Strategic Management in International Context
Added on 2021-02-20
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Leadership ManagementPolitical Science
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Strategic Report
Table of ContentsEXECUTIVE SUMMARY.............................................................................................................3INTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1Relationship between strategy, stakeholder expectations and organizational performance...1Identify and evaluate impact of external factors on strategic management in internationalcontext....................................................................................................................................3Use of relevant tools and formulate new strategy to face the challenges and meetorganizational goals................................................................................................................6Explain how the business strategy encourages and supports innovation and change andevaluate strategy.....................................................................................................................8Develop an implementation plan for the strategy and how it will fulfil major stakeholderexpectations............................................................................................................................9Stakeholder Expectations.....................................................................................................10Recommendations and conclusion.......................................................................................11TASK 2..........................................................................................................................................13Analyse current organizational structure and evaluate its effectiveness in meeting organizationobjectives..............................................................................................................................13Critical evaluation of the restructure plan for identifying possible issues and negativeconsequences and ways to overcome them..........................................................................18TASK 3..........................................................................................................................................19Covered in PPT.....................................................................................................................19REFERENCES..............................................................................................................................20
EXECUTIVE SUMMARYThis report has been drawn in three parts each one had its individual questions. Part firstincluded explanation about connection between strategy, stakeholder expectations andorganizational performance. This was continued by choosing a strategic management theory tohave better understanding of the same. Along with this, different approaches were analysed forchoosing one of them, impact of external factors was identified followed by an evaluation.Furthermore, relevant tools and formulation of new strategy have been used to overcome thechallenges for meeting the goals of the entity. In addition to this, importance of innovation andchange in the strategic management has also been covered together with this, implementationplan is developed and added in this file.
INTRODUCTIONStrategic management is an important process of an organization which involvesdetermination of strategies that can be implemented for achieving organizational goals andobjectives. It is done on a continuous basis for gaining competitive advantage and to earn higherprofit and revenue (David and David, 2013). It involves strategic decision-making for improvingthe performance of the entity. Furthermore, it provides direction followed for getting desiredresults. The strategies formulated should be evaluated and monitored in order to reduce the gapbetween the actual and standard. In this report, Xerox has been chosen which is an Americanglobal company engaged in business of selling printing and digital document products andservices. It has its headquarters in Norwalk, Connecticut U.S. Furthermore, this assignmentcovers description of strategies, stakeholder expectations and organizational performancefollowed by selection of a theory of strategic management. Along with this, identification andevaluation of impact of external factors, use of relevant tools together with formulation of newstrategy. Also, the contribution of strategy on innovation and change followed be development ofimplementation plan. Strategic restructure plan has been formulated after analysing currentorganizational structure on the basis of various issues. TASK 1Relationship between strategy, stakeholder expectations and organizational performanceIn this report, Xerox has been selected which is conducting its business in multiplenations and sells print and digital document products and services. It was a strong business in theinitial days but after unsuccessful takeovers and other deals, the business started to decline whichaffected profit. Since, it is a highly recognised corporate throughout the world which has itspresence in different parts of the world. It is going through crucial phase which comprisesincreased difficulties. Hence, it believes effective strategic management can save the company.Therefore, below are some of the related terms have been explained by forming a relationshipamong them. Strategy: This term is derived from Greek word “stratcgos” which is actually formedwith two different words 'stratus' which means army and 'ago' is leading or moving (Nisbet andShucksmith, 2017). In the context of a business, it is known as the action that provides directionwhich is followed to achieve goals of the organisation. Every company has short as well as long1
term goals which are accomplished with the help of strategies that can provide competitiveadvantage and sustainability. Stakeholder expectations: Stakeholder refers to a single person, group or even anorganization who can influence the project as well as get affected. It is of two types viz. Externalwho are government, and internal employees, investors, suppliers, customers etc. and both aresignificant in the management of the operations. Stakeholder expectations are the needs andrequirements of all the stakeholders who are interested in the company. These should be takeninto account for formulating strategies and plans which are going to be implemented by theorganization. The stakeholders of Xerox are its customers, employees, shareholders, suppliersand communities and they have expectations to received good quality products, good and ethicalenvironment, high return, healthy relations for long term and better lifestyle and infrastructure. Organizational performance: This is an activity which involves evaluation and analysisof performance of the company with its objectives and goals. It is helpful in conducting acomparison between the actual outcomes against the expected results. Furthermore, there arethree different analysis viz. Shareholder value, financial performance and market performance.This factor holds great importance for Xerox company as it has always been its prime activity.For this purpose, takeovers and other strategies were made. These three things are related to each other when its comes to achieving the goals of theorganization. A company makes strategies based after identifying various requirements of thestakeholders who are vital for the success of the business. Furthermore, goals and objectives arefixed along with time line to accomplish them accordingly. Lets take an example of Xerox forhaving a better understanding of the same. Xerox is considering a new proposal for launchingdigital printer which are eco-friendly and affordable. Before finalising the same, it should have ameeting with its stakeholders to get their approval as well as suggestions and issues in the same.Stakeholder may have dilemma about the success of this printer and the cost involved in theproject is quite high as it is going to be prepared by following every possible standards ofenvironmental laws and rules. If all the activities are completed according to the plan then it isgoing to have positive impact on the performance of the company. There will be very lowchances that any variance can be there. In other words, Xerox can achieve the expected resultswith effective strategies which are developed by considering the stakeholders' expectations. 2
Strategic management is a vast concept which has number of theories that can be appliedto an entity for creating positive results. To understand the same, profit maximization andcompetitive based theory has been chosen. According to this theory, the main goal of anorganization is to increase its profit for it has been established. The business operations arecarried for making more income by reducing the loss. Stakeholders are influenced with theprimary objectives of the company (Hill, Jones and Schilling, 2014). On the other hand,competitive theory is gaining a strong position among all the competitors through stakeholderscontribution in the business affairs. For this purpose, it is important to identify the expectationsof key people who can affect the business. So, every stakeholder wish to earn profit in return oftheir funds and other contributions. Hence, it can be said that to earn more profit which is theprimary goal and to remain competitive, the expectations of stakeholder should be taken intoaccount according to which effective strategies can be developed for implementing in thecompany. The reason for choosing this approach is that, easy prediction can be made about theexpected profit on the basis of past records. The strategies made previously should be analysed toremove any kind of variances and ineffectiveness. Also, it helps in taking the real situations ofthe marketplace for developing appropriate strategies. With this, the current position of thecompetitors is considered according to which new plans and policies can be introduced forgaining competitive advantage. Whereas, other theories are focused on their particular field suchas resource based theory is about utilising the resources in an optimal manner, contingencytheory is about identification of unexpected events which may occur in future and the companyshould be prepared about the same. There are some other theories as well which are designed forthe specific area. However, the underlying aim is to increase the profit and achieve competitiveadvantage. Therefore, the option to choose profit maximization and competitive based theory isappropriate as it will take into all the possible aspects and not just one or two particular unit orarea. Identify and evaluate impact of external factors on strategic management in international contextExternal factors are the elements which exist outside the organization and are beyond thecontrol of the management (Antonelli, Crespi and Scellato, 2013). These are basically the part ofeconomic, political and social environment of the business cycle. Every organization should3
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