Strategic Management: Product Development and Turnaround Strategies

This report provides a comprehensive analysis of strategic management, exploring key criteria for successful joint ventures and strategic alliances, emphasizing the importance of agreements, alignment, flexibility, development, and mutual understanding, with real-life examples like Facebook and Skype. It examines the contribution of sustainable practices to organizations, identifying critical factors such as organizational structure changes, linking profit motives, infusing sustainability as a core identity, and implementing team performance indicators. The report critically evaluates product development and turnaround strategies as viable strategic directions, using examples like DroneXperts and Dell Inc., and discusses Mintzberg's view of strategy, illustrating the 5 Ps (plan, ploy, pattern, position, and perspective) with the McDonald's Egg McMuffin case. Finally, it addresses the challenges of managing change, analyzing the key reasons why staff resist change and the importance of effective change management programs within organizations, referencing examples of companies that have struggled with change.

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Running Head: STRATEGIC MANAGEMENT
Strategic Management

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1. Analyse the key criteria needed for Joint Ventures/Strategic Alliances to be successful. Address
up to five (5) criteria in your answer, utilizing real life examples where relevant.
Answer 1.
In general parlance, the Joint Venture is a business entity gets produced by the
combination of two or more parties. This can take place by means of shared possession rights,
and divide the risks and the profits, and have equal governance over the business activities.
Strategic Alliances comes into shape in the form of a concord that takes place amid two or more
parties to follow a set of agreed-upon objectives while lingering as independent organizations.
The need for a joint venture or a strategic alliance is to have connectivity with more effective
partners to have expanded growth. It requires featuring knowledge, capable people, technology,
financial resources and an access to the market. The most important criteria for the joint ventures
or the strategic alliances to attain success is to have an agreement. This is the most vital factor as
it facilitates the key people convoluted to have knowledge about duration of the venture,
performance norms, and governance procedures.
For an example, in July 2011, the company Facebook declared for a strategic alliance and
that took place with Skype and had been lately undertaken by Microsoft. This alliance turns up
lucrative as Microsoft move into the social networking space and Skype experienced an entrée to
an outsized number of new-fangled users and meanwhile Facebook could also control Skype's
technology. Other than this, Dow Chemical constituted a joint venture with Japanese firm Ube to
produce a factory for an exacting high-tech battery. In this manner, they will contribute to the
technology and the jeopardy of new product development. The remaining four criteria are as
follows:
 Alignment

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 Flexibility
 Development
 Mutual Understanding
All these remaining four criteria are very much necessitated to make the strategic
partnership successful. The partners during joint ventures should have shared objectives and
need to align it well to have better risk and reward management. Flexibility is very much
required in order to have the capability to resolve the issues that can come up due to wide
differences in cultures amid two peoples. Development relates to having an incessant and
ongoing relationship amid the two people coming together for a strategic partnership. As per this,
they should limit the restrictions and have an effective and open communication with each other.
Mutual trust is the vital thing in order to take strategic partnerships to the steps ahead. With this
only, the moves could be more of effective and going to help with successful strategies to make
this liaison more of profitable.
2. Analyse the contribution that adopting Sustainable practices can bring to organizations. Address
up to four (4) factors in your answer.
Answer 2.
Before moving to the answer, it is important to throw glimpse on sustainability. It is the
procedure of change, wherein which the utilization of resources, the itinerary of investments, the
point of reference of technological development and institutional change are all said to be in
harmony and add to both current and future potential so as to meet human needs and inspirations.
It comes up as a successful initiative towards allowing the organization contribute towards
economic, social, and ecological developments.

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For example, there is the good number of companies that are doing well in the area of
sustainability such as PepsiCo, Nike, Starbucks etc. PepsiCo goes for stakeholder engagement
and uses to reveal the issues pertaining to climate changes, water scarcity, and public health
issues listed under its core sustainability challenges. Nike moves with such designs that are
sustainable and not even going to impact its product. Starbucks put in hard attempts to connect
with suppliers and local communities where they use to maneuver, and speed up investments in
sustainable farming and get to Starbucks' goal of morally obtaining 100% of its coffee beans by
the year 2015.
The four of the key factors to be considered that could contribute well towards
sustainable practices are:
 Bringing requisite change to the organizational structure
 Linking profit motive with the execution of sustainable practices
 Infusing sustainability as the company’s core identity
 Moving on with the notion of indicators of team performance
All these factors are going to serve well to the organizational needs by making an
organization more active towards espousal of sustainable practices. At the outset, the change in
the organizational structure pertains to the way top to down and bottom to up communication
should be in the way that makes sustainable practices goes on effortlessly. But, at the same time,
the middle management is to focus more on the productivity part. Secondly, the factor
communicates that the Companies should agree to preliminary investments and let time for them
to come back with the profits, and also establish the fertility of sustainability by means of key
stakeholders’ benefits indicators, together with forfending encounters with short- and middle-
term objectives.

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Thirdly, sustainability should emerge as the company’s core identity and make it applied
at all the possible levels. This should be practiced in a way that the staff should receive proper
training to move well with the same. Lastly, the company goes for delivering quantified
objectives with incentives established on the percentage of the product that would be eco-
thought.
3. With the aid of real life business examples critically evaluate both of the following as
viable strategic directions for a company aiming to achieve long-term success:
(a) Product Development
(b) Turnaround Strategies
Answer 3.
Product Development strategy is related to the process of bestowing a new improvement
to consumers and that goes from the development of the product to try out all the way through
distribution. Next, it is important to gain awareness of pros and cons associated with the product
development strategy. The positive points are producing an innovation culture, driving a higher
value proposition, and growth in the professional network. The risks pertained to the product
development strategy are unable to match with the customer’s expectations, product testing
could receive failure, and changes in the external procedures could modify the product
development. This could be the best example regarding product development strategy that the
DroneXperts, a company that plans, constructs and maneuvers drones with the intention to bring
together particular data for companies and governments. At the very outset, Johan Lassalle was
presented by a defy that many companies facade in the product development phase. But, the urge
to customize is the main reason behind receiving the best returns out of the way product got
developed and designed. It emerges out as the perfect idea leading to having images even at

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heights as well. With the time to come, the drone received immense popularity and make
customers accept its existence as well. Product development was taken up as an opportunity and
that results in enormous growth and success.
Turnaround strategy is a retrenchment strategy accompanied by an organization when it
experiences that the decision made previously is not in favor and looks forward to better
improvements before it could adversely impact company’s productivity. Pros and cons linked
with turnaround strategy are to be discussed with due effectiveness. It results in raising the
performance levels and also comes up as the cost-effective strategy by safeguarding it from any
kind of further financial troubles.
Cons are that the turnaround strategy could experience loss of good and experienced
employees together with receiving the critical response as well. The best example of the
company going with the turnaround strategy is Dell Inc. In the year 2006, it declared the cost-
cutting measures and it got implemented by merchandising its products in a straight line.
However, this decision does not pay it fruitful returns. After that in 2007, Dell disengaged its
direct selling strategy and bugged outselling its computers all the way through the retail outlets
and presently the company owns the second largest position in the computer retailer world.
4. Examine Mintzberg’s view on what constitutes a Strategy, using contemporary business
examples to aid your answer. Evaluate the view outlined by Mintzberg that is most relevant in
terms of the modern business world.
Answer 4.
In the word of Mintzberg’s, the strategy is made up of five important constituents and are
ploy, plan, perspective, pattern, and position. Strategy as a plan is destined and an action that
gets followed in a knowing manner. Strategy as a ploy capitalizes of the available opportunities

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that crop up at the part of the company. Its ultimate purpose is to deter the competitors by
grabbing the best from their part and introducing more of lucrative products along with lower
prices.
Strategy in the form of a pattern can only be understood by looking back to what had
happened and to figure out the actual pattern from it. Strategies can be planned and put into
practice but the resultants could not be predicted in any possible manner. Strategy in terms of a
position is to make out that the business could fit well in respective environmental conditions. It
is equally imperative to locate the position to take on just to please the customers either by
means of good quality products, low costs, or concentrating on the niche. At last, strategy as a
perspective is the way a company looks at itself in the world, all the way through the eyes of its
management and employees. It can also be understood as an organizational culture.
After going through the Mintzberg’s view on strategy, it is important to understand it
well by means of supportive examples. The respective example is going to clarify about the
Mintzberg’s 5ps of strategy connection with the company named McDonald. In this
consideration, it is exciting enough to take up the case of Egg McMuffin. This particular move
comes up as the strategic change for the fast-food chain of the company. It brought in
McDonald’s into a new-fangled market and that is to have an entry in the breakfast section by
means of continuing with the use of presented facilities.
The view outlined by Mintzberg that is most relevant in terms of the modern business
world is that the changes are obvious and should be welcomed with open arms. It seems that the
strategic management should take place by understanding the modern business world
requirements and prioritizing the activities accordingly. This is believed to be very much
requisite just to get to know as to how the things should come out to be far better and

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understandable as well. All that requires is to get to know as to how the 5P’s of strategy should
get combined in such a manner that could result in the most promising resultants.
5. Managing Change is a key challenge for all organisations; a large proportion of change
management programmes fail to succeed. Examine and evaluate the key main reasons why staff
resist change.
Answer 5.
In general context, the change management concept is a systematic move toward carrying
on with the changeover regarding organization's goals, technologies or processes. For this, there
has to be a structured procedure to make change management carried on successfully. The
change management lay down impact on key areas within an organization such as processes,
organizational structures, job roles, and the systems.
The change management is obvious and supports the company having the tendency to
adjust to the transitions at the business level. There are examples of the companies that does not
go for a successful change management program. Firestone Tire & Rubber and Laura Ashley are
the companies that hold the prominent position in their respective fields. In spite of moving forth
with the change management programs, the companies do not get out from the decline faced by
them. The possible reason behind the same is not taking an appropriate action at the right time
and that makes them experience failure. Both of these companies enjoy far-famed success but
unable to match up with the changes needed at each subsequent level.
The possible reasons for a change failure can be due to unsuccessful communication.
Resistance from the part of the people, unable to figure out the reasons behind changes, too much
use of the mixed messages and lot of perplexity, anticipations in receipt of instant success, lack

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of single integrated change strategy, the management unable to make people aware about the dire
need of respective change taking place.
The key main reasons why staff resist change are as follows:
 Poor timing
 Ineffective communication
 Job Loss
 Expecting shocks and fears from the changes
 Lack of competence and rewards
 A weak supporting system at the organizational level
Uber is the perfect example that receives the critical response from the taxi industry.
Actually, the company makes it very easy for the people to book a cab and to reach their
destination without any problem. This creates a trouble amid the traditional taxi drivers and that
makes Uber receives too much resistance to this particular change. The company comes up with
introducing new features and making it easy to locate a taxi to reach their point, experiencing
innovation, and perfect timing. This makes traditional taxi drivers feel problem and that is the
reason they show resistance to the change.
6. Examine and Evaluate the main barriers to Innovation in Organisations. In your answer
address three (3) key barriers, utilising real life business examples to aid your answer.
Answer 6.
The main barriers to innovation are mentioned below:
Discouragement from top-down management
Getting short of the funds, resources, and effective leadership
More of focus on the instant financial returns

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No scope left for innovation in incentives
Bad communication
No infusion of the ideas
Change resistance
The three of the key barriers that could come up as an impediment to an organizational
growth and success are to be brought into notice.
a) Structural Barriers are determined to be very much noteworthy from the perspective of
causing immense issues as it would not let the change take place with utmost effectiveness. It
can also be taken up in a manner that the inflexible organizational forms are not going to support
innovation gain enormous success. If there are lack of resources, unavailability of the finances
and failure of the tasks on proper time could also badly impact the accomplishment of the tasks.
b) Cultural Factors slow down innovation. This can be elaborated in a manner that a lack of
management acceptance is going to delay the tasks and hence leads to unsuccessful results.
Moreover, the business activities would also not get completed in a proper time. It can also be
seen that less of patience and management inefficiency could restrict innovative practices at the
business level. There has to be proper understanding as to how the things should take place in the
most appropriate manner.
c) Human Resource Factors also serve to be a vital factor as if not correctly carried out can
impede innovation. Pitiable recruitment and selection methods, and inept continual development
of employees can be the reason behind it. This is going to create a burden on the part of the
company as the employees will not be able to participate actively towards the company’s
incessant growth and success. This should also be taken into account that the companies not
carrying unharmonious and troublesome working environment will be able to have a

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collaborative ethos that is an imperative driver of innovation. All that requires is to design such a
workplace that is full of excitement and learning and make employees feel engaged and able to
grow mentally, physically and spiritually. Innovation makes an organization a better workplace
that stimulates the employees to put in the sincere efforts towards the actualization of the goals
and objectives.
At Mercer Sirota, the company is doing tremendously well to find out perfect ways to
bring in innovation. The possible ways are to deal well with the anxiety, collaboration, effective
visionary goals, and finding out the most ingrained thoughts for long-term growth. The company
is successful enough to find people for business solutions. Innovation is the needed aspect that
could make an organization feel good enough. In this manner, the workplace ambiance would
become more of effective and going to stimulate the workers to put in sincere efforts for the
realization of the goals and objectives.