Management Decision Making - Essay Example

Thomson Reuters is a multinational mass media company. It is not only a leading brand in Canada but also all over the world. It also deals in the sale of software applications in the fields of accounting, document management, payroll, tax, mobile applications, and company workflow management, among others. KEY VALUE PROPOSITIONIt has a strategic business model whereby the organization framework is divided into four main categories. These categories include Financial and Risk operation division, Legal division, Thomson Scientific division, and the Tax and Accounting division (Thomson n.pg). Key Sales ChannelOn the other hand, the Thomson Reuters Company dwells on acquisitions so as to accelerate growth.

Over the years, Reuters has acquired companies such as Pricing Partners, MarkMonitor, RedGear Technologies, FX Alliance Inc, Kortes, Emochila, CorpSmart, Manatron, GFMS, RedEgg, among many others (Thomson n.pg). Methods Of SellingIn addition to that, Reuters carries out direct sales to its customers through the website as well as through other platforms such as online app stores. Therefore, their supply chain is relatively less complicated as compared to other companies that sell tangible goods.

However, some software application requires a one-time fee during purchase.Growth RecommendationsRecommendation 1I would recommend that the Thomson Reuters Company should start considering innovation as the main fuel for growth and expansion instead of acquisition. This company has relied on acquisitions as a driver for growth and innovation. Recommendation 2The Thomson Reuters company should introduce a fund whose main purpose will be to support innovation through the creation of new ideas. This process of implementation has to be gradual in order to allow time for the elimination of errors.

Recommendation 3Thomson Reuters Company can start by setting innovation boundaries in terms of a number of ideas to be considered and the amount of revenue that will be utilized (Thomson n.pg). Moreover, leaders of innovation teams can be selected to implement these recommendations so long as they are within the innovation boundaries.New Business ModelThe new business model will retain the supply chain management system, while at the same time it will regulate its attention towards acquisitions and innovation.

In addition to that, it will be edited to include fixed cost leverage to recurring revenue. This will result in the creation of superior cash flow. The main reason why this model will be a success is that Reuters mainly deals with Intellectual Property and Artificial intelligence-related software applications. This model will require an initial fund or investment to innovate (Thomson n.pg). Once the product is ready, Reuters can keep charging users on a recurring basis. This method is profitable in the long run as compared to charges required on the purchase or sale of software applications.

In conclusion, it is important to note that market-leading companies have to actively engage in strategic management. The best aspect of strategic management involves managing business model construction and implementation. It also involves making necessary changes so as to incorporate relevant recommendations.