Strategic Organizational Management: Digitalization, Challenges, and Sustainable Strategies

In this question we will discuss about organizational management and below are the summaries point:- Westpac utilizes digitalization and innovative technologies to meet customer needs and operate in international markets. The organization faces challenges due to a lower number of branches and an unstable political and social environment. Westpac's sustainable strategies include attracting international customers, developing unique propositions, and offering diverse financial services.

Running head: STRATEGIC ORGANISATIONAL MANAGEMENT
Strategic Organizational Management
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Question- 1a.
Strategy Formulation
i. Internal resource and capabilities
The basic capabilities of the organization are related to digitalization of the services and
the products and the implementation of the innovative technologies have helped Westpac in
adhering to the changing needs of the customers while operating in diverse international markets.
The digitalization capabilities of the organization are inimitable which will be helping the
organization in maintaining the efficiency of the operations. The technological innovations that
are undertaken by Westpac have helped the same in gaining a competitive ground in the external
environments and contributed to the Valuable aspects. Teece (2012) stated that the technological
innovations help an organization in maintaining the efficiency of the operations as per the
concerns faced by the customers. The rare aspects of the technological innovation are based on
the implementation of CRM, which has helped the bank in identifying the needs of the
customers. Therefore, the different technologies that are implemented by the concerned
organization have helped the same in retaining the trust and loyalty of the customers, which
added to the competitive advantage of the same.
ii Current environmental factors
The concerned organization, Westpac, face significant issues relating to lower number of
branches in the different economies, which has restricted the operations of the business. Wang
and Feng (2012) stated that the strategy formulation stage of a business is dependent on the
research that is being undertaken by the same. Therefore, the organization face significant issues
in identifying the market base which restricted the expansion phase of the business. On the other

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hand, the unstable political and social environment in the different economies has restricted the
capabilities of the organization to expand in the international markets. The lack of huge amount
of branches has also affected the competitive advantage of the same. The higher amount of
competition that is faced by the concerned organization from the retail banks has affected the
capabilities of the same in maintaining the efficacy of the service propositions as per the needs of
the clients.
iii. Sustainable strategies
The corporate strategy of Westpac is to attract the attention of the international
customers in order to enhance the scopes of expansion in the different global economies. In this
connection, the organization took steps to develop unique propositions in order to suit the needs
of the customers in the international markets. On the other hand, the business level strategy of
the organization is to develop diverse range of financial services in order to suit the needs of
most of the customers (Killen et al., 2012). The diverse range of services will be helping the
organization in attracting the attention of the potential customers towards the service offerings
made by the same. It will be helping the organization in gaining a competitive edge over the
existing players in the market. The functional strategy of the organization aimed at allocating
resources as per the needs of the business. In this relation, the organization aimed at designing
the processes in order to optimize the utilization or resources and thereby support profitability of
the business.
Strategy implementation
i Leadership, management and staff structure

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The concerned organization must take steps to implement transformational leadership
style in order to maintain the efficiency of the operations as per the needs of the business while
operating in diverse international markets. The utilization of the transformational leadership style
will be helping the organization in bringing forth modifications in the processes without
changing the same completely (Helfat& Peteraf, 2015).
ii Monitoring and evaluating performance
The organization lacks in suitable monitoring and evaluation processes, which might
affect the quality of the processes. Lack of suitable monitoring and evaluation mechanisms has
restricted the capabilities of the organization in implementing the strategies more feasibly.
Question 1b
Product design of Toyota
The automotive organization Toyota faces different issues while designing the range of
vehicles due to poor design of the technological elements. The organization faced issues relating
to the vehicle’s acceleration system, which has affected the brand name of the business. The
issues in the product design have resulted to lack of customer retention. On the other hand, the
lack of suitable product design has affected the organizational competitiveness in the global
economies. Kor and Mesko (2013) stated that the innovative design of the processes helps an
organization in enhancing the product design. In this relation, Toyota lacked in a suitable
monitoring and evaluation system, which has affected the product design. On the other hand,
Villar, Alegre and Pla-Barber (2014) noted that the product design of an organizational offering
is chiefly based on the preferences and needs of the target customers. In this relation, the
concerned organization has taken steps to undertake systematic market research in order to

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identify the preferences of the customers and thereby develop the range of automobiles as per the
needs of the same. The decision making skills of the management while designing the range of
products has helped the business in maintaining the efficiency of the same while addressing the
needs of the target customers.
Quality management of Toyota
Quality management is one of the major concerns that are faced by the organization while
operating in diverse international markets. Gebauer, Worch and Truffer (2012) stated that the
quality management initiatives of an organization helps the same in retaining the customer base.
In this connection, Toyota lacked in a suitable quality evaluation and monitoring process, which
affected the quality of the vehicles. It has been reported that the concerned organization has been
facing quality issues relating to acceleration mechanism in certain vehicles, which affected the
goodwill of the business. Teece, Peteraf and Leih (2016) noted that the quality of the vehicles
will help in upholding the trust and loyalty of the target customers. The concerned organization
must take steps to develop suitable processes in order to monitor and evaluate the efficiency of
the product offering during the testing phase. It would be helping the organization in maintaining
the efficiency of the operations as per the needs of the business while operating in the diverse
global markets. Hofmann, Theyel and Wood (2012) stated that the issues in the quality
management is basically dependent on the lack of specific knowledge of the technological
innovations and the expectation of the customers. In this relation, the lack of proficient
knowledge of the technological innovations among the group of engineers in the concerned
organization affected the strategic functioning of the processes while adhering to the needs of the
customers.

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Question 2a
The porter’s five- force analysis assist an organization in identifying the competitive
nature of the markets. The different changes that are undertaken by the organizations are
dependent on the assessment of the competition that is encountered by the same. The delineation
of the different factors like industry rivalry, threat of substitutes, threat of new entrants,
bargaining power of the buyers and bargaining power of the suppliers helps an organization in
framing the strategies (Kindström, Kowalkowski& Sandberg, 2013). The strategies that are
formed by the organizations help the same in upholding the efficiency of operations and thereby
gain a competitive advantage in the markets. The bargaining power of the buyers helps an
organization in upholding the efficiency of the pricing strategies. On the other hand, the
assessment of the threat of new entrants and substitute products in the market helps an
organization in designing unique propositions in order to retain the competitive edge. The better
understanding of the competitors and their propositions helps organizations in improving the line
of products or services in order to attract the attention of the customers.
Figure 1: Porter’s five force analysis

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(Source: Teece, 2012)
Question 2b
Factors Rate Evaluation
Industry rivalry Strong force Existence of large number of
competing firms has enhanced
competition in the markets where
the concerned organization
operates. The existence of
competitors like Unilever and
AVON has affected the
organizational operations of P&G
(Camisón, C., & Villar-López, .
2014)
Bargaining power of the
suppliers
Weak force The existence of huge number of
suppliers in the market has
reduced the bargaining power of
the suppliers. P&G utilize
different intermediary channels
in order to supply their line of
products (Theodosiou, Kehagias
& Katsikea, 2012). It has helped
the organization in dominating
over the bargaining power of the

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suppliers in the market.
Threat of substitutes Weak force The lower availability of the
substitutes has helped the
organization in minimizing the
risks of losing their target
customers to low priced similar
product ranges. The uniqueness
of the products that are offered
by the organization, in this
relation, has helped the business
in gaining a competitive
advantage over the other players
in the market.
Threat of new entrants Moderate force The increasing threat of new
entrants in the market offering
similar product ranges as the
concerned organization has
affected the competitive edge of
the business. In this relation, the
lower switching cost of the
buyers and the moderate
economies of scale encountered
by the organization has affected
the proposition of the same while
operating in diverse global

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economies.
Bargaining power of the buyers Weak force The larger demand faced by the
organization and the lower
availability of substitutes in the
market has helped the
organization in upholding the
efficiency of the operations as
per the needs of the business.
Question 2c
Porter’s value chain analysis helps in evaluating the different activities that are
undertaken by the organizations in order to create value for the customers through the
enumeration of the specific range of products or services. The value chain analysis of an
organization helps an entrepreneur in identifying the different needs of the customers and the
value that is being proposed by businesses for gaining a competitive edge over the existing
players in the market. Teece, Peteraf and Leih (2016) stated that the key changes that are
undertaken by the organizations in the product or service offerings are dependent on the smooth
functioning of the systems in order to correlate to the needs of the customers. Therefore, the
evaluation of the value proposition through the value chain analysis helps an organization in
understanding the strategies that might be considered by the same in order to achieve a
competitive advantage.
Question 2d
Inbound logistics

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The Inbound logistics of IKEA is dependent on the purchasing activities undertaken by
the organization from around 1002 suppliers and steady relationships with the suppliers (Wang
& Feng, 2012). The steady relation with the suppliers helped the organization in maintaining the
efficiency of the operations as per the needs of the business.
Operations
The operations that are undertaken by the concerned organization are primarily divided
into three divisions, which are Franchise, Property and Finance divisions. It has helped the
organization in maintaining the efficiency of the activities as per the concerns faced by the same.
Outbound logistics
The concerned organization operates in more than 28 global markets along with 340
stores (Villar, Alegre& Pla-Barber, 2014). The wider channel of distribution that is being
undertaken by the organization is dependent on the two channels of transportation that is mainly
parcels and truck delivery. It has helped the organization in maximizing the availability of the
products in the respective markets.
Marketing and Sales
The organization undertakes several Integrated Marketing Communication strategies in
order to communicate efficiently with the customers and thereby attract the attention of the same
to the product and service offerings. The organization utilize print and media advertising, sales
promotion, events, public relations and direct marketing techniques in order to attract the
attention of the customers towards their product ranges.
Service

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Customer support is one of the primary objectives of the concerned organization. It has
helped the organization in gaining over the trust and loyalty of the targeted customers. It has
been reported that the IKEA Group Customer Support Centres provided support to around 20
million of its customer base, which has helped the organization in enhancing its position in the
global markets (Teece, 2012).
Figure 2: IKEA Value chain analysis
(Source: Teece, 2012)
Question 3

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a) Critically evaluate the analysis and assessment phase of strategic management practice
in organisations and its relationship to the operational management of a global
technology organisation in its contemporary operating environment.
- In the analysis and assessment phase of strategic management, an in-depth understanding of the
present internal and the external environments is generated. It is the first most phase of the
practice of strategic management within any organization. As per (Hayes, 2018), in the analysis
and assessment phase, all the requirements of an organization are determines systematically and
all the gaps present in between the current and the future conditions are addressed. This phase of
strategic management of Accenture has involved significant determination of the present threats
and opportunities in the business market. In such case, several different models like the Porter’s
Five Forces, SWOT, and PESTLE are used by this company in order to gain a sound idea
regarding all the environmental factors and the competitive forces that are relevant in their
business operation. Along with this, it is also very important for this company to assess and
analyze the potential changes in its external environment like the impact of present social, legal,
political and economic factors. Hence, this phase of Accenture is comprised of the process of
determining the external environmental factors. On the other hand, it is also suggested the
Accenture should also involve the competitor’s analysis. It is because of the fact that change in
the strategy of the competitor would have a strong impact on the overall business of this
company.
b) Critically evaluate the strategy formulation phase of strategic management practice in
organisations and its relationship to the operational management of a global technology
organisation in its contemporary operating environment.

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- The phase of strategy formulation is where selection of the most suitable, profitable and
valuable course of action are done for the success of an organisation. In this phase, the aims and
objectives are set for implementing the strategy. With the same, in this phases, also the ways and
the various ways of attaining those objectives are identified too. It is also to note that a thorough
analysis of all the corporate strengths, opportunities, threats and weaknesses reveals the most
crucial areas that surrounds the services and products which are required to pay attention on.
Accenture make use of different types of models and frameworks in its formulation of strategy.
One of the example of such models and frameworks is the Ansoff’s matrix. It is to note that this
matrix is helping this firm in gaining an access to all the different strategies for the development
of market (Karadag, 2015). As per the first phase of analysis and assessment of the internal and
the external factors, some effective development strategies are used. With the same, the
involvement of the stakeholders at various different levels are complementing in improving the
strategies’ effectiveness. It is helping Accenture in having an effective process of strategy
formulation. The main organizational level strategic formulation plan of Accenture is developing
new market regions and new products.
c) Critically evaluate the strategy implementation phase of strategic management practice
in organisations and its relationship to the operational management of a global
technology organisation in its contemporary operating environment
- The phase of strategy implementation is the process when execution of all the important
strategies are done in order to meet the set aims and objectives of an organization. For ensuring
success, it is very necessary for every employee to understand his own roles and responsibilities
in the organization. This phase of Accenture is primarily dependent on its process of planning,
organizing and controlling the different approaches. It is because of the fact that there is many

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steps that are followed by Accenture for successful implementation of the strategies. Firstly, it is
stating its objectives and it helps in designing the implementation process approach that ensures
maximum returns (Engert & Baumgartner, 2016). Secondly, it is the process of executing
policies that is applicable to the involved stakeholders of the process. It ensures that the company
is having desired approach ad effectiveness as per the level. On the basis of these policies, the
resources are allocated for various activities. Lastly, the leading and controlling strategies of
Accenture ensures favourable returns from the allocated resources. Notwithstanding this fact,
proper coordination among the practical scene and the stated vision help Accenture to implement
the long term strategies in better ways. Moreover, the infrastructural advancements and
improvements of Accenture is consuming very little time for customizing the products as per the
customer specifications. It is helping it to uphold its strategy of “make to order”.
d) Critically evaluate the strategy evaluation phase of strategic management practice in
organisations and its relationship to the organisational operational management of a
global technology organisation in its contemporary operating environment.
- The strategy evaluation phase is the phase where evaluation of the overall performance of the
organization are done and the ongoing iteration are managed against the already implemented
plans. Most of the companies make use of SMART analysis for comparing and contrasting their
performance towards achieving their desired goals and objectives. Analyzing the present
condition as compared to the desired ones determines the requirement for the new products and
services as well as the additions of the existing products. Accenture compare its anticipated
response of the customer purchase with the actual number of product sales as compared to the
older ones or older shipping times to the product delivery timeframe after the new process were
taken into consideration or are implemented. As per Wheelen et al. (2017), this phase also serves

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as performance feedback giving phase. Furthermore, Strategy Evaluation is as significant as
strategy formulation because it throws light on the efficiency and effectiveness of the
comprehensive plans in achieving the desired results. Furthermore, Accenture use several key
performance indicators for evaluating the implemented strategies. Some of these strategies are
the number of customers gained and the increase in the market share or the rate of retention of
the present customers. On the basis of these performance indicators, the company measures its
effectiveness. While, the negative showings determine the areas that need further improvement
and enhancement.

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