Graduate Diploma: Strategic Organizational Management Report Analysis

This report provides a comprehensive analysis of strategic and operational management, addressing key issues faced by organizations in the contemporary business environment. It begins with an examination of ANZ Bank's internal weaknesses and external challenges, including limited market pres...Read More

Running head: STRATEGIC ORGANISATIONAL MANAGEMENT
Strategic Organizational Management
Name of the Student:
Name of the University:
Author note:

1STRATEGIC ORGANISATIONAL MANAGEMENT
Question: 1 a
One of the major internal weaknesses for ANZ bank is their limited presence. This is due
to the reason that they are having their presence in certain countries and not in any western
countries. Thus, in the case of strategic management, they will face the issue of penetrating in the
western market and generate more revenues. Moreover, they are more dependent on their
existing markets. On the other hand, diverse workforce is one of their major capabilities in
gaining competitiveness (Vogel &Guttel, 2013). However, there are number of issues that can
get emerged from managing diverse workforce such as cultural differences and contradictions. In
this case, the service process will be hampered if the employees are having differences. In terms
of the external environmental factors, emergence of the economic recession will pose huge
challenge for ANZ bank. This is due to the reason that emergence of economic recession will
increase the bad debts for them, which is further reduce the viability in the long term. Another
major external issue for ANZ bank is the emergence of new competitors. The more will be the
entry of new competitors in the market, the fewer will be the business opportunities for ANZ
bank (Chuang & Hu, 2015). Offering diverse service portfolio along with timely up gradation
can help ANZ bank in gaining business sustainability due to the reason that more customers can
be targeted. However, in this case, it should be noted that complexities will also get enhanced
with the increase in service offerings. Probability of the failure of certain services will also get
increased for ANZ bank.
Being in the business for good number of years, ANZ bank is having effective
mechanism of managing staffs, leadership and processes. However, in this case, the major issue
for them is the rapid change in the market and business trends. Thus, with the change in
thebusiness scenario, it is difficult for them to change their leadership and management

2STRATEGIC ORGANISATIONAL MANAGEMENT
approach. It should also be noted that there are number of issues can get emerged from the
monitoring and evaluation program of the implemented strategy (Worthington, 2016). One of the
major issues will be the differences in the market scenario. Growth and performance of ANZ
bank should be measured based on different elements and factors. For instance, in case of
challenging business situation, retention rate of the customers will be the major yardstick for
measuring the company performance. On the other hand, at the time of the favorable business
situation, increase in profit rate and market share will be used for measuring the company
performance. Therefore, it can be concluded that ANZ bank will face the issue of aligning the
monitoring and evaluating elements to that of their business environment.
Question: 1 b
In the case of operational management of Toyota, two of the major areas are location
strategy and supply chain management. Toyota is having manufacturing plants across the world
and different regions are having different sets of determining factors. One of the major factors in
the case of location strategy is logistics (Seuring, 2013). This is due to the reason that
effectiveness of the logistics will ensure the swiftness and accuracy in transporting the goods.
However, in this case, the major issue for Toyota is selecting the right choice of transportation
mode. There are number of transportation modes available for Toyota to choose from. For
instance/, railway can be used for transporting more goods at a time and in less cost but rail
network is not covering all the regions across the world. On the other hand, rail network is not
applicable for cross border trade (Martinez-Jurado&Moyano-Fuentes, 2014). Furthermore,
roadways can also be used for cost effective and last mile connectivity but it will not be effective
in large scale transportation and international route. On the other hand, it is also important to

3STRATEGIC ORGANISATIONAL MANAGEMENT
ensure the geographical advantages to be gained from the particular region. This includes the
access to the favorable infrastructure and business environment.
However, in this case also there are few issues to be faced by Toyota in determining their
location strategy. This is due to the reason that they are having presence in majority of the
countries across the world and thus it is important for them to have their manufacturing facilities
in different locations.All the regions are not having the same geographical advantages, which are
posing challenges of Toyota in selecting locations for setting up their manufacturing facilities.
Another major area in operational management is supply chain management that refers to
the flow of raw materials to finished products to the customers. In the case of Toyota, it is
important due to the reason that seamless supply of raw materials will be beneficial in continuing
the production process and have enough stock to meet the market demand. There are number of
steps being followed by Toyota in their supply chain process such as managing suppliers,
assembly line and forward integration. The major issue in this case is maintaining proper
integration between all the stages of supply chain management (Ivanov,
Tsipoulanidis&Schonberger, 2017). The process of decision making will be determined by the
bargaining power of the suppliers, effectiveness of the assembly line and effective mechanism
for providing after sales services. Customer oriented decision making process and supply chain
management is important for Toyota in the current time due to the changes in the market trends
should be aligned with the flexibility of the supply chain process.
Question 2
a) Relevancy of Professor Michael Porter’s Competitive Five Forces model as an approach
for strategic management practice in the contemporary business environment.

4STRATEGIC ORGANISATIONAL MANAGEMENT
- The five forces model of Michael Porter are the competitive factors that usually
determine the industry competition and they include- the suppliers, the present rivalry
within a particular industry, the substitute products, the customers as well as the new
potential entrants. Though, the strength of each of the forces could differ from one
industry to other but when they are considered altogether, they determine a long lasting
profitability within a particular sector of an industry (Hayes, 2018). Strategic
management is very complicated and multi-faceted. Porter’s five forces helps in
analysing all the different important factors that greatly influence the execution and
implementation of the company’s strategic practices and operations.
b) Apply Professor Michael Porter’s Competitive Five Forces model to P&G Ltd
- As per the Porter’s five forces analysis of Procter & Gamble, the competitive rivalry or
competition has the highest intensity as compared to the other four forces. The company
operates in very competitive personal products industry. It take toll on a long term
profitability of the company. Therefore, the company need to prioritise the competition in
the strategic formulation. It is very important for the organisation to prioritise the
competition in the strategic formulation. The force of the threat of the new entry falls
second in the impact and intensity on the P&G as well as the industry of customer goods’
environment. New entrants in the personal products always bring innovation and several
new ways of doing the things. They put enough pressure on P&G Company by means of
lower pricing strategy and reducing the costs. Furthermore, the bargaining power of the
suppliers of the firm, the threat of substitution and the bargaining power of the customers
have the lowest of all intensities. The process of decision making will be determined by
the bargaining power of the suppliers, effectiveness of the assembly line and effective

5STRATEGIC ORGANISATIONAL MANAGEMENT
mechanism for providing after sales services. Therefore, the firm needs to address the
porter’s five forces on the basis of their intensities such as like the following:
 Competitive rivalry (the strongest force)
 Bargaining power of the suppliers (Weak force)
 Bargaining power of the customers (Weak force)
 Threat of new entrants (Weak force)
 Threat of new substitutes (Moderate force)
c) Relevancy of Professor Michael Porter’s Value Chain model as an approach for
strategic management practice in the contemporary business environment.
- Michael Porter’s Competitive Value Chain model is a set of different activities which a
company carries out for creating value for its customers. He have divided the activities
into two different categories and they are- the primary activities and the support
activities. Porter have proposed a general-purpose value chain which the firms could use
for examining all their different activities as well as to assess how they are linked or
connected. They manner in which the value chain activities are all performed, shows the
costs and at the same time, influence the profits of the company. Therefore, this tool
could help the contemporary firms in gaining a good understanding about the sources of
value for the organisation.
d) Apply Professor Michael Porter’s Value Chain model to IKEA
- IKEA’s vision has always been aided in improving the lives for most of the people in
exercising sustainable environment. The company plays a very important role to make
sure that all its products are sustainable enough and they take the role of leadership for
educating its suppliers for understanding why and how production in sustainable manner

6STRATEGIC ORGANISATIONAL MANAGEMENT
is important. The products of IKEA are based on low prices and therefore, it can be said
that it uses the low-cost leadership strategy as its competitive advantages. Beginning with
its primary activities, the inbound logistics; IKEA have large shipments and huge
warehouse to product all their products. Its operation run from huge sources and the
company have a very strong bargaining power with its suppliers. Moreover, talking about
the technological development, learning in the company have amortised over huge
volumes. Next, comes the human resource management. IKEA provides some intensive
training for emphasising the means of cost savings as well as the firm infrastructure in
order to centralise the cost controls. All these factors are the important differentiators
which have made this company different from all its competitors. IKEA is widely known
to be a very trustworthy company which is highly responsible for its products and its
effect on the environment.
Question 3
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.
Analysis and Assessment is the very first phase of strategic management practise in an
organisation. It has a significant relationship with the operational management department in
the global technology organisation. According to Karadag(2015), in this phase the needs are
determined in systematic way or the gaps are addressed in between the present conditions or
the desired conditions. As per McDavid, Huse and Hawthorn (2018), the analysis and
assessment phase of strategic management of Dell involved determination of market threats
and opportunities. In this case, different models such as SWOT, PESTLE and Porter five

7STRATEGIC ORGANISATIONAL MANAGEMENT
forces are being used. This is helping Dell to have the idea about the competitive forces and
the environmental factors relevant in their business operation. Moreover, it should be noted
that it is important for Dell to analyze the potential changes and fluctuations in the external
environment such as political, economical and legal factors. Thus, the analysis and
assessment phase of Dell involves determination of the external environmental factors.
However, on the other hand, the analysis and assessment phase of Dell should also involve
the competitor analysis. This is due to the reason that change in the competitor’s strategy will
have impact on the business of Dell.
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.
Strategy formulation refers to the process of selecting the most suited and most profitable
course of action for the organisational success. It is the stage in which the objectives and
aims of the strategy are set. Different models and frameworks are being used by Dell in their
strategy formulation such as Ansoff’s matrix. This is helping them to have the access to
different strategies for market development. In accordance to the analysis and assessment of
the external and internal factors, the effective development strategies are being initiated.
Moreover, it is also identified that involvement of the internal stakeholders across different
levels is also complementing in enhancing the effectiveness of the strategies. This is due to
the reason that the root causes are being identified from the lower level stakeholders and
strategies are being developed on the basis of that. This can be concluded that involvement of
all the stakeholders coupled with the visionary skills of the managers is helping Dell to have
the effective process of strategy formulation. The major organizational level strategic

8STRATEGIC ORGANISATIONAL MANAGEMENT
formulation plan for Dell includes development of new market regions and development of
new products. For instance, the made to order strategy of Dell is on the basis of developing
new service process for the customers. Thus, organizing and coordinating all the partners and
resources are being designed on the basis of the requirement of make to order approach.
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
- According to Matt, Hess and Benlian (2015), the process of implementation refers to the
execution of the important strategies for meeting the set aims and objectives of the
organisation. In order to ensure success, each and every employee are required to
understand their own roles and responsibilities (Engert and Baumgartner 2016). The
strategy implementation phase of Dell is based on their planning, organizing and
controlling approaches. This is due to the fact that there are number of steps being
followed in Dell for effective implementation of their strategies. The first step is stating
the objectives. This helps in designing the approach of the implementation process, which
will ensure the maximum returns. The next step for Dell involves the execution of
policies, which will be applicable for all the involved stakeholders. This is ensuring that
Dell is having desired effectiveness and approach as per stated standard or level. Based
on these policies, the resources are being allocated for different activities. Lastly, the
controlling and leading strategies of Dell ensures that return from the allocated resources
is favourable. However, it should also be noted that proper coordination between the
stated vision and practical scenario will help Dell to have the better implementation of
strategies in the long term. The infrastructure should also be given consideration by Dell

9STRATEGIC ORGANISATIONAL MANAGEMENT
in effectively implementing the strategies. For instance, the infrastructural advancements
of Dell in taking minimal time to customize products according to the customer
specifications is helping to uphold their make to order strategy.
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.
- Evaluation of the results of the strategy is basically used in the implementation phase
itself. However, it is the phase where the ongoing iteration and evaluation of
organisational performance against the implemented strategic plan takes place. There are
several firms that make use of the gap or SMART analysis in order to compare and
contrast how they are performing for attaining the set goals and meeting the
organisational objectives. There are number of key performance indicators being
followed by Dell in evaluating the implemented strategies. Some of these strategies are
number of number customers acquired, increase in the market share and retention rate of
the customers. Based on these performance indicators, the effectiveness of the
implemented strategies of Dell can be evaluated. For instance, increase in the new
customers will denote the effectiveness of their strategies in attracting and penetrating in
the target audience while high level of retention rate will denotes that customers are
satisfied with the service approach of Dell. On the other hand, the negative showings will
help to identify the areas of improvement and further enhance the effectiveness of the
strategic management plan. However, it should be noted that Dell should also include a
few qualitative indicators such as determining the feedback of the customers. This will
help in having the understanding about the issues and expectations of the customers.

10STRATEGIC ORGANISATIONAL MANAGEMENT
Thus, the further strategies can be modified accordingly including the leading, controlling
and coordinating activities.

11STRATEGIC ORGANISATIONAL MANAGEMENT
Reference
Chuang, C. C., & Hu, F. L. (2015). Technology strategy-innovating for growth of ANZ
Bank. International Review of Management and Business Research, 4(3), 682.
Cortimiglia, M. N., Ghezzi, A., & Frank, A. G. (2016). Business model innovation and strategy
making nexus: evidence from a cross‐industry mixed‐methods study. R&D
Management, 46(3), 414-432.
Engert, S., & Baumgartner, R. J. (2016). Corporate sustainability strategy–bridging the gap
between formulation and implementation. Journal of cleaner production, 113, 822-834.
Hayes, J. (2018). The theory and practice of change management. Palgrave.
Ivanov, D., Tsipoulanidis, A., &Schönberger, J. (2017). Global supply chain and operations
management. A Decision-Oriented Introduction to the Creation of Value.
Karadag, H. (2015). Financial management challenges in small and medium-sized enterprises: A
strategic management approach. EMAJ: Emerging Markets Journal, 5(1), 26-40.
Karadag, H. (2015). Financial management challenges in small and medium-sized enterprises: A
strategic management approach. EMAJ: Emerging Markets Journal, 5(1), 26-40.
Martínez-Jurado, P. J., &Moyano-Fuentes, J. (2014). Lean management, supply chain
management and sustainability: a literature review. Journal of Cleaner Production, 85,
134-150.
Matt, C., Hess, T., &Benlian, A. (2015). Digital transformation strategies. Business &
Information Systems Engineering, 57(5), 339-343.

12STRATEGIC ORGANISATIONAL MANAGEMENT
McDavid, J. C., Huse, I., & Hawthorn, L. R. (2018). Program evaluation and performance
measurement: An introduction to practice. Sage Publications.
Seuring, S. (2013). A review of modeling approaches for sustainable supply chain
management. Decision support systems, 54(4), 1513-1520.
Vogel, R., &Güttel, W. H. (2013). The dynamic capability view in strategic management: A
bibliometric review. International Journal of Management Reviews, 15(4), 426-446.
Wheelen, T. L., Hunger, J. D., Hoffman, A. N., &Bamford, C. E. (2017). Strategic management
and business policy (p. 55). Boston: pearson.
Worthington, A. C. (2016). Financial literacy and financial literacy programmes in Australia.
In Financial Literacy and the Limits of Financial Decision-Making (pp. 281-301).
Palgrave Macmillan, Cham.