The Evolution of Strategy at Procter and Gamble Essay

The Evolution of Strategy at Procter and Gamble Essay.

International Strategy

E) When there are low cost pressures and low pressures for local responsiveness, an international strategy is appropriate. An international strategy involves taking products first produced for the domestic market and then selling them internationally with only minimal local customization.

The Evolution of Strategy

G) An international strategy may not be viable in the long term, and to survive, firms may need to shift to a global standardization strategy or a transnational strategy in advance of competitors. Similarly, localization may give a firm a competitive edge, but if the firm is simultaneously facing aggressive competitors, the company will also have to reduce its cost structures, and the only way to do that may be to shift toward a transnational strategy.

Management Focus: The Evolution of Strategy at Procter & Gamble

Summary

This feature explores the evolution of Procter & Gamble’s global strategy. In 1915, Procter & Gamble opened its first foreign operation in Canada. In the 1950s and 1960s, Procter & Gamble expanded into Western Europe, and then, in the 1970s, into Japan and other parts of Asia.

Throughout this expansion, the company maintained all product development at its Cincinnati, Ohio headquarters, while each subsidiary took on the responsibility for manufacturing, marketing, and distributing the products. Procter & Gamble shifted its strategy in the 1990s, closing several foreign locations and moving to a more regional approach to global markets. More recently, the company implemented “Organization 2005”, a business unit approach whereby different units are entirely responsible for generating profits for a product group. Discussion of this feature can begin with the following questions:

Suggested Discussion Questions

1. Discuss the evolution of Procter & Gamble’s strategy. Do you think Procter & Gamble was reactive or proactive in its approach to strategy in the late 1990s and early 2000s?

Discussion Points: Many students will probably suggest that Procter & Gamble took a reactive approach to its strategy in the early 1990s, but was more proactive in the late 1990s and early 2000s. The company’s initial reorganization was a reaction to a changing marketplace and sluggish profits, however, when it became apparent that the reorganization attempt was not really fixing the problems that existed, the company embarked on a new strategy. This time, rather than simply trying to adjust its existing strategy as the company had done in 1993, Procter & Gamble completely dismantled the structure that had been in place for a quarter of a century and reorganized as a company ready to operate in a global marketplace.

2. What factors have forced Procter & Gamble to change its strategy? As a competitor to Procter & Gamble, what can you learn from the company’s experiences?

Discussion Points: Numerous factors prompted Procter & Gamble to change its strategy. Because of its country-by-country approach to the market, the company had extensive duplication of manufacturing, marketing, and administrative facilities that were driving up costs. In addition, the retailers that the company relied on were operating globally and demanding deeper discounts from Procter & Gamble. With its new strategy, the company has eliminated these problems. Now, Procter & Gamble’s competitors are facing many of the same challenges. Some students will probably suggest that a key element that competitors can learn from Procter & Gamble’s experiences is that operating in a global market is significantly different from selling internationally to individual markets.

3. How would you characterize Procter & Gamble’s current strategy? What challenges do you foresee with the new strategy?

Discussion Points: Students will probably suggest that Procter & Gamble is trying to take a transnational approach to markets. The company has reorganized into business units so that each unit is responsible for its own profits. Each unit has been directed to develop global brands where possible, and keep costs low. While this new approach eliminates many of the problems facing the company under its old structure, it does introduce a new challenge in that there is little communication between business units which effectively minimizes the possibility of cross-unit learning and information sharing. So far, the new strategy seems to be working. Profits at Proctor & Gamble were up for the time period 2003-2007. Interestingly, the company’s competitors – Kimberly-Clark and Colgate-Palmolive reported more mixed results for the same time period.

Teaching Tip: To explore Procter & Gamble’s international strategy in more depth, go to {http://www.pg.com/en_US/index.jhtml}. Click on “P&G Global Operations” to compare the company’s domestic operations to those in numerous foreign locations.

Lecture Note: Unilever, a competitor to Proctor& Gamble, has recently made changes to its strategy that could threaten Proctor & Gamble’s success. To extend this discussion consider {http://www.businessweek.com/innovate/content/mar2008/id2008035_909480.htm?chan=search}.

The Evolution of Strategy at Procter and Gamble Essay

Strategy Analysis of Toyota Essay

Strategy Analysis of Toyota Essay.

Toyota Motor Corporation is a famous Japanese multinational corporation, and is considered the world’s second largest automaker of automobiles, trucks, buses, robots, and providing financial services ( 2007). Its founder is Kiichiro Toyoda, born in 1894, and the son of Sakichi Toyoda, who became popular as the inventor of the automatic loom. Kiichiro inherited the spirit of research and creation from his father, and devoted his entire life to the manufacture of cars. After many years of hard work, Kiichiro finally succeeded in his completion of the A1 prototype vehicle in 1935, which marked the beginning of the history of the Toyota Motor Corporation ( 2007).

The first Type A Engine produced in 1934 was used in the first Model A1 passenger car in May 1935 and the G1 truck in August 1935, and led to the production of the Model AA passenger car in 1936. In addition to being famous with its cars, it still participates in the textile business and makes automatic looms that are now fully computerised, and electric sewing machines that are available in different parts of the world.

It has several factories around the world, which serve to manufacture and assemble vehicles for local markets. The corporation’s factories are located in countries such as the United States, Australia, Canada, Poland, France, Czech Republic, United Kingdom, Turkey, South Africa, Brazil, Argentina, Venezuela, Mexico, Japan, Indonesia, Pakistan, India, Mexico, Malaysia, Thailand, China, Vietnam, and the Philippines. Despite the many locations of its factories, its headquarters is located in Toyota, Aichi, Japan (2007). It invests a great deal of time and effort in its research into cleaner-burning vehicles, such as promoting a Hybrid Synergy Drive and running a Hydrogen fuel cell in its vehicles (2007).

It has significant market shares in developed countries, such as the United States, Europe, Africa and Australia, and has significant markets in South East Asian countries. Its brands include the Scion, its division in the United States, Guam and Puerto Rico, and the Lexus, which is Toyota’s luxury vehicle brand ( 2007). Aside from producing cars and other types of automobiles, such as SUVs and coasters, Toyota also, participate in rallying or racing. The company’s presence in Motorsport can be traced to the early 1970s, when Ove Andersson, a Swedish driver, drove for Toyota during the RAC Rally in Great Britain, and in succeeding years, Toyota Team Europe was formed ( 2007). Up to the present, Toyota cars are still being used in a variety of racing events in different countries around the world.

These events include the CART in Vancouver, the Le Mans, the Indy Racing League, the NASCAR, and the Toyota F1 Series (2007). As the leader in the industry of automobile manufacture and production, the company adopts a philosophy in terms of its production system, which is named The Toyota Way. The company’s philosophy in production involves a list of fourteen principles that are implemented in the company, and serve as guides to the operation of the company. This includes the following principles: * Base the company’s management decisions on a long-term philosophy, even at the expense of short-term goals; * Foster a continuous process flow to sight problems;

* Utilise “pull” systems to prevent over-production;
* Level out the workload of the workforce;
* Build a culture that stops to fix problems, in order to get quality perfect at the first try;
* Standardised tasks are the company’s foundation for its continuous improvement and the development of the employees;
* Use visual control to let problems surface;

* Use reliable and tested technology, which serves both the people and the company’s processes; * Train leaders who understand the company’s work, live its philosophies, and share it to others; * Train and develop a workforce who follow the company’s philosophy; * Respect the work and responsibilities of partners and suppliers by challenging them and helping them improve; * Actually immersing one’s self to understand the situation; * Slow but sure decision-making through consensus, through considering a variety of options, and to implement decisions effectively and efficiently; and, * Becoming a learning business organisation through expression and continuous improvement ( 2007)

With these principles, the company is guided in terms of its operations and production. Through these principles and philosophies, it can become efficient and effective in manufacturing its products, keeping in mind the welfare of its employees, the image and brand of the company, and the satisfaction of its employees. 2. MACRO ENVIRONTMENT ANALYSIS Suggested model PESTEL model (showed how the environment affect the industry we chosen) reference: http://en.wikipedia.org/wiki/PEST_analysis

Currently, Toyota faces a need for accelerated investment, in order to deploy the new technologies, for pressing geo-political, economic, environmental and societal reasons. 3.1. Political

Observers will see a continuing progression in the ruinous steps which have forced the industry into a socio-politico-economic corner. Whether this is related to flat demand or to the company’s creation of an ever-wider range of vehicles that many buyers seem to care little about, there is a problem. The company is likewise linked closely to the policies of governments, the earnings of banks. Little wonder then that so many emerging countries are keen to develop an auto sector or that there is such a political pressure to protect it in the developed countries. Toyota Company is currently dominated by little more than a handful of firms, each wielding colossal financial, emotional and political power. The company’s approach to dealing with political institutions has not always been brilliant. It tends to be good on technical issues, although it has not always fully presented the longer-term options, in order to make the choices and their implications clear. 3.2. Economical

For much of the developed world, and increasingly for the developing world, Toyota Company is a pillar company in auto mobile business, a flag of economic progress. Without Toyota Company in automotive industry, it is impossible to develop an efficient steel business, a plastic industry or a glass sector – other central foundations of economic progress. The Toyota Company has been a core company, a unique economic phenomenon, which has dominated the twentieth century (2007). However, the automobile industry including the Toyota Company now suffers from a series of structural schisms and has become riddled with contradictions and economic discontinuities.

For the capital markets and the finance sector, it has lost a lot of its significance, as a result of ever declining profits and stagnant sales. The proliferation of products means that it has become hopelessly wasteful of economic resources. While all these and more sound like a very gloomy assessment of such a vast economic phenomenon, the industry is not in the end despondent. A different future is possible for the industry, a highly desirable one.

3.3. Social

As part of the development in automotive industry, the Toyota Company actually affects the society as a whole. It employs millions of people directly, tens of millions indirectly. Its products have transformed society, bringing undreamed-of levels of mobility, changing the ways people live and work (2007). The social value of the additional mobility that this industry brings involves the value of the people being able to commute over longer distances easily, among many others. For most of its existence the Toyota Company has been a model of social discipline and control and it is not just that the auto sector offers a ‘pillar’ of something else.

There are, on the other hand, particular social issues to address in many developing countries, often those that are the result of an undertone of religious faith. Toyota company has the role to play in helping develop the mobility of such countries and it can be achieved at an acceptable social cost of the country is prepared to learn the necessary lessons from those who have traveled this route before it, and to make the necessary investments.

3.4. Technological

The Toyota Company works on a scale so awesome and has an influence so vast that it is often difficult to see. The level and diversity of technologies that it must deploy are increasing, which imposes both new investment burdens and new uncertainties and risks (2007). Roughly a million new cars and trucks are built around the world each week – they are easily the most complex products of their kind to be mass-produced in such volumes. The industry uses manufacturing technology that is the cutting edge of science.

But still, the potential for developing coordination skills, intellectual capabilities and emotional sensitivities through electronic technologies remain far from fully exploited. There are numerous additional near-term technological opportunities to adapt the company to changing energy availability. The possibilities suggest that automotive technology is unexpectedly robust and provides a powerful defence against energy starvation even if the real price of oil climbs steadily during the next couple of decades.

3.5. Environmental

Other than the vehicles themselves, and the roads and fuel needed to run them; the business is intricately tied to the manufacture of a wide range of components and the extraction of precious raw materials. Indirectly, it brings people road congestion, too many fatalities and a wave of other environmental troubles. The effect to the Toyota Company is that they needed to establish R&D centres to take advantage of research infrastructure and human capital, so that they can develop vehicle products locally to satisfy the requirements of the environmental and safety regulations more effectively.

Strategy Analysis of Toyota Essay

Amazon.com Operational strategy Essay

Amazon.com Operational strategy Essay.

AQuestion 2: What are Amazon.com’s competitive priorities and what should its operation strategy focus on?

Competitive priorities:

– Keep the position of market leader.
– Maintain the fast delivery.
– Low price focus
– User friendly website.

Operational strategy:

Promote the website, especially in this time of the year, during the holidays. People will be reminded of the website, and maybe visit the website because of the promotion. When the visitors are on amazon.com, they must experience a nice shopping-environment. This can be done by constantly improving the website’s user friendliness, this can be done by improving the search engine for example.

Or something as easy as changing some colors to match the season.

Question 4: FedEx built its business on quick, dependable delivery of items being shipped by air from one business to another. Its early advantages included global tracking of shipments using Web technology. The advancement of Internet technology enabled competitors to become much more sophisticated in order tracking. In addition, the advent of Web-based businesses put pressure on increased ground transportation deliveries.

Explain how this change in the environment has affected FedEx’s operations strategy, especially relative to UPS, which has a strong hold on the business-to-consumer ground delivery business.

Because FedEx lost their initial competitive advantage (UPS became a threat as they were able to deliver large volume of shipments because of the advanced Internet technology as well), they had to come up with new operations strategies to remain competitive:

– FedEx Ground

– FedEx Home

FedEx now focuses on low-cost operations and dependable delivery, to gain a new competitive advantage.

Question 6: Although all nine of the competitive priorities discussed in this chapter are relevant to a company’s success in the marketplace, explain why a company should not necessarily try to excel in all of them. What determines the choice of the competitive priorities that a company should emphasize for its key processes?

It really depends on the specific market you are operating in as a company. The company should focus on the most marketable assets by implementing demographics and forecasting future opportunities. Top quality may influence the development speed and low cost operations could conflict with your volume flexibility.

BChad’s Creative Concepts started as a small company producing custom made wooden furniture. Business was good, and Chad Thomas decided to expand his business. Now, Chad added a standard line of furniture to his business. The priority is still on the custom made furniture, therefore the standard line is put on the second place, leading to unfinished products and a big inventory.

Question 1: What types of decisions must Chad Thomas make daily for his company’s operations to run effectively? Over the long run?

Chad has to make operational decisions. In the long run, these decisions are Strategic decisions.

Question 2: How did sales and marketing affect operations when they began to sell standard pieces to retail outlet?

By changing to selling standard pieces in retail outlets next to the custom pieces, Chad has start promoting his business, because now there are serious competitors, which are easily reached by the customer. The whole production process changed, because now standard pieces are produced in the factory as well.

Question 3: How has the move to producing standard furniture affected the company’s financial structure?

The sales of the standard line are increasing steadily, but still the most dollars of the sales come from the custom made pieces. However, the financial situation is not optimal, because lots of dollars are spend on inventory.

Question 4: What might Chad Thomas have done differently to avoid some of the problems he now faces?

Thomas could make a second factory, focused on only producing standard pieces. By doing this, he can terminate the problem of priorities. So, by doing this, he can decrease the inventory.

Extra questions

Question 1: Explain the competitive priorities for both product lines (customized furniture and standard furniture) The priority of the company is the department of the customized furniture. But with both departments, there are different priorities. For customized furniture, the priority is to create a creative design, with the highest quality possible. For the standard furniture, the priority is deliver on time and a good price-quality ratio.

Question 2: Identify the OPP (Order Penetration Point) of each productlines The OPP for the custom made pieces of furniture is the moment Chad’s staff start working on a project. The whole project is specifically made for one customer from the beginning. The OPP for the Standard pieces is the moment that a customer buys the (already fully assembled) product. At that moment in time, the pieces are for that specific customer.

Question 3: Which flow strategy would be the most effective for each of the product lines? For the custom made pieces flexible is the best strategy. This focuses on individual pieces. For the standard pieces, the line strategy is the best strategy. This strategy focuses on the whole line, not on individual pieces.

Question 4: What would you advice Chad’s to do to solve the current problems? We would advise Chad to start a second factory. The current factory should be used for only the custom pieces. The new factory can be used for the standard pieces. With the two production processes separated, you can eliminate the problem of priority.

Discussion questions

1It´s a job process, a process with the flexibility needed to produce a wide variety of products in significant quantities. With considerable complexity and divergence in the steps performed. We think it´s easy to have high customer contact with internal customers, because internal customers are closer to the company.

2This sign implicates that the employees do not have any word in the company. Some customers could think that the employees are not good in performing their job, without any responsibility. Next to this, the employees could feel like they are not important to the company. So this sign works in a bad way.

Furthermore, the sign implicates that the employees are very limited in their actions, and furthermore, this leads to low customer contact.

This sign is exactly the opposite of how the employees at Ritz Carlton work. Employees at this hotel have all the resources and responsibilities a man can have. Stories go round that hotel managers fly in products from other countries, just for customer satisfaction. In this case, with the sign, the employees´ hands are tied, and by this, customer satisfaction is not at its maximum.

CQuestion 3: How do the process strategies of eBay and McDonald’s differ and how do their choices relate to customer-introduced variability?

eBay (mass customization)
McDonald’s (repetitive focus)

eBay customers are less involved regarding the variability. They offer many different products for many different interests, and the customer basically buys whatever he or she wants: low involvement. McDonald’s on the other hand wants to know more specifically, what their customers want as they have less products to offer and are able to change their product line more often during the year. Lately, McDonald’s organised a contest where the customer could compose their ideal hamburger. The winning hamburger is now being sold for a set time period.

Question 4: Medical technology can outfit a patient with an artificial heart, or cure vision defects with the touch of a laser. However, hospitals still struggle with their back-office processes, such as getting X-ray files from radiology on the fourth floor to the first-floor view boxes in the emergency room without having to send a runner. More than 30 percent of the estimated 30 billion health transactions each year are conducted by phone, fax or mail. To what extent, and how, can information technology improve productivity and quality for such processes? Remember that some doctors are not ready to give up their pads and pencils, and many hospitals have strong lines drawn around its departments, such as pharmacy, cardiology, radiology ad paediatrics.

Basically, information technology cannot only improve productivity and quality, but thinking more practically, it could save lives as all medical systems in a hospital work through faster and more advanced technologies. Understandably, it has to be 100 percent reliable and feasible and that’s probably the current reason for some doctors, mentioned in the question, to keep working in an old-fashioned way that is – for them – safer and more reliable, but probably not as fast as up to date advanced information technologies available.

Question 5: Consider the range of processes in the financial services industry. What position on the customer-contact matrix would the process of selling financial services to municipalities (1) occupy? The process of preparing monthly fund balance reports (2)? Explain why they would differ.

1. Front/Hybrid office
2. Back office

The first process requires some interaction to high interaction with the customer (municipality). It lies somewhere in the middle, as you’re not working with individual clients (which require high interaction) but a client (municipality) that needs regular updates and interaction on the process. Preparing monthly fund balance reports is a continued routine process that requires low to none interaction and is the same with all customers.

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Amazon.com Operational strategy Essay

Policing Paper – The Chicago Alternative Policing Strategy (CAPS) Essay

Policing Paper – The Chicago Alternative Policing Strategy (CAPS) Essay.

Over the last 20 years, a new concept of policing has emerged that will replace the law enforcement aspects of an officer’s duties and replace them with crime prevention.  This new concept is community policing, which “should develop partnerships with neighborhood residents, develop programs tailored for specific problems, and give rank-and-file officers more decision-making freedom with regard to how best to deal with particular problems” (Walker & Katz, pg 50, 3).  Although this new approach to policing has been around since the 1980s, the city of Chicago was the first large police department to adopt the program city-wide with the announcement of the Chicago Alternative Policing Strategy (CAPS) in April 1993 (Skogan, et al.

, 2002).  This paper will explain the strengths, weaknesses, and future of the CAPS program.

As explained above, the community policing concept allows the officer to become a problem-solver instead of a reactor by developing relationships within the neighborhoods in which the department serves.  CAPS adopted a five-step program to assist with this effort.

  These steps include:

· “Identify and prioritize problems

· Analyze problems

· Design response strategies

· Implement response strategies

· Assess the success of response strategies” (Skogan, et al, 2002, pg 4, ¶ 3).

The five steps were accomplished through turf orientation and mobilizing city services.  The turf orientation consisted of 279 beats with nine or 10 officers assigned to each.  These officers were suppose to develop relationships and trust among the residents of each beat; however, due to the high number of 911 calls, the officers found that they did not have the necessary time to accomplish both tasks.  Therefore, the Chicago Police Department hired extra officers that were assigned to “free-roving rapid-response units” (Skogan, et al., 2002 pg 5, ¶ 6).

These free-roving units were responsible for handling the extra 911 calls and were not tied to a specific beat, which allowed the beat officers to remain within their territories long enough to establish trust and relationships with the public.  The beat officers also mobilized city services to help with the initial clean-up needed to deter crime and reduce the public’s fear of potential crime.  City ordinances were changed to expedite the removal of graffiti, abandoned vehicles towed, and abandoned or unsafe buildings demolished.  Malfunctioning street lights were also fixed, and civilian coordinators put in charge of providing the beat officers the necessary services they needed to solve problems within the community (Skogan, et al., 2002).

Once the initial issues had been addressed, the beat officers needed to get the community more involved in the CAPS program.  The first step in this was to obtain citizen input about the concerns within the neighborhoods and create new roles for residents to ensure their neighborhoods remained safe.  Beat meetings were created to “serve as a forum for exchanging information and prioritizing and analyzing local problems” (Skogan, et al, 2002, pg 8, ¶ 2).  These meetings were held on a monthly basis in church basements and park buildings, and allowed the beat officers and the residents of each community to become better acquainted.  However, many of these meetings ended up being filled with complaints from residents instead of prioritizing and creating action plans to correct problems.  Therefore, more training has been provided for beat officers and civilian facilitators in order to maintain order within the beat meetings (Skogan, et al., 2002).

Residents were also given more roles to ensure the neighborhoods remained safe.  District advisory committees (DACs) were created to advise commanders of concerns and plan police-citizen projects.  These committees consisted of “community leaders, school council members, ministers, business operators, and representatives of significant organizations and institutions in the district” (Skogan, et. al, 2002, pg 11, ¶ 2).  However, this aspect of the CAPS program has not evolved as originally expected.  Partly because the DACs have not thought strategically about correcting wide-spread problems, and partly because the DACs are not as diverse as they should be; leaving gaps in the representation of all races and social classes within a large area (Skogan, et al, 2002).

Although there have been a few pitfalls in the implementation of the CAPS program, there have also been some improvements.  One such improvement includes crime analysis.  A crime-mapping system has been created that is updated continuously; allowing police the information needed for problem-solving and tactical operations.  The city has also implemented a new 311 system that is used for nonemergency situations (Skogan, et al, 2002).  Another improvement has included the creation of a roving task force that includes police, building, health, and fire inspectors.  This task force’s sole responsibility is to enforce antigang and drug house ordinances.  A third improvement includes the cooperation of city legal staff whom have set up offices within communities to assist police in reoccurring problems, prosecute hate crimes, and conduct seminars about crime prevention (Skogan, et al, 2002).

Since the implementation of the CAPS program, Chicago has seen a decrease in crimes ranging from burglary, auto theft, street crime, gangs, and drug problems.  However, the future of the program greatly depends on the current motivation of residents, police, and city leaders.  The city must become creative in ways to maintain its current CAPS program during these difficult economic times that have affected budgets on the city, state, and federal level, as well as replace retiring leadership with knowledgeable and driven officers and sergeants (Skogan, et al, 2002).

Policing Paper – The Chicago Alternative Policing Strategy (CAPS) Essay

Coca-Cola Case Study the Global Strategy Essay

Coca-Cola Case Study the Global Strategy Essay.

Coca-Cola is currently at the leadership position in the beverage industry and it has been successful through its strong brand image, exceptional outsourcing strategies and efficient supply chain management. However, there are still some issues that Coca-Cola needs to solve.

This report is segmented into three main parts. The first part discusses market position, market share and product through research. The second part focuses on the current issues, core competence and future plans of Coca-Cola. Recommendations are provided in the third part in order to resolve the issues brought up earlier and to provide guidance towards its future global strategies.

The report aims to provide recommendations to solve a number of issues that Coca-Cola has been facing in terms of water issues, health issues and environmental issues. Firstly, globalisation and localisation should be balanced. Secondly, the market leader position can be maintained by employing defensive strategy. Thirdly, the brand perception can be changed by investing marketing budgets on healthy beverages such as juice and water.

In addition, health issues can be improved by penetrating into a new market, such as producing healthy food with low calories. Fourthly, the water quality can be solved by developing new technology or seeking non-contaminated water supply. Last but not least, Coca-Cola can contribute to the sustainability through developing environmental friendly packages.

Introduction

Coca-Cola is one of the most popular beverage companies across the world. It was invented in the late 19th century by John Pemberton as a patent medicine at first. Griggs Candler is a famous salesman who transformed Coca-Cola from an invention into a business and then registered trademark of The Coca-Cola Company in the United States since March 27, 1944. Today, Coca-Cola is a company which marketed in more than 200 countries and there are 59,000 branch companies and 71,000 workers in the world. Coca-Cola has taken up a quarter of the sales revenue in the beverage industry, comparing with the 11.5% of Pepsi, which was due to its successful implementation of its globalisation strategy. The purpose of the report is to provide recommendations to the directors of Coca-Cola by researching and analysing the market position, product, market share, current issues, core competence and future plans of the company.

Market Position and Market Share

Coca-Cola is one of the most well-known beverage brands across the world and it has become the market leader in the beverage industries (Allen et al. 2012). Coca-Cola aims to bring joy and happiness to consumers with its products. Coca-Cola also markets itself with consistent communication and offers high quality products. It is a company which has a high level of brand equity and unlimited financial resources (Allen et al. 2012), although it has experienced both growth and decline in 110 years since 1902.

Coco-cola’s objective is to hold its market position and keep their sales revenues growing through the defensive marketing strategy (Allen et al. 2012). For example, Coco-cola sponsored the 2008 Beijing Olympics to enhance their brand as well as its market position and it has successfully accomplished the campaign. Thus this marketing strategy helps Coco-cola to retain their market share and to maintain its leadership position in the soft drink market in the world among many other competitors.

The beverage market is a perfect competition market (Docstoc 2009), where there are only a few major players in this market. For instance, Pepsi and Nestle are the main competitors of Coca-Cola. Furthermore, it is shown that Coca-Cola and Pepsi have accounted for half of the market share in the soft drink industry. Coca-Cola Company has developed over 3500 products and they have been sold in 200 countries around the world, such as Japan, Canada and China (Kumar 2012).

Figure 1

Figure 1 indicates the global market share of Coca-Cola in 2010, and other best-selling beverages in the world. Based on the statistics, Coca-Cola’s sales revenue accounted for more than a quarter of the global beverage market share, which was 25.9% and followed by Pepsi with 11.5% (Statista 2012). The other leading brands were Nestle and Suntory Holdings, which were 3% and 2.8% respectively (Statista 2012). However, the majority of the beverage market share was taken up by other small brands, which means there are some challenges and opportunities for market development.

Compared with year 2009, Coca-Cola’s market share has increased, due to the increment in the sales revenue, and 77% sales revenue comes from the international market (REUTERS 2010). To be more specific, Coca-Cola’s sales revenue grew by 11% compared with last year in Pacific market, which was the highest increment in all markets. The second highest growth was in Latin American, the increase was up to 7%, which was still really high. However, the market share in North America dropped by 1% compared with the previous year (REUTERS 2010). It is known that the international market share is growing in recent years, while the American market share is decreasing.

Segmentation is about market division into groups of potential customers with similar needs and/or characteristics who are likely to exhibit similar purchase behaviour (Weinstein 2004). Coca-Cola categorises customers based on four segmentations. They are geographic segmentation, place of consumption, product type, and demographics. This helps Coca-Cola to understand their different market features and consumer behaviours, and then come up with different marketing communication strategies. It also aids Coca-Cola to develop new products and products mixes to meet the needs of local markets and lead the change as a result of the increasing health consciousness.

Product

Coca-Cola, established in 1886 in Atlanta, was first launched at Jacob’s Pharmacy as a fountain beverage by mixing Coca-Cola syrup with carbonated water. With its distinctive flowing type face and classical red colour, Coca-Cola has been known as the world famous brand for nearly a century (Product Descriptions 2012). However, it was until 1995 that the Coca-Cola Company started to provide a wide range of beverage selections and portion sizes for customers under the vision of offering various beverages for every lifestyle, life stage and life occasion.

Nowadays, the Coca-Cola Company owns more than 500 beverage brands, which are sold in 200 countries around the world. Coca-Cola also has over 3,500 different types of products in the beverage industry. For instance, they are generally divided into sparkling beverages, 100% fruit juices, fruit drinks, bottled water, sports and energy drinks and ready-to-drink teas and coffee. The products of Coca Cola are spread globally (Kumar 2012).

1.1 Product Innovation

Product innovation plays a crucial role in many businesses. It is essential for Coca-Cola to create new products in order to enhance its competitive advantage and market penetration. It is generally believed that Coca-Cola is the best-selling soft-drinks across the world. However, the soft drink sector is threatened by the consumers’ increasing consciousness of health issues arising from the possible negative health effects of Coca-Cola such as obesity and inactivity (Ivythesis.com 2009).

Therefore, Coca-Cola has been dedicated to the research and development of new products for many years. For example, after the great success of Diet Coke, the company has released a series of flavour extensions, such as Diet Coke with Lemon, Diet Vanilla Coke, Diet Cherry Coke, and Diet Coke with Lime to meet different needs of consumers. In addition, Coca-Cola in 2005 successfully launched another innovative product- the Coca Zero which carried the same taste of original Coke with no calories (Coca-Cola Facts 2012). Today, Coke Zero has become one of the most popular beverages in the Coca Cola core family, which is available in 130 countries. Product innovation should be considered as the hallmark of the Coca-Cola for the purpose of providing more beverage choices for consumers and keeping up with their changing demands and lifestyles (Ivythesis.com 2009).

1.2 Product Strategy

The fundamental product strategy of Coca-Cola is the rapid product testing and development in each individual market. There is high level of product adaptation and modification in the market it operates (Ivythesis.com 2009). This may be due to the fact of the diverse market trends across different regions. Furthermore, Coca-Cola remains committed to concentrate on consumers’ changing demands and preferences as well as cultural diversity. Besides, Coca-Cola should make effort to enlarge its product offerings in order to be able to survive under the saturated market of carbonated drinks. According to the Coca-Cola case study, it is obvious that Coca-Cola modified its product to match the local conditions in different regions. For instance, Samurai, an energy drink, is only produced and sold in Asian countries (Product Descriptions 2012).Similarly, Vita is an African juice of Coca-Cola and Sprite Green is a sparkling beverage from the United State which is only available in select locations in New York and Chicago (Coca-Cola Facts 2012). Current Issues

There are a number of critics towards Coca Cola. In terms of solid waste and water issue, the communities near the bottling plant in India suffered both health and environmental damages as a result of the passage of sludge as fertilizer. The most significant issue which had an impact upon the community is the depletion of water levels caused by the Coca-Cola bottling plant. As a result, the amount of water that is available for irrigation purpose is dramatically reduced (The Corporation 2009). In addition, the centre of Science and Health in New Delhi in 2003 indicated that both the bottled water and soft drinks contained pesticides which may cause cancer and breakdown in immune system (Centre for Science and Environment 2012). Also, Coca-Cola is accused of having dual standards in USA, Europe and India, with regards to its products and safety measures which would have an impact on human health (The Corporation 2009).

These allegations had a great impact on Coca-Cola through its sales and closure of one of its bottling plants in Kerala, India. In addition, Coca-Cola’s products are also banned in the state of Kerala, India (The Corporation 2009).

Health issues have also arisen towards Coca Cola. It has been alleged towards its acidity in the drink. Frequent consumption of coca cola may also lead to tooth decay through dental erosion (Ehlen et al 2008).

With regards to business practice, in 2004, a large amount of its advertisement was broadcasted during children’s television programs, which may have encouraged children to consume more soft drinks and consequently leads to childhood obesity (BBC News 2004).

Also, Coca-Cola has been accused of bribing the American Academy of Pediatric Dentistry (AAPD) in 2003 as a result of the donation of one million to the AAPD. Critics suggested that Coca Cola has paid the dentists to stop them from discouraging children to drink coke (Union of Concerned Scientists 2012). At the same time, Coca Cola has also been alleged towards employee discrimination due to the fact that black employees remained absent in the top management of the company and they were paid less than white employees. Subsequently, Coca Cola has settled the lawsuit with $192.5 million and agreed to change its management and operating structure (The Washington Post 2012).

Core Competence

Core competence is defined as ‘communication, involvement, and a deep commitment to working across organizational boundaries’ (Hill 2012). It is an important theory that every company has to take measures to maximize profits. Therefore, improving core competence is the key. Accordingly, the firms should identify core competence and develop competitive advantages in the future (Sabah et al. 2012). There are five main strategies to improve core competence.

Firstly, Coca-Cola has successfully implemented global marketing strategy. Specifically, since the first product moved beyond the United States in 1902, Coca-Cola has marketed in more than 200 countries and there are approximate 71,000 employees who work in more than 59,000 companies all over the world. Accordingly, Coca-Cola has a high market share of 25.9% (Coca-Cola Company 2006), which indicates that Coca-Cola is the best beverage company in the world.

Secondly, successful supply chain management plays a vital role in improving core competence at Coca-Cola. More specifically, the supply chain management is to enhance cooperation between members along the supply chain such as raw material providers, bottling suppliers, wholesalers, and retailers. It also aims to improve productivity and to add value. Therefore, Coca-Cola always delivers the final products to end consumers at the right time, and with right quality. This means consumers will get a higher level of consumer satisfaction and better services (Songini 2004). Therefore, these effective practices of supply chain management would assist Coca-Cola with a better performance in the markets.

Thirdly, Coca-Cola has also employed efficient outsourcing strategy, which is one of the most important strategies in supply chain management. Outsourcing is an activity that passes a part of firm’s business to those outside vendors who can provide better service, higher quality and at lower cost (Rosebush et al. 2012). Coca-Cola is one of the most famous companies for its effective outsourcing strategy. For example, Coca-Cola has outsourced bottling production to foreign companies and contracted out a part of production of goods especially in some emerging countries such as China and India. It is obvious that outsourcing, which is one of the core competences of Coca-Cola, has further built up the business in terms of both product developments and marketing communications at different regions. Clearly, outsourcing has helped Coca-Cola to enlarge the market for products.

Fourthly, the various products categories are absolutely Coca-Cola’ core competence. Not only it provides wide range of products to the world market, such as Coke, juice, coffee and water, but also customises products and product mixes to meet the demands at different local markets. This strategy gives Coca-Cola a major competitive advantage, and helps to increase sales and market share.

Last but not least, the technology innovations and advances play an essential role to Coca-Cola in terms of productivity and product promotion. More specifically, Coca-Cola uses new technology to reduce the transportation costs and boost its logistics efficiency. For example, labour-replacing machinery can augment productivity. Moreover, advancement in technology gives Coca-Cola more channels to promote its products in terms of the Internet and mobile application. Especially, the proliferation of the Internet helps Coca-Cola to become more and more popular.

Future Plans

According to chairman of Coca-Cola, Muhtar Kentin, in the company Annual Review 2011 that Coca-Cola in 2011 fruitfully accomplished four years of productivity program, allowing the company to realise annual savings of more than $500 million USD. Mr Kentin also suggested that for the future he is persuaded with no doubt that some of the key business strategies and developments of the company will come at the meeting point of invention and sustainability because creating long term sustainable and innovative development is essential for any successful business venture (The Coca-Cola Company website, 2012).

Kentin explained that he foresees a lot of prospects for the Company in the near future, and that the company is certainly aware of the fact that its business activities can only remained as strong and sustainable as the societies that the company is serving. Coca-Cola in its power will continue to support the gradual economic recuperation in America and the world at large. Starting from the year 2012 onwards, the company will continue to be a good and responsible corporate citizen by reducing its overall carbon emission and implementing the water sustainability strategy (The Coca-Cola Company website, 2012).

Mr Kent also stated in an interview in The Wall Street Journal that Coca-Cola is planning to spend around $4 billion USD in China for the next three years, making that to be the latest investment as Coca Cola is committed to invest in the world’s second biggest economy. Mr Ken clarified that “the investment would be used to add bottling plants, expand some existing facilities and fund initiatives in distribution, marketing and the development of new cold drinks” (The World Street Journal Website).

China is obviously the third largest global market for Coca-Cola after the US and Europe. Undeniably the company is currently enjoying the rapid growth in its sale as a result of the increase in consumer income in that country. The Company at the moment owned stake in 24 bottling plant joint venture and two factories as result of its localisation strategy (Heracleous 2001).

According to the New York Stock Exchange, Coca-Cola plans to massively invest in sub-Saharan Africa despite the political risk associated with such ventures. Nevertheless, it is generally believed that the higher the risk, the higher the return. The company is hoping to blow Coca-Cola powerful brand name to get more consumers in this particular region. According to the report, Tanzania and Kenya have received portion of the strategic investment so far as Coca-Cola declares its intention to invest $187 billion USD in Tanzania over the next three years. Also, the company would maintain its investment commitment in Africa to build a new bottling plant in Somaliland, which is estimated to be worth $15 million USD. Coca-Cola is intending to launch ‘Pan-African’ marketing promotion known as ‘the one billion reasons to believe in Africa’ so as to sympathetically bond with the African customers (The New York Stock Exchange website 2012).

Conclusion

In conclusion, Coca-Cola has implemented a number of effective global strategies to extend its market share and to improve its core competence. At the same time, Coca-Cola has created various types of beverages In order to meet different demands at different markets.

However, there are some issues to be addressed such as water issues, health issues and other environmental issues. Consequently, it is recommended that Coca Cola may develop new technology for water purification. Also, it is necessary for Coca-Cola to find the uncontaminated water source. In addition, marketing strategy can be modified to focus on healthy beverages such as juices and water. Coca-Cola can also diversify its product offerings and extent to healthy food such as cheese, yoghurt and cereal. Further, defensive strategy can be employed to retain its current market share as well as to maintain its leading market position. This strategy will also help to balance between its globalisation and localisation by preventing excessive investments in either the global market or the regional market.

Recommendations

1.3 Balance The Globalization and Localization

Coca-Cola’s headquarter has been doing a good job to review and guide marketing communication globally. For example, one message – happiness, but different ways to express this message in different local markets. Local managers could work with local advertising agencies to generate creative marketing campaigns that will adapt to local culture and consumer’s tastes.

1.4 Maintain The Market Leader Position

As the best beverage company, Coca-Cola needs to make the continual improvement in order to maintain its market leadership. Coca-Cola should implement the defensive strategy, which indicates of sustaining the current marketing spending to remind consumers, to consolidate and to build more memory cues and brand attributes as well as to keep the brand awareness and brand salience high. Coca-Cola should also consolidate and keep streamlining the supply chain.

It might mitigate the risks in the global supply chain and raise the supply chain efficiency in this fast changing world. For example, Coca-Cola’s third quarter earnings were $1.89 billion or 81¢ per share in 2008, up from 1.65 billion or 71¢ per share in 3rd quarter 2007 (Coca-Cola Company 2009). This great success is generated by implementing the defensive strategy at 2008 Beijing Olympics Games (Allen et al. 2012). Accompanying with the efficient implementation, this strategy not only can defend Coca-Cola’s position in the world market, but also increase the market share and sales further more.

1.5 Health Issue

Health issue is one of the major issues that Coca-Cola has been facing, while its major competitor Pepsi would also have the same problem. However, the media and consumers seem to focus on criticising Coca-Cola for not being healthy, which is based on the perception that consumers have. It can be changed by modification in both products offering and marketing communication. For example, Coca-Cola could spend more marketing budget on healthy beverage such as juice, water and energy drink. Instead of concentrating on the soft drinks, the advertising messages could focus on creating healthy lifestyle with the healthy products offerings. The purpose of this strategy is to change consumers’ perceptions towards Coca-Cola. It will provide long-term strategic benefits to Coca-Cola although it may take a long time.

Additionally, Coca-Cola could penetrate into a new market, which involves healthy food, such as cheese, yogurt and cereal. This strategy helps Coca-Cola to expand its products offering, to improve the image of the company, and to increase sales revenue. It also aids Coca-Cola to compete with Pepsi who is already in the food business.

1.6 Water Issue

Water quality is critical to Coca-Cola’s business, as this report mentioned, pesticide in the water caused serious health problem in India. To overcome this problem, Coca-Cola should seek cleaner water supply. For example, production factory can be built near the source of rivers. This is because the closer to the source, the cleaner of the water supply will be. Alternatively, Coca-Cola could build the factories in the nearest country, like Bangladeshi where there is clean water supply with low costs.

Furthermore, Coca-Cola could cooperate with or invest in research and development centres, such as university laboratories and environmental organisations to develop new technology for water purification.

Water shortage seems like a serious problem. However, if people look at it from another direction, which is the sea water, it would not be a problem at all, at least for hundreds of years. Coca-Cola could invest in development and construction of the desalination plants. This would be a long and hard process, but Coca-Cola is aiming for the long-term benefits. These developments would help Coca-Cola solve the water shortage problem world-wide. Moreover, Coca-Cola should build these plants near major ports with effective and efficient transportation, such as Singapore in Asia, Rotterdam in Europe, Durban in Africa, Panama in Latin America and New York in US. It would reduce various costs and increase the logistics efficiency.

1.7 Sustainability

There is an increasing trend of sustainable development in recent years. This is not only because of the consumer’s preferences, but it also helps to cut costs and improve profits. Coca-Cola should work on improving transportation efficiency to reduce carbon footprint by using more environmentally friendly materials for packages, efficient energy consumption. It will also provide safe, health and fair working environment for its employees. For instance, the efficient lighting system uses 50% less energy and provides 50% more light in Canada (Wong 2011).

Reference List
Allen, M 2012, ‘Marketing warfare: a case study from the 2008 Beijing’, International Journal of Business & Public Administration, Vol. 9 Issue 2, pp. 11-18. BBC News 2004, TV food adverts target children, viewed 5 November 2012, <http://news.bbc.co.uk/2/hi/uk_news/3605503.stm>. Centre for Science and Environment 2012, Pesticides in soft drinks, viewed 5 November 2012, <http://www.cseindia.org/node/527>. Coca-Cola Company 2012, the Coca-Cola Company, Atlanta, View 15 November 2012,
<www.thecoca-colacompany.com>. Coca-Cola Facts 2012, Coca-Cola Beverages and Products, viewed 15 November 2012, < http://www.worldofcoca-cola.com/coca-colaproducts.htm>. Docstoc 2009, COCA COLA AND THE MARKET, Documents and Resources for Small Business and Professionals, viewed 27 November 2012, <http://www.docstoc.com/docs/9482500/COCA-COLA-AND-THE-MARKET>. Ehlen, LA, Marshall, TA, Qian, F, Wefel, JS & Warren, JJ 2008, ‘Acidic beverages increase the risk of in vitro tooth erosion’, National Institute of Health, vol. 28, no. 5, viewed 5 November 2012, <http://www.ncbi.nlm.nih.gov/pmc/articles/PMC2516950/pdf/nihms50629.pdf>. Heracleous, L. 2001, ‘When Local Beat Global: The Chinese Beer Industry’, Business Strategy Review, Vol. 12 Issue 3, PP. 37-45. Hill, CWL 2012, International business: competing in the global marketplace, 9th edn, McGraw—Hill/Irwin, New York, NY. Ivythesis.com 2009, Product Innovation of Coca-Cola, viewed 21 November 2012, <http://ivythesis.typepad.com/term_paper_topics/2009/02/product-innovation-of-cocacola.html>. Kumar, A 2012, Marketing mix of Coca Cola, MARKETING91.com, viewed 10 November 2012, <http://www.marketing91.com/marketing-mix-coca-cola/>. New York Stock Exchange 2012, the New York Stock Exchange, New York City, View 15 November 2012, <http://www.trefis.com/stock/ko/articles/123022/coca-cola-makes-big-bets-on-africas-future/2012-05-25>. Product Descriptions 2012, The Coca-Cola Company, viewed 10 November 2012, <http://www.virtualvender.coca-cola.com/ft/index.jsp>. REUTERS 2010, Coca-Cola Posts Strong Profit on Emerging-Market Sales, The New York Times Company, viewed 26 November, <http://www.nytimes.com/2010/02/10/business/10coke.html?_r=0>. Rosebush, D, Leavell, H & Maniam, B 2012, ‘Trends in outsourcing and its future’, The Journal of American Academy of Business, vol. 18, no. 1, pp. 100-107. Sabah, A, Alrubaiee, L & Jamhour, M 2012, ‘Effect of Core Competence on Competitive Advantage and Organizational Performance’, International Journal of Business and Management, vol. 7, no. 1, pp. 192-204. Songini, ML 2004, ‘Coke, SAP Co-develop Bottling App’, Computerworld, pp. 8. Statista 2010, Global market share of Coca-Cola and

Coca-Cola Case Study the Global Strategy Essay

Ebay Turnaround Strategy Essay

Ebay Turnaround Strategy Essay.

The company known as eBay, which started in 1995, grew significantly within a decade to become the number one e-commerce site in the world by sales revenue. In 2008, Donahoe took over as the new CEO of eBay. This was a time when the company was facing issues with growth and consumer behavior was changing. What used to be a thrilling experience for buyers was now an inconvenient waste of time and money. Consumers who were eager to bid against each other for products online were now satisfied with buying new products at fixed prices.

Therefore, ebay’s turnaround strategy was to bring the consumers the best experience to find what they want exactly how and when they want it. Although traditional eBay sellers complained about the difficulty for them to do business profitably with the new strategy, Donahoe believed buyers wanted fixed prices, quick service, and free shipping. I agree with Donahoe’s turnaround strategy because eBay had to focus on the market demands to see growth.

Something had to be done in a market where consumers wanted fixed prices and free shipping that they were receiving from companies like Amazon. om. Marketing segmentation is dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors that might require separate marketing and develops profiles of the resulting market segments. Creating applications for smart phones and tablets was a good way to separate a specific department to its customers. For example, the eBay Fashion app allowed users to browse through products from the fashion department. Buyers were able to take time out of their day and make more purchases with mix and match features.

Using the Boston Consulting Group (BCG) method, companies like eBay classify all its SBUs according to the growth-share matrix. Market growth rate provides a measure of market attractiveness and relative market share measures a company’s strength in the market. The four types of SBUs are stars, cash cows, question marks, and dogs. Stars are high-growth, high-share businesses like eBay. When their growth slows down it turns into cash cows, which need less investment to hold their market share.

Pepsi is a cash cow in the sense that its not growing but it is making large profit in the meantime. Question marks are low-share business units in high-growth markets. A question mark could be a small garage that does car repairs because it has a small market share but a large demand for car repairs. Dogs are low-growth, low-share businesses and products that may generate enough cash to maintain themselves. An example of this would be a small town theatre business.

Ebay Turnaround Strategy Essay

Emergent Corporate Strategy Essay

Emergent Corporate Strategy Essay.

CORPORATE STRATEGY is the direction an organization takes with the objective of achieving business success in the long term. Recent approaches have focused on the need for companies to adapt to and anticipate changes in the business environment. The development of a corporate strategy involves establishing the purpose and scope of the organization’s activities and the nature of the business it is in, taking the environment in which it operates, its position in the marketplace, and the competition it faces into consideration.

Strategic management is a relatively young subject. It has its roots in the economic and social theories of the 1930s and 1940s – perhaps even earlier. It only really began to emerge as a separate topic in the 1960s and 1970s. Even today, there is only partial agreement on the fundamental principles of strategic management with many views, ideas and concepts. Among the numerous early contributors, the most influential were Alfred Chandler, Philip Selznick, Igor Ansoff and Peter Drucker.

Alfred Chandler recognized the importance of coordinating management activity under an all-encompassing strategy.

Interactions between functions were typically handled by managers who relayed information back and forth between departments. Chandler stressed the importance of taking a long term perspective when looking to the future. In his 1962 ground breaking work Strategy and Structure, Chandler showed that a long-term coordinated strategy was necessary to give a company structure, direction and focus. He says it concisely, “structure follows strategy.” Times change and concepts evolve so by the 1980s one can choose between two pathways when developing a strategy for a corporation, non-profit organization or an institution: the prescriptive and the emergent approach. Deliberate strategy is goal-orientated. It asks: what do we want to achieve? Emergent strategy is means-orientated. It asks: what is possible, with the means we have at our disposal? Already in 1985 Mintzberg and Waters were publishing: ˮOf strategies, Deliberate and Emergentˮ were they stated that deliberate strategy is realized as intended whereas emergent strategy are patterns of consistence realized despite, or in the absence, of intention.

There are 8 different types of strategy between the two poles of deliberate and emergent strategy: planned, entrepreneurial, ideological, umbrella, process, unconnected, consensus, imposed. Many authors have defined the two approachments in different ways. In Linch’s view a prescriptive thinking is one whose objectives are defined in advance and whose main elements have been developed before the strategy commences. Such an approach usually begins with an analysis of the outside environment and the resources of the company. The objectives of the organization are then developed from this. There then follows the generation of strategic options to achieve the objectives, from which one (or more) may be chosen. The chosen option is then implemented. This full range of activities is called the prescriptive strategy process. Henry Mintzberg, in his work, The Rise and Fall of Strategic Planning, was a critic of the analytical approach arguing that label strategic planning should be dropped because strategic planning has impeded strategic thinking and also because unpredictable events, such as the introduction of new regulations or technologies, will regularly act to force the original strategy off its course.

From a contrary point of view Ansoff shows that firms in fast-paced, competitive environments who use a systematic process for strategic planning very often go on to dominate their marketplace. Their logical, analytical approach allows them to devise predictive and pre-emptive strategies from which they can meet new opportunities head on. For instance, in 1995 EasyJet used incredible foresight to introduce low cost flights allowing it to take advantage of a more cost-conscious European Market. The prescriptive approach regards strategy development as a systematized and deterministic process where analysis of the organisation, its performance and external environment leads to the formation of a rational, long-term plan. Senior management is in charge of defining the final objectives and the plan is then put into action through the successive layers of the organization. Managers who use the analytical method are usually those with a low appetite for risk and activate in a slow changing market.

On the other hand, the emergent strategy is a pattern of action that develops over time in an organization in the absence of a specific mission and goals, or despite a mission and goals. Emergent strategy is sometimes called realized strategy. Mintzberg argues that strategy emerges over time as intentions collide with and accommodate a changing reality. Emergent strategy is a set of actions, or behavior, consistent over time, “a realized pattern [that] was not expressly intended” in the original planning of the strategy. When a deliberate strategy is realized, the result matches the intended course of action. An emergent strategy develops when an organization takes a series of actions that with time turn into a consistent pattern of behavior, regardless of specific intentions. “Deliberate strategies provide the organization with a sense of purposeful direction.” Emergent strategy implies that an organization is learning what works in practice.

Mixing the deliberate and the emergent strategies in some way will help the organization to control its course while encouraging the learning process. “Organizations …[may] pursue … umbrella strategies: the broad outlines are deliberate while the details are allowed to emerge within them” (from Mintzberg, H. 1994, The Rise and Fall of Strategic Planning). Linch defines emergent strategy as one that does not have the same fixed objectives as the prescriptive approach. The whole process is more experimental with various possible outcomes depending on how matters develop. To quote, ‘An emergent strategy is one whose final objective is unclear and whose elements are developed during the course of its life, as the strategy proceeds.’ Thus the early stages of emergent strategy may be similar to prescriptive strategy – analysis of the environment and resources. But then the process becomes more circular, learning and experimental.

Formulation of strategy runs parallel to implementation and managers at multiple organizational levels have a key input into the actual strategies pursued by the organization. This model’s emphasis on learning underlies more recent theories which focus on the value of knowledge as a core organizational competence for gaining competitive advantage. Despite heaving a good, solid, prescriptive strategy with their low cost flights, Easy Jet embraces with success also the emergent approach by launching allocated seats on all flights, in order to get competitive advantage. Budget airline says it will make more money from seat allocation than speedy boarding scheme preferred by rival Ryanair. EasyJet is ending the desperate rush for prime seats on low-cost flights by launching allocated seating across its network. Having been eschewed by budget carriers in the past for impeding fast turnaround times, the Luton-based airline said seat allocation did not appear to slow down journeys and is more lucrative than speedy boarding schemes. It expects 1a and 6a to be the prime picks on flights following trials on 6,000 flights this season.

Allocated seating was be rolled out across easyJet’s network from November, with all passengers allocated a seat. Those wishing to change their seat will be charged £12 for front row and over-wing seats, £8 for berths in the four rows behind the front row, and £3 to reserve a seat anywhere else on the plane. Passengers who don’t pay for a particular spot will be randomly allocated a seat as well when they check in, free of charge, although the chances of getting a seat up front will be diminished. “The majority of people will not have to pay for their seat,” said an EasyJet spokesman, adding that the airline would attempt to seat families together even if they don’t pay for specific seats. EasyJet has mulled allocated seating trials in the past but Carolyn McCall, EasyJet chief executive, has decided to push ahead after a trial scheme showed encouraging results.

The trials found that on short-haul flights such as London to Glasgow, the £3 window seat 6a was the most popular, while on longer routes such as London to Sharm-el-Sheikh the £12 1a berth is the most sought-after due to the more substantial legroom. Predictably, seats in the middle and near the back found the fewest takers, with 16b the least desired on short haul and passengers avoiding 19b on long haul. “This is an example of EasyJet trying to do all it can to make travel easy and affordable for our passengers,” said McCall. “Our customers asked us to trial allocated seating and we are really pleased with the positive passenger feedback during the trial. As importantly, we have shown that we can do so while delivering strong on-time performance – the most important driver of passenger satisfaction.” EasyJet said that more than seven out of 10 passengers on trial routes preferred the system to speedy boarding, where passengers pay around £10.50 to board a flight first – a service also offered by Ryanair. Low-cost airlines have been characterized by their strategy of charging for as many services as possible, from inflight food to checking bags into the hold.

However, some notions such as allocated seating have been ruled out by the likes of Ryanair because of their potential to clutter up planes, which would prevent low-cost carriers from executing the 25-minute turnaround times – the gap between a plane arriving at its gate and pushing off again – that allow them to run the busiest possible timetable. Andrew Lobbenberg, an analyst at HSBC, said the move would benefit EasyJet because it gives the airline the opportunity to make money from all seats on a flight rather than the 30 berths set aside for speedy boarding. “We would expect sales of pre-allocated seat selection and premium seat allocation in the front of cabin and exit rows to certainly exceed speedy boarding revenues. Speedy boarding was limited to 30 passengers per flight, but we imagine a higher share of passengers will opt to secure their seats in advance of travel.” He added: “Moreover, we think the switch to allocated seating will make travelling on EasyJet notably less stressful.

It will be far better for families travelling together. It will also remove the hassle of boarding which we think has been a material deterrent for business travelers. It should also be helpful for relations with airports: as customers spend less time standing in queues for hours before the flight, they should be free to spend more time and money in airport stores.” An emergent approach leads to more creative and responsive strategy making which is well suited to the hyper-competitive and unpredictable environments of today. Interestingly, Hamel and Prahalad pointed out that the most successful firms in the world do not tie themselves down to mission, goals and objectives or the predetermined plan. One of these corporations is obviously Apple, which is in a never-ending development. Apple prides itself on its innovation.

When reviewing the history of Apple, it is evident that this attitude permeated the company during its peaks of success. For instance, Apple pioneered the PDA market by introducing the Newton in 1993. Later, Apple introduced the easy-to-use iMac in 1998, and updates following 1998. It released a highly stable operating system in 1999, and updates following 1999. Apple had one of its critical points in history in 1999 when it introduced the iBook. This completed their “product matrix”, a simplified product mix strategy formulated by Jobs. This move allowed Apple to have a desktop and a portable computer in both the professional and the consumer segments. In 2001, Apple hit another important historical point by launching iTunes. This marked the beginning of Apple’s new strategy of making the Mac the hub for the “digital lifestyle”. Apple then opened its own stores, in spite of protests by independent Apple retailers voicing cannibalization concerns. Then Apple introduced the iPod, central to the “digital lifestyle” strategy. Philip W. Schiller, VP of Worldwide Product Marketing for Apple, stated, “iPod is going to change the way people listen to music.”

He was right. Apple continued their innovative streak with advancements in flat-panel LCDs for desktops in 2002 and improved notebooks in 2003. In 2003, Apple released the iLife package, containing improved versions of iDVD, iMovie, iPhoto, and iTunes. In reference to Apple’s recent advancements, Jobs said, “We are going to do for digital creation what Microsoft did for the office suite productivity.” That is indeed a bold statement. Time will tell whether that happens. Apple continued its digital lifestyle strategy by launching iTunes Music Store online in 2003, obtaining cooperation from “The Big 5” Music companies—BMG, EMI, Sony Entertainment, Universal, Warner. This allowed iTunes Music Store online to offer over 200,000 songs at introduction. In 2003, Apple released the world’s fastest PC (Mac G5), which had dual 2.0GHz PowerPC G5 processors.

Product differentiation is a viable strategy, especially if the company exploits the conceptual distinctions for product differentiation. Those that are relevant to Apple are product features, product mix, links with other firms, and reputation. Apple established a reputation as an innovator by offering an array of easy-to-use products that cover a broad range of segments. However, its links with other firms have been limited, as we will discuss in the next section on strategic alliances. There is economic value in product differentiation, especially in the case of monopolistic competition. The primary economic value of product differentiation comes from reducing environmental threats. The cost of product differentiation acts as a barrier to entry, thus reducing the threat of new entrants. Not only does a company have to bear the cost of standard business, it also must bear the costs associated with overcoming the differentiation inherent in the incumbent.

Since companies pursue niche markets, there is a reduced threat of rivalry among industry competitors. A company’s differentiated product will appear more attractive relative to substitutes, thus reducing the threat of substitutes. If suppliers increase their prices, a company with a differentiated product can pass that cost to its customers, thus reducing the threat of suppliers. Since a company with a differentiated product competes as a quasi-monopoly in its market segment, there is a reduced threat of buyers. With all of Porter’s Five Forces lower, a company may see economic value from a product differentiation strategy. A company attempts to make its strategy a sustained competitive advantage. For this to occur, a product differentiation strategy that is economically valuable must also be rare, difficult to imitate, and the company must have the organization to exploit this. If there are fewer firms differentiating than the number required for perfect competition dynamics, the strategy is rare. If there is no direct, easy duplication and there are no easy substitutes, the strategy is difficult to imitate.

There are four primary organizing dilemmas when considering product differentiation as a strategy: inter-functional collaboration, connection to the past, commitment to market vision and institutional control. To resolve these dilemmas, there must be an appropriate organization structure. A U-Form organization resolves the inter-functional collaboration dilemma if there are product development and product management teams. Combining the old with the new resolves the connection to the past dilemma. Having a policy of experimentation and a tolerance for failure resolves the commitment to market vision dilemma. Managerial freedom within broad decision-making guidelines will resolve the institutional control dilemma. Five leadership roles will facilitate the innovation process: Institutional Leader, Critic, Entrepreneur, Sponsor, and Mentor. The institutional leader creates the organizational infrastructure necessary for innovation.

This role also resolves disputes, particularly among the other leaders. The critic challenges investments, goals, and progress. The entrepreneur manages the innovative unit(s). The sponsor procures, advocates, and champions. The mentor coaches, counsels, and advises. Apple had issues within its organization. In 1997, when Apple was seeking a CEO acceptable to Jobs, Jean-Louis Gassée (then-CEO of Be, ex-Products President at Apple) commented, “Right now the job is so difficult, it would require a bisexual, blond Japanese who is 25 years old and has 15 years’ experience!” Charles Haggerty, then-CEO of Western Digital, said, “Apple is a company that still has opportunity written all over it. But you’d need to recruit God to get it done.” Michael Murphy, then-editor of California Technology Stock Letter, stated, “Apple desperately needs a great day-to-day manager, visionary, leader and politician. The only person who’s qualified to run this company was crucified 2,000 years ago.” Since Jobs took over as CEO in 1997, Apple seems to have resolved the innovation dilemmas, evidenced by their numerous innovations.

To continue a product differentiation strategy, Apple must continue its appropriate management of innovation dilemmas and maintain the five leadership roles that facilitate the innovation process. In a few words emergent strategy does not mean chaos, but unintended order instead; does not mean that management is out of control, only that it is open, flexible and responsive as well as willing to learn; ultimately it implies learning what works. The purely prescriptive approach, where realized strategy is formed exactly as intended, and purely emergent strategy- order (consistency in actions over time) in absence of intention about it do both not exist in real life. The purely prescriptive and purely emergent strategy are two poles of a continuum of observable strategies in practice.

Within the framework of an environment which is by and large unpredictable, many organizations are forced to become more flexible and adaptive to change. This supports the adoption of an emergent approach to strategy development which invokes a more intelligent capacity to respond to new opportunities. Nonetheless, such a strategy can preclude control over actions and may risk a lack of direction. A greater use of strategic planning tools for internal and external analysis would certainly facilitate improved organizational learning and enhance strategic thinking even while following an emergent approach. This recognition that the prescriptive and emergent processes, rather than being mutually exclusive, can be complementary approaches that reinforce each other is being highlighted in more recent theories such as the Logical Incrementalism approach proposed by Quinn.

Although many management writers seem to seek one ‘best way’ to conduct strategy, these approaches are not necessarily incompatible. Different approaches may be suitable at different times, depending on the context or situation, and an organization may pursue a combination of approaches. For example, an organization can have a clear direction and an overall plan – which it expects to have a amend or adapt as events unfold. It may also encourage small-scale strategic initiatives or projects throughout the organization.

They help the organization to develop new skills and retain flexibility; they also have the potential of spreading if conditions are appropriate. All in all, most viable strategies in today’s business world should have customized elements of prescriptive and emergent characteristics in order to manage the complexities of their business and still triumph over changing circumstances. The final conclusion is that “Strategy formation walks on two feet, one deliberate and one emergent.” (Mintzberg & Waters)

Emergent Corporate Strategy Essay

Nokia’s Blue Ocean Strategy Essay

Nokia’s Blue Ocean Strategy Essay.

In today’s overcrowded industries, competing head-on results in nothing but a bloody “red ocean” of rivals fighting over a shrinking profit pool. Some Companies are fighting for a competitive advantage or over market share while others are struggling for differentiation. This strategy is increasingly unlikely to create profitable growth in the future. Nokia , the Finland’s falling mobile phone company has seen its market share and share price tumbling dramatically by 90% since 2007 and the company is yet to achieve the comeback it hopes.

Instead of competing in such red ocean of bloody competition, Nokia should make smart strategic moves by creating uncontested market space that would make the competition irrelevant. Blue ocean is then concerned with unknown markets where opportunities abound. First of all, this study will critically be evaluating Blue Ocean Strategy by highlighting the six principles that Nokia can use to successfully formulate and execute Blue Ocean Strategies. Secondly, we will be focusing on the comparison and contrast of red and Blue Ocean, and finally, this assignment will concentrate on an explanation of the benefit and problems of Group Work.

Blue Ocean Strategy Blue Ocean strategy challenges Nokia to break out of the red ocean of bloody competition by creating uncontested market space that makes the competition irrelevant. Instead of dividing up existing and often shrinking demand and benchmarking competition, blue ocean strategy is about growing demand and breaking away from competition. This involves creating blue oceans in a smart and responsible way that is both opportunity maximising and risk minimising. Creating uncontested new market space

To win in the future, Nokia must stop competing with rival firms in the battle of smartphones because the only way to beat the competition is to stop trying to beat the competition since the rules of the game are yet to be set. Because operations improve, markets expand, and players come and go, it is a big challenge for Nokia to continuing creation of blue oceans. Here, the strategic move would be the right unit of analysis for explaining the creation of blue oceans and sustained high performance. A strategic move is the set of managerial actions and decisions involved in making a major market-creating business offering. Also, Nokia has to focus on value innovation which is the cornerstone of blue ocean strategy. But again, instead of beating the competition, Nokia should focus on making the competition irrelevant by creating a leap in value for buyers and the company, thereby opening up new and uncontested market space.

Formulating and executing Blue Ocean Strategy To succeed in Blue Ocean, Nokia has to take into account the principles and analytical frameworks that are essential for creating and capturing the strategy. Nokia’s executives have to be brave and entrepreneurial, they should learn from failure, and seek out revolutionaries. Effective blue ocean strategy should be about risk minimisation and not risk taking. The tools and frameworks presented include: * The strategy canvas: it a diagnostic and an action framework for building a compelling blue ocean strategy which serves two purposes.

First, capturing the current state of play in the known market space, allowing you to understand where the competition is currently investing, the factors the industry currently competes on in products, service, and delivery, and what customers receive from the existing competing offerings on the market. Second, Nokia’s executives should fundamentally shift the strategy canvas of its operations by reorienting the strategic focus from competitors to alternatives, and from customers to non customers of the business.

* The four actions framework consists of reconstructing buyer value elements in crafting a new value curve. These actions consist of eliminating the factors that Nokia takes for granted, reducing factors well below Nokia’s standard, raising factors well above Nokia’s standard, and creating factors that Nokia has never offered. * The Eliminate-Reduce-Raise-Create Grid is key to creation of blue oceans. The grid will push Nokia to act on all four to create a new value curve. By doing it, the grid will give four immediate benefits: * Pushing Nokia to simultaneously pursue differentiation and low costs to break the value-cost trade-off. * Lifting its cost structure and overengineering products and services

* Creating a high level of engagement in its application since it is easily understood by managers. * Scrutinising every factor Nokia competes on, making it discover the range of implicit assumptions they make unconsciously in competing. An effective blue ocean strategy has three complementary qualities: focus, divergence, and a compelling tagline. To make its competition irrelevant, Nokia should then apply the principles of Blue Ocean Strategy to succeed.

Principles of Blue Ocean Strategy Six principles will guide Nokia Corporation through the formulation and execution of its Blue Ocean Strategy in a systematic risk minimizing and opportunity maximizing way.

The first four principles address Blue Ocean Strategy formulation.

* Reconstruct market boundaries.

This principle identifies the paths by which Nokia’s management can systematically create uncontested market space across diverse industry fields, thus attenuating search risk. It will teach Nokia’s management how to make the competition irrelevant by looking across the six conventional boundaries of competition to open up commercially important blue oceans. The six paths focus on looking across alternative industries, across strategic groups, across buyer groups, across complementary product and service offerings, across the functional-emotional orientation of an industry, and even across time.

* Focus on the big picture, not the numbers. This illustrates how Nokia’s management can design the business’s strategic planning process to go beyond incremental improvements to create value innovation. It portrays an option to the current strategic planning process, which is often criticized as a number-crunching exercise that keeps companies engaged into making incremental improvements. This principle challenges risk planning. Using a visualizing approach that drives managers to focus on the big picture rather than to be submerged in numbers and jargon, this principle suggests a four-step planning action whereby Nokia could build a strategy that will create and capture blue ocean opportunities.

* Reach beyond existing demand.

To create the largest market of new demand, Nokia’s management must challenge the conventional practice of embracing customer preferences through finer segmentation. This practice often results in increasingly small target markets. Instead, this principle shows how to aggregate demand, not by focusing on the differences that separate customers but by building on the powerful commonalities across noncustomers to maximize the size of the blue ocean being created and new demand being unlocked, thus minimizing scale risk.

* Get the strategic sequence right.

This principle describes a sequence which Nokia should follow to ensure that the business model they build will be able to produce and maintain profitable growth. When it will meet the sequence of utility, price, cost and adoption requirements, it will then address the business model risk and the blue ocean ideas it created will be a commercially viable one.

The remaining two principles address the execution risks of Blue Ocean Strategy.

* Overcome key organizational hurdles.

Tipping point leadership shows how Nokia’s management can mobilise an organisation to overcome the key organisational hurdles that block the implementation of a blue ocean strategy. This principle addresses organisational risk. It sets out how Nokia’s executives likewise can overcome the cognitive, resource, motivational, and political hurdles despite limited time and resources in executing blue ocean strategy.

* Build execution into strategy.

By integrating execution into strategy making, Nokia’s personnel are motivated to pursue and execute a blue ocean strategy in a sustained manner inscrutable in an organisation. This principle introduces fair process. Since a blue ocean strategy by force of necessity represents a departure from the status quo, fair process is needed to facilitate both strategy making and execution by rallying people for the voluntary cooperation required to accomplish blue ocean strategy. It deals with management risk associated with people’s postures and conduct.

Red and Blue Ocean strategies Competition-based red ocean strategy assumes that an industry’s structural conditions are given and that firms are forced to compete within them. Simply stated, red ocean strategy is all about outpacing competitors in existing market. The strategic choices for firms are to pursue either differentiation or low cost. Conversely, blue ocean strategy is based on the view that market boundaries and industry structure are not given and can be reconstructed by the actions and beliefs of industry players. Clearly, blue ocean strategy teaches how to get out of established market boundaries to leave the competition behind, making it irrelevant. The table below outlines the key defining features of red and blue ocean strategies.

Nokia’s Blue Ocean Strategy Essay

Linking the Balanced Scorecard to Strategy Essay

Linking the Balanced Scorecard to Strategy Essay.

“Balanced Scorecard” is the tool for motivating and measuring business unit performance with four perspectives – financial, customer, internal business processes, and learning and growth. These days, it becomes so complicated and complex to navigate competitive environment, thus some people figured out that balanced scorecard could be used as the tool for linking multiple strategies. It contains both financial and non-financial measures. It was revealed that the measure should include both outcome measures and the performance drivers of those outcomes.

It turns out that there are strategic measures for the four perspectives each.

First of all, Financial performance measures define the long-run objectives of the business unit. Business units can be categorized into three different stages simply – rapid growth, sustain, and harvest. During rapid growth stage, businesses make rational amount of investments to develop and enhance new products and services. During sustain stage, they still attract investment and reinvestment, furthermore they are demanded to earn magnificent returns on their invested capital. During harvest stage, they only focus on maximizing cash flow back to the corporation rather than investment.

Moreover, there are financial themes that can be linked to the strategies – revenue growth and mix, cost reduction/productivity improvement, and asset utilization/investment strategy.

Secondly, in the Customer perspective, managers identify the customer and market segments. It includes customer satisfaction, customer retention, new customer acquisition, customer profitability, and market and account share in targeted segments. Customer retention defines that retaining existing customers in the segment is the way for maintaining or increasing market share in targeted segments. Customer acquisition identifies acquiring new customers as the way. Customer satisfaction is the matter of meeting customers’ needs and it is the measurement of the feedback. Customer profitability means that businesses want to measure not only the satisfaction of the customer, but also the profitability that customers can evoke.

Thirdly, in Internal Business Process perspective, executives identify the critical internal processes in which the organization must excel. It enables business unit to deliver on the value propositions of customers in targeted market segments, and to satisfy shareholder expectations of excellent financial returns. On the other hand, it means there are the process that customer need turned into customer need satisfaction through innovation cycle, operations cycle, and post-sale service cycle.

Fourthly, in Learning & Growth perspective, it identifies the infra-structure that the organization has to build to create long-term growth and improvement. It comes from three sources that people, systems, and organizational procedures.

As I mentioned above, it has been the trend to link and mix multiple scorecard measures into a single strategy. The multiple measures on a properly constructed balanced scorecard should consist of a linked series of objectives and measures that are both consistent and mutually reinforcing. The scorecard should incorporate the complex set of cause-and-effect relationships, outcomes & performance drivers and linked to financial.

Cause and effect relationships can be expressed by a sequence of if-then statements and pervade all four perspectives of balanced scoreboard. It can be described as the process “employee skills(learning & growth)→process quality/process cycle time(internal) →on-time delivery→customer loyalty(customer) →ROCE(financial)”.

Outcomes and performance drivers reflect the common goals of many strategies, as well as similar structures across industries and companies. Therefore, a good balanced scoreboard should have a mix of core outcome measures and performance drivers, that’s why businesses care both outcomes and performance drivers.

Even though the strategy should have to emphasize both financial and non-financial measures, in the sense of improving business unit performance, we have to consider financial measures little bit more. Ultimately, causal paths from all the measures on a scorecard should be linked to financial objectives.

In conclusion, the balanced scorecard is more than a collection of financial and non-financial measurements. It is the translation of the business unit’s strategy into a linked set of measures that identify both the long-term strategic objectives, as well as the mechanisms for achieving and obtaining feedback on those objectives. This thesis could be applied on the Metro Bank case and National Insurance Company case.

Linking the Balanced Scorecard to Strategy Essay

Personal Strategic Plan Essay

Personal Strategic Plan Essay.

I. Vision Statement:
Ten years from now I plan to be in an upwardly mobile business career.

II. Value Proposition:
I am the hardest working applicant among all other candidates because of my professionalism and motivation.

III. SWOT:
Strengths:

I have been communicating with the public for the last seven years through my job as a bartender. Through this job I have become very comfortable when talking to strangers and making them feel at ease when they talk to me.

Weaknesses:

Although I communicate well when addressing smaller groups of people I am not as well versed at formal speaking.

Most times when giving speeches I tend to start speeding through my topic one because I am nervous and second because I just want to get through it.

Opportunities:

Technology is changing the process of applying for a job. This trend makes it easier for people to compete for jobs outside of their physical environment, which means more job opportunities. A person living here in the United States can actually work for a business located overseas.

Threats:

In the same way that technology helps bring more job opportunities it also has its negative affects. It used to be that you would be competing for one job with just a few applicants now with the advancements in technology you are in a way competing with other applicants globally.

IV. Goals/ Strategies

Goals:

I plan to get into an internship program later this summer or next summer. There are many companies that offer internships to college students. There are many benefits when you participate in an internship program. It gives you a look into what exactly happens in the workplace. Along with experience it also gives you your first shot to show a potential employer what skills you can bring to a company. Sometimes if you impress the company you intern for they will offer you a job after you graduate. These things are why participating as an intern is so beneficial. Interning is a great way to get your career started before you even graduate.

Strategies:

There are many companies that offer internships to USI students. I plan to set up a meeting with Phillip Parker the Director of Career Services and Placement to discuss the different opportunities available. He is always sending business students e-mails about internships that come his way. As of now my busy school and work schedule has not allowed me the necessary free time to participate in an internship. Hopefully he will help me get in touch with the businesses that will be offering internships in the near future.

Appendix:

One of the major trends that will affect not just me but everyone in some way is technology. When you think about technology you have to think that it is always adapting, and continues to make everything that it ties into more efficient. In the business world it can make things easier from many stand points. Technology is used in communications, marketing, and management. In communication it can help people communicate globally instantaneously. A business person here in the United States can have a video conference call with their partners in China. This makes doing business globally less of a burden. Technology also affects the marketing side of business.

There are so many ways to market products through the different venues that technology has created. Facebook is a good example of one of the main social networks that come in to play when you talk about businesses branching out into new marketing campaigns. Using people’s public profiles company can by ad space on Facebook and actually now waste money on advertising outside there demographic. Finally technology has also changed the way businesses can manage and supervise the things that are going on in their business. A business manager in charge of a fast food restaurant can see most of the things that are happening in their business just by logging onto a computer. They can look at the amount of money they are spending in labor and compare that to the amount of the restaurant’s sales. This helps the business world monitor more of the day to day aspects of their business.

Although technology is very helpful in the business world it also poses many threats to the business person’s jobs. If you think about the aspects of communication a person could have a job here in the United States and be primarily does his job on a computer for example a web designer. Now let’s say there is a web designer in Japan who can do the same things the designer here in the United States can do but at a fraction of the cost. The employer of the web designer could just start giving work to the designer in Japan. This makes the job market here in the United States global. People are now competing for jobs not only nationally but globally. So this is a definite threat.

Technology is also creates a threat when it makes things more efficient. When you think of the restaurant manager from earlier who could look at all of the restaurants he oversees, how long do you thinks his job will be safe. Technology will eventually make it so easy for one person to manage multiple aspects of the business that his job may just become part of another persons’. So technology maybe great for us now, but you also have to worry about technology becoming to efficient and making it hard for the average business person to find or keep their job. Technology can be very helpful to a point, but once it becomes too advanced it then becomes a threat.

Personal Strategic Plan Essay