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Assignment 1: Discussion—Factors and Trends that Influence Strategy Development
In this module, you will explore how businesses react to changing economic times and the influence this has on product and service positioning in the market place. You will also learn about the different approaches an organization may take such as a retrenchment approach, an investment approach, or an ambidextrous approach to provide a foundation for opportunity and risk in recessionary times.
Consumer spending habits have undergone dramatic and enduring change with the slowed economy in the United States.
Using the module readings, Argosy University online library resources, and the Internet, respond to the following:
- What are the factors that are key for establishing product differentiation in the new post-recession consumer environment especially as it relates to economic indicators?
- What is a luxury good and should marketers of luxury goods abandon their efforts to establish premium pricing?
- How do changes in societal attitudes toward companies and products affect the way marketers of consumer goods think about the customer value chain? Provide examples of companies that have changed their approach to marketing in response to a shift in consumers’ value in changing economic times.
Write your initial response in approximately 300 words. Apply APA standards to citation of sources.
By Saturday, September 7, 2013, post your response to the appropriateDiscussion Area. Through Wednesday, September 11, 2013, review and comment on at least two peers’ responses.
| Assignment 1 Grading Criteria | Maximum Points |
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Initial response: Was insightful, original, accurate, and timely.Was substantive and demonstrated advanced understanding of concepts.Compiled/synthesized theories and concepts drawn from a variety of sources to support statements and conclusions. |
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Discussion response and participation: Responded to a minimum of two peers in a timely manner.Offered points of view supported by research.Asked challenging questions that promoted the discussion.Drew relationships between one or more points in the discussion. |
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Writing: Wrote in a clear, concise, formal, and organized manner.Responses were error free.Information from sources, where applicable, was paraphrased appropriately and accurately cited. |
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| Total: | 40
Required Readings Efendioglu, A., & Karabulut, A. (2010). Impact of strategic planning on financial performance of companies in Turkey. International Journal of Business and Management, 5(4), 3–12. (ProQuest Document ID: 821297217) http://search.proquest.com.libproxy.edmc.edu/docview/821297217 /abstract?source=fedsrch&accountid=34899Heiba, F. (2011). Future global marketing negotiations: A strategic scenario. International Journal of Business and Social Science, 2(4). (ProQuest Document ID: 904523887)http://search.proquest.com.libproxy.edmc.edu/docview/904523887/ abstract?source=fedsrch&accountid=34899Porter, M. (1996). What is strategy? Harvard Business Review 74(6), 61–68. (EBSCO AN: 9611187954) http://libproxy.edmc.edu/login?url=http://search.ebscohost.com/ login.aspx?direct=true&db=bsh&AN=9611187954&site=ehost-liveSchmelz, D. R., Ramsey, R. P., & Gassenheimer, J. B. (2011). Bleu Ribbon Chocolates: How can small businesses adapt to a changing environment? Marketing Education Review, 21(2), 177–182. doi:10.2753/MER1052-8008210207 (EBSCO AN: 63968062) http://libproxy.edmc.edu/login?url=http://search.ebscohost.com/ login.aspx?direct=true&db=bsh&AN=63968062&site=ehost-live Recommended Readings Deverell, E., & Olsson, E. (2010). Organizational culture effects on strategy and adaptability in crisis management. Risk Management, 12(2), 116–134. doi: 10.1057/rm.2009.18 (ProQuest Document ID: 232626553) http://search.proquest.com.libproxy.edmc.edu/docview/232626553?accountid=34899Jüttner, U., Martin, C., & Godsell, J. (2010). A strategic framework for integrating marketing and supply chain strategies. International Journal of Logistics Management, 21(1), 104–126. doi: 10.1108/09574091011042205 (ProQuest Document ID: 367098166)http://search.proquest.com.libproxy.edmc.edu/docview/367098166?accountid=34899Peterson, M., Gröne, F., Kammer, K., & Kirscheneder, J. (2010). Multi-channel customer management: Delighting consumers, driving efficiency. Journal of Direct, Data and Digital Marketing Practice, 12(1), 10–15. doi: 10.1057/dddmp.2010.16. (ProQuest Document ID: 740324599) http://search.proquest.com.libproxy.edmc.edu/docview/740324599?accountid=34899Raja, I. S., & Raja, M. S. (2010). Managing technological innovation: China’s strategy and challenges. Journal of Technology Management in China, 5(3), 213–226. doi: 10.1108/17468771011086238 (ProQuest Document ID:757059093)http://search.proquest.com.libproxy.edmc.edu/docview/757059093/ abstract?source=fedsrch&accountid=34899 Tomomi, T. (2010). Environmental management strategy for small and medium-sized enterprises: Why do SMBs practice environmental management? Asian Business & Management, 9(2), 265–280. doi: 10.1057/abm.2010.6 (ProQuest Document ID: |
This module is designed to help you review, assess, and apply resources and tools that support development of an effective strategy. You will study a number of strategy planning tools and techniques in the assigned readings and apply them in your assignments. The tools discussed in this module are used by leaders and leadership teams in for-profit and not-for-profit organizations. They are performance measurement tools as well as planning techniques. You will get a chance to plan and use these tools in the assignments for this module.
· Synthesize a wide variety of economic, financial, and qualitative data to draw actionable managerial conclusions that convince others of your position and analytical conclusions.
· Identify actions that effectively integrate the primary business disciplines cross functionally to move the organization toward its mission and strategic goals, while being consistent with professional standards, social norms, and corporate ethics.
Unit 2: Module 2 – Key Concepts in this Module
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Key Concepts in this Module |
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· Environmental scanning/SWOT—The proposition behind the SWOT methodology is to allow an organization to assess its strengths, weaknesses, opportunities, and threats that will impact the business. When implemented in tandem with environmental scanning (that focuses on what is going on in the marketplace) and the economy, a SWOT can help an organization shore up its position in the marketplace. Ultimately, it is how the organization responds to the data and the subsequent actions that dictate the value of environmental scanning and SWOT. · Five forces analysis—Porter developed the five forces analysis process which includes exploring the threat of new competition, understanding the threat of substitute products or services, the bargaining power of customers (buyers), the bargaining power of suppliers, and the reality of the level of intensity of competitive/industry rivalry. · Value chain analysis—This tool encompasses analyzing direct and indirect activities that generate and deliver a company’s product or service to its customers. The analysis assesses each activity’s contribution to the competitive proposition through cost or differentiation. The analysis also explores any disadvantages. The culmination of information provides insight on informing the strategy. · Performance analysis/benchmarking—The purpose of benchmarking is to establish a reflective point to compare against. For example, a company may send out a customer feedback survey asking for input on its service. If the company receives an average rating of a 3 on a 5-point Likert scale, it may create a plan/initiative to improve this to secure a higher satisfaction rating of 4 over a period of time. The benchmark is 3 internally, and they may also choose to look at industry data on similar companies/organizations and benchmark against industry averages. This is one tool often used to help organizations to concretely measure the results of initiatives. · Strategic issues—Strategic issues often develop as a result of misaligned internal capabilities and external trends. This often prevents pursuing the right opportunities and not paying attention to marketplace (external) conditions that may threaten viability of the organization. Strategic reevaluation on a regular basis can help prevent strategic issues from popping up. Using environmental scans, SWOT analysis, and Porter’s five forces analysis can help reveal issues and provide ways to address them. Porter, M. (1996). What is strategy?
Harvard Business Review 74(6), 61–68. Retrieved from http://www.ipocongress.ru/download/guide/article/what_is_strategy Using the navigation on the left, please proceed to the next page. |
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Unit 2: Module 2 – ABC Case Study—Evolving the Strategy
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ABC Case Study—Evolving the Strategy |
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Organizations may choose different strategic approaches including the following: · Retrenchment strategies focus on tightening the belt (i.e., reducing operating costs and divestment of noncore assets). This often occurs in hard economic or recessionary times. · Investment strategies involve expenditure on innovation and market diversification. These approaches are often short-term and focused to make fast adjustments. They can also be risky when balanced with long-term strategies. · Ambidextrous strategies are exactly as the word suggests—a combination of retrenchment and investment. These approaches have inherent short-term benefits as well as some long-term risks. One of the most famous company strategy moves was when, in the 1980s, Coke changed its formula in its Coca-Cola drink to a sweeter taste. The company did a huge market test complete with a large number of taste tests that were positive. The company invested in a large marketing campaign based on the taste tests. However, the general public was not impressed with the new flavor nor the marketing campaign. Coke classic was reintroduced in an ambidextrous strategy in terms of retrenching and investment. As you can see, performance analysis does not always work. Truly, it is about assessing which strategy is best for the organization. ABC eLearning’s management attributed the company’s growth and success to the following, using a general to specific and measurable approach: · Developing a strategy—This allowed for flexibility and included critical factors such as core business, marketplace needs/trends/demands, economic indicators for industry growth, and the ability to build in channel partners and easily expand the business beyond its core services. · Executing the strategy—This covered what, who, and how the plan would be executed. It also covered the clear metrics established each fiscal year that would demonstrate the strategy was executed properly and was working. Although ABC was set up in 2003, developing the strategy was an evolving process. The leader of the organization came across and referenced Change by Design by Tim Brown as a resource that helped articulate one of the efforts within the organization. The leader found the following points particularly inspiring: · Do not look at things like a problem, look at them like a project to work on and improve. · Use cross-functional teams within the organization to innovate, ideate, implement, and keep evolving. Brown, T. (2009). Change by design: How design thinking transforms organizations and inspires innovation. New York, NY: Harper Collins. Using the navigation on the left, please proceed to the next page. |
lthough one would perceive the activities defined in this course as consistent practices derived from common sense, it is surprising how often organizations will skip the basics (i.e., a thorough five forces analysis of the industry; key factors and trends in any other areas affecting the industry; and a SWOT analysis that considers internal and external factors).
Basic fundamental processes are neglected as companies try to become agile, innovative, and creative. The US automobile industry of the later part of the twentieth century is an example. In many of the automobile companies, quality control processes were sacrificed for sales and marketing techniques. The fundamentals of the production model were forfeited for perceived financial gain at the cost of reputation and long-term sustainability.
The ABC eLearning company did not skip all the basics, but they also did not dive in or address elements of all the basics that could have prevented some of their early missteps. One specific element was based on a better understanding of the external environment compared to capabilities to support an expanding customer base with competing affiliate requirements (i.e., who is the priority, whether it is the affiliate that pays very little for the services but keeps the lights on, or the new external customers that pay more and offer more opportunity for increased growth). This example reiterates the importance of always starting with a solid foundation and addressing the fundamentals around internal and external balance, as well as market position and priority.
Building on Fundamentals
Organizations that stay true to the fundamentals consistently yield better results and can catch and remedy marketplace decline faster than their competitors. Jim Collins (2009) wrote about this to some degree in How the Mighty Fall and Why Some Companies Never Give In. Although leadership and leadership decisions play a key role, the essence includes staying true to the basics as a foundation for success. This is akin to why Porter’s five forces analysis is still considered a useful resource or tool in business.
http://tutor2u.net/business/strategy/Strategic_audit.htm
Collins, J. (2009). How the mighty fall and why some companies never give in. New York, NY: Harper Collins.
Unit 2: Module 2 – Keeping the Organization on Track
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Keeping the Organization on Track |
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Most successful organizational leaders can quickly share what they believe are their strengths, weaknesses, opportunities, and threats. This is a sign that they are paying regular attention to what is influencing their business and business results. However, the key is how they proactively manage or react to address these in a way that keeps the organization on track with its goals. Consider this as you work on the assignments for this module. For example, Glaxo’s board wanted its chief executive officer (CEO) to launch a new line of products in a new market. The CEO decided the new ventures need to be integrated into the company’s strategic plan. The CEO met with key leadership staff and did a SWOT analysis exercise to identify internal and external forms and forces. The CEO then used the SWOT findings to guide the development of goals and objectives for the new ventures that aligned with the company vision and mission. The findings also showed what kind of resources and forms and forces would be needed and accounted for. The SWOT findings can be operationalized and measured against. In the assignments, you will review factors and trends that influence strategy development as well as conduct an external environmental scan of your business unit. Using the navigation on the left, please proceed to the next page. |
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Capstone Experience in Integration & Strategy
©2012 Argosy University Online Programs
Interview: Brent Gleeson
Introducing Brent Gleeson, co-chief-executive-officer of Internet Marketing Incorporated
Interviewer: We would appreciate your perspective regarding preparing for and undertaking a strategic
audit to improve a company’s performance. One of the first questions that come to mind is:
When an organization is preparing to undertake a strategic audit to enhance the company’s
performance, what do you recommend as the initial steps?
B. Gleeson: When it comes to operations, you must consider the following:
Externally, what forces are affecting the business: This includes competition, market
trends, changes in customer base, etc.
Current systems, processes, and policies: What’s working and what isn’t; every
company, in growth made, will outgrow existing systems and processes multiple times
throughout the lifecycle of the business.
Does the company have the right people in the right jobs: Redefining job
responsibilities and potentially replacing team members with better talent more
commensurate with the company’s existing products, services, and clients
Review the company’s existing strategic plan and make sure it is in line with the current
vision (1 year, 3 year, 5 year, or 10+ year); does the organization currently have the
capabilities and talent to fulfill this vision; if not, how does the organization ensure that
it does invest in the proper resources?
How does the company currently measure performance both internally with employees
and externally with clients and projects?
When it comes to sales, consider:
What is the current sales plan and strategy and how does it need to be adjusted to fit
the potentially revised operational or strategic plan?
As the company audits internal systems and potentially develops new processes and
even products and services, how will this be integrated into the sales plan?
What is the analysis of competitor pricing models, products, and services?
Other things to analyze are:
Existing resources and bandwidth
Employee productivity, morale, career path desires, etc.
Financial projections and forecasts: How does the strategic plan support the desired
financial projections
Interviewer: How have you approached this in your current or prior organization(s)?
B. Gleeson: By performing the audit and putting new systems, processes, and policies in place where
needed in order to properly support the revised strategic plan.
Page 2 of 2
Capstone Experience in Integration & Strategy
©2012 Argosy University Online Programs
2 Interview: Brent Gleeson
Interviewer: What do you find as the biggest challenge(s)? How have you overcome these?
B. Gleeson: Identifying the root cause of internal inefficiencies (is it people, systems, technology, all of the
above, some of the above, etc.). By performing a proper audit, doing 360 reviews, getting
regular and transparent feedback from all team members, etc…that is how we get to the root
cause and can then make the proper adjustments (that is, better software, firing/replacing
people, and getting better systems in place).
Interviewer: How do you guide the process to achieve the best possible results?
B. Gleeson: Developing a plan, putting trusted stakeholders in place for various areas of responsibility,
regular communication and follow up, and accountability processes.
Interviewer: What advice do you have for companies when undertaking a strategic audit?
B. Gleeson: Take your time and do it right. Use anonymous 360 reviews with questions designed to
address what’s currently working, what isn’t, and what people feel would be the best solutions.
Sometimes you will quickly find out that management may be the root cause of various issues!
Interviewer: How have you ensured that the strategic audit leads to a plan that is executable and will
achieve results?
B. Gleeson: Auditing properly, collecting data, analyzing data, gaining insights that lead to actionable
plans, developing the plan, executing, and following through.
