Management Essay Paper on Strategic Management

Strategic Management

1 a).

The analysis shows the company’s weakness in making decisions and choice of the product. The SWOT analysis shows that the first KFC product’s “Colonel’s Rotisserie Gold” weakness resulted from poor quality suppliers. The SWOT analysis indicates the lack of choosing professional suppliers and supply decisions. The second KFC product “Oven Roasted” chickens was an unhealthy food product. The management decisions show weakness in the SWOT analysis. KFC lacked strong market efforts in advertising its third product of fried chicken. The weakness results from lack of marketing skills and poor decision making from the KFC management. Although KFC studied the market and realized a change in the consumption of healthy foods, the management of KFC insisted on selling the chicken. However, this could be explained as a strength and opportunity to KFC. This was a misguided decision, whereby each of the new products experienced poor performance in the market. In the modern management, the business should strive towards producing products that satisfy consumers’ needs. The aim of the business research is to evaluate the changes in consumers’ needs and preferences, and produce products that meet those needs and preferences.

b).

            PEST method is an analytic tool that measures the market force and potential of a specific brand. If PEST analysis were applied in KFC’s second product “Oven Roasted” line of chickens, the results would show a failure. The company did not introduce the item and see the business potential of the chicken line. Instead, the management promoted the chicken before testing its performance in the market. The evaluation of the different factors; political, environmental, social, and technological factors would have helped KFC to make appropriate decisions. The change to consumption of healthy foods was a social and environmental factor. Furthermore, the political factors may also have a significant influence towards the change in consumption patterns of the consumers. When consumption of healthy foods has the backing of the government, it might work negatively to new products of KFC.

2 a).

            The structural changes begin with mobility of the company towards customer care and employees (Mulcaster, 2009). The Nokia report shows the company’s structural changes in responding to customers, and changing the way the employees work and giving them time to rest. The division of departments and assigning different people to manage certain areas support the objectives of the company. The divisional structure will help the company serve its customers well and compete fairly (Mulcaster, 2009). Nokia has implemented the decision-making on the structural changes, and this has enabled the company to compete favorably in the communication and data industry. The mobility in the human sector has given Nokia a competitive advantage by acquiring the best talent that promotes the company’s production. There is improvement in cohesive culture in the Nokia Company. Moreover, the mobility has improved customer service and company responsiveness to changes in consumer needs. Thus, this transpired Nokia to become a global leader in mobile devices and communication networks. There was also creation of new opportunities for investment by Nokia, such as devices and mobile communication sectors.

b).

Nokia press uses divisional structure. The divisional structure is a business organization system that is broken into units and departments to produce and market a product. The structure is broken into units, including services, and software and selling. Each unit is responsible for performing its task, and ensuring that the company operates and runs effectively. The Nokia Company adopted this strategy in improving its performance. There was creation of two segments, which included Nokia Siemens Networks and Devices and Services. The segments were to operate independently and report to the CEO.

c).

            The new structural changes represent the six characteristics of strategic thinking. The new divisional structure allows people to think typically and have the passion in their work. In addition, the new changes allow everyone to participate in different department to improve the company services. Moreover, the changes leave room for creativity and amendments. This is because of improvement in operation, marketing, and production effectiveness in Nokia Company. The company expects consumers to be pleased with the new move to improve customer service delivery.

3 a).

            The relationship between mechanistic focus and management, versus organic focus and leadership is the fundamental basis of each structure. Mechanistic structure believes in low differentiation of work and hierarchy of decision-making. The structure believes in top management and relies on the managers to solve issues. The organic leadership promotes teamwork and every member of the organization participates in decision-making and problem solving.

b).

            Generic strategy is a business structure that involves specific skills and arrangement. Before commencement of the business, the organization requires resources and the method of implementing to succeed in the business. On the other hand, grand strategy is the business structure where directions are given and tactics to reinforce and improve the specific business venture.

c).

            Task environment consists of parties that are involved in daily activities, such as production and distribution, whereas the broad environment comprises forces and sources of power that influence the task environment.

d).

            Horizontal growth of business organization indicates the spread of business in many areas or producing many products and services, whereas vertical growth indicate the depth of the business in specific areas and processes, mainly in production and distribution of specific brand.

e).

            Motivation comes from the inside of a person or the urge to accomplish a goal. Internal motivation is the inner urge to accomplish a task whereas external motivation is the supporting figures or people towards the accomplishment of the task.

f).

            Competence-commitment development is the situation where the leader is committed to the work and participates in the development, whereas directing-supporting leadership is the leadership strategy where the leader gives orders and supports the implementation of the orders.

4.

            Successful businesses, such as Wal-Mart stresses on the key areas of management (Mulcaster, 2009). Wal-Mart plans the business strategies and resources in an economic way and controls the use of resources properly. The company has been effective in motivating the employees through various ways, such as rewarding and engaging the employees in decision-making process. One of the key strategies in Wal-Mart stores is reducing the time wasted during the delivery of products to different stores. The IT structure installed enables automatic tracking of sales and delivery of new stock, thereby improving efficiency. Moreover, controlling employees helps business organizations to run smoothly and efficiently. Wal-Mart leaders manage and organize the entire department to attain goals. The employees’ goals are integrated with the organization goal, thereby enabling employees to achieve both personal and organizational goals. The management of Wal-Mart also instills discipline to its employees. Therefore, the employees will exemplify the Wal-Mart code of conduct even when outside the Wal-Mart environment. Directing is the issuing of orders and procedures whereas organizing is ensuring every process is done appropriately. The management of Wal-Mart has different levels. The top management issues order to the middle level managers who then issue orders to supervisors. This protocol has enabled smooth operations in Wal-Mart, thereby reducing employee conflict.

References

Mulcaster, W., R. (2009). “Three Strategic Frameworks,” Business Strategy Series, 10(1), 68          – 75.