Recently the world is becoming too closer like a small town. All most countries are inviting the foreign companies to do their business in the own market area. So due to make a good position in the market and achieve rival advantages. And now we also have resources also, so organization also gets the help of resources and be the best in market. So we should use good strategies to direct our organization. With the use of these strategies and resources the organizations have to fulfill the need of market and stakeholder's expectation. The strategies we used in organization must be valid and all based on the good theories.
“According to Chandler Strategy is the determination of the basic long-term goals and objectives of an enterprise, and the adoption of courses of an action and the allocation of resources necessary for carrying out these goals.” From this definition we are able to recognize that strategy helps us to improve willpower of our essential long term goal and other objectives of any organization. This also includes that WHAT and HOW we have to reach our goal and be a cost leader or a good organization.
There may be so many advantages and disadvantages of the strategies and there may be chances to failure too. But solve a problem we must have choose a strategy for achieve the goals or the organization. While we are using any strategy in any organization that is easy to hub and don't waft redundant. All the selections are depends on the decision maker to create situate to their plan. We only know that what is our organization is doing however we don't know it is in actuality making some diversity. The thought of impact give details how we can critic the efficiency of your organization. It suggest to improve the work to generate more and different sorts of impact or collision.
(M. Armstrong, 2006, Strategic human resource management, 3rd edition, page 19)
Scope of organization
In the world every company have their own scope, there is a limit where they can reach at a moment. As we know a company can't stay on its same position for a long time company or organization may be go up and down as the situations of the market or the competition. There may be so many reasons for that. Those may be other companies which are providing same products or fulfilling the services, requirement of the people for the product or services. So because of these kinds of behavior scope of organization may be comes low. So if the organization became a good competitor of the others then they must have to provide the better services and products.
As example we can say that celforce have monopoly in mobile operators in India so that company has a good scope in the Indian market. After some years there are so many other companies come in market for the same product and with the same services. As my view not only strategy is direction of scope of organizations. As we saw in example celforce was takeover by Hutch and Hutch was takeover by Vodafone. So there may be some another factors to down the scope of the celforce and Hutch. But the other factors may be the poor services of the organization.
So my point of view is hutch and Vodafone may have good strategies then celforce but that is not only factor to getting them takeover.
An organization has two types of goals, Short term goals and long term goals. Short terms goals are that goals which will accomplish in near future as within some couple of days or couple of weeks or couple of months. But Long term goals those will accomplish more than a longer time as one year, 3 years, or 10 years. In short term a good example is play happens in theater. They have to practice only before they have to do play in theatre. Because they have to do the same play all the time. And they have to re practice each and every time until they are doing that play.
In long term a good example is a movie. The actor, actress, all the other factors have to act for a long time for the movie, so they have to work harder as much as they can. And their goal will b achieved once when the movie released. So in long term we have to try to achieve for goal for a long time and we should get its Achievement after a long period.
“Superiority gained by a firmwhen it can provide the same valueas itscompetitorsbut at a lower price, or cancharge higherpricesby providing greater value through differentiation. Competitive advantageresultsfrom matchingcore competenciesto theopportunities.”
This definition shows us that competitive advantages means we have to make the product or give the services same as our competitor and we have to sell that a bit lower price of our competitors, and we have to mansion that the value or quality of product or service must be same as the competitors. Or we can have one more option for this competitive advantage. We can make our product more valuable or our service more accessible then our competitors and we should put that service or product in market with a higher price. So all the human needed the best quality in low prices, but if they have no lower prices so they can purchase the valuable things.
We can see by an example, Lyca mobile services and vectone mobile services both are competitors for foreign calling operators. Vectone mobile is cheaper then lyca mobile but Lyca has good connection range all over the UK and other good facilities more than Vectone. So lyca mobile services have a high prices call rates then vectone mobile service but most of the people using lyca mobile services to call foreign countries.
From these details we find that we have to make our services better then the competitor and for that we have so many strategies. We should apply cost reduction strategy with the use of cost reduction strategy we are selling the same quality product in lower price then our competitors.
Configuration of resources
Normally elements of the configuration resources are human resources, physical resources, financial resources and intellectual resources.
In Human resources we can use some of these strategies Recruitment & Retention, Reward, Organisational Development, Diversity & Equal Opportunities, Performance Management, and Policy Framework.
Recruitment and Retention is useful for the new recruits. We should able to meet new people and use their mind and skills to get some new ideas for the new kind of strategies, and because of these strategies we should able to get the new kind of the solutions so we should change our staff with the new persons who knows about the new technology so we get the extra benefits too.
Organizational Development with this strategy we are able to know that we have to develop our organization very well. We should develop it by use new technologies which are not using by our competitors. So we should develop our organization as we needed.
Diversity & Equal Opportunities, in this strategy we should able to make new kind of diversity in our organization like use new persons who knows about the market positions and some new technologies from which we can able to make our organization better then present position and also better then he other competitors. And Equal opportunity also says that we have to give every person to show their skills. So they are also able to show their skills and some of them skills also help us to make our organization better so we must have to give all of them same opportunities.
Physical resources are also much needed resource in the organization. We should also known as renewable resources. Physical resources may be as Buildings, machines, capacity of the production in a period, capacity of the all
the resources. In any organization they must have physical resources as the construction site, equipments, stock of the products or services and etc. with all of these things they are able to get do their work. So all these resources are renewable. we should able to change that resources any how. And we should change or add some new resources in that too. As an example we should buy a new building and make our organization huge then present, we should also buy some new equipments and able to get more stock and sell more as needed, while we are in organization and we wants to get our credit more then we have to fulfill our customer's service as soon as they desired. So they will advise to buy the service from out to another people.
Financial resources are using for investment purpose only. They may be as capital of the business, cash in hand, creditors, debtors, stakeholders etc. Finance is the most of a very giant question for all the organizations. Because every organizations must needed money for use of the all the resources. As an example we have a building for an organization but not have money to buy machinery or equipments so finance is the most needed object is needed by the organization. We should get finance from so many kinds. But most probably every organization tries to get finance from Secured loans. Secured loans finance the organization as much as they needed and they takes some leased on some property if the organization is not able to pay as much as money they provided or finance the organization.
Intellectual resources are indefinable resources. Intellectual may include the brand name, system of the business, knowledge come from senior resources. We can't assume the goodwill of an organization but it assumes. So this kind of examples can be like intellectual resources. Intellectual resources are not probably needed in organization but it is the most way to attract the customers to the organization. We can't show Intellectual resources' value but customers needed that. As an example most of the public wants to buy clothes which are branded. So they have a Brand name from which the most of public wants to buy clothes from that shop. So intellectual resources are most probably invisible amount for the organization.
Challenging business environment
We can have a come across to Peter Fitzroy and James m Hulbert‘s PESTLE theory. PESTLE is most commonly using from last 10 to 12 years.
PESTLE deliberate for examine the organization's environment, the PESTLE analysis is a type of analysis of the external macro environment in which a business works. These are often factors which are beyond the control or influence of a business, however are important to be aware of when doing product development, business or strategy planning.
Political: Now we are just examination about Political systems. Political systems includes all the factors which are based on type of democracy which are rampant in all the countries which are in west direction but nowadays there are so many multiplicity in the political systems. at present some countries are electing democracy by the residence of that country but the other side some countries represent their government by the authoritarian system of the government.
[the business environment, Adrian Palmar & Bob Hartley, fifth edition 2006 published by McGraw-Hill Education, Berkshire)
Economical: Economical stand for all the economical stages. It includes all the belongings like Organization provides all the employees minimum wages or not, Organization allowances as much income tax as required on his profit,
Social: In social we should include all that things which are affected by the social activities. Like we have to make the rules which can not be affected to any religion. As an example In India Hindu religion not allows to eat mutton of the cow. So nowhere in India they allow to cut the cows. It is a social activity.
Technological: Nowadays in the whole world technology is changing very fast. Everyday technology is going one step ahead. So if we wants to be in competition then we must have to be with the latest technology.
Legal: Legal means the organization must have it's properties legal and it's profession must be legal. Some organizations are working in illegal place and it harms to their local public and environment. And some kind of business are illegal as we can say drugs business is illegal.
Environmental: An organization must have to think about all the environment possibilities where that organization is running. If it affects the local public then they can not run their organization in those premises. As an example we can say an organization making clothes is in residential area. Then there must be noise pollution, air pollution. So they don't have to make their organizations in residential areas.
Need of market
Nowadays here are so many competitors in all kind of businesses. So the organization must improve their organization and also try to fulfill the need of market. If the organization provides as the customers needed. Customers always needs low cost and high performance services or low cost and high value products. If we are able make these kind of things then we can able to understand of the market's needs.
As an example in season of summer everybody needs cotton clothes so in summer cotton cloths sell in a huge price everywhere, but in season of winter almost everyone wants to wear Woolen clothes. So if the organization makes woolen clothes in summer then he will not able to sell his products.
The actuality is that project management is not lengthy as the quantitative tools for member of staffs but it is recognized as a basis of benefits to the in one piece firm so project management must have to satisfy the needs of their stakeholders. and most thing is stakeholders are individuals or groups that either directly or indirectly are affected to the firm or organizations by the performance of the same organizations. We should get it better from an example, a general public and government may be affected by safety or health or decent issues of the technique the project has been executed.
Financial stakeholders consists Stockholders, financial institutions, creditors. These kinds of stakeholders are only related to the finance department of the organization. They are only affecting to the financial belongings. As an example if organizations financial condition is very low then creditors might be affected because the organization is not able to pay them money.
Product or market stakeholders consists customers, suppliers, competitors, unions, government. This kind of stakeholders are very needed, Because customers can buy thing from us so we can sell them our services or products and we can earn money from that. Suppliers supply the need of the organizations. So we can sell them directly or we can do some procedure on it and then able to sell them so it is also needed in this ways.
Organizational Stakeholders consists executive officers, board of directors, Employees and managers. Organizational stakeholders are the persons which are administrate the organization. The organization is running because of this kind of stakeholders. Because they are giving their precious time to the organization. Executive officer is the person who can have to make the higher level decisions.
As an example in an organization there is some trouble with the employee of operation level. So these kinds of problems must be solved by the Managers. It will not be send to the corporate level. And if share prices are going low so these kinds of problems must be discuss between corporate levels.
From these examples we recognize that all kinds of stakeholders have work as they needed and organization have to try the best to fulfil the expectation on them.
(H. kerzner, 2001, Strategic planning for project management using a project management maturity model Page 4)
IKEA is the a home furnishing retailer on the international level. It is still in this business from 1943. IKEA is developed in 11 countries with new 21 stores. IKEA has product, range and customers need. IKEA uses SWOT analysis in the organizations. It shows us Strengths, Weakness, Opportunities and Threats. It also tells us that strength and opportunities must be in positive and weakness and threats must be in negative. It shows us the Business's achievement.
It tries to make a better life of many people daily.
IKEA also sells good range items and well design products in low prices.
There are some good greener products and its demand is increasing a lot.
They also reduced usage of water and they also uses carbon footprints in a little era.
IKEA making a good products only so they have low cost products in a short numbers.
IKEA also have to make some separate products then its competitors.
IKEA have to make good communication with the customers and all the stake holders.
The buyers who came first time they have a core in this market.
So many competitors are coming in market with low prices.
Recession is also affecting the consumer so income is also reducing.
In this competition situation it is so difficult to keep our organization well. But we can do this by including needed strategies into our organization. Strategy is directing the organization at long and short term also. With the use of strategies an organization can have lots of Advantages.
World is coming so closer so we are able to get all kind of resources as our organization needed. So we can also Use the best resources as we need in our organization as human, physical, Financial etc. with the use of these strategies and resources we have to fulfil need of market and stakeholder's expectation, and by thus we are able to get a superior position in market.