Planning, Organizing and Initiating Actions in Management - Coursework Example

Student number: Students Name: Date Submitted: Campus: Lecture time: Lecturer: Tutor: Tutorial Time: Strategic Management Word count: 2,586 Introduction Management involves coordinating individual’s effort in an organization or business to fulfill the objectives, as well as the goals, by maximizing available resources through being effective and efficient. Management involves planning, organizing and initiating actions to be performed by the employees. There are fundamental strategic management concepts that can be employed to ensure success in the business (Reisterer, 2015) .Success in management includes being focused on what is being done by creating objectives that are to be achieved. The following case studies will reveal fundamental concepts that can be applied to management that have been a success or failure and lessons that can be learned. Strategic management In strategic management, the company will aim to outdo a fellow organization and maximize profit and which specific areas to choose. In case 1 the evolving strategy of Facebook there key concepts that have been identified. Facebook begun as a social networking site that allowed people to share information with a large group of people, but that changed due to the growth it experienced. Facebook allows people to generate their content and circulate it unlike traditional media television and print (Miller, 2014) .Facebook entered the business of advertising in 2009. The aim was to make a profit as banner advertisements run on their website. This allowed their users who had grown to connect in unobtrusive way. This strategy reaped fruits and also they targeted a large market share in other countries as their mission was to make the world more connected. Key strategy by Facebook was aimed at its aspirations for the future and what it would be and offer competition. The available information has been used efficiently by management to make critical decisions about the organization and its clients as well as improving performance levels. Facebook has popularized online network social sites and has seen tremendous growth in over 900 million users and now capitalizes on data to make profits and is a public company (Miller, 2014). Facebook has encouraged personalized marketing strategies through the use of Facebook pages. This has enabled conversations by consumers and ensured participation through awareness creation. The progress of Facebook has seen it add Instagram among its applications for sharing photos. Facebook information has been used strategically by organizations to target specific markets to advertise and do promotional activities as well as monitoring the competition and behavior among them. The available information has been crucial to Facebook maximizing profits with its different usage. Facebook has over 70 languages in different countries to curb the market niche in each of those countries and ensure growth and expansion. Case study 2 is the analysis of the Queensland and Northern Territory Aerial Services (Qantas). Qantas was established in 1920 and grew as a transport carrier due to its establishment both locally and internationally. Qantas recorded maximum profits until 2008 when they elected Alan Joyce as the CEO. With the incumbent CEO, Qantas recorded losses in its profit followed by other challenges that included spiked oil, worsening employee relations and natural disasters (Evans, 2014). The rising cost of fuel did no good to quanta’s and the competition offered by other airlines. The strained relationship between Qantas and its employees caused punctuality issues and loss of faith by customers in the airlines. Joyce aim was to turn Qantas into a profit making airline and with these she targeted new market in Asia regions as profit making and new untapped areas and put up a premium hub in Middle East. This caused Qantas to rethink its strategy after the invasion by other airlines into its profit making areas that included trans-pacific routes between Australia and the United States. (Evans, 2014) Joyce famous decision as CEO in October 31st, 2011 further worsened the situation due to employees warring relations. She grounded the entire domestic and international fleet and locked out workers. This affected over 71, 000 passengers with flight delays and cancelations and also forced Qantas into battle with three different unions over employees. The decision also destroyed the reputation of the airline as well as making significant losses that are very hard to cater for. Such poor decisions in management made by Joyce have cost the airlines fortunes and shifting of customers to other airlines like Virgin Airlines. Case study 8 Air Asia getting everyone to fly. Air Asia is a success story due to its aligned and clear objectives in the market. Tony Fernandes bought the airline from the government in 2001, and it was almost bankrupt (Roy 2014). Its strategic management was very efficient as it adopted a slogan that identified with everyone in society. “Now everyone can fly” was the slogan and it was a low cost and also targeted untried areas and people who had never traveled before. This made the airline successful and surpassed the 1 billion profits and currently operates over 132 routes in the world, and 40 are not served by any other airline. What has made the airline unique from the start is that they ventured into the aviation business when it was the riskiest, and there was no guarantee for success. Air Asia has had clear objectives and goals from the onset making it more successful. It has overseen the formulation and implementation of its goals through their vision and mission. Its vision aims for the airline to be the lowest serving airline in Asia serving over 3 billion people, and that has made it stand out. It has enticed everyone because there is no discrimination in classes of the society. This aims to serve the consumers and displays that the airline is not only there to make a profit but care for the customers. The mission is in line with the vision and aims to attain the lowest cost so that anyone can fly, and employees are treated as part of a big family with fairness. The airline has adhered to Markides, (2000) strategy of who are the customers, the value and how do we go doing the above. Asia Airline implemented its strategy in Asia through becoming the first to introduce ticketless booking through the use of mobile phones and SMS ticketing. It ensured the tickets were low prices to for everyone have a chance to fly and the introduction of domestic airlines in Thailand, Bahru, and Kuala Lumpur. The introduction of AirAsia X expanded it routes and market to Europe and the United States. The key to success was the CEO, who had the strategies in place of success (Roy, 2014). Case study 4 the Australian Supermarket industry. The supermarket industry of Australia is mature enough and influenced by many factors. Those in the supermarket industry have employed different strategies to progress and survive in the market. The cost reduction initiatives are based in Australia, a move deployed to win more consumers (Aldi, 2001). The competitors also deploy private-label merchandise that is a cost reduction initiative to entice more customers. Mature industries like Australia experience slow growth in the market, and this leads to price wars. Competitors have been compelled to price reduction of commodities like milk and bread. The following are macro environmental factors that influence the trends in the Australian supermarket. Reduced consumer sentiments that have altered the purchasing patterns of customers. This has been caused by the increased living costs and thus people are conservative in how they spend their money (Evans, 2014). Competitors have now reduced the price of products to increase sales. Secondly change age and population demographics whose preferences are changing every day. Some people may like these products today and tomorrow they don’t, this means the stores must keep a variety of products which is expensive before the previous store runs out. Thirdly, societal values have changed, and they demand a healthy living thus more purchase towards organic products. High chances of success in Australia require new investments in supermarket dealing with natural products. The final one is technological advancement compelling competitors to outsource for new markets in order to survive in the Australian market. There are five porters completion framework that can guide one to the Australian market. The threat of entry into the Australian market in which their many challenges but the returns are high, the power of suppliers, the power of buyers, the threat of substitutes and rivalry between competitors that are already in the market. Case study 10, managing the political factor in Australia (Huawei). Huawei was founded in 1987 by Ren Zhengfei. Huawei’s vision is to enrich life through communication and success has been witnessed in China and the market abroad. Tremendous growth by Huawei has been seen worldwide, and they have made profits worth US$2.9 billion by 2011. They believe in placing customers first as their priority and their critical values include improvement, continuous dedication, initiative, and openness (Menzies, 2014). Huawei has experienced success in Australia due to conducting surveys and knowing its chances of success before entering the market. As part of corporate social responsibility, Huawei has sponsored local charities in Australia as well as sponsoring university programs with IT technologies. It also appointed a local head in Australia to head its branch there. Huawei has also boosted their image in Australia through sponsoring games like rugby that has portrayed a good image to the local citizens. Australia being an already established market and its ability to influence other markets in the world is helping in the establishment of Huawei. Huawei has also faced challenges like intense hatred from the media and the political environment is against them on alleging that if they are allowed to penetrate the market too much, it will lead to spy by the Chinese government (Menzies, 20140. Case study 3 Fortescue Metals groups limited. It’s an iron company that has grown rapidly in Australia spearheaded by Andrew ‘Twiggy’ Forrest. Forrest has a good network in Australia which has seen the rise of the mining company. His experience in mining and handling large project operations has seen the success of the Fortescue Metals group limited. The company has invested in local areas through its building construction of houses in Australia and is concerned with the well-being of the community. It has also played a key role in employing its worker from the local areas to boost the economy of the Australian government (O’Shannassy, 2014) .Forrest has managed to keep the market and production of iron booming in Australia through his skills and also sourcing market in other areas. COMPARISON AND CONTRAST IN THE CASES ABOVE In the six cases analyzed and the concepts brought forward their similarities in each of the businesses that have been managed. They all try to source out the new market to increase the sale of their products. For example, Facebook has over seventy languages to cater for different markets. After the success of Huawei in China, it has spread to over 140 countries, and an example is Australia where it has been growing tremendously. The managers or CEO in charge aim to make a profit from the businesses initiated, and they employ a good strategy to achieve that. Facebook begun as a social network site for people to get connected and share experiences but as time went on it a commercial venture. Asia airline has increased its market to reap profits thought it operates as a low-cost flight to cater for everyone and give people a chance to fly. The success of most business depends on the objectives and goals of each organization. For example Asia airline has a success story because of having a clear vision and mission to achieve. It vision to be the lowest serving airline in Asia has been backed up by the mission that targets everyone to fly (Aldi, 2001). There key contrast in the case studies depends on the management. Poor strategic management can cause failure of business especially the one in charge and the leadership skills displayed. For example Joyce the CEO of Qantas, after deciding to ground the airline it cost the airline a lot of money, lost customers to competing airlines and the image of the airline was tarnished to the public and there was lost trust in the company itself. Forrest after being elected the CEO of Fortescue Metals groups limited he maximized his skills in managing large projects to steer the company to success. He used his popularity in Australia for good networking and also employed locals from Australia, which created a good image. Tony Fernandez had clear aligned goals to achieve when he bought the AirAsia airline from the government. Working towards achieving the goal and being focused has ensured a success story today. For one to succeed in the Australia supermarket industry, they employ cost reduction techniques to increase consumer sales and branding of products. To ensure success in the market different strategies by Management will be used (Menzies, 2014). Conclusion To steer the success of any business started, it requires a sound mind and the organization should have clear objectives and goals that they aim to achieve. For example, success was witnessed by Tony Fernandez through having clear goals that can be achieved backed up by a good vision and mission statement. Management is an essential aspect of organization or business to ensure success behind it. Poor management can cause failure of a business. For example, Qantas is a good example where poor management has led to the failure of the airline. Key in establishing business or organization in a new market is first to conduct market a market research. Huawei has succeeded in tapping new areas because of the research they do to know what are the chances of success and the likely challenges they might endure. Tapping areas that have not yet been discovered can propel an organization to success through maximizing profits. AirAsia airline offers flight services to 40 places that are the only sole operator. To ensure survival in new market areas, it’s good to sponsor events to create a good image of the company a device that Huawei has employed in Australia and has led to legitimacy. Networking is a paramount aspect of management to increase the market for the company. Eying specific areas where an organization can maximize profits is always a good way to make a profit. References Read More