectively manage his business as in the organisational characteristics; there is a lot of innovation that is meant to change with the existing environment (Hitt, Ireland and Hoskisson, 2013). Through innovation, there is a promised stability as the products being produced are focused on the current customer demand. The organisational resources are aimed to a competitive advantage hence in his decisions Robin Hood ensures that they are enough to last them in the long term. In the organisational characteristics, human capital is viewed to be an important factor where there is innovation and creative ideas that are the main source of having a competitive advantage. Still in the organisational characteristics, is learning objectives at individual levels and group levels. Robin Hood as the overall manager seeks for different ideas which are generated into new products. With a wide pool of knowledge, Robin Hood’s business has an expected wide growth and long term viability in the industry (Ireland and Hitt, 2005). In the environmental characteristics, The Company has sought partnership with other companies to supply the raw materials required. Also In their production line, the business has come up with production of similar products produced by other companies and what makes them unique is the branding or the promotion they have implemented for such a product. They are socially responsible where the company through their leader takes much importance in their customers and as a reward; they give incentives and ensure that the same customers are employed in their business. Strategic factors Factor to consider in devising for new strategies might be: Implementing for ways where the team behind the business can also be strategic thinkers and this will help in being responsible of any image that is sent to the public. In his new strategies, he should come up with ways of involving other cultures and incorporating other products that will be acceptable in other countries. In the activities to be implemented, he should incorporate staffs that are multi-skilled and that way, here will be reduction of costs associated with hiring of staff that might be needed for a short duration of time. There should be a quarterly review of the strategies that will help the business know how far they are from achieving their goals He should take much emphasis on the opportunities identified by the employees as they serve as eye of the business and it is through them that there is much customer contact (Le Cornu and Luckett, (n.d)). In the strategies, team member who are the main implementers of organisational goals should be rewarded as a way of motivation. Time is the main aspect that should be considered .By that, Robin Hood and his management team should come up with a time limit where all the strategies implemented should be formulated and results analysed if the time period given was sufficient or not. Technology comes in without being mentioned. In the creation of a new strategy, Robin Hood should come up with ways of implementing technology in their production. That way, there will be more products produced efficiently and the cost in production will be greatly minimised. Business capability is another factor that Robin Hood needs to consider as through implementation of objectives set, the business as a whole is to consider the skills required and the expected performances based on the set organisational objectives (Ghani et al, 2010). References Aula, P., & Mantere, S. (2008). Strategic reputation management: towards a company of good / Pekka Aula and Saku Mantere. London; New York: Routledge Bharadwaj, P.N. & Soni, R.G. (2007). E-commerce usage and perception of e-commerce issues among small firms: results and implications from an empirical study. Journal of Small Business Management, 45(4), 501–521. Broadband Residential Internet Access Industry Profile [electronic resource]: the Netherlands. (2002). [S.l.]: Datamonitor Plc, 2002. Chaffey, D. E., Mayef, K., Johnson and Ellis-Chadwick, F. (2000). Internet Marketing: Strategy, Implementation and Practice. London: Financial Times/Prentice Hall. Fillis, I.U., Johannson & Wagner, B. (2004). Factors impacting on e-business adoption and development in the smaller firm. International Journal of Entrepreneurial Behaviour and Research, 10(3), 178–191. FIVE FORCES ANALYSIS. (2012). Online Retail Industry Profile: Global, 11-16. Ghani, K., Nayan, S., Ghazali, S., Shafie, L., & Nayan, S. (2010). Critical Internal and External Factors that affect Firms Strategic Planning. International Research Journal of Finance & Economics, (51), 50-58. Hitt, M. A., Ireland, R., & Hoskisson, R. E. (2013). Strategic management: competitiveness & globalization. Concepts and cases / Michael A. Hitt, R. Duane Ireland, Robert E. Hoskisson. Mason, OH: South-Western Cengage Learning. Ireland, R., & Hitt, M. A. (2005). Achieving and Maintaining Strategic Competitiveness in the 21st Century: The Role of Strategic Leadership. The Academy Of Management Executive (1993-2005), (4), 63. Le Cornu, S., & Luckett, P. (n.d). Managing Strategies: An Exploratory Examination of the Association between Strategic Priorities and Critical Success Factors. Accounting, Accountability & Performance, 10(1), 19. Read More