The process of managing


Task 1

Strategic Management

Strategic Management is the process of managing or implementing strategies for a company for achieving the long-term goals and objectives.

Theories of Change Management

There are many change management theories which can help to drive the company for success. Some are McKinsey's 7-S Model, Lewin's Change Management Model and Kotter's Eight Step Change Model. There are many models and theories, and each one has potential benefits or weaknesses for each organization.

Kotter's model

John Kotter. A professor at Harvard Business School and world-renowned change expert, Kotter introduced his eight-step change process in his 1995 book, "Leading Change." We look at his eight steps for leading change below.

Role played by Sales

The process of organizational change can include a variety of key roles. These roles can be filled by various individuals or groups at various times during the change process. Sometimes, individuals or groups can fill more than one role. One way companies learn to cope with rapid changes is by increasing their abilities to learn and change. In a learning organization, each employee is charged with identifying and solving problems. This allows the organization to continuously experiment, improve, and increase its capabilities.

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Sales department has to provide operating sales executives and managers with the best tools, techniques, and concepts for improving the total effectiveness of the sales force.

An organization may have some good communities , targets, managers, but they will not give their best performance just because of the industrial design which might be very poor ending out failing. Sales group will be awarded for holding the customers, regardless of compromising the performance of the company.

How work is done, business processes, information sharing and how people are incentivized; all of these directly affects how well the organization performs. All of these factors are facets of the organization's design and each facet is important to organization's success.

The organizational design process provides a clear definition of goals and responsibilities for each unit within the organization

Organization Types

The following are the type of organizations
  • Business Units
  • Service Centers
  • Corporate Functions

Value sequence/chain

Value - measured by the amount that buyers are willing to pay for a product or service

Michael Porter's Value Chain model

Primary Activities

  • Manufacturing
  • Marketing and Sales
  • Service
  • Secondary Activities

  • Company Infrastructure
  • Information systems
  • Human Resources
  • Research and Development
  • Materials Management

Five Force Model by M.Poeter

Michael Porter provided a framework that models an industry as being influenced by five forces. The strategic business manager seeking to develop an edge over rival firms can use this model to better understand the industry context in which the firm operates.

It is a basic talent where in every leader and a manager should be very much competitive. Few areas of working are there where an entrepreneur may not require these theories.

This book will guide you the common characteristics of the management and will provide you some guidelines in order to use it.

When leaders or managers are planning to manage change, there are five key principles that need to be kept in mind:

  • Every individual may react very peculiarly to a change
  • An individual will have an essential requirements which he will meet
  • Loss comes when there is a change, often landing people to fall in curve of loss
  • Practically every hope should be handled
  • All fears should be gone

Handling Organization's change with help of Kotter's

JK says that the change process takes time and goes through several different phases in a successful change effort and that a mistake made during any phase of the change effort can have a negative impact on the organization 1. Kotter outlines an eight step process (See Table 1) with suggestions to help organizations transform.

Task 2

By 1986 IBM (Big Blue) realized it had lost its direction as a company.

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Discuss IBM's route to renewed corporate growth taking particular attention to new market segmentation, revised product development and the redefinition of its core business model.

Take into account traditional models of corporate growth and factors that can limit or curtail these strategies.

Organizational Growth Drivers

To improve a particular organizations performance, always a critical step will be taken and also it should be understandable that a change may occur. It also influenced on management along with the individuals. It will in order touch the person who will be leading. In a very new approach the management will go ahead with good power. As a result it increases the opportunities of the workers and also the individuals who are going to lead them.

It might be predicted a minimum affects caused by drivers of organizational growth to a very high level. Organizations potency will tone down the weak point by having a very high energetic leaders or management in order to define it more specifically and particularly:

Statement of having a very clear mission- Survival? What is a need to have a company?

Vision which is persuasive- Who will clearly explain our future wish, requirements, needs and wants? Which component or how to complete the mission?

Having a Strategy- How success should be achieved by what means or plannings?

Re examination of Industrial standards statement - Standards that can help m organization to survive in market and support which in result convince the investors? Maintaining a Culture?

Concentrating on A greater focus on skills and development-In order to survive what measures or tasks should be performed? How will we make sure of a good and better future?

Importance for creativeness, improvement and execution-Goods or services, who will hold both individual and the industry growth? How to convert this fairytale into a fact?

Change in the structure of an organization-What are the necessary steps that can be taken in order to develop the organization and how to meet the changes to assist the new demands of an organization, requirements, and planning.

Market segmentation as drivers of growth

It is a Process of dividing a market into segments having similar requirements, demands and characteristics. It is a strategy which is used to gain more number of sales in a subgroup rather concentrating on a limited purchase by all divisions.

Product development as drivers of growth

Product development is the process of designing, creating, and marketing an idea or product. The product can either be one that is new to the marketplace or one that is new to your particular company, or, an existing product that has been improved. In many instances a product will be labeled new and improved when substantial changes have been made.

By 1986 IBM (Big Blue) realized it had lost its direction as a company.

Discuss IBM's route to renewed corporate growth taking particular attention to new market segmentation, revised product development and the redefinition of its core business model.

Take into account traditional models of corporate growth and factors that can limit or curtail these strategies.

Core strategies

Selling a business has two crucial elements -finding potential buyers and negotiating a price. It's essential to make your own estimate of value at an early stage. This guide explains the key factors affecting the value of your business, and the different ways a value can be calculated. It also explains how to find potential buyers and how to approach them.

Productivity Growth is Core Strategy. Reliance Industries Ltd (RIL), that clocked an annual turnover of Rs 13,509 crore for the first quarter of 2003-04 with 20 per cent net profit growth, focus on productivity growth as a core strategy even as the momentum of asset building continues. "A rupee is one factor among a host of others that disturbs export growth. RIL's export competitiveness did not spoil, despite the rising rupee." Exports were at Rs 3,466 crore in the first quarter as against Rs 2,535 crore in the first quarter of 2002-03, a 37 per cent jump.

Marketing action plan

  • Placement and execution of required resources are financial, manpower, operational support, time, technology support
  • Operating with a change in methods or with alteration in structure
  • Distributing the specific tasks with responsibility or moulding specific jobs to individuals or teams.
  • The process should be managed by a responsible team. This is to keep direct watch on result,comparison for betterment and best practices, cultivating the effectiveness of processes, calibrating and reducing the variations and setting the process as required.
  • Introducing certain programs involves acquiring the requisition of resources: a necessity for developing the process, training documentation,process testing, and imalgation with (and/or conversion from) difficult processes.

Task 3

Reasons for corporate failure

Below are some causes for corporate failure:

  • Cash flow
  • Poor business plan
  • Decrease in the demand for the product
  • Rise in cost or a lack of control of costs.
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Cash flow problems: For many small scale and recently organized businesses, this is one of the most important reason for business failure. The problems arise when the money coming into the company from sales is not enough to cover the costs of the production.

Poor business planning: Most of the upcoming businesses have to put together a business plan to present to the bank before it receives loan of financial help. Industry leads to face difficulties due to a bad planning or poor information on which a plan is based.

For example, Industry plans to sell 2,000 units per month in the first year but ends up only selling 500 per month; it will soon be in a serious danger of a fall down.

Fall in demand for the product: There are a lot of reasons why demand falls. Some of the reasons are- not paying enough amount of attention to their customer requirements, product is not up to the mark, poor quality, cost.

Rise in cost (or) lack of control of costs: Cost of production can be for many reasons. Some reasons are- salary rises; increase in the price of raw material like the price of oil or gas. In such cases, industry can plan for such changes and is able to take them into account. If the costs rise suddenly, this can hold industry off guard and tie them into insolvency.

Joint ventures:

It is a kind of strategic alliance in which many people accept to share the services, products and funds in a general profitable venture. These joint ventures can be a fastest way for very small scaled businesses like yours to acquire opportunities which you may miss out; this is going to happen only if you choose and implement it properly.

Benefits and challenges

Joint ventures can achieve many of the advantages of a fully owned operation, without the long lead-time and at a fraction of the cost. Flexibility is a key attraction as they can be moulded and shaped to suit the specific needs of the partners and the markets. However, joint ventures involve a high level of commitment, both funds and time, carry a degree of risk and require a long term view.

Critical success factors include good rapport and communications channels between the partners and positive results within a reasonable and agreed timeframe.

How to Get a Joint Venture Started

  • First set the goals and plan whatever should to be done in this venture.
  • After that you should consider the organizations that could show a good interest in your goal which is chased by you.
  • Both in practical and person see to the already existing business community which you also belong to.
  • Make use of the public associate links of yours.
  • Share your goals or ambitions by learning some websites or books.
  • Be open minded to encounter the questions from other hand and a joint venture idea may come in your mind at the time when you start speaking about it.
  • Make sure of whatever you pen down in the agreement. This should be done when you find few individuals to distribute this venture. I personally and very sturdily propose to hire an official and qualified professional to do it.

Activities of some car Industries

Clarion Company Ltd, in cooperation with Microsoft Corp, has developed the Clarion AutoPC car computer. The device, which combines Microsoft's AutoPC platform with Clarion's audio/visual technologies, permits such functions as wireless communication, data transfer and travel-distance measurements. The Clarion AutoPC, which also features verbal command recognition is expected to have a major impact in the future design of automobile multimedia systems.

Task 4

Areas of Risk in today's Business model

These can be calculated as the risk of a critical change in assumptions and targets that supports a company initiative. Strategic risk is similar thing at a diverse level: it involves many questions such as-should a company remain within the industry or under a complete different set of assumptions whether it should come within reach of its marketplace.

Rather depending on, "characteristics of risk" the answer lies in the "severe point of risk". If the serious capability of business or strategic risks increases, organizations find themselves under lots of pressure to clarify, how their approach to organizations risk "fits" with their management of few risks as- approval, merchandise and practical risks.

Another part of the problem is wide. Company should use any type of use risk as transport and finance tools to handle a business risks which stretch outside the conventional provision, market and approval risk organization markets? This is the most important questions because, if answer is yes, it will open many new risk management markets and expose some organization to new kinds of set of threats.

Areas of risk for medium sized businesses in the UK

A recent survey done for 7,200 entrepreneurs across 32 countries, asked whether the companies have official documentation for dealing with critical risk areas as- suppliers/customers loss, key workers loss, recovery of the failure and protection of electronic information. Organizations in UK appear doing well in finding solutions for risk originating from recent and elevated profile pressure. 77% organizations consists documentation in order to deal with adverse revival, also for a main IT collapse, considering UK in fourth and fifth position correspondingly and comparing positively with global averages of 57% (57%) and 61% (63%).

After scoring well on these current issues UK organizations are not well prepared in the areas of risks. Formal procedures are made by only 26% of UK organizations to deal with latent reputation or media catastrophe comparing with an average of 35%. Taiwan topped the table with 61%, followed by Turkey with 57%.

UK businesses appear to overlook the fundamental risks areas which are very disturbing. Not as a very high profile or remarkable as few measures, the unexpected defeat of key personnel or a trader could have destructive impact on a business.

Risk Management Principles:

The following principles are used to recognize risk management.

Risk management should be

  • Make a value.
  • Behave like a important process in organization.
  • should involve in making the decisions
  • Plainly deal with ambiguity.
  • Methodical and planned.
  • dependant on the information which will be provided
  • Adapted.
  • Human aspects should be considered
  • Clear and comprehensive.
  • Vibrant, interactive and open to change.
  • Capable of constant development and enhancement.

Sometimes an organization risks will be called as the most severe threats. In some ways, business and strategy risks are the most difficult of risk types to define. What begins as a fuzzy or unquestioned business decision or assumption often evolves into a more sharply focused legal, credit or price risk shortly before it damages or destroys the company.

Many of them will not handle in a very classical points at when they are too much narrative, and they close the plan by itself in order to differentiate it.

It will now make the management very fatal and at them time strategic threats will become the critical situation for the higher management. Here, it also advice that few solutions should be created to tie Business and strategic risks together to develop the organization.

Handling Risk in Organization

Sustainable Development is a process of change in which the utilization of funds, way of savings, course of technical development in order to meet individuals requirements and wants. It seeks to find the balance between economic, environmental, and social performance. Organizations following the Global Reporting Initiative's (GRI) reporting guidelines use specific performance indicators to identify reportable sustainability achievements and challenges.


Strategic management helps you to acknowledge the present business model and its drawbacks. Strategic management emphasizes on a strategic change and business transformation and the ways to avoid business failure.