One of the main focus of our week was Strategies. Different people have different opinion about this word strategy, for example Mintzberg think it is a pattern in stream of decisions while Chandler thinks it is the determination of the long run goals and objectives of an enterprise and the adaptation of courses of action and the allocation of resources necessary for carrying out these goals. There are three levels of strategies, one of them is on corporate level, in which the decisions are the most important and and those decisions which are taken by the head of the organization, usually directors, it is the overall scope of the organization. The second level is business level, where how will the individual business units will compete in the market is decided, these decisions are taken by the departmental managers, like marketing manager and the last level is the operational level, here the day to day decisions are decided, for example how will the organization deliver in terms of resources, people and process.
Moreover, there are two types of strategies, the one which are planned to achieve the future goals and aims of an organization are deliberate strategies, while some strategies are made automatically for instance by a certain consistent pattern, to tackle a problem or miss hap, they are not made intentionally, they are called emergent strategy, usually flexible organizations like Microsoft uses this kind of strategy alot.
Another important thing we came across was SWOT ANALYSIS, swot is an acronym for:
Strengths: These are the strengths of an organization, the uniqueness,the USP which differentiates one organization from another in other words, what is something that you have an advantage of over your competitors, like Brand loyalty for Apple is one of their major advantages, as their customers don't buy other products usually.
Weaknesses: The places where an organization needs to improve,the things they should avoid or what factors leads you to lose sales?
Opportunity: This is nothing but the potential opportunities a business might get, right decision making is required on the right time.
Threats: These are actually the disadvantages you can assume, for instance, developing in technology may change the market beyond an organization's ability to adapt.
The method of Swot analysis is simple, it is to take the information from the environmental analysis and separate it into internal (strengths and weakness) and external issues (opportunity and threats). Lets do a swot analysis on Samsung's mobile phone company on which we did our PESTLE too.
The Strength of Samsung could be its customer loyalty, innovation they bring with their technology, their unique design, low cost comparatively to other brands, like Apple, their share and ability to phenomenally market their product while the weaknesses could be its competitors, who have a big market share, again, like Apple, their profit margin is quite low, borrows their operating system(Android) and doesn't have their own system like Apple has and most importantly, Samsung has diversified into hundreds of products, so they can't focus only on smart phones. Samsung's main opportunity i believe is the growth in the Asian market, and the growth in the demand for smart phones, they can avail it by partner-shipping with one of the Indian smart phone company producers, as Indian market is going vast while the threats to Samsung is the price war between competitors, no matter how low they put their profit margin, the competitors follows the same rule, other organization coming up with innovative technology in the market and a huge technological market change.
No comments:
Post a Comment