The strategic management enables formulation of strategies along with the implementation of these strategies to resolve the issues and furthermore at ANZ bank in New Zealand. The Australian and New Zealand Banking Group Limited, also known as the ANZ bank is one the largest financial institutions in Australia that has been considered as holding a sustainable position in terms of the market capitalisation. It has been ranked after Commonwealth bank and Westpac Banking Corporation and thus most of the business operations and processes of ANZ bank dominate the retail banking sector. The bank offers good personal banking and financial solutions along with other facilities such as internet banking, management of bank accounts, providing credit cards, home loans as well as personal financial services too, which caters the needs and preferences of clients largely.
The internal resources of the organisation are the skilled and knowledgeable employees of ANZ bank while the capabilities include business operations, processes, routines and culture (Anz.com.au, 2019). The resources can be physical, tangible and human resources as well and the capabilities enable managing complex patterns associated with the utilisation of resources for achieving the desired positive outcomes (Slack & Brandon-Jones, 2018).
The interest rate has been reduced by RBA, which can affect the costs of borrowing and thus lesser money will be able to be drawn from the bank loans and mortgages (Brown & Bessant, 2013). The regulatory factors also include subjecting to constant regulatory changes and legal oversight as well. The environmental factors contributed to issues like increased costs of operations, such as the taxes, insurance, infrastructures which enabled changes to the Government policies and principles and affected the rules related to carbon tax and emissions of gases. The increased amount of costs should help in monitoring the changes in climatic conditions and furthermore implement policies to reduce the carbon emissions and greenhouses too (Hitt & Duane Ireland, 2017). The political turmoil or issues have enabled Tonga and Solomon Islands to create an impact on the growth in economy of the nation and even affected the credit worthiness for the bank. Due to this, the level of investments has deteriorated and it has affected the other business areas too, furthermore led to lesser investment scopes and opportunities and reduced sales generation for ANZ bank too. Other issues are caused with the emergence of competitors such as Commonwealth bank, Westpac, etc (Annarelli & Nonino, 2016). The lack of achieving the sustainability targets should be a major issue that support the business strategies and also reflects the material issues aligned with ANZ bank’s purpose (Ansoff et al., 2019).
Another major issue or challenge could be the leadership aspects. The leaders must implement new organisational policies and frameworks that should be informed to the employees and ensure proper innovation along with prevention of a risk averse culture to provide value to its shareholders. The leaders of ANZ bank should be responsible for the arrangement of necessary training and developmental sessions for structuring the staffs and manage effective systems and process needed to ensure appropriate execution of formulated strategies (Meyer et al., 2017). For example, once the cost leadership strategy is implemented, the leaders must check whether the clients are satisfied with the kinds of services made available at that specific cost or not, which could raise their level of satisfaction and influence their buying behaviours too. In case of lack of minoring, there might be various areas ignore, which could not only deteriorate the quality of services, but should even result in dissatisfaction among the clients largely for ANZ bank (Jackson, Schuler & Jiang, 2014).
Toyota is a Japanese multinational automotive organisation that has its headquarters in the Toyota City, Aichi in Japan and it has successfully flourished and even has been managing good business in Australia. The company has over 364445 employees and has been ranked as the sixth largest company in terms of market sales and revenue generated within the automotive industry. There are a wide range of services that allow for fulfilling the demands and expectations of clients and to ensure high level of client satisfaction at large (Gamble & Thompson, 2014).
One of the major issues experienced at Ford during the supply chain management is poor supplies of raw materials and resources, i.e., the brakes, steering wheels and other spare parts. The supply chain management system is on the verge of breakdown due to the quality crisis which has been found on the faulty accelerator pedals used in the vehicles. The streamlined supply chain base is faulty, which has further resulted in increasing the chances of risks and having rely more on the only suppliers and various vehicle parts used across the vehicles and different platforms, thus increasing the risks too (Youn et al., 2013). The major issues in the management of supply chain also include globalisation, quality and compliance. With the outsourcing activities, the production process is extended along with the procurement networks which also poses serious threats by complicating the supply chain networks (Baumgartner & Rauter, 2017). Toyota has also faced major issues related to poor visibility of brand, lack of control and improper management of inventories while expanding sales in the global markets due to the cultural differences and failing to adapt to the foreign culture too.
The quality management is also another issue and the company failed to make appropriate decisions to manage proper quality of goods and services delivered. The introduction of social media channels has vastly increased the consumers’ expectations for the quality of products and this has damaged he product recalls too, furthermore created pressure for Toyota to deliver the best quality products with ease (Eden & Ackermann, 2013). The floor mats and sticky pedals used in the vehicles created unprecedented acceleration and speed, which hindered the safety of vehicles and passengers too. Poor decisions were made regarding the quality control techniques, which ignored the monitoring of product defects and thus the company failed to track how quality could be improved. The decisions should be made to recall the use of Total Quality Management or TQM procedures for re-committing to the existing ideals, values and beliefs, furthermore ensure maintenance of good quality systems and raise customer satisfaction to the utmost level possible (Kortmann et al., 2014).
The five forces model introduced by Michael E. Porter are assessed by the business organisations to analyse the competitiveness within the industry and develop strategic approaches to gain higher profit and competitive advantage in business (David & David, 2013).
Threat of new entrants
With the entry of new companies, the strategies implemented by companies might face difficulty to enter new markets and new products and services would be delivered. This might affect the business’ ability to sustain in the marketplace.
Threat of substitution
Similar kinds of products made available in the marketplace can act as substitutes to the major products of the brand and make the clients inclined to those, which are offered at lower prices.
Buying power
According to David & David (2013), the buying power is immense and thus developing products that can cater the needs of people is important for keeping their buying behaviours influenced.
Supplier power
Suppliers deliver raw materials and resources and so keeping good relations with them is critical to the success of a business
Competitive rivalry
The presence of competitors could also affect the business strategies implemented and further reduce the market share through sales decline (David & David, 2013).
The competitive rivalry force is strong considering the fact that P&G competes with multiple rivalries within the consumer goods industry and due to this, the competitive forces pose serious threats due to low switching costs (Pg.com, 2019). The company is well positioned within the industry, which could allow for gaining a good leadership and market share position too, which could improve the quality of products, improve business performance and maage differentiation conveniently, which could allow P&G to stay ahead of the competitive rivalries.
The buying power of consumers is weak because the company has successful met the requirements of clients. The availability of substitute products is low and thus the clients cannot access natural or homemade products from any other companies other than P&G. The company delivers health care items by achieving growth in adult incontinence segment, which has resulted in superiority and higher value creation. The demands in market has further reduced the impact on consumer buying decisions contributing to the business performance (Mackelprang et al., 2014).
The bargaining power of suppliers is also low because there are multiple third parties that manage flow of raw materials from the suppliers of P&G. There is huge availability suppliers, which further limits influence of individual suppliers for the company and thus the bargaining power of suppliers is a minor threat (Pg.com, 2019).
The threat of new entrants pose moderate threat because the moderate cost of capital has limited the threat again P&G. The moderate scale economies have also limited the impacts created by new entrants in the market for the organisation (De Waal, 2013). The innovation principles followed by P&G have assisted in managing good production, packaging and use of sustainable technologies to fuel the investment scopes too.
The threat of substitute products is low due to the low switching costs and the products of P&G are quite effective and reliable when compared with similar kinds of products of other companies. The vision of synchronising the supply chain has allowed to update the manufacturing and production schedules by keeping suppliers inclined with the brand, which should ensure commitment to win in the competitive marketplace, thus leaving the substitutes behind.
The value chain model by Porter enables managing various activities required to operate within a specific industry aimed at delivering the best quality products and services and ensure high level of customer satisfaction. It is an important aspect of the strategic business management practice, which includes inputs, transformation processes along with the acqusitions of resources and delivering the best possible outputs for generate higher revenue and attain competitive advantage (Kramar, 2014).
The primary activities include the inbound and outbound logistics that are managed to ensure successful distribution networks along with the management of supply chains too for improving the efficiency of supply chain management strength. There are various business operations and processes including the management of shipping, packaging, manufacturing and production that are associated with the marketing activities, which could further improve the sales revenue. The support activities are also part of the strategic management practice, which involve maintaining a stable firm infrastructure along with managing the human resources and technologies (Liu & Zhang, 2013). The procurement of strategies could also be beneficial for businesses to establish relations with the international and local suppliers with the goal of delivering the best possible goods and services and gain success both locally and globally.
The primary activities of IKEA include the inbound logistics that are related to the purchase of raw materials acquired from over 1000 suppliers from more than 50 countries worldwide. The stores hold a wide range of products and proper economies of scale are managed to form strategic relationships with the suppliers (Ikea.com, 2019). The operations include assessing the market conditions and producing units worldwide, which has also saved a significant amount of cost while managing the human resources (Taylor, Doherty & McGraw, 2015). IKEA’s outbound logistics include different distribution sites along with delivering the products directly to clients without the involvement of any intermediaries. The marketing and sales are managed through various advertisements and promotional activities while the products are sold through stores, catalogues and even with the management of an online website, which is responsible for value creation all throughout. The Customer services’ support team provides advices on the products and services to the customer and collects necessary information, which can help in understanding their needs and buying behaviours, furthermore influence their choices and decisions while making purchases from IKEA (E. Dobbs, 2014).
Google is considered as one of the largest technology organisations that has prioritised on the delivery of internet related services along with the management of online advertising technologies along with the best possible feature, i.e., the search engine. There are other services delivered by the company such as cloud computing, hardware as well as software components that have met the expectations of clients and kept them satisfied. Google is currently considered as the Big Four technology companies in the entire world.
The operational management is a major practice of the strategic management procedure, which is associated with the designing and controlling of business operations and processes related to the production. It is also related to the redesigning of business operations and processes and focusing on the management of resources, both human resources and financial resources properly for meeting the preferences and expectations of clients and fulfilling the responsibilities of maintaining efficient business operations all throughout. The strategic management practice involves using a balanced scorecard for evaluating the business performance and making progress towards the achievement of goals and objectives along with meeting the expectations of stakeholders. For example the company has achieved accolades and glory by providing internet services like search engine, cloud computing, software and hardware. Continuous improve and sustainable growth strategy enhances the brand image of Google (Google.org, 2019). The strategies of the functional level include innovations and facilities of work from home, which lures the clients and the customers.
The strategic formulation phase of the strategic management practice has assisted Google to select the best course of action required to accomplish the business objectives. This process has been efficient in terms of organisational growth, success and for maintaining a framework for managing actions aimed at the achievement of anticipated outcomes. It is a part of the situational analysis that enables appropriate strategy selection and allows for implementing those at different levels (Holweg & Helo, 2014). Considering the example of differentiation in the services of the data centres and search engines, continuous improvement in these services has fulfilled the needs, demands and requirements of the customers. Corporate level strategies of Google have enabled diversification of products and allowing the company to enter the foreign markets with ease.
The managerial skills are important for allocating the resources properly, manage resistance to change, give rewards to the employees for keeping them motivated, which is an essential part of the HRM and even changing the organizational structure according to the design requirements for meeting customers’ expectations. The strategic implementation enables management of Google to develop effective communication and revising the organisational policies for meeting the organisational requirements with convenience. The annual objectives are set with the assessment of organisational resources and by managing approaches that can allow the company to respond to changes, furthermore introduce new reward systems for gaining the best potential of employees through encouragement and motivation (Moore, 2014). It has been linked with the operational strategy through redistribution of roles and responsibilities between the managers and making them implement new policies required to manage teams and foster effective teamwork and coordination at work.
At Google, the strategy evaluation phase enables undertaking control actions like measurement of performances, reviewing the internal and external issues faced by the organisation and undertaking corrective measures finally for achieving the desired positive results. The company has identified the parameters at first and then measures those in terms of performance for evaluating the progress through measurement of results with the actual plan that has been designed. The monitoring of internal and external issues further has contributed to the management of changes within the organisation and enabled repetition of steps when the results might not be favourable (David & David, 2013). For example, it is found that Google has gathered data and information to establish strategies that can help in sustaining within the competitive business environment in the future as well. The cost leadership strategy is an evident option which has allowed for delivering good quality services at reasonable prices to cater the needs of people.
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