Strategic Management: Concepts and Cases - Essay Example

Strategic Management Question One Part One (Boiled Frog Phenomenon) The presentation based on the principle discusses thenotion that is based on the desire of a frog placed within boiling water to jump out in search of solace. The provision had been placed to include the incentive of the live frog to escape the danger, and seek better terms that would be considered favourable in the survival provision. The extension can be included to claim the directive to present the venture that offers sustenance to the conditions. The satisfaction of a provided entity would be satisfied under favourable conditions that are viewed as the satisfactory measures to limit setbacks. However, a different extension is noticed when the water is placed to heat gradually when the frog may fail to realize the changes in temperature and be boiled to death. The inference developed in the aspect explains that there is the need to identify leading threats to the sustenance of progress at an earlier stage, when the adjustments can be offered as compared to finding solutions to the problem when its impacts have been felt. Moreover, the advice is offered that the reaction level and sensitivity should be based on identifying minimal changes that may accumulate to lead to threats (David 34). In business, the relation is accorded to organizations that fail to recognize threats to their missions at earlier stages and only articulate solutions to already recurrent problems. Most businesses focus on delivering satisfaction to the consumers failing to focus on the competitors who are the chief threats to their sustenance in the market. The relation of consumers and competitors is indicated in the failure for buyers to maintain loyalty in the case that the competitor holds better service than the organization. Early planning eradicates the problem and creates better businesses based on the desire to meet expectations in goal achievement (Polynice). The boiled frog scenario is included to depict the situation where the affected organization failed to identify the problem in due time, and make the adjustments needed in saving the business. The example is included in the failure of the dotcom businesses in failing to acknowledge the shrinking markets (Majumdar). This move would witness these companies fail to achieve their motive and yield failure with improper measures to curb threats to the goal achievement. The retail company had established the dominance within the market as the preference among the consumers. This led to the employment of added employee number in the workforce and developed the ideology of marketing using the top selling brands. The majority of the focus had been based on marketing the top lines, neglecting the other products. The operations of retail failed to be affected until the slowdown when the management realized the mistakes ad challenges offered. The solution that had been offered by management to satisfy the employees had been through asking them to pick groceries from stores instead of their salary. The solution failed since the stock had been empty since the suppliers failed to deliver products with their problems in payment. The employees eventually lost their positions in the company and the eminent closure followed. The business could have solved the problem trough providing the focus needed in developing all product lines in the store, and maximizing on the available stock rather than focus on the leading products. This is the case where the frog could have identified the dangers of the slowly boiling water and jumped out to avoid the eminent murder. Comment to Post The post confirms the boiled frog theory and offers the example in September 11 attacks, that saw the U.S. government challenged for the failure of offering solution to the terrorism threat. This saw the repercussions in a massive attack that saw the demise of hundreds of citizens who depended on their government for security. The post assures that without the proper preparations to predict dangers, the result would lead to the demise of dreams and expectations within a setting. Part Two Amazon Grocery Strategy Through the analysis of the irregular pattern of humanity in the modern society, the company has noticed minimal engagement in the demographic to apply increased time in offering food satisfaction. Therefore, the strategy to apply non-perishable items would prolong the preference in their products with reduced costs in consumer spending and convenience in product utility. Furthermore, there is the need for consumers to acquire more use of a product within a prolonged period with the busy working schedule among most adults. If the company makes the consumers aware of their stock in the contemporary media, they would evoke increased positive reaction from consumers. These venues have been the most used within the marketing of modern organizations because majority of users use them for acquiring information and anticipating market trends. ALDI The company’s strategy is centred on favouring the demographic with more time to anticipate the product quality and value. These are housewives, teenagers and students who base their consumer trend on effective selection of products. Their progress of quality and reduced prizes would present more interest to consumers as compared to Amazon because these are the two most important values in effective advertising measures. The increased consumption of products is placed in effective attribution of resources and in the correct proportion. Both value and standard is satisfied. The internet would be the best strategy to attract the demographic under consideration because they present more time for research on products. Furthermore, this means would favour critic and reviews to help boost marketing. Strategy and Advertising The marketing aspect is affected by the measure to establish a stronger communication system with the consumers. Consumers appreciate the products more if they have sufficient knowledge of the merchandize under consideration. Marketing enables companies, especially new entrants to gain market recognition. The target determines the choice of the advertising media and the technology developed within the community (Stubblefield). In the modern society, majority of consumers prefer contemporary measures of advertising. The scope of advertising affects the market recognition and influence on the target. Both Amazon Grocery and ALDI offer advertising to consumers. The more their advertisements are available to be accessed via the internet or frequency in the advertisement within the television, the more these companies entice consumers to try their products. Moreover, the creativity in the advertisement would influence the consumption rate of the consumers. Business that is better Positioned The effective application of the marketing strategies would influence the positioning in the product. ALDI is stronger based on the policy to deliver high quality products to the target at affordable pricing. This is because the company’s strategy holds all the 4 Ps (Product, Price, Place and Promotion). Not only does the company offer sustainability to customers in better service for an affordable price, but they also hold a record of a prolonged market share. ALDI also favours satisfaction of a varied demographic who hold more time to critic on their services to attract more users. Strategy Recommendations The better strategy needed to be applied in an effective marketing scheme is identifying the strengths and weakness of the leading competitors. With these strategies highlighted, the company is capable of making adjustments based on the need to offer better services. The company should also venture on contemporary advertising measures in the internet and social media, which present the option to captivate a larger audience and offer cheaper advertising ventures. Moreover, a competitive marketing strategy offers better pricing for high quality products that are considered supplements to existing commercialized commodities. The ultimate solution is careful analysis of the market and consumer trend. Image Improvements The strategies implemented are vital to developing the image because the brand would be the most valued to the consumer. Consumers favour products that they consider favourable in pricing and quality. The community determines the products introduced in the market through establishing a trend in consumption that boosts the brand name. Part three Suggestions from the findings The electronic department is located on the upper right quadrant within the Question marks section and the appliance division within the lower left quadrant within the Cash cows quadrant. The Cash Cow section predicts an added growth at an optimum point in the electronic division. The department experiences an elevated increase in sales and provides the opportunity for increased investment in the department (Griffin 47). The electronics division in the Question marks quadrant is presented with the challenge because they offer minimal measures to expand because the division holds low growth. Moreover, the division experiences low market share and the outcome to predict development is impaired. This is because the products have minimal experience in the market and has the challenge of penetration. Recommendations The solution to the situation would be to liquidate the resources at the electronics division and present the revenue to investment within the appliance section that holds more promise. In the situation, the business would be better off without the electronics division and focus on the progressing division to increase the market share. Failure to follow the predicament may provide challenges to the expansion of the business with impaired progress in slow departments. Other measures The prediction is vital to offer the measures that present negative impacts to the business. The divisions are the vital entities that lead to the progress needed to offer stronger prediction of performance. With the regular sampling of the divisions, growth is monitored to offer channels needed to present development attributes to the business. The current predictions offer that the appliance division is at the cash cow quadrant that is the more successful section within the matrix. However, the movement may offer challenges should the company fail to offer measures to present stability to the products. The application of effective marketing strategies and consideration of the Boiling Frog Phenomenon is considered better measures, to limit the development of barriers that lead to the decline in profit generation (Polynice). Businesses would want to stock products that are located within the upper lower left to drive the generation of maximized returns. Part Four (GM and environment) The strategy to present safe measures to limit the emission of carbon gases to the environment have been offered as the necessary measures to present nature’s sustenance. In the motor vehicle industry, the challenge presented has been in the impacts developed in the carbon gases emission into the environment. These have created the incentives in advancing the technology of exploring green energy into the construction of vehicles. The GM website predicts their commitment to environmental sustainability and reduction of greenhouse gases through limiting vehicle emission and safer facilities. The culture that has been developed dictates application of procedures that limit the emission of harmful gases to the environment. GM has achieved the directive through fuel efficient vehicles, waste minimization and the preservation of vital resources (General Motors). Their mission has been indicated to develop environmentally sound technology and minimization of waste emission to the environment. Furthermore, the evidence is offered in the constant review of their policies and technology that has been mentioned to be the solution to providing advances that maintain the sound balance in the environment. I think their policy for waste reduction and investment in the technology that minimizes waste emission would be the best strategy adopted to safeguard the environment. Furthermore, the company has taken the directive to explore the advances in green energy through installing solar panels that offer the company’s energy. The company also harbours vehicles that are electrically powered and offers affordable pricing for the public members. The real strategic reasons for the application of environmental campaign are contained in the need to attract a given customer range. The company identifies the leading challenge to the motor vehicle industry to be in carbon gas emission. Most fuel industries manufacture diesel with limited lead component and consumers prefer environmental sustainable products. This measure has advanced the company to include directives needed to attract a changing trend in conservation. Part Five Merging The advantage of merging has been seen in easier management since the policies are contained under a unified management. The company is offered the opportunity to expand due to easier management and retention of existing policies without adjusting to the partner companies. Roe (n.d) explain that the provision offers an added presentation in constraining ideology for sharing ideas because the creative output would be presented under a single firm. Furthermore, the flow and exchange of information is flexible since no extra costs are included in implementing policies. The company would make added profits with the abundant financial integration in research and expansion. The disadvantage of merging is realized in monopoly since the parent company would dominate the market economies. The new company provides manipulation to the market structures and alters the price range to suit their requirements. A merger also derives constrained choices to consumers and may lead to job losses in the attempt to limit work force. The strategy is identified to be successful if the pros outweigh the cons in the given business scenario. The merger needs to satisfy the goal established to predict success within the given business environment (Pettinger). Separate Business Entity This provision is more difficult to manage since the requirement needs double labor, expertise and skills. This provision is more difficult to manage because the company would be required to invest double capital to sustain personnel and activities. The double mission objectives may also confuse the owners to neglect one company with limited expertise in managing diverse agendas. However, the company makes double returns in profits and retains a larger scope of consumers. The strategy also leads to reduced prices set in the market with the consumers presented with multiple options of products. The strategy presented proves to be successful when the successful separate businesses organize their workers, to achieve a similar objective to the owners who strive to generate profit. The pros have to outweigh the cons depending on the situation under consideration. Different business ventures present varied impacts in market trends within variable settings. Question Two Tolapp Corporation Executive Summary With the location in Tennessee U.S.A., Tolapp Corporation has been the leading supplier of tools and electronic equipment for the local individuals. The company has progressed within the market through quality deliverance of equipment needed in home maintenance and comfort. The company has successfully established branches in U.S. and Canada with increasing consumers preferring the quality products within the stock. With the success within the environments, the company wishes to expand the stock level and include the exemplary service deliverance to a global setting. The expansion seeks to market the products in Europe and extend services to Asia and Australia. The strategy is expected to advance the mission objective of the company and generate added success and profit within the market. Management has identified that through increased investment during the high achievement period of the company, the majority of the stock would be on high demand with preference from an increasing consumer group (Berry). Objectives Tolapp has the objective of global expansion through setting up stores within the other continents in Europe, Asia and Australia. This provision has been advance after successful performance and service delivery within the U.S. and Canada through eliminating competition from other manufacturing companies. The Objective is to be achieved through: Setting up stores that deal in a specific line of products like farm tools, kitchen equipment and garden maintenance program Maintaining the low prices for their items to limit competition from leading rivals Regulating a 10% profit from each product through presenting an increased price from the service and demonstration of the equipment Maintaining high quality service delivery through employment of qualified staff with the capability of delivering a high quality service Mission Tolapp’s mission is to maintain the high quality service in the growing consumer group, who present the need to acquire high quality products within the market that satisfy their monetary value. Through setting up stores that guarantee training with the complex facilities and free service on worn out products, the company expects to advance in presenting the challenge of increased service delivery to the consumers. Keys to success Providing high quality and affordable products Expansion of stores in regions with minimal competition and high demand of products like in developing societies Affordable pricing that favours consumer purchase and demand High quality products to compete against globally established brands like LG and Samsung Highly qualified staff capable of delivering quality service within the stores while providing customer satisfaction Location and Facilities Tolapp has been successful in the local environment in US and expanded in Canada with the deliverance of higher quality power tools, that have been considered favourable within the market. The company holds an employee base that depicts commitment to the achievement of the expansion goal and the management strives to generate a stable and safe environment to achieve the goals. The power tools to be provided by the company hold increased quality to be presented to a consumer group that has set the trend, to quality service within the environment to satisfy their craving for value. Ethical and Legal Issues In a manufacturing company, the threats that may be involved include unsafe working environments that may threaten the employees. The management should provide safety precautions that promote effectiveness within the workplace. The employee contribution to the mission should be acknowledged, and motivational additions in incentives offered upon task completion. Moreover, the company should strive at high product generation that is influenced in the employees who deliver service based on the loyalty presented to the brand (Mckeever 40). Why the plan? The strategic plan is paramount for the company that wishes to establish a global network, and the plan would elevate the position of Tolapp within the market. The principles needed to present the provisions need to be recognized to achieve the expansion mission. Through prioritizing the needed strategies, the company would recognize the strengths, weakness and the opportunities available to achieve the expansion fete. The commitment and involvement would enable Tolapp to achieve the desire for expansion and generate commitment among employees that would be vital to predict future prospects after expansion. The strength would be the needed presentations within the market place to generate success, and with the commitment level, the strategies involved would establish a format to present expansion. The strategic plan would present the needed measures to be achieved within the market and generate expansion mechanism needed. After planning and presenting the strategies, the company would be capable of effective communication channels with employees. The employees are the vital group in generating success and their contribution would predict future success of Tolapp. Furthermore, the consumers and management are linked by the plan that shapes the progress within the market. Leadership management ensures the necessary provisions to include the customers to help generate success. The legal presentations that Tolapp should consider are placed in labour laws and the environmental considerations that aid in providing stability to the natural reserve. Therefore, Tolapp should be capable of identifying the leading setbacks in expansion and identify the strength held to be capable of developing the missions. The strategic planning process would identify the company’s resources and the available provisions included in the expansion (Abrams, 23). . Apple Company Abstract The success of any company is based on the strategies applied in marketing of the products included in the business strategies the more products stocked and the technology applied; the more consumers would prefer the brand. Apple has based the development in technological advances in outstanding brands in Macintosh and the Ipod. These products have put the brand as a leading competitive branch in the market. The section analyzes the comparison of the SWOT of the company to be applied in marketing ventures. Introduction Apple has been established as a successful manufacturer of computer hardware and software that has dominated the industry for a longer period. The company boasts of increased sales of the computer products especially in the Macintosh and the IPod. To identify the success of the company, the SWOT analysis offers the needed analysis of the company’s success. Strengths Apple has established success within the market to be based on the trademark products. In June 2005, the sales increased from the iPod music stocked within the company that had been differentia from other companies. The other outstanding brand within the company has been the Macintosh computers that have also increased the sales. The iPod has been designed in the process that encourages consumers to access the other products that the company stocks. Furthermore, the company has thrived in sales from the notebooks that are included in the provision of the software recognized in the market. The brand boasts of success in the differential properties from other products and the consumers identify with the products. The consumers offer the loyalty needed to deliver satisfaction and increased sales to the produced brands. Moreover, the trend has been in increasing consumer groups and retaining customers with their distinct product range. The consumers have established the trend in the sales of the apple products through presenting a trend that yields loyalty. Weakness The leading weakness has been included in the faults, in some product. The Apple iPod Nano had been presented to include a faulty screen and the provision has been extended to other products with faulty screens. In the earlier editions, the iPods had been presented to hold faulty batteries. The music industry has also presented the challenge of increasing prices in the download of the files from the gadgets. These companies generate more money from iTunes as compared to sales from the CDs. Apple has sold increased iPods and witnessed increased 500 million songs from iTunes. The company presents an increased legal download system but with the provision to yield to the music industry pressure, the company may be recognized as weak. The shift from IBM chip installer to Intel has also been recognized as a commercial weakness because Intel has been a computer developer and competitor to Apple. Opportunities The advancing technology has been offered to the company to develop products and synchronize the entertainment systems. The advanced technology also presents the advancement in the interface of the system to provide preference to consumers and easier access to the system. The other opportunity is witnessed in Podcasts that can be obtained from the internet. The downloadable device can be realized within the iPod and MP3 devices as the technology extended within the company. Apple can then acquire revenue through incorporation of Podcasts in their system as users download music free with revenues generated to the company. Threats The leading threat has been in the difference in technology that has threatened sustainability within the electronic software company. Apple has been involved in research and development that has encouraged advances in gadgets and technology. This presentation presents the challenge in competition with rivals duplicating the technology available for their accommodation (Sutherland 74). Furthermore, Apple needs to alter constantly the technology with the inclusion of products that accommodate the variations in the industry. The threat in competition is also evident in the increased pricing of Apple products that may not be accessed by a wider consumer group hence minimal expansion as compared to competitors (Jackson 54). Strategy Application and Conclusion Apple focuses on consumer satisfaction and development of unique products that emanate technological advances. Apple Company provides design, entertainment and technology in the products. The strategy to hold diversity in products and change the interface based on technology advances. Apple presents the importance in offering varied products that compete with technology to provide satisfaction to consumers based on developed trends in the market. There is the need to study consumer patterns to be capable of presenting satisfaction to the consumers and retain loyalty needed for success (Newlands and Hooper 53). Pros Effective application of varied products with competitive value would attract more consumers. This is because the varied demographic would be provided with multiple choices in the product description. The strategy would favour increased consumer preference and retention. The application would be through sampling varied opinions of the consumers and the required provisions to deliver satisfaction. Market analysis and sampling also favours the anticipation of competitors’ strategies and implement added value to eliminate competition. The feedback and analysis strategy that would accord the most results has been in internet survey and critic. The measure favours prompt response and a diversified research strategy. Cons The leading complication the company may face is in competition and limited product range that consumers may not identify. Furthermore, the technology may eliminate the creativity essence with quick fluctuation in innovation technique. The limitation faced would be in increased fund application that limits innovation. Works Cited Abrams, Rhonda. The successful business plan: Secrets & strategies. Palo Alto, Calif: The Planning Shop. 2003. Print. Berry, Tim. A Standard Business Plan Outline. 2012. Bplans. Web. June 9 2012. Available at: David, Fred. Strategic management: concepts and cases (11th ed). Upper Saddle River, New Jersey: Pearson Prentice-Hall. 2007. Print. General Motors. Innovation: Environment. 2012. Web. June 9 2012. Available at: Griffin, Ricky. Management. Mason, OH: CENGAGE Learning Custom Publishing. 2012. Print. Jackson, John, Bradley. 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New York, NY: Rosen Central. 2012. Print. Read More