Principle for Prioritizing of Implementation Steps - Essay Example

? Strategic Management Part One Defining the Identity and Mission ment In the opinion of Dolphin, 2000, p.42, identity of an organization “is how the organization really is.” Identity of an organization is not to be confused with image of an organization, for corporate image is what the organization “appears to be”. Identity is the personality of the organization, which is established by the communications of the organization to various audiences and is imprinted in the vision, mission, values and objectives of the organization. When successful communication is present between the organization and its various audiences, the likelihood of image of the organization and identity of the organization merging is high (Dolphin, 2000). Therefore, to understand the identity of Tolapp Corporation and define it, clear perception of what is being conveyed in the corporate communications to their audiences, like the sales papers inserted in the newspapers twice a week, is essential. The mission statement is an essential component of corporate communication in establishing its identity. It aims to achieve this externally by expressing what its various target audiences can expect from the services and products (Schnelle, 2008). The corporate communications to their audiences, like the sales papers inserted in the newspapers, is a primary source for the information required for preparing the mission statement for Tolapp Corporation. The synopsis of Tolapp Corporation provided, gives information on the products of the organization, manufacturing locations of their products, and the distribution chain used by Tolapp Corporation to male their products available to their customers. The nine essential components of a mission statement are customers; products and services; markets; technology; concern for survival, growth, and profitability; philosophy; self-concept; concern for public image; and concern for employees (Rigsby & Greco, 2003). The mission statement developed for Tolapp Corporation is as follows: At Tolapp Corporation we strive to provide energy saving power products, globally acclaimed, through innovative ideas in the creation, development, and manufacture of our products that exceed expectations in value for our customers, and thereby fulfilling the aspirations of all our stakeholders. We believe that to achieve this, empowerment of employees, development of sustainable operations, and commitment to the natural environment is essential. Principle for Prioritizing of Implementation Steps The principle for prioritizing the implementations towards achieving strategic objective of penetration of the global market place is developing the strategic priorities, and developing a response plan on the basis of the strategic priorities. For example, understanding which country markets are the strategic priorities towards achieving the strategic objective of the global market expansion makes it possible for developing a response plan for penetrating the market of that particular country, and the order in which the markets of different country markets need to be tackled for successful achievement of the strategic objective of global expansion. This priority is necessary as resources are always limited and it is only through the identification of strategic priorities that successful prioritization of resources can be achieved. In addition, by identification of strategic priorities response planning consisting of identification of actionable goals ?communication of priorities ? understanding what can be done ? iterative work ? outcomes review ? next strategic priority can be undertaken (Cooke, 2010). Thus, using the principle strategic priorities helps in identifying and prioritization of the implementation steps towards achieving the strategic objective of penetration of the global market place by Tolapp Corporation. Feedback Mechanisms for Evaluating Effectiveness Monitoring and controlling the response plan of global expansion as a strategic objective is necessary to evaluate the effectiveness of the response plan in meeting the required objectives, so that timely corrective measures can be put in place. For this purpose feedback mechanisms have to be put in place. These feedback mechanisms must be capable of answering whether the premises made in the adoption of the plan are turning out to be true; is the strategy involved in the plan guiding the activity towards a successful outcome; are those involved in the business activity executing the plan as they ought to; are the planned time schedules being adhered to; are resources provided being utilized efficiently; and is there a need to reformulate the planned activity (Kazmi, 2008). The following feedback mechanisms regarding the implementation of the strategic objective of global expansion need to be put in place. The first is a formal reporting system, wherein managers involved in the global expansion project provide both a status and budget reconciliation report. The second feedback mechanism is a variance analysis report that identifies the positive and negative outcomes of the project. Through these two feedback mechanisms it is possible to evaluate the effectiveness of the process. The measures used will be a positive status and budget reconciliation report and nil variance from planned objectives in the variance analysis report (Pycraft et al, 2007). Legal and Ethical Issues There are several legal issues in the overseas expansion strategic objective of Tolapp Corporation. The first issue pertains to the mode of entry into the target country. There are several modes of entry options. Direct export offers the advantages of low costs and less resource input; complete control; and lower liabilities, accompanied with the disadvantages of slow response to customer needs; inadequate service support; and impression of lesser commitment to the market. Cooperative relationship offers the benefits of local support and lesser investment than forming a company, with the demerits of less control of operations and technology in the market, and share of profit. Distributor arrangement offers more presence in the market; more commitment from the local partner; and lesser costs in setting up a distribution network, but come with the disadvantages of sharing of profits and higher liabilities. Opening a branch office gives the benefits of own local presence; better control over distribution network; and more commitment to market development, which comes with the problems of higher costs for own office; higher liabilities; and greater susceptibility in any law suits. A joint venture market entry offers the strengths of shared risks in costs and support of local partner, but with the weaknesses of sharing of control and profits; and risks of a weak partner. Wholly owned corporation gives the benefits of full control of profits, operations, and management and the option to withdraw from the market, while higher costs; lack of local support; and likely delay in starting operations are the drawbacks. Other potential legal issues are local labor laws and the strength of rule of law in the land to offer protection to trademarks (Sherman, 2012). Ethical issues pertain to the products being safe and effective, with potential hazards clearly identified and no hazards to the environment; avoidance of conflict with local values; honest advertisement and sales promotion activities; reasonable and fair prices of products and equitable treatment of employees, suppliers, and customers (Albaum, Duerr & Strandskov, 2008). Part Two SWOT Analysis Leigh 2010, p.115, defines the SWOT analysis “as a process by which a group of stake holders (a) identify internal and external inhibitors and enhancers of performance, (b) analyze those factors based on estimates of their contributions to net value and approximations of their controllability, and (c) decide what future action to take with regard to those factors.” In the opinion of Pearce, Robinson and Mital 2008, p.172, the SWOT analysis framework is based on the “assumption that an effective strategy derives from a sound fit between a firm’s internal resources (strengths and weaknesses) and its external situation (opportunities and threats)”. The implication in this is that a sound fit involves maximizing the strengths of an organization on one hand, while minimizing the weaknesses of the organization on the other hand. By properly and accurately using the SWOT analysis, it is possible for an organization to derive useful contributions to the development of successful strategic management decisions for the business organization (Pearce, Robinson & Mital, 2008). SWOT Analysis of APPLE Inc. SWOT Analysis of Apple Inc. Strengths Weaknesses Innovation Global presence Brand image Synergistic portfolio Strong media content Low returns High costs Dependency for key components Product recalls Patent infringement law suit Opportunities Threats Wireless products New digital platform MP3 player market Loyal customer base Emerging markets Strong existing competition Slow recovery of the American and Eurozone economies and its impact on the economies of the emerging markets Law suits Leadership issues New competitors Strengths Innovation at Apple Inc. is what was responsible in the transformation of Apple Inc. from a floundering computer company into a successful diversified consumer electronics company. Two innovative products in the form of the I-Pad and the I-Phone were responsible for this (Meyer, 2010). Apple Inc. initiated its global expansion as a computer company, but its global presence was firmly established through the I-Phone and I-Pad, which is the reason for its strong competitiveness (Hitt, Ireland & Hoskisson, 2012). The rich and strong brand image of Apple Inc. highlights its innovative culture, brought about by the informal dress code of its employees (Naqel, 2010). The synergistic portfolio of products of Apple Inc. means that each product in the portfolio supports and augments the market for new products that emerge from its stables. Apple product users gain the benefit of purchasing and managing media content on easy to use consumer electronics devices like the I-Phone (Hitt, Ireland & Hoskisson, 2012). Weaknesses Low returns on products affect the profitability of the organization and its financial resources position negatively, reducing the capacity of organization to provide resources for further innovation and development of new products. High costs are the feature of the innovative nature of Apple Inc. that has a negative impact on cost-effectiveness and competitiveness in the markets. Apple Inc. outsources the key components present in its products. This dependency on other sources of key components heightens the bargaining power of suppliers of the key components. Product recalls reduce the brand image of the organization, and through that competitiveness in markets. Patent infringement lawsuit can have a negative impact on the financial condition of Apple Inc., leading to poor operating results. Opportunities Growth in the demand for wireless products in the New Millennium is almost tripling every ten years. This is particularly true of the wireless communication products. Rapid expansion of wireless communication products presents an opportunity for the innovative nature of Apple Inc. (Rogers & Edwards, 2008). The MP3 player entertainment market is growing and offers opportunities for further exploitation. The customer base is loyal and to some extent even fanatic, as can be seen from the queuing up for the new products emerging from Apple Inc. The emerging markets still remain economically strong in the face of recession in the developed world, making these markets a more attractive proposition. Threats Apple faces strong competition from the existing mobile phone companies in market share for the I-Phone, and strong competition from the existing tablet computer companies for its I-Pad. The American economy and more so the economies of the countries in the European Union are showing very slow recovery from the financial crisis of 2008, which is expected to carry on for a few years more. The unhappy economic state of the developed world puts brakes on market aspirations of business organizations in the markets of the developed world. Paternity infringement law suits could lead to Apple Inc. having to pay compensation, causing difficulties in the financial resources strengths of the company. Steve Jobs was the towering leadership figure for Apple Inc. His demise raises questions on the quality of leadership in Apple Inc. and whether it will remain in the same caliber. Finally, Apple Inc. operates in highly attractive markets for new competitors. Though entry barriers are present, they are not that high that they cannot be scaled by a determined competitor. The possibility becomes even more probable, given the weakness of low returns that Apple makes on its products to maintain its market share. Taking Advantage of Apple Inc. Vulnerabilities The biggest vulnerability of Apple Inc. is the lack of cost competitiveness in its products, as they are highly priced. Yet, Apple Inc. does not make huge profits, as the returns are low, pointing to either high research and development costs or poor cost effectiveness in their component sourcing and production processes. Furthermore, there is a dent in the brand image of Apple Inc., due to product recalls in its consumer electronics products. The strategic priority in the strategic objective to attack the vulnerabilities of Apple Inc. lies in reducing costs in the products of our company to reduce market prices of our products, so that it is possible to increase the price gap between the computer product range of Apple Inc. and our computer product range, to make our computer products more attractive in markets already with dampened spirits, due to slow economic recovery. The response plan therefore contains examining sourcing, manufacturing, and operational processes to enhance cost effectiveness in these business processes, and offer price reductions in the product offerings. Coupled with paring of returns on the product range in expectations of larger market share to offset revenue loss per unit and maintain stakeholder earnings, it will be possible to achieve cost reductions that make the product range even more attractive to customers. Monitoring the success of the strategy will involve two elements. The first element will involve measuring increase in sales volumes to ensure paring of returns on individual products are contained in terms of required profits to the organization. The second element pertains to measuring the reduction in market share of Apple Inc. computer product range and increase in market share of our computer product to evaluate whether the changes are in the range of expectations. These measurements will be undertaken on a monthly basis. Literary References Albaum, G., Duerr, E. & Strandskov, J. (2008). Export Management, Fifth Edition. New Delhi, India: Dorling Kindersley (India) Pvt. Ltd. Cooke, J. L. (2010). Agile Principles Unleashed. Cambridgeshire, UK: IT Governance Publishing. Dolphin, R. R. (2000). The Fundamentals of Corporate Communications. Oxford: Butterworth-Heinemann. Kazmi, A. (2008). Strategic Management and Business Policy. New Delhi, India: Tata McGraw-Hill Publishing Company Limited. Hitt, M. A., Ireland, R. D. & Hoskisson, R. E. (2012). Strategic Management: Competitiveness and Globalization, Eighth Edition. Mason, Ohio: South-Western Cengage Learning. Leigh, D. (2010). SWOT Analysis. In Ryan Watkins & Doug Leigh (Eds.), Handbook of Improving Performance in the Workplace, Volume 2: Selecting and Implementing Performance Interventions (pp.115-140). San Francisco, CA: Pfeiffer. Meyer, T. A. (2010). Innovate: How Great Companies Get Started in Terrible Times. Hoboken, New Jersey: John Wiley & Sons Inc. Naqel, S. (2010). Analysis of Value, Image and Positioning of a Brand: An Analysis of the Brand Apple in Regard to VIP-Criteria. Munich, Germany: GRIN Publishing. Pearce, J. A., Robinson, B. R. & Mital, A. (2008). Strategic Management: Formulation, Implementation and Control, Tenth Edition. West Patel Nagar, New Delhi: Tata McGraw-Hill Publishing Company Limited. Pycraft, M., Singh, H., Philela, K., Slack, N., Chambers, S., Harland, C., Harrison, A. & Johnston, R. (2007). Operations Management. Cape Town, SA: Pearson Education. Rigsby, J. A. & Greco, G. (2003). Mastering Strategy: Insight from the World’s Greatest Leaders and Thinkers. New York: McGraw-Hill. Rogers, G. S. & Edwards, J. (2008). Introduction to Wireless Technology. Delhi, India: Dorling Kindersley (India) Pvt. Ltd. Schnelle, W. (2008). A Discursive Approach to Organizational and Strategy Consulting. Princeton, NJ: Metaplan. Sherman, J. Andrew. (2012). ‘Expanding Abroad III: Legal Issues.” Retrieved June 29, 2012, from, Entrepreneurship Web Site: http://www.entrepreneurship.org/en/resource-center/expanding-abroad-iii-legal-issues.aspx. Read More