Strategic Success of Today Companies - Case Study Example

Strategic Success of Contemporary Organization Name Institution Affiliation Strategic Success of Contemporary Organization Strategic planning plays a significant and the key role in the achievement and survival of every type of business organization. This happens specifically in small or large enterprises, which are considered as the backbone of any economy in the present international and national environment. Strategic plans are most significant for the development of the organization, and its long-term future. A strategic organization is involved with all the feature settings of a company’s arrangement when it desire to come up with a new product into the market. The organizational strategy will determine the period of the company’s success. With the study of strategic planning from the viewpoint of developing countries remaining very limited, this study has significance for practitioners and academia. This paper, will discuss the conception of the six companies includes Mark Hill (MH), Australia Supermarket (AS), Fortescue Metals Group Limited (FMGL), The Indian Tea Company (TITC), Facebook The evolving Strategy (FTES) and The Grounded Kangaroo (TGK). The major strategic planning parts it follows in this paper. First, it discuses business level of strategies on how to decrease the prices, and how the companies need to be sure that discounting will at least protect the company’s profit. Secondly, this paper will discuss the value-creating goals, the factors that may lead to the organization’s success, and the key role of planning for long-term success (Burrow, et al 2007, p.295), that will determine the aim and the target from the customers and mission or vision statements. Thirdly, this paper will discuss the profitability goals and how the budgeting strategies will be archived. Additionally, this third goal entails how the company should survive with their consumers and corporation control. The fourth part discusses how the organization is aware of key factors that have a direct impact on business, and the value of decision-making to the customers. Similarly, it discusses the value chain, how the company distributes their product. Finally, the profitability goals encompass the determining goal factors and the stakeholder’s interests. Business level Strategies The Grounded Kangaroo A business level strategy defines the plans or methods a company uses to conduct a variety of functions in their business operations. How they should frequently use business level strategy plans internationally, in order to adopt competitive advantage skills. According to Burrow et al. (2007, p. 295), the company should often contain numerous departments with dissimilar business functions. The TGK Company must have adapted this concept to their process to assign them to dissimilar employees (Burrow et al 2007, p. 295). Business-level strategies will allow the company to employ practices that will provide significant results. This strategy provides the guidelines for the company owners, including, managers, and workers to pursue when running the business. A business level strategy is connected to setting the lower price, in order gain profits of the TGK Company’s competitors. Before lowering the prices, the company needs to be sure that discounting will at least protect the company profit. It holds that a company could get more profit when they sell fewer products at higher sustainable rates, than to sell more at a lower price. The strategy allows the company to reduce the prices that could do more harm than good (Burrow, et al 2007, p 295). If the company lowers their prices too much, the company may be at risk of building a perception among their customers that the product is cheaper made. However, the standard of strategic management is that the company shall be able to maintain its strategic plan (Bosselmann, et al 2008, p 44-45). Additionally, the company’s strategic focus should be on customers buying products from the company, rather than just focus on the price. In this strategy, the company should offer something good for its stakeholders (Sekhar 2009, p. 5-12). The company could also create an existing relationship with their consumers by being more corporations friendly, attentive, and flexible. Mark Hill Company One of the main significant advantages about this strategic plan to the MKH Company is that it offers consumers a free warranty or after-care service to make the charge of the product stand out. The company should ensure to sell unique products to the customers, lowering the price depending on dollar exchange rates. This strategy will allow the company to focus on communicating to their consumers (Sekhar 2009, p. 5-12). However, providing discounts and special offers can sometimes be hard, especially in price-sensitive industries. Marching the competitors’ prices should be essential; hence, the company could weigh the hit of the price that the company can afford without hindering long-term development efforts (Sekhar 2009, p. 5-12). Additionally, when lowering the price, this must be seen as a short-term goal in order to increase cash flow and not for the long-term move. In essence, the business level strategy determines the good staff members of a company. Value creating goals Another component of strategic planning is value-creating goals, which are the most important as the best move for the MKH Company in the long term. Creating goals will strengthen the company’s strategies, and focus toward its aim. The value on creating goals will help the company to know or to focus on future goals that will be effective for the MKH Company to create a clear vision. It will also determine the achievement of the company and its values (Duane, et al 2008, p. 52). The company must start with unique long-term goals for the short-term at a go; the long-term goals must have a timeline of five years (Poister 2002, p. 28). Another significant strategic aim, concerning the value creating goal the MKH Company is that it must set goals associated with the overall objectives of outstanding consumer service. Additionally, the MKH Company should cut one goal by 50 percent while targeting more customers for the long-term (Poister 2002, p. 28). A reason of creating goals is that, the company’s response time makes sure that their consumers are well satisfied with their products and the service. Another, value of creating goals is they act as indicators for the company when they produce best results (Bleischwitz 2007, p. 279). The result should clearly indicate why the company is a key strategic force in the market. The number of the company practices and programs are significantly linked with a stronger strategic role for the management. The company strategy that are integrated with the business include the use of information technology or the presence of human resource (HR) activities. More focus should be put on; organization design, organization development, change, management, employee development, and metrics, using computer systems for training and development are key strategies at this point (Bleischwitz 2007, p. 279). Additionally, having effective HR metrics and analytics, and an HR staff with technical, organizational dynamics, business partner, and metrics skills are an advantage to the company. Fortescue Metals Group Additionally, assisting to set and apply strategic value-creating goals of the FMGL Company requires growth and assess (Bleischwitz 2007, p. 279). The FMGL Company needs human capital and building business capabilities to support this strategic method. These major goals will guide the FMGL company towards a strategic future because the goals are related to improving the consumer’s service satisfaction or buyer retention. Value is creating goals will also determine the profit goal of the company. Profitability Goals Profitable goal is strategies that solve the company’s problems and offers the company profit. Profitability goals add importance from the viewpoint of the consumer and leads to success. The strategic profitability goals signify the first aim level of the company (Benn & Dunphy 2013, p. 280). What explains them is the benefit of the products to consumers and the society, from the investors’ profit expectation. The three major profitable goals include bottom-line goals, income goals, and expense goals. In relation to this, the FMGL Company should choose how much profit the company needs and the period it require for a generation. It should be the set amount or the percentage growth of the last previous year profit (Benn & Dunphy 2013, p. 280). However, if this figure is not a specific amount, the company may not know whether they have reached their goal or not. The FMGL Company requires specific income and earning goals such as increasing their profits by 10 percent in a year. Therefore, the company’s strategic plan will also need to determine how much the company requires by gathering its revenue, to attain the goal. In addition, the expense controls of the strategic goals will come into play when the company puts in an additional attempt in revenue growth (Benn & Dunphy 2013, p. 280). The company business expenses should increase by including new manufactures or products. The score the company charges consumers for products should be attuned to generate additional income. It is important for the company to identify its key risks of the business to enable the company discern the growth strategies to eliminate or to decrease. This strategy will make the business more flexible and more to be able to survive volatile market circumstances. The general risks goals include losing customers and failing to attract new one, thereby increasing competition. Additionally, poor cash flow, and failure to anticipate problems or inability to adapt to changing market environment (Meehan, Simonetto, Montan & Goodin 2011, p. 127-192). The FMGL should set a clear strategy for knowing its stakeholders, therefore looking after key consumers and for growth with their stakeholders. The FMGL Company must try to arrange an awful case scenarios, such as losing their consumer, to determine the impact the loss would have on the business. This would encourage them to enlarge consumer base as first as possible to decrease the impact. Converge stakeholders The evolving Strategy Research indicates the importance of priority given by the founder of the company to make sure that their stakeholder is satisfied. A company should make sure that their stakeholders earn interests through the development. This is likely to be more obvious when stakeholders’ interests in a project converge closely (Meehan, et al 2011, p. 127-192). The FTES company engage stakeholders frequently, especially primary stakeholders upon, which the project places immense concern. However, the stakeholders can have a weak capacity to contribute in the development and imperfect control to influence the key decision (Meehan, et al. 2011, p. 127-192 ). Additionally, the company should propose projects that fulfill the interest of stakeholders across all income levels. Unorganized primary stakeholders are highly significant to achieve the development though they are feeble in terms of the control. Conversely, religious group elders could also come into view has a stakeholder cluster with a high amount of influence on the development (Meehan, et al 2011, p. 127-192). The FTES company, will look at the problems facing their stakeholders, and see if the project needs redress. The company must note stakeholders’ plans and give them precedence, by meeting their needs and interests. They should note that stakeholders’ interests converge most closely with policy and objectives that determine the culture of the company strategies. Cultural As the business grows more successful globally. The FTES Company will need to understand the role and influence of culture, in order to retain their international consumers in whichever sector the company is operating (Benn & Dunphy 2013, p. 280). The company will always improve its level and experience globalization if it embraces the cultural differences in the business (Paschen, et al 2013, pp.33). Culture has a high impact on the company benefits and improves the skills of the company’s management if well disseminated. Additionally, international business will create global competencies that will enable the company to gain a competitive advantage. In sum, the FTES Company will be aware of factors, which have a straight impact on its business. Australia Supermarket Notably, communication breaks through for the business, whether the AS company will operate internationally or nationally. However, when the company is operating globally, it will more significant for language barriers (Benn & Dunphy 2013, p. 280). Identification to trade developments aims will eliminate cultural barriers and guide materials in the language of the country that the company is operating. Being aware of the essential consumer needs significant features as this will provide the advantages of conveying the company message. Additionally, if the company is aware of their consumer’s cultural background, it will be able to catch more suitable advertising methods (Pasche & Dihsmaier 2013, p. 257). Another key factor is body language in cultural difference. As many countries have different ways to share their message, AS Company needs to consider these in their strategic plans. For instance, in Germany, individuals speak loudly when sharing ideas while, in Japan, individuals talk softly. It is thus vital for the company to know how to interact with individuals or business partners. Additionally, this culture will help the AS company to run its national and international business. Performance measurement One of the key factors of measuring performance is that it is a vital part of reviewing the value of workers and the management activities on the company. Performance must be deliberately based on worker’s overall impact; cost competence, effectiveness, and capability to employ the best practice. Additionally, the manager of the company will monitor operations to ensure that the company is on the right development path (Pasche & Dihsmaier 2013, p. 257). This strategic management factor will help the AS company on budgeting. It also determines successful management strategy, and areas that require improvement. Additionally, employee performance comparisons could be done on a periodically semi-annual or yearly basis. This strategy, will allow the AS company to ensure that every individual in the company apprehends when the next assessment is done (Pasche & Dihsmaier 2013, p. 257). It is also provide the AS company’s standard measures of performance. It will provide the opportunities to get remedial action in the best manner. Additional measurement tools include organizational and staff’s performance assessment, which are built-in as part of the enterprise system or separated (Pasche & Dihsmaier 2013, p. 257). The progress performance metrics regularly follow a progression of establishing serious process or consumer’s requirements to knowing specific and experimental production for work. Therefore, the company will establish targets for, which outcome can be achieved. This strategy creates value chain and tools that the AS company requires for the long-term. Value chain analysis The India Tea Company Value chain analysis is one of the major tools for working out how the TITC will create the highest value for the consumers. It is easy for the TITC to identify manufacturing practices, where the producers add importance to getting raw material of a small use to make stunning end products (Joyce & Drumaux 2014, p, 38-126). Additionally, the more value the company builds is important for the company, in determining the individuals that are prepared to pay products on the best price. The move will create regular buyers for the product. On an individual level if the company adds some value to the customers, the TITC Company will do extremely well. The TITC will have a hope to be satisfied line with the contribution. According to Joyce & Drumaux (2014, p, 38-126)), the major use of the value chain analysis tool is to assist the TITC company, to identify its ways on how the company builds value for the consumers. Therefore, assisting managers understand value chain tools will determine how the company capitalizes on this value through wonderful products, or great services (Pasche & Dihsmaier 20013, p. 257). The three steps on how the TITC Company will use this tool, include activity analysis, value analysis and (Joyce & Drumaux 2014, p, 38-126). The company will identify activities they undertake to deliver company’s products or the service. For every activity that TITC Company’s managers engage in, the company should think of how they would to add the maximum value for their customers. The company’s managers will assess whether it is valuable before making changes and initiating a plan for action. Conclusion Strategic planning empowers the companies for development in the short-and-long-term. This strategy also helps the company often use business level strategy plans internationally, and nationally. If the company wishes to increase its larger business share or gain a competitive leadership, strategic planning is of crucial importance. If the company has lowered its prices, the customers will often buy the products, and that will lead to profit growths. Employing strategic planning gives the company a chance to gain some profit, as compared with competitors if they use this strategy. An important impact of strategic planning is that the company will hold its best interest for stakeholders by maintaining its discount strategy when creating goals for long-term successful development. This strategic management will assist the companies on budgeting, evaluating culture, communication, and discount on special offers to attract the customers. Bibliography Benn, S., & Dunphy, D. (2013), Corporate Governance and Sustainability. Challenges for Theory and Practice. Routledge Contemporary Corporate Governance. Vol. 15 no. 2, pp 280. Bleischwitz, R. (2007), Corporate Governance of Sustainability. A Co-evolutionary View on Resource Management. ESRI studies series on the environment: Edward Elgar. vol. 2, no 1, pp. 279. Bosselmann, K., Enge, R., & Taylor, P. (2008), Governance for Sustainability: Issues Challenges, Successes. IUCN. Vol. 37, no, 2. pp. 44-45. Burrow, J., Kleindl, B., & Everard, K. E. (2007), Business Principles and Management. 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