Context Of Business Strategy

Context Of Business StrategyBusiness strategy is defined as a long term approach of implementing a firms business plans to achieve its business objectives. Above all business strategy provides load competencies, incompatibleiation and superior values for an transcription.Context of business strategyObjectives are the specific proscribed loves which an organization wishes to achieve by carrying out several activities. Objectives should always be stated precisely so it nominate easily be measured whether the objectives are been achieved or non. Forexample, at that place should be step by step ways so it than becomes easy to judge to how much is d adept and how much ashes and whether the work is in time and good or non.Mission It describes an organizations basic function in a society. It is done specifically to spread the knowledge and persuasion among the people. For example, it to become a top cellular brand, so society would know its reason for existence.Vision The visi on statement is c one timerned with how the future will suppose like if the mission is achieved. Some often say a vision statement imagines what achievement would look like. For example, as I mentioned above to become a top cellular brand globally, this is a vision.Goals In every organization goals differ, besides generally your goals can be regarding improvement in technology, or amend grocery store share, or to improve the quality of the product or the expansion of the business or it can be these all at once. For example, to set an get along of food market share in an particular time period can be regarded as a goal.Core competencies A core competency is a specific factor that a business sees as being central to the way it or its employees works. For example, they can see their technological factor as their core competency.Strategic control The practice of assessing the direction of the organization as evidenced by its implicit or explicit goals, objectives, strategies, and capacity to perform in the context of engagement of changing environmental and competitive actions. For example, to be able to need a strategy in place so that every department or different work runs smoothly all together.P2 The students will be expect to discuss the concept of stakeholders and their types.Stakeholder analysis is an approach that is frequently used to identify and investigate the intensity level field formed by any group or individual who can affect or is affected by the achievement of the objectives of an organization.Different types of stakeholderOwners, investors, conductors.Shareholders.Banks and creditors.Suppliers.Customers and buyers.Management.Employees.Competitors.Government. touch on groups and companies.Stakeholder MapP3 The student should conduct the PESTEL and SWOT analysis of the organization/business.PESTEL analysis of EricssonPolitical Political entities played a vital role in the success of Ericsson switches business, Once a relation was built with a PPT in a coun label, it lead to follow-up contracts again. The U.S market for switches business was closed while the British PPT altogether used to buy switches from European companies. On the other hand there were no barriers to entry for the brisk telephony business since the product was bran-new and unique. frugal In order to start the mobile telephony business Ericsson needed a high market share, which they achieved by selling switches and other radio equipments in U.S.A and various European countries including Netherland .This increased the number of customers, thus increasing market share. After the smart set got substantially popular, major businesses started to co-ordinate with Ericsson, these include major rivals to wit Magnetic, GSM and Radio system .By the end of century the market share for Ericsson mobiles and Radio equipments reached 70 percent.Socio-cultural Consumer demanded for new functions and designs while Ericsson was not successful in providing th at, a banker uttered they are just a bunch of engineers who couldnt care less what the phone looks like. Also on the other hand consumer complained about the low battery life.technical The Company had inferior technology in start due to financial problems, the SRA was only engaged in selling radio equipments to the military, these included radiators, gramophones and radars. AXE was their principal(prenominal) technology AXE chips were powerful but big in size, while on the other hand competitors were making smaller switches.Environmental/ecologicalsoundINTERNALStrengthsFirst company to provide mobile phone technology. gritty capacity switches (AXE)Ericsson Information (EIS)Strong management policiesProviding a wide range of products or so the globe .i.e. radio equipments, mobile and squall business.New product and technologyWeaknessesLack of Unity between various departments. They consider each other as lacking from knowledge, stupid and inexperienced.Poor quality equipments caus ing dis-interest of customersInstallation in armored cars was a problem.Low financeSwitches were Large and expensiveEXTERNALOpportunitiesHigh competitive environment, this leads to more customersMass marketHigh Sales since the product is new and uniqueExpand businessThreatsMajor competitors, namely NEC, Motorola, Fijitsu, Northern Telecom, EF Johnson.Competitors oblation financing solutionsSmall switches of competitors and cheap in priceIntense competitionSWOT analysis of Ericsson (Figure 2 SWOT analysis)P4 Students should apply Ansoff Matrix on the studied business.STRETEGIC POSITIONING TECHNIQUESAnsoff ground substanceThe Ansoff Growth matrix is a tool that helps businesses decide their product and market growth strategy.Figure 3 Ansoff Matrix (source tutors.com, data accessed July 2009)Ansoff Matrix of EricssonAnsoff matrix can help Ericsson identify their future direction and strategic ramp upment. It may help Ericsson find out the choices available in the market in order to use their strategic capabilities. Currently in terms of the eggshell, Ericsson is engaged in production of many existing products and one new product which is mobile telephone. This may part out Ericsson into three sections of an Ansoff Matrix. These are explained as followsExisting product and existing market Market penetration For the current production of various radio and telephone equipments, including AXE chip.Existing product and new market Market development For entering new markets including USA, Netherland and Middle East.Existing market and New Market mathematical product development By launching Mobile telephone system in their existing market .Ansoff Matrix This is a useful strategic positioning proficiency advised to Ericsson due to the fact that it helps in suggesting the business attempts to expand on a new or existing market or whether on the markets new and existing products. For the market development Ansoff can help Ericsson identify new geographical areas, f or example where to sell the existing switches and radio equipments. They can seek out different pricing policies to attract customers. Similarly in the product development stage they can develop new competencies and modify their products on the basis of consumer appeal. On the basis of these qualities it was advised to use Ansoff matrix as a strategic positioning technique to identify their future direction.M1 Here the students will be expected to identify at least three of the concepts (discussed in P1) in the organization/business selected. The students should give a brief analysis of how the concepts name been applied in the organization.Here are the brief analysis of the three concepts that take place in the organization Ericsson.ObjectivesYou always start with small objectives and move onto the larger ones once the initial ones have been taken care off. It is the same with the organization that I am representing. Their prime objective at the start was that they wanted to beco me one of the leading mobile brand sellers in the world. Not many would argue that they hadnt reached their goal. To make this objective succeed they started off by having small steps of objectives which are place. They wanted to bring virtuallything new (they brought Walkman phones), they wanted to increase their market share and increase their profits. Recent performances show a decline in profits and market share and now they are looking forward to go one die than the last time and then to be able to importanttain their market position.VisionWhen you start an organization you always have a vision for it, as where you want it to be in the future, as in for example 15 years later. Do you want it to be self-sustaining and be somewhere in the middle rather than the top or do you want it to have profits and want it to be at the utmost top. Sony Ericsson vision was one for the future. It wanted to be profit motive as any other organization would want to be, however they wanted to b e a leading global mobile seller, to be on the utmost top. And from the time of initial start bank now they are heading towards the right direction.Core CompetenciesEricsson wants to be technologically advanced and give its handsets something new which its competitors lack or do not come up with. It spends heavily on its research and development as its motive is to be the best globally. After merging with Sony, Sony Ericssons Walkman phones are an example of its technological feeler over its competitors and its willingness to bring something new.MissionMany people often mistake vision for mission or mission for vision. However, both these things differ as vision is how the future would look like and mission is the way of getting there. Ericsson, after merging with Sony, one of its priorities is that it specifically targets the younger generations, as they are mostly mobile fanatics and love entertainment. It wants to be known for specifically entertainment phones providing the bes t of sounds the technologically up to date cell phones.M2 The students should identify the stakeholders of the organization under consideration and develop the stakeholder subroutine for the organization. Students are expected to give their rationale for placing the stakeholders in the map.List of stakeholders associated with EricssonNot all of the stakeholders are mentioned in the current case but their key stakeholder groups includeBoard of directors Board of directors includes all the major owners of the business who changed with the passage of time. These personal included GE-Marconi, Ake Lundqvist and Lars Magnus Ericsson. The key focus of all the directors was to direct the strategy and major decision making of the business. They wanted an increase in their power and status and wanted to retain control.Managers Managers engaged with Ericsson particularly included the sales motorcoach, marketing manager and the production manager, among these included John Meurling and Lars Ramqvist.Competitors Throughout time Ericsson expanded their business globally increasing their number of competitors in each of their business sector. Their main competitors included Nokia, Mitsubishi, NEC, Fijitsu, Siemens, Hitachi, CIT Alcatel, EF Johnson, Motorola, Northern telecom.Customers The customers of Ericsson want good and valuable products for the money they pay, since they have a buying objective and if Ericsson fails to satisfy their customers then they will go elsewhere.Shareholders The shareholders are the main investors in Ericsson, they are not as such mentioned in the given case but mentioning them is important as without their support the company wont have any suitable finance. Investors in Ericsson clearly want to be rewarded for their stake in the business. Their profit depends on the size of after tax profit and plans of director to invest for business expansion and the economy causing fluctuation in share price.Community The role of community is also not men tioned in the case but it was certainly necessary to mention their role. Community wants to benefit from the employment which Ericsson creates and indeed Ericsson was successful in doing that by making Stockholm worlds most deadening telephone city.Stakeholder Map of EricssonSmall ShareholdersCustomersCompetitorsLowEmployeesPowerManagersBoard of DirectorHighMain ShareholdersLow Interest High (Fig 1 Stakeholder Map)As the map suggests and shows itself, that the powerful ones come first. As the main shareholders are the one with the most power. Then come the board of directors, as they have power and are as well very interested in their work. They are followed by managers, employees and competitors with their power and interest accordingly. Last are the small shareholders and the customers with the least power but some interest.D1 The students should continue their discussion about the application of strategic concepts in the organization, and recommend improvements possible in the a pplication of these concepts.Following are the strategic concepts and the recommendations for improvementsObjectivesEricsson before and after merging with Sony, was and is one of the leading global brands in the present world. It can be said that mostly the objectives they set for themselves are taken care of appropriately taken care of with time. They set smaller objectives and then the larger ones and they attend to them in order, which is the right way. Being one of the leading brands in the world there is very less room for error, so the way they are presently handling their objectives they should continue handling them in this appropriate order.VisionAs you may already know the meaning of vision and have an understanding of it, it is something you animadvert of your organization being when on a later date when you start. One should not have so many big goals as when it is not taken care of the owner would feel disappoint. So here, their vision (goal) should be their but not a very big one instead something that is realistic and while you are trying to achieve it you can try to overcome it and do better by performing as good as you can in the time period allotted.Core CompetenciesHere is something that plays a pivotal role in enhancing the image and use of your product, as being technologically up to date or even advance when compared with you competitors gives you a push ahead of the rest of the pack. The company should invest big in research and development from time to time and should try coming up with new ideas rather than bringing something old keep going in some new shape, trying something different always pays of in the end.MissionI would surely suggest a few of my ideas which I think may or can help improve their sales and image in some way. Firstly, they mostly target todays generation which is a hit but now that they have mostly captured them they should try to bring in something simple but luxurious as to try to capture the market of elderly people. Secondly, they should try to give themselves on overall image, as to have a variety rather than just be known for their explosive but sounds.