Strategic Management

Needs to focus Its business strategy by first addressing the following questions: How do customers see us? What must we excel at? Can we continue to improve and create value? How do we look to shareholders? The Balanced Scorecard is a set of measures that gives top management a fast but comprehensive view of the business. It details both financial and operational measures by focusing on four parameters: Innovation and Learning Perspective, Internal Business Perspective, Customer Perspective, and Financial Perspective.

By adopting the Balanced Scorecard, Chadwick, Inc. Will create a report that Includes financial measures of results already taken together with operational measures that are the drivers of future financial performance. Innovation and Learning Perspective Chadwick will fulfill its company value through its ability to introduce its new products, improve operating efficiencies to generate its revenue. Well-trained employees bring value to a company, and a good training program can improve the employees’ performance.

The best measurement of training is return on investment (ROI). Chadwick, Inc. ‘s goal Is to create an Increase of new drug Innovation; measured y comparing after-training results to previous pre-training results, setting a benchmark at 5%. The Research and Development department (R&D) plays an important role by getting feedback from the market, customers, and specialists. It will use the feedback to create future products to meet their customer’s needs and create profits. The company should set up both short-term and long-term goal for the R;D department.

The short-term goal will be measured by two deferent ways: the amount of new product’s weight on total sales and time a product takes to be Introduced to the market. New products must occupy 60% of the sales. To measure product introduction, Chadwick, Inc. Can compare the time spends on the new product development and compare it to its competitors. The long-term goal is to maintain technology leadership in the industry, measured by Chadwick ability to develop next generation of drug innovation. To motivate the employees, the company should set up a reward system or work environment to stimulate the creativity of Its workers.

Chadwick should Incorporate both monetary and non monetary methods to reward its employees. The non monetary awards include: public recognition such as reduce development team award dinners and ceremonies, recognition through video spots or the company newsletter; or, time off like time allocated to work on “pet” projects, extra vacation for overtime worked, etc. (Sunken, 30). Above all, to build an engaged workforce, enable a rewarding work environment, and leverage technology are essential elements the company must Include when setting measures under Its Innovation and learning perspective.

Internal Business Perspective Chadwick Inc. Needs to implement internal business measures to meet its customers expectations. By identifying and measuring specific goals such as new compound velveteen, excellence in manufacturing and new product introduction, Chadwick will ensure its continued market leadership. New compound development will be measured by the number of products in development and focusing on three factors: will make it through, attrition can determine the number of compounds needed in each stage to ensure registration.

Cycle time will measure the amount of time it takes for a compound to go through the entire process from development to market introduction. Funding will determine how many projects the company can financially support throughout the year. Based on the three factors, management will be able to calculate how many compounds are needed in each development stage and identify any gaps in its strategy. Chadwick needs to continue its excellence in manufacturing. Creating a quality product at a reasonable cost will ensure customer loyalty and drive profits.

The manufacturing development will measure the unit cost of each drug. Also it will measure the cycle time of each drug focusing on quickness and efficiency. Management will be able to calculate if a certain drug takes longer, or is more expensive to manufacture, and make changes accordingly to minimize cost and improve lead time. Product introduction will be measured by the time it takes to market the newly approved drug. It will also measure the costs associated with introducing the new drug, such as advertisement and incentives to distributors.

Management will be able to track each drug and determine if there are any delays in the distributing and marketing process Customer Perspective Customer retention is one of the most important parts in keeping a company going strong. Chadwick must realize that the customer’s opinions, finances, and willingness to buy their products are significant in moving forward. One way that Chadwick can see what customers are thinking is to have a section on their website that allows them to ask questions about the products and to express their concerns about the products that might not be working.

If the company provides this option on their website, the innovation and learning perspective can focus on ways to improve the products and keep the customers coming back for more. Another way to see what customers think of the company and its products is to ask them directly, whether it’s sending them a survey in the mail or asking them at the doctor’s office. These surveys can include questions that refer to which products are effective and not effective, which products consumers tend to purchase, which products people can afford, ask if the products are delivered promptly, and ask whether or not they are satisfied with the service.

Since Chadwick is always looking to grow in quarterly sales and increase market share, it is important to see what customers are willing to pay for and which products they are purchasing. It is important to find out which products are not being sold so Chadwick can take those items off the shelves and save money. Chadwick must see who its target consumers are; they have to find out which age range, gender, and race purchase the products. In order to keep Chadwick customers coming back, Chadwick must provide them with the best products and services.

Another great way to stay in touch with customers is a loyalty program. It’s a great way to use the email marketing tool and Chadwick can send its loyal customers special offers and let them know about upcoming events and new products. To make the customers feel appreciated, Chadwick can send out birthday greetings with gifts or special offers. This personal touch helps customers understand that Chadwick alee them as individuals and invites more loyalty and trust. Lastly, Chadwick needs to keep its loyal customers involved so Chadwick must ask for their opinions on the that would alienate its loyal customers.

From a consumer perspective, a loyal customer would love to have a say in things and provide an invaluable incite on the upcoming business plan. After the decision is reached, their word of mouth marketing will achieve more success than almost any type of advertising or marketing efforts Chadwick employ. Financial Perspective Financial performance and measurements continue to be the crucial measurements or both the company and the company’s shareholders. Financial goals have been set to determine profitability, growth, and shareholder value. Chadwick, Inc. Seed Return on Capital Employed (ROCK) to control the returns from the most profitable divisions and transfer the excess to those divisions that held out the highest promise for profitable growth. Chadwick implemented the reporting of financial summaries by each division to corporate headquarters. The Chadwick executive committee consisted of the Chief Executive Officer, the Chief Operating Officer, two Executive Vice Presidents, and the Chief Financial Officer. The executive committee met on a monthly basis with each division manager to review ROCK performance.

In order to improve production within the Norwalk Division, we recommend that Chadwick implement to a total quality management program. This program will measure extensively the factors in employee participation, statistical process control, and key quality indicators. Chadwick can use computerized control and remote data entry systems which can produce daily income statements. This information can be available to the department managers and operating personnel. With this information, the value of output from production process can be estimated.

This can be accomplished by using market prices and subtracting the expense of raw materials, energy, and capital consumption in the production process. In conclusion, Chadwick, Inc. Needs to create a clearly defined business vision and strategy to properly apply the Balanced Scorecard Theory. The vision and strategy needs to be implemented from top management. Chadwick measurement system will strongly affect the behavior of management and employees. Monetary incentives can be added to the implementation of this program to make it successful.

Mock Jumble, I personally find, is the most phenomenal traditional character as not only it is a tremendous sight to see but also the ability and skill that is required to portray such a gratifying character. More formally known as ‘Stilt walker’ The Mock Jumble originated from West Africa. They had a God named ‘Mock’ and the liberated slaves then added the word ‘Jumble’ meaning ghost. The heights of the stilts were seen as the ability to prognosticate evil quicker than ordinary men.

The sticks that they balance upon are between ten to fifteen feet, this character can’t simply put on a costume and play the role, he or she just require a certain level of training. Not only the astonishing talent to balance on these lingering sticks but the mock Jumble is able to dance while maintaining their profound balance. I have lived in Trinidad my entire life and there was never a carnival season that I didn’t see tallest one Mock Jumble parading the streets. They bring a sense of enthusiasm to the festival.

Seeing them in their luminously, radiant colors splendidly moving in time with the rhythm of the music. They usually wear lengthened pieces of velvet, which covers the sticks and bring out the oomph within there performance. Traditionally they wore a Jacket and an elaborate admiral hat but in modern days they are seen wearing cloth wrapped around there heads and instead of Jackets, cloth which flows elegantly down there pants or some that even have excess material attached to there hands are used In modern days.

Mock Jumbler’s have a symbolic semblance sustained throughout the years In our culture. Whether seeing one In person for the fist time or again this carnival season I guarantee you will be nothing but mesmerism’s. I hope one day I acquire the elite balance which Is required to run with the ball of this majestic art.

The terms ‘best fit’ and ‘best practice’ are used in strategic human resource management literature. The best fit approach refers to the firm using human resources management (HRM) to their particular strategies and adapting to the firm’s condition and the environment referring to workforce character and business strategy. With the use of the Best Fit Approach the SHRM can become more flexible to the response change of the organizational life cycle: start-up, growth, maturity and renewal/decline.

For example, Met Wholesale had chosen low cost strategy to sustain its position in merchandise industry. Thereby under this approach supportive HR practices like employing part-timers, fresh graduates, and by applying training systems will be applied. The outcome will be that the operation cost will be reduced and they will achieve its goal. On the other hand the Best Practice approach speculate that there is a exact set of HR practices that are applied in almost any organization context which helps in the increase in performance to deliver outcomes which may be valuable for all stakeholders particularly employees.

It is based on the idea that there is a set of best HRM practices and its application will help to superior organization performance. This practice could be source from other competitor’s successful strategy. For example, emphasizing the enhancement of employees’ abilities or knowledge and skills through good recruitment and strong training. Another can be through incentives and a reward system; the firm can place emphasis for motivating desired behaviour.

Also, by better trained and motivated employees they would have more contribution of ideas and participation. What separates the two approaches, is that the Best Fit relates to firms’ competitive strategy where the SHRM will be designed according to the firms condition and the environment, where as for Best Practice, the firm is able to refer other firm’s successful strategy or general best practice model to improve the firm itself.

The Hometown Deli was established by your grandfather in 1952 in your hometown. It offers many different kinds of specialized coffees, teas, a full service bakery, homemade soups, sandwiches, and salads. The Deli has been a local hotspot for many years and has served as a community gathering place. Your grandfather recently retired from the business and has asked you to take it over. You are very excited about this opportunity! Unfortunately, business has been steadily declining over the last five years. Although your grandfather was an expert at running the deli, it is outdated.

There are no computers in the store and all ordering takes place manually. Your grandfather had a terrific memory and knew all of his customers by name, but unfortunately, none of this information is located anywhere in the store. The family recipes for the baked goods and soups are also stored in your grandfather’s memory. Inventory is tracked in a note pad, along with employee payroll, and marketing coupons. The Deli does not have a Web site, uses very little marketing except word-of-mouth, and essentially still operates the same as it did in 1952.

Throughout this course you will own and operate Hometown Deli, taking advantage of business practices discussed in the class, the Course Modules and the textbook to increase profits, keep the business running, and bring the Deli into the 21st century. Note: As you approach these assignments, you will find it helpful to think about your own experiences with a local deli or sandwich shop. Making a trip to a local deli may help you think about the processes, challenges, and opportunities.

Upon completion of these assignments you will have performed an array of activities to demonstrate your ability to apply the course content to a “real world situation” to:

1. Analyze the business environment and identify strategic areas for improvement (Stage 1)
2. Propose an appropriate technology solution to improve a selected business process (Stage 2)
3. Evaluate various IT considerations of the proposed technology solution (Stage 3)
4. Communicate your solution and the IT considerations to stakeholders using a presentation format (Stage 4)
5. Identify and explain the next steps in implementing the solution (Stage 5)

The case study and assignments address the Course Outcomes to enable you to:

• analyze business strategy to recognize how technology solutions enable strategic outcomes
• analyze internal and external business processes to identify information systems requirements
• identify and plan IT solutions that meet business objectives.

The staged assignments are designed to follow the relevant course modules and chapters of the textbook in the class schedule, and are due on the dates shown in the Syllabus.

• Stage 1 Project: Business Environment Analysis (Word document with analysis)
• Stage 2 Project: Technology-Supported Solution Proposal (Word document with proposed solution)
• Stage 3 Project: Template for IT Considerations (Word table)
• Stage 4 Project: Executive Briefing Presentation (PowerPoint Presentation on proposed solution)
• Stage 5 Project: Outline of Next Steps (Word document outline with next steps)

The weight of the assignments is shown in the Course Syllabus. The due dates are shown in the Course Schedule. Because these assignments require you to use Microsoft Word and PowerPoint (as indicated in the instructions), you may need to “brush up” on your familiarity with these or use functions that perhaps are new to you. Therefore, do not wait until the last minute to begin an activity.

You should read through all the assignments in advance to ensure you understand what is expected, and  allow enough time to effectively create the information being requested. Assignments for stages 1, 2 and 5 require external research, outside of the textbook. The grading rubric is included with each assignment. These assignments are designed to help you identify how to effectively analyze and interpret information to improve the business. This is an opportunity for you to apply critical thinking skills and think like a business professional. When you are writing a paper or developing a presentation, prepare it as if it is going to a boss that you want to impress with your knowledge and abilities.

Don’t just go through the mechanics of pulling together information think about what you are doing, why you’re doing it, whether it make sense, whether the information seems realistic, and what the results show. Support your recommendations with your research. One of the prerequisites for this course is that you have a fundamental working knowledge of word processing and presentation software. Detailed instructions for each Staged Project, 1 through 5, are separately posted in the Course Content area. You must prepare each assignment in the indicated format (i. e. , memo, report, presentation or other specified format) and submit it as an attachment through your individual Assignments Folder in WebTycho. No credit will be given for assignments submitted in file formats other than those stated in the assignment instructions. Additional Information

There is a significant amount of information available to you to assist in developing your skills in using the Microsoft Office Products. MS Word and PowerPoint are required for these exercises. The textbook comes with access to the publisher’s website  where there are a number of resources, including Tech Plug-Ins for Office 2003, 2007 and 2010. Don’t hesitate to use the on-line help and wizard tools built into the MS Office applications for help as you work with the software tools. There are also other web sites, such  that provide tips. Even YouTube has some useful videos demonstrating various techniques.

Strategic Management seeks to carefully coordinate and integrate the different cross-functional activities of a company to achieve defined long-term goals. While Strategic Management normally begins with the careful definition and alignment of the company’s mission and vision it also requires the precise organization of management in order to delineate specific managerial and departmental responsibilities as it relates to the end goal. In Strategic Management there is a need to be able to work efficiently independently while still working jointly for company goals.

In the case of Galbvatrens it seems that the five tasks of Strategic Management (SM) was not fulfilled upon the entry of director Chip Brownlees into the helm. The five tasks of SM requires a company to:

• Develop a Strategic Mission and Vision
• Set Objectives,
• Create a Strategy that aligns with the mission and vision and will achieve specific short-term and long-term objectives
• Implement the Strategy
• Evaluate and Correct activities.

When the board of directors hired Chip Brownless their end goal was to reorganize company management and to create a more people-centered work environment. However, in its effort to quickly revive the company it seems that there was not enough action taken to be able to realign and organize management. During the board meeting taken to discuss the present lawsuit there seemed to be the case of passing the buck. When the members of the board themselves were not clear of who was responsible for the failure in the system. Clearly, there feedback system was not clearly devised enough nor specifically defined to clearly identify the roles of management and subordinates. Furthermore, while the system itself was theorized and included in company policy, there was no implementation as the training programs were shelved. As a result no evaluating activities could be conducted. In essence, the problem here can be traced from the core of management and its reporting system.

In addition, subsequent managerial decisions were not clearly aligned with the vision of creating a people-centered organization. In ignoring the recommendations of consultant’s to create an ombudsman position to facilitate management and employee communication, the director did not place people at the center of decision-making. Clearly, what management needs to do now is to reevaluate their current organization and the systems they have in place. There is an innate dysfunction in the current organization that needs to be corrected where management needs to address communication, realignment and a definition of responsibilities. Only until management is able to clearly define their management roles can they be able to successfully manage others (Bramante, 2003). Once management is able to integrate the new mission and vision into their defined roles, then they should reintroduce the new mission and vision through policies and training. For a long period of time, the company’s management discourage management-employee communication, the new management aims to reverse this order. To do so management needs first to communicate the intended change and to introduce the change slowly but firmly. By succinctly developing policies that encourages communication and employee contribution as well as reinforcing this ideal through training management better conveys the change. The company should also focus on strengthening the lines of communication and creating a system or reporting misconduct where employees can immediately be comfortable and adapt to the changes.

Reference

1. Bramante, J. (2003, November 1). Introducing and Managing Organizational Change in Support of BPM. Business Performance Management.
2. Irwin, R.D. (1995). Principles of Strategic Management. California State University website. Retrieved 22 March 2009 from http://www.csuchico.edu/mgmt/strategy/module1/

This paper will discuss the practices of strategic management in Unilever UK. Strategic management is a form of management in which strategies and plans are devised for the company to move it forward. The strategies are designed in order to deal with the challenges of the new environment. Plans are usually made to counter any unavoidable circumstances that may occur due to many reasons. Unilever is one of the largest commodity producing firms. They have spread their business globally; one can find Unilever products almost all around the world.

The size of the company is very large. It is involved in large scale production. Marketing and advertising are the backbone of such companies. This is primarily because commodity or consumer products produced by every company has the same characteristics but it is the marketing and advertising that differentiates it from the other. a) An analysis of the industry’s current and future macro environment, clearly identifying the major factors for change The macro environment is the environment that encompasses the whole industry and the environment not just one or few companies.

The word macro means on the whole taking viewpoint on large scale considering every aspect not just concentrating or focusing on any one aspect. There are many aspects of change out of which some of the most important factors will be discussed. These macro environmental factors of change have had a great impact in taking the company forward and have helped it reach a position where Unilever’s stands today. One of the aspects of the macro environment concerns the technology. Initially at their start the company was not very technologically sound.

But as years passed it succeeded in its operations. The company became technologically sound and has improved the standard and quality of its products tremendously. The technological dimension of the macro environment basically concerns the technological achievements in the industry and the society at large. The second dimension of the macro environment is the international dimension. It basically focuses on the representation and opportunities for the company in the world. Unilever is a company that has a widespread network of operations all around the world.

They have expanded in almost every region setting up as multi-nationals and giving them a tough competition to the local competitors of the market. It has come this far because like every company it had thought on the grounds of expanding internationally. This expansion has given the company a chance to cut its cost and obtain raw material at the best and most competitive prices. Another dimension of the macro environment is the socio-cultural situation. It is the dimension representing the norms, customs and values of the population.

This is one of the most important aspects that the company has to keep into its strategy because an organization is made of people. In order to set up a company and to take it forward it is essential that the organization has the support of the people. But every culture has certain demographics, characteristics, norms, values and customs of the population within which the organizations have to operate. Therefore it is essential that all these aspects are kept in mind. As all these factors can have a great impact on the employees of any company.

Unilever has greatly concentrated on this factor and has been very successful in establishing companies in all the regions that are very culture specific. They have valued the norms and customs that were pertinent in every society. Therefore we can see a vast difference in the Unilever that is present in UK to that which is present in China or maybe India. Another factor of macro environment is concerning the legal and political framework. This dimension includes the government regulations and the political activities designed to control the company behavior. This is also a very important factor.

Countries in which the political conditions are not very stable it is difficult to operate in them. This is primarily because in such countries the availability if raw materials and others labor force can be disrupted any day if riots break into the country or ant strike is called. On the other hand countries in which he political conditions are stable and the legal framework is strong the operations become much easier. In such regions it is also very difficult to violate laws and so the rights of the employees and the company are both protected by the law in an efficient manner.

Unilever is a company that has always been very conscious when it comes to ethical and lawful behavior. The company has maintained a very good image in the industry with its ethical acts. From its very beginning it has never compromised on ethics and laws and this behavior it has maintained in every region wherever it has operated. The company has always made an extra effort when it comes to dealing with the employees. Along with this the suppliers and customers have always remained satisfied with its performance.

These core values of the company had made it one of the largest operational multi-nationals in the world that has the capacity to deliver to the customers. It has always maintained quality standards and have attracted the best talent of all the countries to join its workforce. The final factor of the macro environment is the economic dimension. This dimension represents the overall economic health of the country or region in which the company operates. Consumer purchasing power, interest rates and unemployment rate are part of the company’s economic environment.

The economic environment has significant impact on the working of the company. If any economy is affected either by a boom or a recession the company has to bare its effects. But every company has to adapt to these economic changes. In this time where the world is under a global economic crisis, Unilever is also not safe from the adversities of this crisis. Like all other companies Unilever is trying its best to cut its cost and expenditures in order to cope with the ongoing situation. One advantage that this company has that it is spread all over the world in so many regions.

Also that it is aware of the local markets therefore it can arrange for the cheapest raw material, labor and packaging material all around the world. In this case it as a competitive edge over its competitors. One of the most significant trends emerging in the world is that of acquisitions and mergers. This reduces the cost to a large extent. Unilever’s has until now not done any large mergers but it has carried small scale mergers in the local markets. These mergers are limited to a single product or brand within the local markets.

But on an international level in the recent 5 years no large merger or acquisition has taken place. Unilever itself is a very large company with a lot of products under its head. Mergers may increase their p of products that can be difficult to handle in this time of crisis. b) The company’s current position within the competitive marketplace both in the UK and abroad including the strategy currently adopted. The company’s current position in the competitive market especially concerning UK is very strong. It is giving tough competition to all the local commodity producers.

It has a well established name in the UK. The sales are increasing tremendously. The company does mass marketing and its product availability is vast. The consumers are please with the quality that it serves. Unilever also does big marketing campaigns for all its products. Some of its very famous products have become household names. For example washing powder is very commonly known as surf. This is because of the good branding and loyalty that customers feel with all the products of this company. In UK every day new companies are made and new products are launched.

But no company has been able to snatch the customers of Unilever’s from it. It has always been flexible to the changes occurring in the consumer minds. The company’s position in the international market is also very strong. Research suggests that the company has been able to attract sufficient amount of customer base in all the regions that it has expanded in. the reputation of Unilever is the same across all borders. It is a well recognized brand name all over the world. All the users of Unilever product are one family now. The company has built strong customer base in all the regions.

The popularity of Unilever products is increasing day by day and new people are entering the pool of the company every year. It has expanded into so many products with so many varieties. The current strategy that Unilever is using is the differentiation strategy. It is a type of strategy in which the organization seeks to distinguish its products and services from its competitors. Since the major pool of products that is produced all every day usage consumer products like tae and soaps etc. therefore it is extremely important to use the differentiation strategy.

This is the only way the company can attract customers to buy their product only. Differentiation strategy makes it easier for the company to sell the product because in this way they highlight the specific features of their product to gain a competitive edge over the others. c) A critical evaluation of the strategic options available to your chosen organisation. The strategic options available for the company that we have chosen are many. One of the strategic options includes the other competitive strategies to be also implied during strategic planning. One of the other strategies is the cost leadership strategy.

It is one in which the organization effectively seeks efficient facilities, cost is cut down and there is tight cost control so that the efficiency is increase and it eventually becomes much more than the competitors. Although Unilever is making use of strategy but not to a large extent. Cost effective strategies make the company very efficient and gives it an edge over competitors. During the global economic crisis it is essential for companies to make use of this strategy otherwise the funds would eventually evaporate. This is primarily because the products that Unilever is selling are purely consumer based.

And any effect on the economy can greatly affect the buying power or capacity of the consumers. Another strategy that the company can make use of is the focus strategy. It mainly emphasizes on the concentration on a specific regional market or buyer group. We know for a fact that all the cultures are variably different from each other. If the company comes up with certain products that will cater to a regionally different audience, this can provide the company with a competitive edge. For example there are certain herbs that are available in China and India only.

These herbs are used extensively by the people of this region. If Unilever comes up with a soap which has the smell of one of these herbs and also ha qualities of improving the skin, then in that case the people of this region will be attracted towards buying this product. On the contrary if the same product is introduced in the western countries the consumers will not be attracted that much because they will not have any association with the product. d) Make detailed recommendations as to the option(s) the organisation should pursue with clear and unambiguous justification of your choice.

in order to formulate a competitive strategy I recommend that the company should adopt the BCG matrix. It is a concept developed by the Boston Consulting Group. It evaluates the companies with respect to the dimensions of business growth rate and market share. This model helps improve the old products and provides guidelines to develop new products. All the products that are under the umbrella of Unilever either fit into one of the categories that are the stars, question marks, cash cows and dogs. By applying this concept the company can develop its individual brands.

The best option of the BCG matrix lies in the question mark. It comprises of new ventures. By applying this concept the company can convert all its brands into the stars category. These are the products that have rapid growth as well as expansion. Butteriss,M. , 1998, Re-inventing HR- Changing Roles to Create the High Performance Organization, Wiley.. Clawson, J. G. & Conner, M. L. , 2004, Creating a Learning Culture: Strategy, Technology, and Practice, Cambridge University Press. Evans,C. , 2003, Managing for Knowledge – HR’s Strategic Role Butterworth-Heinemann, 1st edn.

Butterworth-Heinemann. Gregory G. , 2004, Strategic Management: Creating Competitive Advantages,Published by McGraw Hill Professional, Kevin,K. ; Kotler,P. , 2008, Marketing Management. 13th Edn. Prentice Hall. Lewis,P. , 2003, Employee Relations: Understanding The Employment Relationship,Financial Times Management. Paul N. , 2000, Strategic Management: An Introduction to Business and Corporate Strategy, Published by Pearson Education, Saloner,G. , 2001, Strategic Management, Published by John Wiley, 2001 Sadler, P,. 2003, Strategic Management, Published by Kogan Page Publishers.

In order to manage the business operation effectively, Khind corporate focus on the lower cost strategy and the differentiation strategy. The purpose of the company obviously is to maintain the price of the company’s products through the low cost materials, produce and market a comparable product more efficiently than its competitors and economies of scale and provide the unique products with the special features to expand their market share.

1.0 Competitive Strategies (Porter’s competitive strategies)

1.1Lower Cost Strategy

Khind Company adapted lower cost strategy as one of their business strategy because their ability to design, produce and market a comparable product more efficiently with its competitors. For example, Khind is a company in Malaysia that can has the cheaper raw material and cheaper labor if compare to other competitors form the other country such as from Japan. By that, Khind Company can produce and maintain their product in lower price with lower cost to gain advantage with the other competitors. So that, the market share of the company could be maintain and increase.

1.2 Differentiation Strategy

The intense competition among the corporate in the same industry have been forced the Khind Company to search an innovation and new technology. In order to differentiate the company product by the other substitute products that can be maintain the profit and sales growth, Khind Company producing a new technology product that is a new saving energy lamps in the year 2009. According to the CEO Company, Mr Cheng Ping Keat, said that due to the global warming issue, the company launching a new technology area in this industry. This offer the customers a cost effective viable choice and the new energy saving lamp can save up electricity consumption among the household and the corporate sector.

This new product had achieved the requisite international compliance standards as marked under the International Electro technical Commission (IEC). Besides that, among the Energy Saving Lamps (ESL) series, Khind Company also offers few new series of ESL LED lamps. One of the examples is the rechargeable LED light tube can have a long lighting duration about 11 hours. The Customers can buy the Khind products with high quality and with a reasonable price. The long lamp life is over 50,000 hours. This series of lamp facilitates easy installation and maintenance, and less consumption of energy. The features and quality of the ESL series have differentiated the Khind product by the other competitors’ products that will attract more customers to purchase the company product.

1.3 Differentiation Focus

Khind Company focus on a particular buyer group and certain geographic market to serve a narrow market in order to gain advantage compare to the competitors. From the speech between Mr. Cheng Ping Keat and the Electronics Channel News (ECN), we can find that Khind Company positions their products as a middle market brand. They avoid competing with other high standard products such as from European and Asian brand in premium sector. This means that Khind Corporate mainly offer products to the lower and moderate income household and customers.

2.0Cooperative Strategies

2.1Strategic Alliances

Strategic alliance is a long-term cooperative arrangement between two independent firm and business units. In this business strategy, Khind Company has a partner relationship with Australian brand, Mistral and negotiation being process with the Bamarouf from Iran. The motive of the Khind Company has the relationship with those company is because of the establish brand name can help the group to expand their market into those country market in a short period. That can more easily promote their company product in the foreign market. Khind Corporate Strategies

Due to the intense competition in local even to the global market, Khind corporate promptly manage their corporate strategies and business strategies in order to survive and expand their business line and try to maintain profit growth. There have three main corporate strategies usually been used by the corporate today, that is directional strategy, portfolio analysis, and parenting strategy.

1.0 Directional Strategy

According to the evaluation of the operation, Khind corporate adapted the directional strategy due to the corporate orientation towards growth strategies that is concentration strategy.

1.1 Concentration Strategy

This strategy involves two main strategies that is vertical and horizontal strategy.

1.1.1 Horizontal Growth Strategy Khind corporate adapted horizontal strategy in order to expand the business line and operation into other potential geographic location such as Middle East. There have two type of growth strategies have been used by the Khind Company.

(a)Exporting

In the year 1988, Khind Company started the international business when the company’s first transaction start ordered in Dubai. The consignment at that transaction is worth about US$4,700. Until now, the company has export over 50 countries all over the world and the amount of the transaction exceed approximately RM43.6 million. The main target of the region by the Khind Company is the Middle East. In this region, UAE is the hub of the re-export and the central of the regional strategy. According to the Company CEO Cheng Ping Keat, more than half of the total global export in this region by the company recorded and the growing keep going. In the year 2007, the company decided to establish warehousing and re-export facility in Jebel Ali Free Zone (JAFZ). The purpose obviously was to increase the market presence of the Khind Company.

(b) Strategy Alliance

In the case of commercial challenge in the Middle East countries, the most critical issue met by the Khind Company is the reliance on distributor to promote the brand in those countries. To overcome this critical challenge, forming a partnership with the local company is crucial. It can bring benefits to the corporate strategy central plan. The example of the strategy alliance is the long standing relationship partner between Khind Company and the Australian brand, Mistral. The relatively unique partnership deal has given the Khind Company the rights to produce goods under Mistral name since the year 1990. By this alliance relationship, Khind Company enter the market occupied by the establish name successfully and effectively.

It leverages the global reputation of Mistral and develops the reputation of the Khind Company in developing the quality products. It also expands the market successfully and avoids to too relying on the local market. Furthermore, through the strengthening of trade dealer relationship, it can increase marketing activities that raised brand and products awareness. The other example of the strategy alliance is the negotiation between Khind corporate and Bamarouf to be an exclusive partnership in Iran. Khind corporate has attempted to have an immediate expansion plan because of the large potential growth of the country. Besides that, through the strategy alliance with other foreign company, Khind Company also can strengthen their financial ability due to the tighter management cost controls.

2.0 Diversification Strategy

2.1 Concentric (Related) Diversification

From the motive and mission of the Khind Company, we can find that Khind Company focus invest and actively in the electronics product industry. According to the Khind Company Chairman, Cheng King Fa and the Chief Executive Officer’s joint statement, Khind Company will continue focus on introducing new technology product that targeted consumers wanting to live healthier lifestyles. Furthermore, the corporate will continue producing and introducing wider selection of home appliance with high technology like energy saving appliances and so on. In conclusion, Khind Company still prefer and concentrate in developing the in this sector to be a more competitive company and towards high marker brand company that compete with other high market brand foreign company.