Strategic business management

Strategic pargonntage instructionIntroductionStrategic business attention has its grow in the view of the rickforce strategic mentation can no longer do a textual presence of words in the notebooks. The training programs and the coming together conducted at the sense of urgency do not mean that a familiarity is on the properly path. In the competitive era the perceptual constancy of the commercialize is doubted. Even though experts and analysts say the market is recovering from the vague atomic reactor, the psychological violation that has lurchd the attitude of peck had to be recovered, and it pass on affect time on the long exploit. In this research of study indisput adequate to(p) tools and business strategies ar lay breakd that exemplifies the impact that revision bring in and how the company needfully to manage the transpose. Resistance to chance would occur in the initial stages. The source of learning that is used in this assignment. Comprises s econdary information s by direction of white papers, journals, snips and case studies of the company were similarly used. The analysis part of this assignment includes the interpretation of psychological attitudes that costs when a change is implemented. And when a company decides to grow itself strategic exclusivelyy impacts would be demographics and in all the pass awayning(a) playing fields of the focusing such as doing, operations, finance, humankind resource, trade etc and all the outcomes of the results purely rely on the workforce and their attitude. The character of the research is descriptive as the assignment examines the animate affairs of the company. And it overly includes the Expost Facto method in sourcing of the datas. COMPANIES TAKEN IN TO CONSIDERATION FOR THE ASSIGNMENTIn this assignment as per the instructions laid flock, as a must I bedevil taken in to account the strategies and the process of International Business Machines genius of the pion eers in information technology and computer hardwargon. And for the optional choice of opting the early(a) company o lay down taken HONDA The power of Dreams, the reason I chose was personal and I always have a craze on the engine and the models of Honda. At the advancing-looking(prenominal) end, Honda is k todayn for its expansion and variegation in the recent past as they excessively pioneer in expert Property Rights in getting the patent rights for their designs of engines. As this assignment needs a wide discussion on the change management I opted for Honda that has a strong workforce. projection ISOURCES OF heighten AND ITS IMPACTCHANGE IS THE ONLY THING THAT CANNOT BE CHANGED without change it will be boredom for human beings and besides for early(a) living things. Liberalization, privatization and globalization all these have enhanced the frequency of occurrence of change. Competition exists e very(prenominal)where smart people atomic number 18 defined by the w ay they adopt to change. Since the cultural impact plays a role in managing the change, traditional philosophy in the course of communication in the management similarly defines the future. Information technology has created granting immunity to change, especially for the tradional and the baby boomers. As these generations of workforce stick on to the crook work and resist change. Not to blame them but its the responsibility for the management to sort out such things without dissatisfying. SOURCES OF CHANGE IN AN ORGANIZATION blighter AND ITS ROLE ON CHANGE Most of us would wonder the relative between a change and the PEST. _ SHAPE * MERGEFORMAT ____POLITICALLegislative norms to be abided by the companies on the serve competency create a change in any of the management process. For example, few of the acts that had come in to enforcement analogous Paternity act and more than had to be implemented by the human resource department. But the intentional movement and implication s that ar laid down by the ruling party should be abided by a company. This involves abrupt change in the norms and the standard operating procedures followed by a company. But when again an different party comes to ruling in the next 5 years an different set of implications will be laid down at this time when a company is undergoing expansion it will organization lot of resistance at this juncture. SOCIO CULTURALThe employment opportunity that prevails in the current scenario is the rack up of all times. The impact of the slowdown has thrown its roots psychologically in the mindset of the people and thus it has an impact on the produceivity too. And the socio cultural patterns cogency to a fault reflect on this as companies like Honda, IBM have a diversified workforce lines susceptibility come on when downsizing is done. The life style choices of the employees coming from various origins might also be reason to accept or refuse a change when a company diversifies its portf olio. And the cultural fit of new hires is also a subset that falls under this.TECHNOLOGICALTechnological boom has helped the companies to automate work up to a great extent and the impact of the emerging technologies might have the urge to bring rough a change in the organization. Internet intranet, remote and Tele Commuting has helped the workforce to balance their work and life. In order to beat the rivals and compete with them the research and Development department has the get wind role and its is more or less dependent on the information technology. Change might also be viewed especially in this area. The exaltation of technology when a company is in an expansion mode might also cause change and bring closely problems.ECONOMICALWhen a company is undergoing change either it is in an expansion mode the existing business cycle stage has its part for sure. Companies like HONDA, IBM are in the matured stage and so these factors contribute to the decisions that they take to opt for diversification. intercept slips and the unemployment rates along with the inflation and the egress rate have kaput(p) down. The U.S owe loan i.e., the sub prime crises has also hit the other markets and this is because of the reason the impact of globalization. The Labour costs and the availability of the manpower vs. the vacancies are also to be considered as these might force to bring close to a change in an organization. undertaking IIINTERNATIONAL railway line MACHINES AND ITS CHANGE (STRATEGIC MANAGEMENT)International Business Machines pioneering in hardware, software and also in IT service this baby was born in the year 1896. Herman Hollerith being the make he maintains about 398,455 employees globally. With enormous diversifications across the world it has one if the shell strategic group that opens its ears across the changes form time to time.Recession is tell to occur recently, but IBM had learnt on how to cope up the changes that occurs due to recession. I n the late 1986, IBM faced a recession this is sadi to be one of the worst time the company had faced but to be http//www.time.com/time/magazine/ oblige/0,9171,1075217,00.html http//www.time.com/time/magazine/clause/0,9171,1075217,00. (date21-12-09, time 3.35p.m)IBM The recession in 1986In 1986, the IBM has slum down its market capability. Since 1981, the gross gross sales have slipped about 35% to 29%. It has sales around 3 million in personal computer in the year 1981. The market has continuously slipped in the year of 1986. The profit has comes down as 4% and the sales also move slowly. The market share ranges as 133% to 125% in a week. 9,370 computers are throwed for the customer during the period of 1986. But it is inefficient to channel the computers to other branches. The customer should not wait till the computer reach to them. completely Loyal customer may wait for that.The IBM has decreased the retail sales during this period and they sales to the NYNEY, the New York based company.The recession was followed by the launch of nearly 9370 computers in the market. In this case the appraise scope got in love as the lead time to reach the customers got delayed. The primary stream of the look on mountain chain was good still the secondary chain including the retailers, dealers was having some problem. This might be because of the mass production that the company was in to. This guide to dissatisfaction among the new customers as the word of mouth turn bad and at the other end the devoted customers might also get dissatisfied.And this conduct to a decision of destructing the sales that IBM was handing over to retail sales.http//www.time.com/time/magazine/ obligate/0,9171,1075217,00.html (date22-12-09, time 5.15p.m)The EXIM norms that were laid down at south Korea and Japan led to imports at low tariffs and the logistics returns were not goods the other end the rivals were opting for smart thinking with the emergence of laptops and mini compute rs the rivals were capturing the market share and at the end of the day IBM was forced to push down the selling of computers.http//www.encyclopedia.com/doc/1G1-158239452.html (date23-12-09, time 3.45p.m)demographic FACTORSIn the case of IBM the fame that it had in its own origin was relatively high. It is very usual that the local market and the perceptions among the retailers and the customers would be positive. And at the other end, the corporeal social responsibility that IBM has served to the origin would also serve as a catalyst for further prospects in the analogous region. And when it comes to the products competitive strength all the same though the value chain of IBM has proved to be poor, the product seaworthiness is said to be quiet good an even it could be considered as a competitive edge.INFERENCEThe marketing strategies of IBM solely rely on the 4Ps Product, Price, Promotion, and Place. Hence, the inference from the analysis is that the contentions for IBM is more and even in the period of 1987, besides the decline they have grabbed lot of eco friendly awards for ensuring the hazardous wastes to be low. And to the surprise, IBM make it to a percentage of 96% which none of them scored. And the recent initiative that IBM had do in the name of GO GREEN IBM, in which when a cast slay head shouts GO verdure all the employees under his belt switches off the monitor they by reducing the green house gas marrow to the maximum. Coming to the market suppuration IBM is making ways to expand its market to a greater extent in the presence of competitors the strategies should be counseling on converting the strength at ease by making use of the opportunities. And also the intelligence squad and the Research and development team should sustenance itself updated right starting from the job cuts and the cost cutting impacts and its relation with the consumer behavior.IBM goes Green Business Week,29/12/09,06.00.p.mIBM IN THE EXPANSION MODEThe strategic team consisting of around 6-8 people in the IBM strategic department devised a return strategy for expanding its services in all directions. At this juncture the management was untold more concerned about ensuring the following thingsSetting up a new R D plant in the areas to be diversified.The workforce at these places might consist of experts and also few people with a diversified mixture.The expansion should ensure that the resources by all means should be utilized effectively and efficiently. No room for psychological deviations should exist at the time of expansion.Headhunting a competent workforce candidates from the rivals at the area where the company is expandingAfter considering the golden rules IBM decided to sketch the road map for calking out the expansion. At the time of expansion IBM was concerned about achieving the growth by means of hike in sales, profits, assets and also the stake holder satisfaction by enhancing the value of returns. Cost cutting at the same of expansion was also a challenge that was hiding behind. Implementation of aggregate bore Management tools such as 6 sigma, 5S were the areas where IBM ensured perfection. For this a team of quality circles were also appointed and expenses over the Training and development were good turn high but they were continuing it expecting Return on Investment by dint of Proper Reinforcement that as possible only when IBM provides a contributive humor for work. This task was then focused towards the Human Resource Department. some(prenominal) research and surveys were conducted to measure the existing working climate at IBM plants and indispensable changes were also made to ensure the reinforcement is witnessedVERTICAL AND HORIZONTAL proceeds PLANS OF IBMSoon after the plans got devised IBM started working at full class, it was concentrating on enhancing the value chain in the secondary stream especially in the distributors and suppliers (retailers)and at the recent statistics IB M has gone for serving the customers at the door step. The use if tomfool by means if ERP made the suppliers and the retailers to get connected directly.ERP VERTICAL development OF IBMThe need of Enterprise Resource planning across the service points was very high. IBM understood this and soon it acted on the opportunity. The extent of interaction went to such a level where the suppliers could place an order from the desktop of their service point to the production plant. This growth base was not easy as the implementation of ERP brought about psychological barriers.ERP implementation and Change ManagementBoth the backward and the forwards integration was possible was IBM on the use of ERP. Still, resistance to change occurred at IBM and the company was pushed to the process of managing change. IBM CHANGE MANGEMENT STRATEGY THE LEWINS 3 STEP debatableieIBM was in the process of managing the resistance to change that raised in the diversification of the plants as well as the im plementation of ERP.UNFREEZING IBM mad the communication unmingled and so it also conveyed the plans for the growth in the individual career growth plan and devised ways to unfreeze the change.MOVEMENT IBM ensured that the new state will reach soon and it also happened as per the devised plan.REFREEZING IBM ensured the HR practice and the climate after their companies expansion at different areas did not affect the ruttish quotient of the employees. Counseling and work life policies were also designed and certain outer boundary benefits also were providedHorizontal GrowthIBM also moved through the phase of horizontal growth and the acquisitions with the other companies like TOKYO OKHLOA and KOGYO CO LTD turned to be one of the successful strategic attachments by means of working through low consumption of solar energy.Diversification IBMIBM devised new product lines and perfect products with the help of research and development dept .The diversification was a faction of both co ncentric as well as conglomerate. As the prototypical involved in enhancing the production process with marketing strategies through the sales force and the later involved the merger in to the solar business industry. The new products at IBM after the year 1986 and the recent collaboration with LENOVO has also paved way for the emergence of laptops and other devices. IBM now is trying to take hold of the market where it has been lagging earlier the restructuring process at IBM under the charge of CEO Louis U. Gerstner who rearranged the brand and the logos and also incorporated the GO GREEN.TASK IIIAn international company and pioneer in manufacturing of engines. Equal competitor for the German go companies when no one dreamt of it this company right now stands as a leader in the automobile industry. The company impress the customers and delighted them by selling its product CIVIC HYBRID. Yes of course its HONDA THE mightiness OF DREAMS. These dreams were made true when a si mple mechanic named Soichiro Honda founded the company in the year 1940 at Japan. Incepting with a normal 50 cc round Honda has now emerged as the core competitor for the rivals.http//www.oppapers.com/essays/Honda-Passenger-Car-Industry/206913http//www.1stgencivic.org/(date 23-12-09, time 5.45p.m)THE DOWNFALL OF HONDAWhen we are asked to comment about HONDA we would say its leading company in the automobile industry, but the fact is like any other company Honda also faced a downturn and this was said to happen when the company failed to pull actual funds in to Research and development at the right time. This paved advantage to its competitors like Toyota and Nissan. As Honda was keen in invention the engine it failed to take in to account the customer perceptions and taste of the customers in other countries. Later, the company decided to opt for a strategic alliance to enhance the productivity and to capture the market share in the other countries other than its origin.When Hond as strategic alliance team was analyzing on which of the action to tell apart it went for a mutual beneficial puddle with DONGFEN a Chinese company as this resulting in capturing of markets with cost cutting in the process that minify waste of time and resource at certain levels. http//www.telegraph.co.uk/finance/newsby celestial sphere/transport/6259440/Hondas-UK-plant-is- leading-the-car-industrys-revival.html(date24-12-09, time 6.21p.m)OTHER ALLIANCESHonda did not stop with a mutual consortium it also decided to take along step of opting for a stick Venture with Siel Siddhartha and it produced nearly 38,849 and nearly 15.5 million engines and this decision turned to be one of the most important moves that actually leveraged the financial encounter of Honda. Honda also opted for a joint venture with siel followed by a value chain partnership which actually has now made Honda to be one of the pioneers in automobile manufacturing with one of the best in class total quality mana gement and it has now captured the customers and had made them to be at the top of turn tail of loyalty. gum olibanum these strategic alliances with the other companies by means of value chain partnerships and joint ventures followed by a mutual consortium. The following were the pros that Honda acquired because of the strategic alliance.Research and development team got stronger and the company was able to make focus on a specific target of customers that also paved way to a decline in the risk that is to be bared individually or else it turned to be mutual risk and profit sharing decision. Thus by holding hands through strategic alliance Honda was able to strengthen its base and acquire more of the market.http//www.myautoupdater.com/a29182-world-class-honda-car-parts-sold.cfm(date24-12-09, time 5.35p.m)TASK IVASSESSMENT OF RISK INVOLVED IN RUNNING A NBFC BUSINESSRisk is there everywhere, with out proper opinion of risk even a traditional company would collapse in a short span of time. Risk management has been given more grandness in the field of non banking financial corporation. The recent slow down that has root out from the sub prime crises has made all the industry to rethink of its strategies in opening and sustaining in the existing market. The initial investments that is required to run the business is relatively high. Some of the risk factors are discussed belowThe nature of the financial product might not be very loving as the rivals will be more in number. Finding out the small gap in this segment would be the challenge.The negative of financial backing would be the competition that the company would face form the banking industry as customers are more aware of the shortcomings in this regard.In the team of marketing the attrition rate has witnessed to be very high amidst the financial crises. The contrive incentives are not stable and so the income and the job security are also not constant.The marketing department would sell of the loans to the consumers but the problem rises when the collection team keeps on insisting the customers to re grant the amount when fails leads to vent in the concern. The present rates that is prescribed by the government of u,k to run a business related to non banking financial industry is quiet tough to maintain. And moreover the issues of the corporate governance and the disclosure of the financial statements are the issues.The policies are now made stringent rather it was lenient those days that led to the recession. The task of processing the loan for a new commercial fomite becomes an important risk factor as the appraisal of the customer and his pay back ability could fail at any time and more over the loss incurred in case of the customer failing to pay the amount is relatively high than in that of refinancing.RECOMMENDATIONSThe recommendations that I would put forward in this issue would be to follow the risk management and assessment tools usage and also the use of porters com petitive strategy would be an optimal solution for the NBFC business.Cost LeadershipThe NBFC is a service oriented sector and so the cost would be much more on the affaire rates and the IRR value that the company would yield on the long run. The implications that are laid down by the government should be followed strictly. And also the mortgage loans would have an impact.DifferentiationIn order to differentiate the products the NBFC industry is all complicated with lot of products and the mode reaching the customers and converting them in to a loyal customer by offering special loans based on the hang back records would be the solution on this function.Cost FocusNothing much on the cost focus is needed provided the interest rates are low.The above strategies would find out an optimal solution for the business to run successfully.Sekaran Uma, Strategic Management, published by Tata Mc Graw Hill, 2005(date 23-12-09, time 6.14p.m)BIBLIOGRALPHYMcshane L. Steven VonGlinow Ann Mary Sha rma R. Radha, organisational Behaviour, Published by Tata McGraw Hill, 2006 (date 22-12-09)Robbins Stephen P, Organisational Behaviour, 12th Edition, published by Prentice vestibule Pvt. Ltd, 2000(date 22-12-09)Sekaran Uma, Strategic Management, published by Tata Mc Graw Hill, 2005(date 23-12-09)http//www.time.com/time/magazine/article/0,9171,1075217,00.htmlixzz0aFfXIqNW (date21-12-09, time)http//www.1stgencivic.org/(date21-12-09)http//www.time.com/time/magazine/article/0,9171,1075217,00.html (date22-12-09)http//www.encyclopedia.com/doc/1G1-158239452.html (date23-12-09)http//www.oppapers.com/essays/Honda-Passenger-Car-Industry/206913http//www.1stgencivic.org/(date23-12-09)http//www.telegraph.co.uk/finance/newsbysector/transport/6259440/Hondas-UK-plant-is- leading-the-car-industrys-revival.html(date24-12-09)http//www.carazoo.com/article/2908200801/Hondas-NewPlayers-in-the-Indian-Car-Industry(date24-12-09)http//www.myautoupdater.com/a29182-world-class-honda-car-parts-sold.cfm(date24- 12-09)http//www.sme-blog.net/sme_blog/mediumsized_companies/(date24-12-09)http//rd.kpmg.co.uk/mediareleases/19475.htm(date24-12-09)http//www.pr-inside.com/financial-services-firm-edward-jones-sells-r1542966.htm(date25-12-09)