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Business Strategy: Merger with a large multinational conglomerate - Essay Example

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A merger with a large multinational conglomerate demands changes in four main strategy levels: functional, business, corporate and operational. Careful planning and strategic vision of future goals and growth opportunities will help Able Corporation to sustain strong market position and increase market share…
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Business Strategy: Merger with a large multinational conglomerate
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Download file to see previous pages A clear purpose provides a focus and rallying point. Organizations that lose sight of their purpose become deflected and self-centered. They make inappropriate decisions, commit resources into blind alleys, relax their quality standards, and make inferior copies of other organizations' products or services.
In able Corporation, the main changes will influence corporate and business levels. These strategies will help to identify ways in which Able Corporation will compete in its chosen arenas. The first steps will include (1) innovations and (2) product differentiation, (3) implementation of new business solutions (such as knowledge management and customer relationship management). Taking into account the industry dynamics and the causes of high dynamics competition strategy employed by the companies is product differentiation (Crawford 2003). The innovative, it is evident that innovation is reshaping competition in the industry. The main cost-effective technologies will offer new hope for Able Corporation provide the company with a significant competitive advantage. Differentiation focus will help Able Corporation to concentrate on a particular buyer group and product segment. The main investments should be made in innovation solutions proposed by the cordless business segment. Able Corporation is a leader in product development which can be used a strategic goal for further development and growth.
There is no need to transfer resources from R&D to the marketing and sales departments because, in this case, Able Corporation will not be able to increase its market share. New product development (the 'old strategy' abandoned by Able) will help to increase revenue. Also, Able Corporation can use co-development strategy implying that the product development team not only involves the integration of the traditional organizational functions, but also spans across company boundaries (Crawford 2003). Through building closer customer-supplier relationships, the joint development processes can be optimized and waste eliminated, typically resulting in significant reductions to overall development time and cost. The approach assumes that co-development improvement is most suited to those organizations currently possessing capable, product development practices, typically operating within a competitive environment (Kucza, Komi-Sirvio 2001).
On the corporate level, knowledge management and customer relationship management (CRM) will help to create a strong corporate culture and improve performance. In the organization managers need to implement a system: it must contain a large cache of documents and include search engines that allow people to find and use the documents they need. In the personalization model, it's more important to have a system that allows people to find other people. The goal of this strategy is to examine and analyze customers' needs and wants in order to meet their requirement and expectations. In many firms CRM analysis is accompanied by the use of a variety of accounting ratios such as return on capital employed, profitability and so on. Different ratios have more relevance at different stages of the firm's development than at others, so that while profitability may be appropriate for established firms, productivity and sales may be ...Download file to see next pagesRead More
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