Wednesday, August 7, 2019

Exam paper on business strategy Essay Example | Topics and Well Written Essays - 1750 words

Exam paper on business strategy - Essay Example Its limitation is that two firms of same industry with MBV- strategy do not grow with similar pace despite opting for similar options. For example, firms opt to sail the ocean for being the safest alternate without sailor in the team while ignoring mountain-ing for being less attractive alternative despite having skilled mountaineers. RBV based strategy ignores the demand side of the business. It relies solely on the endogenous aspect and ignores the exogenous factors’ effect on firm. Hence, to void the limitation, firm has lent support from both views complementing each other than contrast. Apple Inc’s success is the strategy being combination of both views. For instance, team with innovative skills exploited the market factors that welcome changes in new dimensions; hence giving hit products like iPod, iPad. ANSWER 3 Greiner’s Theory (1972) refers that firm growth is a subset of six phases each comprising of stable growth followed by a challenge before entering the succeeding phase. It suggests that phases occur in series; therefore, predictable challenges (evolution) to be accounted in a predictable way (revolution). Firm initially grows with creativity and establishing position in the market and after some time it faces challenge of leadership crises. This challenge requires professional management for further growth. Growth in second phase continues to expand with direction and increase in scale hence, leads to issues in managing thing by few personnel. Evolution of structural change mainly with delegation of power becomes the need to maintain survival. Upon delegation development, firm grows through third phase for some time and lands to the control crises. It now requires business to strengthen connections among the business -units to maintain growth in single direction with co-ordination and monitoring. 4th phase of growth through connectivity ends up to red tape issues and bureaucracy. These issues hamper growth again requiring man agement to induce collaborative culture than centralized control. Collaborative culture results firm fostering with more of matrix and team based structures but also ends up once firm has exploited maximum of the internal capabilities and faces internal growth crises. Evolution from this crisis requires firm to shake hands with complementary organizations to maintain growth. This sixth stage growth, recently added, refers to merger, networks, alliances, outsourcing etc. Growth rate in phases vary from company to company and even within company from phase to phase. However, longer the phases harder it will be implement transition by catering crises. ANSWER 4 Resources and Competencies held by organization are all not of equal strength when evaluated on the yardstick to provide firm a competitive advantage against competitors. Strength of the Resource Based View refers that resources and competencies that possess value, rarity, inimitability and non-substitutability characteristics, a cronym as VRIN, are of immense importance to organization. Organizational strategy aligning VRIN-resources and competencies with external environmental factors form the foundation of success. Successful organization such as Wall- Mart (Strong Supply Chain), Tesco (UK national and supply Chain), Apple (Innovative Human Resource), Starbucks (expertise in providing premium flavour of coffee) have profited globally upon strategically by

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