Strategic Management

If Eiji Toyoda, the founder of Toyota, were asked today of his company’s People Resourcing Strategy he might not be familiar with the term but he would probably express how his company could not have achieved its position without the help of an effective workforce. As an important function to any organization, the Human Resource Department serves to align the strategy of the organization with the human resource practices, even helping in the formulation of the business strategy itself, so as to secure long term, sustainable, competitive advantage for the firm.

In order to do so, the HR’s job is to ensure that the organization hires the right people that fit into the overall culture of the organization, as dependant on its strategic goal, and then to integrate them into the organization through an effective induction programme. And while the induction of the employees into the business may be the last part in the recruitment and selection process, it is by no means the least important (Kearns, 2003). This essay will thus serve to impress upon the reader the importance of an effective people resourcing strategy to an organization and to explain the role of induction in achieving such a strategy.

HR AND ORGANIZATIONAL STRATEGY According to Ackroyd, Batt, and Thompson (2005, pp222) in their book, ‘The Oxford Handbook of Work and Organization’, strategy has been defined as, “policies and procedures that are aimed at securing, first, viability, and second, if this is achieved, sustained competitive advantage. ” The role of Human Resource Management (HRM) here is to contribute to the achievement of the abovementioned strategic goals by the effective management of the organizations employee relations, so as to create value for the shareholders.

‘Hard’ and ‘Soft’ Models The contribution of HRM to the organization is dependent on the model it follows but is not restricted to any one of them, so that more than one model can exist in an organization, depending on the organization’s business strategy. As per the hard model, HRM’s focus is deemed to be the close alignment of its practices and policies with the business strategy, which integration is supposedly achieved by the integration and coherence of the HR practices and policies with each other.

In this model, human resource is treated as any other resource, to be used in a profit maximization context. On the other hand, the soft model espouses the treatment of the human resource as a valued resource that will contribute to the success of the organization through its capabilities and skills. Instead of being exploited for its output, the human resource is nurtured to ensure high productivity and is considered as an important value addition resource.

However, as mentioned earlier, the two models are not incompatible despite their differences and can exist together in the same organization. The relevance of any one model is dependent on the type of industry in which the organization is, for example, a labour intensive process in a high volume and low cost industry might require that human resource be managed by the hard model so as to minimize costs, whereas a knowledge based industry might require the use of the soft model to produce high quality, value-added products (Ackroyd, Batt, Thompson, 2005).

HR Architecture Human Resource’s role from a strategic perspective introduces the concepts of a ‘value chain’ that is represented in the firms HR architecture which includes the HR function, system, and employee behaviours, as described by Becker, Huselid, and Ulrich (2001, pp 12) in their book, ‘The HR Scorecard’. It has been found that formulating an effective strategy is one of the most important intangible requirements of financial analysts in determining the difference between the firm’s book value and its market value (Ackroyd, Batt, Thompson, 2005).

The HR architecture espouses the systems approach to thinking which emphasizes that HR’s systems are interrelated in an organization with its strategy, so that the whole is more than the sum of the parts, thus highlighting the need of creating an effective organizational strategy with the help of the HR Scorecard as the HR function will affect the organizations strategic objectives which will in turn affect the value that shareholders place on the organization. INDUCTION Induction is often confused with orientation and socialization and all three are usually interchangeably used.

For the purpose of this essay induction is described as the process by which new employees adjust themselves to their new working environment, orientation is an event or course that new employees attend, and socialization is how the new employees create working relationships within the organization, as defined by Taylor (2005, pp 261) in his book, ‘People Resourcing’. The purpose of the induction programme is to assist the employees in getting assimilated with their work environment and the organizational culture so as to prevent a high occurrence of early resignations, such as the programme conducted by Daewoo Cars (Cornelius, 2001).

However, research shows that once new employees are recruited and selected they are often thrust into their jobs without a properly planned induction programme. It is usually treated as a chore that is hastily organized, often with disastrous results. As Rankin (2006) mentions in his article, ‘Welcome, stranger: employers’ induction arrangements today’ the problem is not on the importance placed on induction but on the amount of effort that is spent on emphasizing this importance to the line managers, who are essentially the ones that will conduct the programme as it is to their team that the new employees will be placed.

Narrow and Sophisticated Approaches to Induction In creating a successful induction programme attention must be paid to ensure that the programme is not a generic process as there are different types of employees with different perceptions of the organization and different needs, such as minorities, the disabled, fresh graduates, and those employees that have rejoined the job market after a period of time.

As such, the narrow view seeks to achieve three objectives, namely: administration, in which the rules and regulations of the organizations are described; welfare, in which the new employee is given emotional support for facing a new situation; and socialization, in which the employee is made familiar with his work group and fellow colleagues so as to generate a sense of loyalty and belonging in the employee. Whereas, the sophisticated approach seeks to deal with the perceptions of the new employee since before he/she even joins the organization.

To facilitate this, the potential employee is brought into contact with an experienced employee in the organization before the accepting of the job proposal by the employee so that information is shared between the two. In this process the potential employee is made aware of the requirements of the job and what is expected in the organization along with being provided with help in matters such as relocation and anxiety in starting a new job.

To ensure this process succeeds there must be plenty of support available for the employee once he/she starts the job, and any ambiguity in employee’s role in the organization must be removed (Taylor, 2005). Induction Crisis Placing advertisements in newspapers, hiring head hunters to scout for talent, conducting interviews, tests and background checks, using professional search firms, are all just some of the activities that must be carried out in recruiting and selecting a new employee.

The cost that is associated with this recruitment and selection, in terms of not only money, but time and effort as well, is a significant amount in itself without being exacerbated with a poor induction programme (Cornelius, 2001). Every time an employee leaves the costs of getting him/her to the organization is rendered as a loss as opposed to the investment it should have been. Two of the major causes of a failed induction programme are unorganized and redundant mentoring processes, and poor induction techniques by managers.

A mentoring process serves to guide a new employee by employing a more experienced employee who shows him/her ‘the ropes’ and introduces him/her to the employee’s work team. However, most mentors that are assigned only introduce to the new employee to a few individuals and leave him/her to wade through the induction process by himself/herself because they are either too busy or indifferent to the new employee, or because they consider that the new employee has the relevant interpersonal skills to fit into the organization by himself/herself (Marchington, Wilkinson, Sargeant, 2002). HR and Induction

It is the HR Departments job to ensure that managers are taught in the art of proper induction techniques, especially with regards to minorities, so that they can prevent any incidence of ‘induction crisis’ for the new employee, which may lead to him/her leaving the organization. The managers must be informed that the success of the new employee is their responsibility and so must make sure that the employee’s expectations are clear and unambiguous and that he/she has a means of discussing any problems that he/she might be facing in integrating into the job and the organization (Cornelius, 2001).

RECOMMENDATIONS In order for induction to be successful, the organization, through the HR Department, must carry out several activities beginning with the introduction of a structured process of induction. However, it must be noted that such a process neglects the individuality of people and might be rendered ineffective due to this. For example, certain people, such as extroverts, do not require an intensive induction course and may become bored and frustrated if the process is lengthy and goes into details.

In such a case, HR must work in concert with the line managers to introduce a two-stage programme in which HR conducts a general intense orientation course and then the line managers are made responsible for dealing with specific people over a long learning process. The managers would necessarily need to be trained in this approach to handle and effectively conduct such a specific and tailored induction, and HR must provide them with the required reference materials.

In addition to this, the induction process needs to be evaluated every two years to ensure its relevance to the current market as is evidenced by the current economic scenario of uncertainty. The primary source of information in evaluating the process is the employees themselves, and then the figures available on retention rates and employee attitude surveys. But it is surprising to note how the quality of such information is not up to the mark despite being easily available (Rankin, 2006).

CONCLUSION An effective induction process avoids several costs to the organization, the chief of which is incurred in the process of recruitment and selection. The damage to the company’s reputation, the time and effort invested in conducting the whole exercise, the low morale of the team and the new employee, the loss in productivity, and the cost of going through the inefficient process again are all costs that are not quantifiable but affect the organization nonetheless.

As a result, the organization will fail to achieve its strategic objective and thus the HR will fail in its objective to facilitate the business strategy through its policies and practices. It is essential that the HRM ensure that these costs are not incurred by recognizing the importance of a successful induction programme to the organization.

And once that is recognized, the HRM should evaluate the effectiveness of its current programme, if any, and use its gathered research to design a programme that is either narrow or sophisticated, depending on the required fit of the organization and the type of model that is being used in its strategy formation. Thus it will justify its role in the organization as the management of people as a productive resource that benefits the organization. For As Oliver W.

Holmes once said, “The greatest tragedy in America is not the destruction of our natural resources … [it] is the destruction of our human resources by our failure to fully utilize our abilities, which means that most men and women go to their graves with their music still in them. ” 1996 words BIBLIOGRAPHY Ackroyd, S. & Batt, R. & Thompson, P. (2005) The Oxford Handbook of Work and Organization. Oxford University Press. Becker, B. E. & Huselid, M. A. & Ulrich, D.

(2001) The HR Scorecard: Linking People, Strategy, and Performance. Harvard Business Press. Cornelius, N. (2001) Human Resource Management: A Managerial Perspective. Cengage Learning EMEA. Kearns, P. (2003) HR Strategy: Business Focused, Individually Centred. Butterworth-Heinemann. Marchington, M. & Wilkinson, A. & Sargeant, M. (2002) People Management and Development: Human Resource Management at Work. CIPD Publishing. Taylor, S. (2002) People Resourcing. CIPD Publishing.

Rankin, N. (2006) Welcome, stranger: employers’ induction arrangements today. IRS Employment Review [Internet]. Available from <http://www2. northampton. ac. uk/portal/page/portal/humanresources1/home/sd/docstore/Developing%20and%20Managing%20Staff%20Resources/35C55EA220875EDCE0440003BA7723F7> [January 10, 2009] Richards, J. (2008) Induction. [Internet]. Available from <http://www. cipd. co. uk/subjects/recruitmen/induction/induction. htm> [January 10, 2009]

Henry Mintzberg, Abraham Maslow and Michael Porter are renowned gurus whose hard works have left a footprint on management. Some of their works has helped in explaining the success and failure of big businesses over the past few decades and question marks have been raised in recent years if their work can still be applied to our present environment considering the rapid rise in globalisation and technological innovations.

Few of the works done by these management experts have been on significant topics such as leadership, strategy and motivation, but this essay will focus on the effort of Porter in elucidating how businesses can gain competitive advantage in our growing competitive environment. The essay aims to assess Porter’s contribution to the way in which people in an organization think about, assess, view, and create the future for themselves and their associates. However, given the space available the essay will only take a detailed look at the most criticised work of Porter and only few of his other works will be described.

This essay will be based on previous researches by academics and strategists, and all information should not be judged as accurate but as a springboard since they are mostly based on historical theories. In order to get a grip of the essay; it is necessary to highlight the key words related to the topic of the essay as any precise delusion can de delusive. To start with, Wit and Meyer (2002) defined strategy in terms of organisational objective as a course of action for achieving an organization’s purpose.

For Kay (1996), strategy is the match between the organisation’s internal capabilities and its external relationships, describing ‘how it responds to its suppliers, its customers, its competitors, and the social and economic within which it operates’ (cited in Boddy, 2002 page 165). Both definitions are acceptable but assessing various strategies is the theme of the essay that is why a well defined structure of the essay is required. The first part will introduce Porter’s works, the major assumptions of five forces analysis and Resource Based View.

The second part will detail the fundamental differences between Porter’s work and recent works such as RBV before highlighting key areas of debate principally those presented by D’Aveni, Hamel and Downes. The third part will give a brief evaluation on how Porter’s work has developed our understanding of Strategy which will help develop a conclusion to the essay. From the eighties, Porter has developed a number of models for businesses on how to gain competitive advantage.

Porter developed models such as three generic strategies, five forces analysis, Porter’s diamond and value chain. In his three generic strategies model, Porter (1980b, 1985) identified two basic types of competitive advantage namely low cost or differentiation (cited in Wit & Meyer, 2002 page 350). He developed a third generic strategy from this called focus and proposed that an organization that hopes to achieve a sustainable competitive advantage must implement one of the three strategies.

This is not the first and the very last of Porter’s works and another model he developed was value chain analysis (1985) where Porter argued that it is necessary to examine activities separately in order to identify sources of competitive advantage (Boddy 2002, page 166-167). The value chain provides a way to identify a firm’s sources of differentiation where it results from actual uniqueness in creating buyer value and from the ability to signal that value so that buyers perceive it (Toby Harfield, Strategic Management and Michael Porter: a postmodern reading).

However, it is five forces analysis that has attracted the most number of criticisms. The model, developed by Michael E. Porter in his book “Competitive Strategy: Techniques for Analyzing Industries and Competitors” in 1980 (www3) pointed out that the state of competition in an industry is determined not only by the existence of competitors but also by the strength of buyers (customers) and suppliers, by the existence of substitute products or services and by the ability of new competitors to enter the industry which he collectively referred to Porter’s five forces.

However, he argued that whatever the collective strength, the corporate strategist’s goal is to find a position in the industry where his or her company can best defend itself against these forces or can influence them in his favour (Mintzberg et al, pg 61). Thorelli 1977; Masson & Quall 1976 explained that forces mentioned above determine the conduct of firms, which in turn determines firm performance (Toby Harfield, Strategic Management and Michael Porter: a postmodern reading).

Although the five forces analysis has become an important device for analyzing strategy the vast number of criticisms received consequently led to the development of a different approach called the Resource Based View (RBV). RBV, which has received the highest number of plaudit since the evolution of Porter’s work was first spotted in Wernerfelt’s article in 1984 before further development by Rumelt 1984, Barney (1986a; 1986b; 1988; 1991) (power point).

RBV explains how a company’s resources drive its performance in a dynamic competitive environment (David J. Collis et al, 1995, pg 118-128). The idea behind the development of RBV is to state the importance of resources to gaining competitive advantage over rivals where resources are heterogeneous in nature. In clarifying the prerequisite of resources Barney (1991) explained that a firm resource must be valuable, rare, and imperfectly imitable and substitutable in order to be source of a sustained competitive advantage (cited in Henderson and Mitchell, 1997).

However, both frameworks have received appraisals but conflicting assumptions have been made by both theories which further developed more theoretical views. Porter 1980 assumes that understanding the external environment and decision making (or “moves”) according to the five forces is the primary role of strategy, thus opposing the argument of Barney 1986a who argued that analyzing internal skills and capabilities produces more accurate information on the potential value of strategic resources than does environmental analysis (www2).

Barney’s argument wasn’t wholly accepted by Priem and Butler (2001 a & b) but argued that Barney’s (1991) statement “if a resource is valuable and rare, then it can be source of competitive advantage” is necessarily true if the concepts ‘valuable’ and ‘competitive advantage’ are defined in the same terms (cited in Henderson and Mitchell, 1997). It is obvious from this point that Porter’s assumptions have developed other strategist notions which are cited further.

Another underlying assumption made by Porter is the homogeneity of firms which revealed that all firms have the same ability to implement the right strategy, which contradicts the basic premise of the RBV that all firms are different and consequently do not have the same ability to implement a given strategy (www1). Even though both theories have been applauded, theorists have not been totally overwhelmed by the five forces analysis and RBV; different strategies are still in constant development which they deem useful for our current environment.

D’Aveni (1995) in his article “Coping with hypercompetition” claimed that no organization can build a competitive advantage that is sustainable in our dynamic environment as any advantage gained is only temporary, therefore companies must actively work to disrupt their own advantages and the advantages of competitors by employing a new 7S’s framework. IBM is an example mentioned to have suffered from ignoring this approach.

Firstly, this view opposes that of Porter and RBV as its strategy does not believe in a sustainable competitive advantage. Secondly, it can be deduced from D’Aveni’s article that Porter’s model assumes a relatively static market structure (Porters five forces article www3) by saying that the forces mentioned by Porter such as buyer and supplier power (Five forces analysis) that raises barrier to entry and leadership in price and quality (three generic strategies) are not enough to guarantee success.

Downes (2001) saw a similar argument in his article “Beyond Porter” where he quoted that “Porters theories base on the economic situation in the eighties and the period was characterised by strong competition, cyclical developments and relatively stable market structures”. He condemned the view made by Porter that competitive advantages develop from strengthening the own position within the five forces framework and stated that three new forces namely digitalization, globalization and deregulation should be taken into context has the main driver for change today is technology.

Hamel (1996) also conducted a work on strategy in an article called “Strategy as Revolution” where he categorised companies based on their successes into rule makers, rule takers and rule breakers. Logically, IBM whose strategy was also questioned by Downes (2001) was tagged as a rule maker because they have shaped their industry but subsequently failed. Tagged with rule breakers (the industry revolutionaries) is Dell Computer whose intent is to overturn the industrial order with the support of the crumbling oligarchy under the weight of deregulation, technological upheaval, globalization and social change.

It is evident that Porter’s five forces analysis is extremely influential in the field of strategic management as it has developed other strategic views and further improved our understanding of strategy. Porter’s work has been the basis for recent strategic notions and his work has received more criticism than RBV which followed suit. Referring back to the question, Porter has developed numerous strategic frameworks with the most criticised work being the five forces analysis which has the most impact on strategic thinking.

His work mystified many strategists because of the one-sided approach of the model where it made certain assumptions such as external environment is the primary role of strategy, homogeneity of firms and market structures are relatively stable. These assumptions led to the development of RBV whose main unit of analysis was the internal environment. RBV claimed that the key to sustaining competitive advantage is to have resources which are valuable, rare, imperfectly imitable and substitutable.

Briem and Butler debated this approach where they said it is the way the concept are defined that determines if it is a source of competitive advantage. Other strategists were not left in the cold and they voiced out their criticisms of Porter’s work. D’Aveni stated that there is no sustainable competitive advantage and market structures are dynamic. Downes claimed that three new forces namely digitalization, globalization and deregulation should be taken into context has the main driver for change today is technology and not just the forces mentioned by Porter.

Lastly, Hamel in his article explained that companies can either be a rule taker, maker or breaker. In order to give a valid conclusion to the essay, it is important to reconsider the definition made by Kay (1996) where strategy definition was given has the match between the organisation’s internal capabilities and its external relationships. It would be correct to state that a successful strategy will take both the internal and external environment into consideration when developing its strategy.

It is obvious that neither the five forces analysis nor the RBV has done so in this case; none of the theories can be considered capable of achieving competitive advantage but will only be valuable if both approaches are combined. Based on the level of knowledge of this essay it would be interesting to see a strategist which will develop a strategy that will link the internal resources with the external environment.

Before going international a company needs to a have a good marketing plan. Planning can be defined as exercising foresight regarding the anticipated outputs of an organization in order to maximize the inputs available (Ansoff, H. I. , 1965). If the required inputs in terms of advertising, promotion, production and personnel are beyond the firm’s capability then the goal should be modified to reflect available resources. This will be through a marketing plan (Winer, R. S. , 2007).

Marketing plan can only be effective if it has the following the following should be implemented; an investigation of the present situation, consider alternative causes of action, select one of the alternatives, provide both human and material resources, communicate with everyone involved so that each knows his or her particular role in the process and evaluate progress periodically in order to ensure that action is taking place according to the plan (Ansoff, H. I. ,1965).

Like any other marketing plan a good international marketing plan lays out the broad marketing objectives and strategy based on the analysis of the current market situation and the opportunities. A marketing plan assists business strategic units achieve their objectives in the market hence there is need for a good marketing plan. Managers of a company have to follow a marketing plan in order to achieve their objectives (Ansoff, H. I. ,1965). They have to work within plans set by people above them for the company’s goals.

This consists of analyzing the current marketing opportunities, researching and selecting the target markets, then they will design marketing strategies, plan the marketing programs. Then the process of organizing, implementing and controlling the marketing effort follows. A marketing plan is vital for each company, product line or even brand, for effective achieving of goals. A good international plan will assist an international company in the marketing process. A marketing plan has the following main features:

Executive summary- This is where there are presented all the information that regard the data on the sales, profits, market, competitors, distribution and channels and all the environmental factors that are relevant for the company. Opportunity and issue analysis- Here, major opportunities are identified so that they can be exploited. Threats are also identified so that they can be evaded. At this point, the company does a short analysis on issues facing the international market (Winer, R. S. , 2007).

Objectives- Here there is the relation of the plans financial objectives and the marketing objectives because a good plan is that which has less cash but brings high sales volumes. Marketing strategy- Here the planner will develop a good game plan for the company, a careful course of action to accomplish the company’s objectives. This is done in consultation with all parties of the company i. e. finance, purchases, production and marketing(Winer, R. S. ,2007). Action programs- A good marketing planner identifies the broad objectives that will assist the company to achieve business objectives.

What will be done, who and how much it will cost. Projected costs- Here the plan budget is drawn and both the profits and losses will be considered and the financial outcomes and finally the plan controls will be developed to indicate how the plan will be mentioned (Wernerfelt, B. , 1984 and Weitzel, W. & Johnson, E. , 1989). A good international marketing plan will enable a company to enter a given country with each other. It must however be a continuous process to respond to the international changing conditions.

Marketing plans vary from company to company and have various names. Some call them game plans and also marketing plans. They should be taken seriously if company goals are to be achieved (Winer, R. S. ,2007).. Transnational segmentation across international boundaries. Market segmentation involves the systematic analysis of market characteristics: the relationship between the demand and certain consumer traits, needs and preferences and the manner in which specific goods fits into certain market segments in the process of need – satisfaction.

In most cases market segmentation is applied on the basis of geographical, demographical and psycho graphical information or a combination of such data. Every marketing problem, however must obviously be approached in the light of particular objectives and circumstances. Consequently the research needs and the criteria used for purposes of marketing segmentation will differ from one product to another and one type of market segment to another(Winer, R. S. ,2007).

In traditional marketing research survey were mainly aimed at collecting information on standardized demographical and social economic variables such as age, population group, language differences, and levels of education, occupation and income groups. A more recent development in research for market segmentation purposes is the analysis of the market in terms of consumer motivation and expectation as well as actual buying behavioral patterns (Ansoff, H. I. ,1965). There are a certain groups of variables which are employed for the purposes of segmenting market for consumer goods.

These include geographical, demographical, socio –economic and psycho graphical factors in an analysis of consumer characteristic and behavior. Depending on the nature of the relevant products and the distinguishing nature of market segments, the analysis of certain variables might be superfluous and it might be necessary to give special attention to the other variables (Winer, R. S. ,2007). The market can go further and try to analyze certain consumer reactions (changes in behavioral patterns) to his policy and strategy for segmentation purposes.

There are a number of aspects that should be take into account in analyzing such possible consumer reactions. The approach is that both objective and subjective criteria must be employed in an attempt to study consumer reactions to each of the elements of the marketing mix. The methods used to investigate these reactions are of course qualitative, difficult and expensive to apply and the results are often unreliable (Wernerfelt, B. , 1984 and Weitzel, W. & Johnson, E. , 1989).

Introduction to Strategy and Operations Management| Operations Strategy| Product Design| Process Design| Supply Networks| Layout and Flow| Scientific Management and Job Design| Introduction to Quality – A Choice Paradigm| Operationalizing Strategy| Review and Examination Preparation| Operations Strategy Strategic decisions Widespread in their effect, define the position of the organisation relative to its environment and move the organisation closer to its long term goals * A strategy has content and process Operations is not the same as operational * Operations – resources that create products and services * Operational – opposite of strategic. Day-to-day and detailed Content and Process * Content – specific decisions and actions * Process – method that is used to make the specific ‘content’ decisions 4 Perspectives Top Down – the influence of the corporate or business strategy on operations decisions * Bottom-up – the influence of operational experience on operations decisions * Market requirements – the performance objectives that reflect the market position of an operations products or service, also a perspective on operations strategy * Operations resource capabilities – the inherent ability of operations processes and resources; also a perspective on operations strategy. Products * Tangible Are used after purchase Services * Intangible * Used at the time of delivery TOP DOWN PERSPECTIVE Views strategic decisions at a number of levels Corporate strategy – the strategic positioning of a corporation and the businesses with it Business strategy – the strategic positioning of a business in relation to its customers, markets and competitors, a subset of corporate strategy Functional strategy – the overall direction and role of a function within the business; a subset of business strategy

BOTTOM UP PRESPECTIVE Sees overall strategy as emerging from day-to-day operational experience Emergent strategy – a strategy that is gradually shaped over time and based on experience rather than theoretical positioning MARKET REQUIREMENTS PERSPECTIVE -Satisfy the requirements of the market Competitive factors – the factors such as delivery time, product or service specification, price etc. hat define customers’ requirements Order-winning factors – the arrangement of resources that are devoted to the production and delivery of products and services Qualifying factors – aspects of competitiveness where the operation’s performance has to be above a particular level to be considered by the customer Less important factors – competitive factors that are neither order winning nor qualifying, performance in them does not significantly affect the competitive position of an operation Product/service life cycle – a generalized model of the behaviour of both customers and competitors during the life of a product or service; it is generally held to have four stages, introduction, growth, maturity and decline. OPERATIONS RESOURCES PERSPECTIVE Resource-based view (RBS) – the perspective on strategy that stresses the importance of capabilities (sometimes known as core competences) in determining sustainable competitive advantage.

Intangible resources – the resources within an operation that are not immediately evident or tangible, such as relationships with suppliers and customers, process knowledge, new product and service development. PROCESS OF OPERATIONS STRATEGY Process – procedures which are, or can be, used to formulate those operations strategies which the org. should adopt. IMPLEMENTATION 5 P’s of operations strategy formulation * Purpose * Point of entry * Process * Project management * Participation TRADE-OFFS The extent to which improvements in one performance objective can be achieved by sacrificing performance in others. PROCESS OF OPERATIONS STRATEGY GUIDES THE TRADE OFFS B/W PERFORMANCE OBJECTIVES Operations strategy – Should address the relative priority of the operation’s performance objectives * Influences the trade-offs b/w an operation’s performance EFFICIENT FRONTIER Like in economics – convex line. Useful approach to articulating trade-offs and distinguishes b/w repositioning performance on the efficient frontier and improving performance by overcoming trade-offs. FOCUS AND TRADE-OFFS Operations focus – dedicating each operation to a limited, concise, manageable set of objectives, products, technologies or markets, then structuring policies and support services so they focus on one explicit task rather than on a variety of inconsistent or conflicting tasks.

Operation-within-an-operation – allows an org. to accrue the benefits of focus without the considerable expensive of setting up independent operations. Design DESIGN ACTIVITY To conceive looks, arrangement and workings of something before it is constructed. Happens before construction. PROCESS DESIGN AND PRODUCT/SERVICE DESIGN ARE INTERREALTED Treated separately but are interrelated. Process design and product/service design should be considered together PROCESS DESIGN OBJECTIVES Point of process design is to make sure that the performance of the process is appropriate for whatever it is trying to achieve. Process design should reflect process objectives Micro’ performance flow objectives are used to describe flow performance: * Throughput rate – rate which units emerge from the process * Throughput time – the time for a unit to move through a process * Work in process – number of units in the process is an average over a period of time * Utilization- the ratio of the actual output from a process or facility to its design capacity ENVIRONMENTALLY SENSITIVE DESIGN Life cycle analysis – a technique that analyses all the production inputs, life cycle use of a product and its final disposal in terms of total energy used and wastes emitted. PROCESS TYPES – THE VOLUME VARIETY EFFECT ON PROCESS DESIGN High volume = food canning factory Low volume = major project consulting engineers Low variety = electricity utility High variety = architects practice Low volume – high variety and vice versa Volume variety positions

PROCESS TYPES Process types – terms that are used to describe a particular general approach to managing processes In manufacturing these are generally held to be project, jobbing, batch, mass and continuous processes, In services they are held to be professional services, service shops and mass services PROJECT PROCESSES – processes that deal with discrete, usually highly customized, products. JOBBING PROCESSES – processes that deal with high variety and low volumes, although there may be some repetition of flow and activities. BATCH PROCESSES – processes that treat batches of products together, and where each batch has its own process route.

MASS PROCESSES – processes that produce goods in high volume and relatively low variety CONTINUOUS PROCESSES – processes that are high volume and low variety; usually products made on continuous process are produced in an endless flow, such as petrochemicals or electricity. PROFESSIONAL SERVICES – service processes that are devoted to producing knowledge-based or advice-based services, usually involving high customer contact and high customisation, examples include management consultants, lawyers, architects etc. SERVICE SHOPS – service processes that are positioned between professional services and mass services, usually with medium levels of volume and customization. MASS SERVICES – service processes that have a high number of transactions, often involving limited customization, for example mass transportation services, call centres etc. PRODUCT-PROCESS MATRIX

A model derived by Hayes and Wheelwright that demonstrates that natural fit between volume and variety of products and services produced by an operation on one hand, and the process type used to produce products and services on the other. Natural diagonal – most operations stick to this. PROCESS MAPPING Describing the processes in terms of how the activities within the process relate to each other (aka process blueprinting or process analysis) PROCESS MAPPING SYMBOLS PMS – The symbols that are used to classify different types of activity; they usually derive either from scientific management or information systems flow charting High-level process mapping – an aggregated process map that shows broad activities rather than detailed activities THROUGHOUT, CYCLE TIME AND WORK IN PROCESS

Work content – the total amount of work required to produce a unit of output, usually measured in standard times Throughput time – the time for a unit to move through a process Cycle time – average time b/w units of output emerging from a process Work-in-process – number of units within a process waiting to be process further LITTLES LAW Throughput time = work-in process x cycle time THROUGHPUT EFFICIENCY % Throughput efficiency = (work content/throughput time) x 100 PRODUCT AND SERVICE DESIGN WHY IS DESIGN IMPORTANT? -Enhances profitability WHAT IS DESIGNED? * Concept – outline specification including nature, use and value of p/s * Package – Core p/s – fundamental to the purchase and could not be removed without destroying nature of the package * Supporting p/s – Enhance the core * Process – designing a way in which the ‘ingredients’ will be created and delivered to customer DESIGN ACTIVITY IS ITSELF A PROCESS -The design activity is one of the most important operations processes -Producing designs for products is itself a process STAGES OF DESIGN 1. Concept generation – a stage in the product and service design process that formalizes the underlying idea behind a product or service 2. Screening – to see if they will be a sensible addition to its p/s portfolio 3. Evaluation and improvement – can it be served better, more cheaply, more easily? 4. Prototyping and final design

CONCEPT GENERATION IDEAS FOR CUSTOMERS -Marketing – focus groups etc. LISTENING TO CUSTOMERS -Complaints –suggestions IDEAS FROM COMPETITORS Reverse engineering – the deconstruction of a p/s in order to understand how it has been produced IDEAS FROM STAFF Know what customers like etc. IDEAS FROM RESEARCH & DEVELOPMENT R&D – the function in the org. that develops new knowledge and ideas and operationalizes the ideas to form the underlying knowledge on which p/s and process design are based. CONCEPT SCREENING Assessing the worth or value of each design option, so a choice can be made. * Design criteria – 3 broad categories of design criteria” 1.

Feasibility – the ability of an operation to produce a process, product or service 2. Acceptability – the attractiveness to the operation of a p/s 3. Vulnerability – the risks taken by the operation in adopting a process, p or s THE DESIGN ‘FUNNEL’ A model that depicts the design process as the progressive reduction of design options from many alternatives down to the final design. PRELIMINARY DESIGN SPECIFYING THE COMPONENTS OF THE PACKAGE Component structure – diagram that shows the constituent component parts of a product or service package and the order in which the component parts are brought together (aka components structure) REDUCING DESIGN COMPLEXITY Simplicity is a virtue

STANDARDIZATION The degree to which processes, products or services are prevented from varying over time COMMONALITY The degree to which a range of p/s incorporate identical components (aka parts commonality) If multiple p/s are based on common components, the less complex it is to produce them MODULARIZATION The use of standardized sub-components of a p/s that can be put together in different ways to create a high degree of variety. I. e. Art attack. Many languages, 60% scenes the same DEFINING THE PROCESS TO CREATE THE PACKAGE Examine how a process could put together the various components to create the final p/s. DESIGN EVALUATION AND IMPROVEMENT

See if preliminary design can be improved before the p/s is tested in the market. Many techniques (3 main ones): 1. QUALITY FUNCTION DEPLOYMENT A technique used to ensure that the eventual design of a p/s actually meets the needs of its customers. QFD matrix – how company sees relationship b/w requirements of customer and the design characteristics of p/s 2. VALUE ENGINEERING An approach to cost reduction in product design that examines the purpose of a p/s, its basic functions and its secondary functions. 3. TAGUCHI METHODS A design technique that uses design combinations to test the robustness of a design I. e. Telephone – should still work when has been knocked over. Pizza shop – cope with rush of customers

PROTOTYPING AND FINAL DESIGN Prototype can be clay model, simulations etc. Virtual prototype –a computer based model of a p/p/s that can be tested for its characteristics before the actual p/p/s is produced Computer-aided design (CAD) – a system that provides the computer ability to create and modify p/p/s drawings BENEFITS OF INTERACTIVE DESIGN Interactive design – the idea that the design of p/s on one hand, and the processes that create them on the other, should be integrated Can shorten time to market SIMULTANEOUS DEVELOPMENT Sequential approach to design – one stage completed before another is started * Easy to manage and control * Time consuming and costly

Simultaneous/concurrent approach to design – overlapping these stages in the design process so that one stage in the design activity can start before the preceding stage is finished, the intention being to shorten time to market and save design cost PROJECT-BASED ORGANIZATION STRUCTURES Functional design organization Product design organization Range of org. structures = Pure functional to pure project forms. Task force Matrix organization LAYOUT AND FLOW WHAT IS LAYOUT? -How its transforming resources are positioned relative to each other and how its various tasks are allocated to these transforming resources. – Layout decision is relatively infrequent but important What makes a good layout? – Inherent safety – Length of flow – Clarity of flow – Staff conditions – Management coordination – Accessibility – Use of space – Long-term flexibility – Layout is influenced by process types BASIC LAYOUT TYPES 4 basic layout types: FIXED-POSITION LAYOUT -Locating the position of a product or service such that it remains largely stationary, while transforming resources are moved to and from it I. e. Motorway construction, open-heart surgery (patients too delicate to be moved). FUNCTIONAL LAYOUT * Conforms to the needs and convenience of the functions performed by the transforming resources which constitute the processes. Similar resources or processes are located together * I. e. Hospitals, supermarket CELL LAYOUT * Transformed resources entering the operation are pre-selected to move to one part of the operation in which all the transforming resources, to meet their immediate processing needs, are located. * I. e. Maternity unit in a hospital, lunch products in a supermarket * Shop-within-a-shop – display area selling specific thing. I. e. sports shop – sports books, sports shoes, etc. PRODUCT LAYOUT Line layout – a more descriptive term for what is technically product layout Involves locating the transforming resources entirely for the convenience of the transformed resources. I. e. Automobile assembly

Self-service cafeteria – sequence of customer requirements (starter, main, dessert, drink) is common to all customers, but layout also helps control flow of customers. MIXED LAYOUTS Combination of layouts I. e. 1 kitchen serving 3 restaurants (cafeteria, buffet and sit down) VOLUME-VARIETY AND LAYOUT TYPE -The volume and variety characteristics of an operation will influence its layout – When volume is low and variety high, flow is not a problem SELECTING A LAYOUT TYPE -Volume-variety characteristics narrow down choice -Influenced by understanding advantages and disadvantages (see p198) – Cost implications DETAILED DESIGN OF THE LAYOUT DETAILED DESIGN IN FIXED POSITION LAYOUT Location of resources based on the convenience of transforming resources themselves. DETAILED DESIGN IN FUNCTIONAL LAYOUT Combinatorial complexity – the idea that many different ways of processing products and services at many different locations or points in time combine to result in an exceptionally large number of feasible options; the term is often used in facilities layout and scheduling to justify non-optimal solutions Flow record chart – a diagram used in layout to record the flow of products or services between facilities Relationship chart – a diagram used in layout to summarize the relative desirability of facilities to be close to each other.

Over the years, scholars in management have agreed on the importance of centralized planning in enhancing greater objectivity and therefore dividing the needed mechanism for achieving them. According to Oosten (2008, p. 49), centralized planning facilitates the ability to gauge the existing market forces against the organization’s capacity to address them. As indicated by porter’s five forces, through a centralized planning system, managers can easily create the impetus for change by either acting as the elements for change, or facilitating its understanding by their subjects.

A highly decentralized planning system was cited to be the major cause of Royal Dutch Shell Group dropping its market share in the wake of oil crisis and emergence of new competitors. To address this consideration, the group sought to centralize its planning system by reducing the number of corporate units while establishing a business sector based management structure to replace the geographically based ones (Grant, 2008. P. 122). In his view, William (2009, p.

41) points out that centralization of planning enhances the chances of harmonizing the major business objectives in the management level by subjecting all the viewpoints to a small management unit. In his view, a centralized planning system generates higher levels of flexibility for a business unit thereby limiting the number of consulting individuals and providing the needed guideline with authority. Donald (2009, pp. 69-70) points out that international organizations are indeed very complex and therefore requires overhead analysis for clearer decision making.

Due to the efficacy of their centralized planning, Grant (2008, pp. 121-122) points out that Royal Dutch Shell Group competitors such as Mobil and Exxon were easily arriving at the correct decisions to address emergent market forces. As a result of this realization, the Royal Dutch Shell Group assimilated a new business sector based management that would be easier to generate and guide new decisions for addressing the emerging competition. Application of centralized planning is on the other hand highly perilous in that a few leaders’ mistakes can have great impacts to a whole company.

The Guanxi theory indicates that organizations should articulate the necessary cultural viewpoint in generating key conclusions and recommendations on different issues. From this view point therefore, Michael (2008, pp. 61-62) argues that most of the managers at the top lack the necessary checks and balances from the lower level and regional units. World Bank (2005, pp. 16-17) indicates that a centralized planning system acts as a closed system where most at the lower level consider themselves to be recipients as opposed to important components of an organization unit.

Therefore, it often fails to invoke the needed creativity and innovation especially from the lower levels which are very critical for alternatives generation and implementation. Besides, lack of this identity as Azhar (2002, pp. 78-79) postulates, can invoke key resistance to the established management decisions. b) Local initiatives According to World Bank (2005, pp. 19-20) multinationals form some of the most complex organizations to create and maintain focus due to their extended outlook. Local initiatives therefore form an important standpoint for generating and maintaining the needed information for the main multinationals’ management.

After its formation, and indeed the first half of the 20th century, Royal Dutch Shell Group increased its local initiatives and units through covering all the geographical areas in the globe (Grant, 2008. pp. 122-123). This made it to become an internationally renowned giant in the petroleum industry. Local initiatives act as the extended business points and therefore provide further analysis on emerging forces and how to address them. According to the Porters five forces on competitors, information on new areas and competitors is very critical to maintain a leading share in the market (Thomas and Worley, 2008, p.

45). Notably, local initiatives often lack the necessary capacity to make the correct decisions in guiding the market for the different multinationals globe. Oosten (2008, p. 102) indicates that multinationals often concentrate their management at the top of their structure which they consider to have the needed ability for analyzing the market through other aspects such as the media. Indeed, due to the large distance often maintained between them and the mother organizations, they are hard to supervise and control and indicate additional costs.

Notably, despite the Royal Dutch Shell Group maintaining strong local initiatives, they were unable to effectively cite and come up with mechanism to address the fast rising competition that culminated to emerging of new players and the great restructuring (Grant, 2008, p. 122-123). c) Transnational Networks In his view, Azhar (2002, pp. 80-81) explains that transnational networks forms one of the most effective mechanism for maintaining an extended outset for gathering the needed information in multinationals. By maintaining transnational networks, an organization manages to get highly synthesized information for its external market.

Peter, Marion and Allen (2008, P. 102) explain that taking into consideration that most of the networking occurs at the same level (managers to managers) and information assimilated do not require extended analysis compared to that from local initiatives. Following the understanding of the efficacy attached to transnational networks, Royal Dutch Shell competitors easily came up with new strategies to counter the fast changing business environment in the petroleum industry (Grant, pp. 121-122). Besides, Michael et al (2008, p.

103) indicate that transnational networks form the best platform upon which organizations create new progression ideologies on specific issues. Therefore, they facilitate an expanded thinking consideration for managers in an open system. Particularly, the managers are subjected to varied industries’ decisions and their execution mechanisms; a consideration that Laurie (2007, p. 79) credits for invoking the need for continuous improvement. According to Chase (2006, p. 31), transitional networks are highly perilous in that they expose multinational organizations’ management strategies to other companies.

Taking into consideration that most of the transnational networking is not legally binding, competitors can easily capitalize on them to understand and therefore establish counter strategies for an organization management. Besides, transnational networks applications are limited to only regions and companies that have similar interests (Nigel, Stuart and Robert, 2007, p. 27). As a result, the companies may limit their exploration and access to new markets in areas without effective networking. 4) “The royal Dutch Shell Group ———– is the world’s biggest and oldest joint venture” (Case p. 122).

What can be learnt from this case about the effectiveness of different strategies for managing the paradox of competition and cooperation within international joint venture? Joint venture initiatives as Oosten (2008, p. 104) indicates, have remained some of the most important organizations to scholars in that they demand peculiar management that cuts across social economic and political forces which defines their ability to grow and maintain the needed objectivity. The following factors bring out the key lessons learnt on the effectiveness of managing international joint ventures in managing the paradox of competition.

i) The importance of strategic focus in their formation and management In his view, Donald (2009, pp. 99-100) indicates that strategic management indicates that joint venture organizations at the international level must be able to create a strategic focus during their formation and maintaining objectivity in their operations. During its formation, (Grant, 208, p. 122) indicates that Royal Dutch Shell Group lacked an effective strategic focus to steer head its key operations throughout the century.

As Grant continues to say, the Royal Dutch Shell Group continues to maintain separate identities for the mother companies (pp. 126-127). This was cited to be highly perilous especially in the 21st century by creating divergent viewpoints on the common objectivity. Management of joint ventures through strategic planning facilitates easier analysis of internal and external forces and evaluating the most effective alternatives to not only addressing the problems, but further curving the need for improvements.

According to Peter et al (2008, p. 86), the porter’s five forces application in strategic management facilitates the need for a long term derived mission for guiding it to profitability. Joint ventures at the international level should further seek to facilitate cohesion through constant strategic objectives evaluation for their objectives to generate the need for addressing new challenges (Harold and Heinz, 2006, p. 52). ii) Enrichment of an organization’s culture at all levels According to Tsoukas and Robert (2002, pp.

33-34), organizations must seek to develop their unique cultures that define and facilitate objectivity. International joint ventures should seek to enrich and harmonize their cultures in tandem with their key objectives while reflecting the social economic and political outset in the countries they operate in. Due to lack of this cultural flexibility, Royal Dutch Shell Group got under increasing threat from its competitors (Grant, 2008, pp. 121-122). As Hofstede cultural model indicates, Alan (2009, p.

77) notes that organizations should seek to facilitate new ideologies and inculcate them towards increasing their market preferences. The management model that defined Royal Dutch Shell Group had to be changed for the company to assimilate a new outlook, revitalize it operations, and therefore increase its profits sustainably (Grants, p. 121). iii) Assimilation of change as an element of continuous improvement Grant (2008, p. 121) presents a critical viewpoint that international joint ventures are often faced with at one time or another.

The need for change in the modern organization management is the only permanent aspect that can be used to generate the needed readjustments to colonize new markets and therefore maintain greater lead compared to its competitors. Following the fast shifting international pressures in the petroleum industry, Royal Dutch Shell Group competitors assimilated change and therefore restructured its systems and therefore revitalized their objectives in harmony with market orientation (Grant, 2008, p. 128).

Following this reorganization, these new forces were able to emerge as a key threat to the existing giant (Royal Dutch Shell Group) which appeared rigid to assimilate and implement change. However, sensing the fast approaching loss in the market share control, Grant, indicates that Royal Dutch Shell Group had to change its structure and therefore its holistic approach in addressing the new market forces Grant (2008, P. 121). Pointing at the need to generate a new system that is acceptable to all, Alan (2009, p.

85) points out that all units in an organization should be effectively represented and their contribution factored in making the needed improvement in the company. iv) The need for a centralized and highly responsive structure One of the most evident aspects from this study is the need for direct control and effective analysis of the management propositions in the international joint ventures. After its formation, the new Royal Dutch Shell Group had the sky being the only limiting force for growth and development.

Grant indicates that the highly decentralized method appeared to work effectively due to reduced competition (2008, P. 126-127). However, joint ventures should avoid such arrangements in that they are not sustainable and cannot resist forces of the market effectively. After the Second World War, the emergence of the national oils and new competitors became a riddle and therefore threatened it with losing its world market share. As Grant (2008, p. 123) indicates, the immediate competitors had highly centralized system which they employed to get a better grip of the market.

Conclusion It is from the above discussion that this paper concludes by supporting the thesis statement, “the ability of an organization to re-evaluate its systems and restructures its operations in tandem with changing market forces acts as the most important aspect in facilitating its continued market dominance and sustainability”. As it was evidenced by the Royal Dutch Shell Group, organizations should be able to effectively reevaluate the demands of the market in tandem with the prevailing forces and act with speed to prevent losing their market share.

Change must therefore be assimilated a key facet in their structures and most importantly, as a tool for continuous improvement. Reference list Alan, M. (2009). The Oxford Handbook of International Business. Oxford: Oxford University Press. Azhar, K. (2002). Business policy and strategic management. Sydney: McGraw-Hill Chase, H. (2006). Operations Management for Competitive Advantage. London: a McGraw-Hill Donald, M. (2009). Mergers, Acquisitions, and Other Restructuring Activities: An Integrated Approach to Process, Tools, Cases, and Solutions. New York: Academic Press. Grant, R. (2008). Cases to Accompany Contemporary Strategy Analysis.

Sixth edition. Oxford: Blackwell Publishing. Harold, K. & Heinz, W. (2006). Essentials Of Management. New York: McGraw-Hill. Laurie, M. (2007). Management & Organisational Behaviour, 8th Edition, FT Pearson, Harlow. Michael, A. , Duane, I. & Robert, E. (2008). Strategic management: competitiveness and globalization: Concepts & cases. New York: Cengage Learning. Michael, E. (2008). The Five Competitive Forces that Shape Strategy. New York: Sage. Nigel, S. , Stuart, C. and Robert, J. (2007). Operations management. Brussels: Sage. Oosten, J. (2008). Process Management Based on SqEME 2008: A Horizontal Approach to

Introduction This is a 2,000 word individual assignment which covers the following learning outcomes: • Apply knowledge and skills in relation to the key aspects of the strategic management process. • Compare different theories and perspectives of strategic management and use and appraise them appropriately. Content |Page | |Introduction |1 | |Instructions for the Assignment |2 | |Assignment Guidelines |3 | |Assignment Structure |4 | |Performance Criteria |5 | To complete this assignment, you are required to select one of the articles listed below. The titles of the articles are as follows: Kwaku Ahenkora, Ofosuhene Peasah (2011). “Crafting Strategies that measure up”. International journal of Business Management, 2011 Le Merle M (2011). “How to prepare for a Black Swan” Strategy-Business August 2011 Kandybin, Genevo (2011), Big Pharma’s Uncertain future, Strategy-Business November 2011 Instructions for the assignment This is an individual assignment whereby your task is to prepare a comprehensive academic essay based on the article chosen: a) Evaluate the nature of the strategic issue – 20% ) Evaluate using published models and frameworks the article you have chosen—that is, what specific conditions enabled or encouraged it or any other strategic issues you want to discuss– 40% c) Recommend steps or conclude based on your evaluation. – 40% Attention will be paid to: • Critical evaluation and discussion. Issues will be dealt with deeper and on an analytical plane, based on good research – with industry examples, data projections and commentaries. • Balanced researched materials. Appropriate and different sources which must include sufficient academic research, not just secondary research from URLs or Wikipedia. • Proper referencing and citation. Harvard Referencing is a must. Citation must include, apart from the normal details, the page number of the where issue for discussion has been taken from. Assignment guidelines

For words in excess of 2,000 words the penalties are as follows: The penalties will be as follows: Up to 10% excess words:no penalty 11-20% excess words:- 5% penalty 21-30% excess words:-10% penalty 31% plus excess words: cannot achieve more than a pass grade (50%). Guidelines: A written essay must be compiled in a suitable format that must incorporate the following: • A clear and concise outline of the practical strategic management issues; • Generation of conclusions that draw upon both theoretical and practical aspects; • Use of appropriate terminology that will indicate a thorough understanding of strategic management concepts; • Suitable eferencing of the materials used to support arguments put forward that will indicate competence in the academic issues discussed; • Evidence to suggest a more in-depth understanding of the marketing concepts being reviewed and their practical applications; • Written content and structure that will demonstrate practical benefits being derived from the module, reading lists and research required for the assignment; • A wide range of contemporary sources used and cited (a minimum of 5 and not before 1999 onwards). Mark Distribution for assignment The mark allocation for the assignment will be as follows: ? 40% of the mark will be allocated for familiarity with subject/material and evidence of original thinking. 40% of the marks will be allocated for Quality of argument/reasoning; the depth of analysis; expansion of ideas/argument and recognition of wider context/complexity of topic ? 20% will be allocated for the use of supporting evidence; acknowledgement of sources: references, quotes, statistics and range and relevance of bibliography Assignment Structure When completing the assignment it should have the following general structure: • Title page. • Executive summary, abstract or synopsis. • Contents page(s). • Analysis – may be a number of sections. • Conclusions. • Reference/Bibliography. • Appendix. Please pay particular attention to the following: The executive summary should be no more than one page, but it should excite interest for a reader, other than the assessor, to read the whole. • Ensure that the contents page precisely reflects the whole content of the report including the executive summary and appendices. • Page numbering: Ensure that the contents page accurately reflects the position of the contents. Page numbers prior to the ‘introduction’ should be roman numerals. From the introduction onwards page numbering should be Arabic. • Bibliography/references should be listed according to the Harvard convention with the authors listed in alphabetical order. Each reference should have the following format:

Authors last name, initials, [year of publication], title of publication, publication details. e. g. Porter, M. E. [2001] ‘Strategy and the Internet’ Harvard Business Review, March-April pp. 63-78 • Authors should be accurately referenced within the report according to the Harvard convention. Other information: • The word count should be entered on the title page. • Do not incorporate ‘clip art’ or any computer generated art/icons in the report. • Do not use ‘fancy’ covers or bindings. • Font: Use Times New Roman or something similar with a font size of 12 except for section headings. Performance Criteria The criteria below detail the areas which will be taken into account when the assignment is marked. 1.

To address the subject satisfactorily the assignment length should be 2,500 words [excluding diagrams and appendices]. A typed format is mandatory. Note: the word count is a guide: only students who grossly exceed the word count because of ‘padding’ will be penalised. 2. Pass assignments are expected to be legible, tidy, well organised and written in clear understandable English. The report should include an executive summary or abstract at the beginning and end with clear conclusions and recommendations. If you have any problems with report formats please do not hesitate to contact me. 3. High grades [70%, 75%, +80%] need to demonstrate sustained coherent analytical ability.

A systematic approach to analysis and evaluation is required for grades 60% to 70% – for grades at the higher end of the scale, integration and synthesis is a requirement. The quality of the arguments used to develop and support prescriptions/recommendations are, the essential test of integration. 4. Evidence of reading and some understanding of models and concepts is needed to achieve a pass grade [40%]. Integration of theory and practice is expected for any grade above 50%. 5. You are expected to clearly state any assumptions you make, and support statements and theories by referencing to appropriate sources. [This is essential for higher grades but does not necessarily prejudice a pass mark [40%] if it is missing]. [pic]

The Palestinian Cellular Telecommunications Company (Jawwal) is a member of Paltel Group. It is the first cellular telecommunications service provider in Palestine. It started its operation in 1999, after Paltel officially received the license from the PNA to operate in the Palestinian Territory in 1996. Today and after eight years in business, it holds a leading position in the market after years of full market penetration by Israeli companies, At the financial front, Jawwal realized an increase of 33% in its profits in 2006, in comparison with 2005, thus being able to meet its projected budget for 2006.

Jawwal’s operational revenues reached JD104 millions, which represents a rise of 31% in comparison to the previous year, and 51% of Paltel Group’s income. EBITDA reached JD54 million, representing an increase of 41% in comparison to the year before. This is attributed to the increase in the number of subscribers by 45%, arriving to 820,000 during the year. The net increase in the number of subscribers in 2006 was 254,000, the highest increase in Jawwal history. Jawwal success was a product of its ability to reinforce its place in the Palestinian market.

Jawwal revenues increased from JD28 million in 2001 to JD104 million in 2006, representing an accumulated annual growth of 30%. EBITDA also increased from JD8 million in 2001 to JD54 million in 2006, achieving a compounded annual growth of 46%. In summary from Jawwal financial indicators appears that Jawwal owns its strong financial position in the Palestinian market while it’s still expanding its customer base since it achieved 1 million customer in 2007, also it has its variety of products and services and strong marketing campaigns and sponsorships in the Palestinian market while Jawwal is the highest profit generating in Paltel group.

Jawwal achieved impressive results in the past years, achieving results that are even more impressive in 2006 and 2007. Not with standing the harsh conditions in which Jawwal is operating, which will be discussed later, it managed to overcome such difficulties through implementing effective methods that Jawwal in line with its strategy and vision. Today, after eight years of devoted work, it is the number one mobile service provider in the Palestinian market with more than 1,000,000 subscribers.

It still endeavors to attract more customers, especially after having achieved its goal of capturing over 75% of the Palestinian market share. This result was achieved by incorporating cutting-edge technology package of services at reasonable prices and high quality, thus staying up-to-date with the latest telecommunications technologies, devising quality-marketing strategies and tailoring the company’s programs according to the different needs of various segments of the Palestinian society. Jawwal’s goal is still centered on serving the interests of its subscribers, shareholders and other stakeholders.

None of these achievements could have been possible without the expansion of the its telecommunications network to provide better and more powerful coverage, in addition to investing in the latest information systems and a highly qualified human resource. To promote and increase the value of our shareholders’ investments and enrich the ICT sector in Palestine, by committing to continued growth and excellence in services, whilst being constantly aware of the needs of our country and citizens.

And we are committed to providing the best services and the most competitive prices for all citizens. Ammar Aker is the Chief Executive Officer of Jawwal. He was named to this position in October 2005. Aker is responsible for managing the company’s operations and developing the corporate policy on an international level. He is the driving force behind Jawwal’s campaign to possess the largest market share and increase the number of subscribers despite the illegal competition of four Israeli mobile operators in the Palestinian market and the obstacles planted by the occupation.

Aker holds a BS degree in Accounting from Edinboro University of Pennsylvania, USA and an MS degree in Accounting from Kent State University, Ohio, USA. Kamal Ratrout is the Engineering Director. He was assigned to this position in 2005. Ratrout is responsible for the strategic planning, set-up, operation and quality control of the cellular system. He is the leader of JAWWAL’s engineering team, which also ensures high quality cellular communication and high level functioning of JAWWAL’s technological infrastructure. Mr. Ratrout and JAWWAL’s Engineering team work in one of the most challenging cellular environments in the world.

JAWWAL has been assigned the minimal frequency in the GSM 900 MHz band under which any mobile operator can function. Therefore more investment, both financial and technical, in the network is essential to accommodate JAWWAL’s growing subscriber base and to compensate for the shortage in the assigned frequency. Mr. Ratrout earned his BS degree in Electrical Engineering from Jordan University of Science and Technology. He has also participated in intensive training programs in cellular systems planning, dimensioning, operation and maintenance in Stockholm, Sweden.

Sumaya Hind was promoted to Director of Corporate Finance in May 2006 and became the first woman at JAWWAL to achieve Director status. She is responsible for preparing reports on the company’s finances and excels at effectively allocating JAWWAL’s financial resources and adjusting budgets and projects to coincide with the uncertainty that comes with life under occupation. She also serves as a liaison between the company and ministries, investors and other mobile operators. Hind has a BA degree in Economics and Accounting from Jordan University and an MBA degree from Keele University in England.