Strategic Management and Competitiveness Order Instructions: Assignment 1: Strategic Management and Strategic Competitiveness
worth 300 points
Choose one (1) public corporation in an industry with which you are familiar. Research the company on its own Website, the public filings on the Securities and Exchange Commission EDGAR database (http://www.sec.gov/edgar.shtml), in the University’s online databases, and any other sources you can find. The annual report will often provide insights that can help address some of these questions.
Write a four to six (4-6) page paper in which you:
1. Assess how globalization and technology changes have impacted the corporation you researched.
2. Apply the industrial organization model and the resource-based model to determine how your corporation could earn above-average returns.
3. Assess how the vision statement and mission statement of the corporation influence its overall success.
4. Evaluate how each category of stakeholder impacts the overall success of this corporation.
5. Use at least two (2) quality references. Note: Wikipedia and other Websites do not quality as academic resources.
Strategic Management and Competitiveness Assignment Requirements
Your assignment must follow these formatting requirements:
• Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
• Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.
The specific course learning outcomes associated with this assignment are:
• Determine ways in which the vision, mission, and stakeholders of a firm impact that firm’s overall success.
• Use technology and information resources to research issues in business administration.
• Write clearly and concisely about business administration using proper writing mechanics.
Strategic Management and Competitiveness Sample Answer
Strategic Management and Strategic Competitiveness
Introduction
Samsung, a South Korean company has grown tremendously over the years to become a leader in technology across the globe. The Company which was founded in 1938 is mostly known for its presence in two major markets namely, electronic appliances and mobile phone technology, but also has businesses in insurance, heavy industries, apparel, telecommunications, construction and hospitality among others. Like any other company operating in the technology market, Samsung faces stiff competition, with major competitors being Apple, Nokia, Blackberry, LG and Sony among others.
This paper is a discussion of Samsung, to establish how it has been influenced by globalization and technology changes; determine how the company can achieve greater returns through applying the resource-based model and the industrial organization model; and assess the impact of its vision, mission and stakeholders on its overall success.
Discussion
Impact of Globalization and Technology Advancements and Strategic Management and Competitiveness
Globalization has revolutionized the world by ensuring that the world is interconnected and borderless. Individuals, goods and information can easily move from one part of the world to another. In this relation, this has impacted Samsung’s operations in a significant manner. The first impact is that the company now has a wider market and can consequently make greater profits than before. This can be attributed to the increased ease in communication, reduced trade barriers and advancement of nations; thus promoting the demand for the company’s products. Johnson et al (2014), notes that with globalization, it is now easier to buy and sell products across the globe because of enhanced transport systems, communication and advancement of free trade. The increased global reach ensures that Samsung can make excellent returns, which has helped the company grow immensely in terms of size and profitability. The second impact is that Samsung can access supplies globally, such that it can source from the most competitive suppliers and also obtain materials that are not available where it operates. The third impact is that Samsung can now collaborate, acquire and merge with companies from all over the world to promote business.
Globalization means that Samsung must be in a position to serve customers from diverse cultural and national backgrounds. This in essence means that Samsung has had to develop products that are customized to meet demands of different customers across the world. In order to achieve this, Samsung conducts continuous research in markets that it operates in, so as to understand how people use and approach technology use. As opposed to developing products that are universal, Samsung aims at addressing the needs of different customers by understanding their environment and striving to meet local needs (Samsung, 2013). This is known as product localization and is considered one of the most important strategies for Samsung in achieving success. Having observed the constant power outages in Africa for example, Samsung developed the SafeSurge TV whose resistant capacity ensures that TVs are protected from power fluctuations (Samsung, 2013).
Technology advancement continues to challenge technology-based organization due to the fast pace at which it is progressing. In this relation, Samsung must invest heavily on technology in order to ensure that it remains ahead of competition. This has been particularly evident in the mobile phone business where newer versions with sophisticated technology continue to emerge in the market. This is further amplified by customer demand for high level technology devices, such that Samsung must keep developing newer versions to satiate them. Furthermore, Samsung has to compete with other players in the market to develop the best technology to attract clients.
Technology has however played a significant role in the company’s growth. As individuals increasingly gain access to the internet for example, the demand for smart phones has risen significantly. The advent of social media has also led to an increase in the demand for smart phones. In terms of appliances, enhanced technology leads to the production of more efficient appliances that are desired by customers. This has led to increased profitability for the company.
Influence of Vision and Mission for Strategic Management and Competitiveness
The vision and mission influence a company’s performance in a significant manner by providing strategic direction. At Samsung, the company aims at providing customers with the most innovative technology by following their vision 2020, “Inspire the World, Create the Future” (samsung.com). Through this vision, Samsung works towards developing new technology to ensure that it provides customers with innovative products. This vision also encompasses other stakeholders including partners, employees and the industry, with aim of promoting new value to them. Based on the set vision, Samsung intends to explore other areas of operations, which is bound to enhance its performance.
Through the years, Samsung has sought to ensure that it provides customers with only the highest level of quality. It is apparent that the demand for Samsung products has gone up due to its increased commitment towards innovation. Its commitment to empowering employees has also played an imperative role in promoting performance. In addition, Samsung is more committed towards creating partnerships to advance resource sharing and collaboration.
Applying the industrial organization model and the resource-based model
Samsung currently possesses great potential and capabilities to achieve above average returns. This can be actualized by applying the industrial organization model which focuses on the external approach and the resource-based model which takes on an internal focus. In order to earn above average returns, Samsung needs to follow the following recommendations.
The company should aim at achieving synergy among its most valuable resources in order to enhance performance. This can be achieved through various ways as follows. Firstly, optimization of technological strength, to ensure that the company develops new and innovative products, will set it above competitors. Secondly, Samsung should take advantage of its well-known brand to market its products existing and new products and thus enhance profitability. Thirdly, based on its high profitability, Samsung could expand the company into more countries through acquisitions and also develop new products to meet new market needs. Fourthly, Samsung should leverage the strengths possessed by employees and management to further enhance product quality. The company should further come up with strategies to retain its valuable talents through investing in employee relations and empowerment. (Lynch, 2012)
Continuous investment in technology cannot be underestimated if Samsung is to remain an industry leader. In this regard, the company, which already boasts of high level technology as a major capability must continuously invest in research and development to enhance technology. The main aim should be to ensure that the technology is unique, non-substitutable and difficult to imitate. Increased research and development is necessary to ensure sustainable innovation and thus ensure that the company remains competitive.
Samsung should develop effective employee retention strategies to ensure that the company performs exceptionally. This means nurturing talent that will ensure that this is achieved, through selective recruitment processes that ensure that only highly qualified and experienced employees are hired. Continuous employee empowerment will also ensure that staff are committed towards promoting technological advancement. It will also reduce loss of employees to competitors as evidenced in the transfer of resources among firms under both the I/O model and resource-based model.
Stakeholder impact on success for Strategic Management and Competitiveness
Customers are vital contributors or organizational success, given that the overall objective of the business is to make products that appeal to customers and thus gain profitability. Through purchasing the Samsung’s products and services, customers contribute to the company’s success by providing a market. Secondly, customers play the role of providing market information necessary for better product development. Through customer feedback, market research and spending patterns among consumers, Samsung is able to determine what customers want and thus towards developing products that serve their needs (Lynch, 2013). Feedback from users also helps the company to correct any faults that may exist in their products and also develop better products to satisfy customer needs and compete effectively.
Employees at Samsung contribute significantly to the company’s success and are to a great extent considered the most important asset. It is through its highly qualified employees that the company is able to achieve great results in technology research and development, production, operations and marketing. Employees can thus be considered as being the organization’s pillar and major contributors of success. In this relation, Samsung invests in employee empowerment. Employees bring in valuable skills and knowledge necessary for business strategy implementation.
Suppliers determine the overall input costs and also influence the effectiveness and quality of products. Through its suppliers, Samsung is able to access high quality raw materials and services necessary to develop its products. This ensures that Samsung develops high quality and reliable products for its customers, thus enhancing its profitability. Samsung emphasizes reliability when sourcing for suppliers. Consequently, timely delivery by suppliers also ensures that the company is capable of developing its products within the required time plans. Samsung also takes advantage of economies of scale to get products at low prices, thus reducing its product costs significantly. Therefore, suppliers play an important role in Samsung’s performance.
Competitors influence the company both positively and negatively. On the positive side, competitors act as motivation for Samsung in a bid to remain competitive. By observing competitor performance, the company can work towards developing better products. Secondly, the company can use competitors for benchmarking, in order to promote its performance. On the negative side, competitors reduce the company’s market share and thus influence its profitability. Given that Samsung must keep up with competitors in order to attract customers, it ends up spending significant amounts on research and development, thus impacting profitability (Johnson et al, 2014).
Strategic Management and Competitiveness Conclusion
Business success is influenced by various factors existing in the company environment including technology changes, globalization, customer demand and preferences, and internal factors. This paper effectively demonstrates how Samsung’s business and performance is influenced by various factors and how the company can enhance its capabilities to earn higher than average returns. Through investing in research and development, empowering employees and leveraging its major strengths, Samsung will continue being an industry leader in the technology sector.
Strategic Management and Competitiveness References
Johnson et al. (2014). Exploring Strategy: text and cases. 10th edn, London, Pearson.
Lynch, R. (2012). Strategic Management, 6th Ed, London: Prentice Hall
Samsung. (2013). Samsung Designs Globally and Adapts Locally for Worldwide Success.
Retrieved from https://news.samsung.com/global/samsung-designs-globally-and-adapts-locally-for-worldwide-success
