Question:
Develope a Strategy for your Firm is a key part of success in the simulation Environment and in real life Business Operations. Your strategy will serve as your firm’s “roadmap” throughout the simulation.
Strategic management is a vital aspect of running business/organization effectively all over the world. It is recommendable for management or the owner of firms ensure that they have management strategy that is sound in operation and that will yield high results of operation hence realizing high profits. The product under consideration is milk that a large number of clients efficiently consume it all over the country. For, companies that are operating well in business mainly consists of three classifications of workers where on top there is senior management, supervisors and below we have casual staffs. Each member of the firm is well aware of his/her duties hence no working conflicts experienced in the industry.
In the milk business, which is a dairy product, it is moving forward in the right path reason it has tried to acquire a competitive advantage over the competitors having similar products (dairy). Briefly, I will explain the SWOT analysis of businesses that are purchasing and selling dairy product and in this case milk product to its customers. The company is supposed to acquire some strengths that are not familiar with other businesses of dairy products on the market. This benefit includes skilled expertise, quality management team, a strategic position that is accessible by all customers and variety of resources that are useful in the operations. According to (Ahearne 2015 p 342) in enhancing the strengths of the company, the management of any business should find capacities that their business performs greatest. When the company realizes the zones it is in a position to play best it will only outdo their competitors hence acquiring a high number of customers. However, each company in operation does not lack some weaknesses during its operations. Here, the company should try to plug areas that need enhancement even if it is slight to ensure their competitors do not outdo there due to these weaknesses (Haksever, Cook & Chaganti 2015, p 563). Opportunities the company is in possession should also be focused upon as they help the company take advantage of where the competitors are performing weakly. Lastly, on SWOT is the aspect of threats. Here is where the companies experience threats to operate their intended duties accordingly efficiently. Threats like perishability of milk are the main threat to the industry. Milk is known to be highly perishable and should be preserved under the exceptional situation like cooling system plant that is much costly to install. These obstacles supposed revised well, and plans on how to curb them developed as these are the areas the competitors are outdoing the company. The next analytical tool under consideration is the PEST. This framework is used to analyze the external environment of the business. There are four basics considers in this tool and are as follows. The first element is political analysis where the company studies factors of the current political situation and potentials stimulus in the political arena. Political status always affects not only milk product business but also every business in operation in a particular region. The Economic factor is another consideration that is analyzed in PEST analysis (Aithal 2016, p 67). Here the management should study about the national and global commercial impression of the milk as a product of dairy products. The sociological basis is another consideration in PEST. Society is focused and considered how it can affect the company operations. Some societies will not consume milk products due to some reason, for example, culture beliefs among others aspects. Lastly, there are technological factors, and here, technology development is considered as it is proliferating with time. Technology aspects of preserving milk should be introduced. Technology has brought about portable refrigeration systems like a vehicle for transporting perishable commodities installed with these systems.
To enhance strategic management managers use theories that guide in the efficient operation of milk companies. One of the principles utilized in the contingency theory; this theory proclaims that managers make verdicts based on at hand situation rather than a “one scope fits all” method. A director takes appropriate accomplishment based on characteristics most relevant to the existing situation. Managers in a college may want to operate a leadership approach that embraces participation from staffs and students, while a forerunner in the army may want to use an autocratic methodology of leadership (Hindle et al. 2013). The other theory is systems Theory, Here managers who comprehend systems theory recognize in what different way classifications affect a worker and how an employee changes the schemes around them. A system is prepared up of a variety of fragments that work unruffled to achieve an objective (Hatten 2015, p 78). The theory is a broad perspective allowing directors to examine configurations and events in the workstation. This supports managers to coordinate curriculums to work as a collective whole for the general goal or mission of the association rather than for inaccessible departments. The structure continues to evolve and vary signifying that organizational managers have a much gradation of choice are in contrast to some thrilling versions of a contingency clarification of managerial work. It is occasionally suggested that administrative comportment within organizational assemblies is ‘contingent’ on these numerous contextual issues, like size, technology, and environs trends.
The thorough assessment of any possible tactical choices can also prepare directors for the inevitable partings from a plan that life will toss up (Peppard & Ward 2016, p 111). Strategic verdicts and contingency scheduling for these circumstances go composedly. Those accountable for the planning progression are engaged in a procedure of surfacing the vital policy issues. Then, in the expression of a range of reservations, they need to explore the contour of the issues, the interactions among them, equating their relative potential possessions on an organizational concert. With the strategic topics, understood arrayed before the development team, they can sightsee the strategies in the ‘choice space’ unclutter to them to discourse the issues or strategic giants. Ultimate-strategic-choice is the type of choice (strategic) right at the process commencement there is a requirement to agree and state, or endorse, the fundamental organization persistence. This is habitually set down in some establishment charter of some kind. It would include a clear description of who are the intended legatees of the organization and explain unmistakably the sort of advantage they are entitled to anticipate from the organization. To chaperone the milk company management in pursuing this determination, they and the enterprise governors will need some measure of enactment. According to (Barney 2014, p 321) these assortments of intended beneficiaries, fauna of benefit, and the indicator of distributing benefit to the heirs, each represent a significant peak choice. The current body and top management of the milk association in question need to be in vibrant agreement about each choice made in outlining the fundamental organization purpose. An agreement should be enacted to ensure that the suppliers of milk are in a position to supply a particular amount of milk to the company to facilitate reliability to the consumers of the product. The customer’s loyalty will be enhanced when the product is always available hence making them happy as they can purchase milk at any time of the day.
Every strategy is put in place does, not lack constraints and limits than curb it from efficient operations. An official plan needs to be accurate, so it is important to fix out in detail the limitations that are likely to act as restrictions on business movement. Below is archetypal constraints facing the professional institutes.
The market size. The extent of the marketplace determines a company’s ability to make transactions. One cannot make sales if there are no clients out there, and sales volumes are high depending on the number of customers availing them to milk consumption (Fazio et al. 2016, p 56).
The aspect of demand in the market. It is vital to identify the nature of the clients and their requirements through comprehensive market research. When demand is high, the sales will be great, but when demand is low, the sale will be little hence less profit realization. So the milk company should ensure the marketing position is significantly impacted by the demand of milk in the market.
The supply availability. A business often hinges on supplies. For instance, clothes vending business needs to acquire fashions, in the appropriate extents, prices and at the right stretches. If real prices are not put in place, it will be a limitation to effective strategy.
For a promising future for any business, the firms should always make sure the strategy put in place are sound and critical in ensuring they help in raising the profit realization with giving the right quality of products/services and in this case dairy product (milk). Promotion capabilities should be considered to the products to enhance and improve customer loyalty to the company products (Watson 2013, p 90). When customer loyalty is realized, the sales volume rises with a high magnitude hence high profits. I recommend the firm to enhance customer satisfaction in all aspects when in operation. Another recommendation is that place of setting the business or markets should be strategic to ensure it is accessible to all customers with ease without any complications.
References
Ahearne, M., Lam, S. K., & Kraus, F. (2014). Performance impact of middle managers’ adaptive strategy implementation: The role of social capital. Strategic Management Journal, 35(1), 68-87.
Aithal, P. S. (2016). Study on ABCD analysis technique for business models, business strategies, operating concepts & business systems.
Barney, J. B. (2014). Gaining and sustaining competitive advantage. Pearson Higher Ed.
Bull, J. W., Jobstvogt, N., Böhnke-Henrichs, A., Mascarenhas, A., Sitas, N., Baulcomb, C., & Carter-Silk, E. (2016). Strengths, weaknesses, opportunities and threats: A SWOT analysis of the ecosystem services framework. Ecosystem services, 17, 99-111.
Eden, C., & Ackermann, F. (2013). Making strategy: The journey of strategic management. Sage.
Eva, M., Hindle, K., Paul, D., Rollaston, C., & Tudor, D. (2014). Business analysis. BCS.
Fazio, L. K., DeWolf, M., & Siegler, R. S. (2016). Strategy use and strategy choice in fraction magnitude comparison. Journal of Experimental Psychology: Learning, Memory, and Cognition, 42(1), 1.
Haksever, C., Cook, R. G., & Chaganti, R. (2015). Applicability of the gaps model to service quality in small firms. Journal of Small Business Strategy, 8(1), 49-66.
Hatten, T. S. (2015). Small business management: Entrepreneurship and beyond. Nelson Education.
Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: theory: an integrated approach. Cengage Learning.
Peppard, J., & Ward, J. (2016). The strategic management of information systems: Building a digital strategy. John Wiley & Sons.
Watson, T. (2013). Management, organization and employment strategy: new directions in theory and practice. Routledg
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