The Formulation of Strategies for Stilsim Capstone Project

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Stil Sim Strategic Formulation

Stilslim Strategic Formulation

Strategy formulation is defined as the practice of developing an organizational strategy, which is a comprehensive plan, intended to take the organization from its present position to the position that it wants to achieve. It is imperative to point out that a well-designed strategy will aid an organization to attain its optimal level of effectiveness in realizing its goals and objectives and at the same time permitting it to monitor its environment to become accustomed to the strategy as needed (Ulwick, 1999). This research paper is purposed to undertake a strategic formulation of Stilsim and will arrive at a recommended strategy taking into account the internal and external analysis of the organization and also the generic and grand strategies. More so, the BCG growth-share matrix will be employed as a context for making comparisons of strategic options.

Strategic Options

There are several strategic options addressed in the preceding internal and external analysis of StilSim. In the present situation, StilSim has a number of strategic options available for selection and implementation. These strategies are imperative for the short-term and long-term success of the company. In the following section, generic strategies, corporate strategies and operational strategies that are available and ought to be implemented by the company will be outlines and explained.

Generic Strategy

Porter's generic strategies outline the manner in which a company attempts to attain a competitive edge across its selected market scope. In particular, there are three generic strategies, incorporating and focusing on cost, differentiation, and focus. In essence, an organization makes the decision to attain a competitive edge, either through lower costs compared to its rivals or by having differentiated products and services for its consumers to justify and substantiate higher prices. In addition, a company opts for either having product offerings to selected market segments or across the industry to several market segments. Generic strategies mirror the selections concerning both the kind of competitive edge and the market scope (Eldring, 2009).

The generic strategy s considered most appropriate for StilSim is differentiation. The rationale for selecting this particular generic strategy is owing to the fact that the organization is missing out on a great deal of consumers as it does not utilize social media and technology to advertise its products. For instance, Don Wilson has taken advantage of this weakness to gain a competitive edge over StilSim. This generic strategy is fitting within the prevailing market dynamics. In the present times, technology is largely advanced and social media has come to be an integral aspect for any organization's success. By differentiating its product and service offerings, StilSim will be able to reach a greater, proficient group of potential workers displaying both the company's consumer base and staffing implements.

Corporate Level Strategies

In definition, corporate level strategies deal with the strategic decisions that an organization undertakes that influence the organization as a whole. This is the expansive outlook of the organization and may encompass making decisions in product and service offerings, markets to compete in and also the geographical precincts of the company's operations. Aspects such as mergers and acquisitions, organizational financial performance and human resource management are deemed to be included in corporate level strategies (Hill et al., 2013). In the following sections, the paper considers some of the corporate level strategies relevant to StilSim.

Corporate Level Strategy 1: Merger or Acquisition

One of the corporate level strategies that suits StilSim is merger and acquisition. One of the threats perceived in the SWOT analysis of the company is direct competition. The strategy is to make an acquisition of Capital Staffing, which is a direct competitor of the company. The acquisition of this rival company would benefit StilSim in the sense that it would have greater access to consumer base in terms of clients and recruitments and also attaining a greater market share. More so, the increase in market share could be beneficial in expansion of the company.

Corporate Level Strategy 2: Financial Performance

The second strategy selected is financial performance. This is a value-creating corporate strategy that focuses on transforming the company as a whole. The internal analysis of the company indicates that StilSim is experiencing financial trouble presently. Lack of initiative and action across the entire organization will cause the StilSim to become obsolete.

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Improvement of financial performance will ensure that StilSim gains the market share that it has been losing and that is already usurped by its competitors. More so, poor management and inefficient utilization of the company's resources causes its poor financial performance. This can be inferred from the declining ROA and ROE of the company.

Corporate Level Strategy 3: Human Resource Management

Human resource management is also a value-creating corporate strategy and encompasses the whole organization. As perceived in the SWOT analysis of the company, productivity of StilSim begins with the personnel. It is imperative for Bill Simmons to show the employees that he cares for the business operations and for the employees. Human resource management ought to be improved by increasing the motivation level of the employees. This can be done through the provision of incentives such as rewards for good work. This increase in motivation and morale will improve the performance of the organization as a whole. Lack of proper and encouraging HR exercises may be detrimental to the cause of the company and its endeavor to grow and expand.

Operational Strategies

Operational strategies are the various approaches and tactics employed by a company to realize its goals and objectives. These strategies are essential elements for a business and provide a backing to the company's corporate strategy. In developing operational strategies, a firm is able to assess and execute effective and efficient structures for utilizing resources, labor force and work process (Hill et al., 2013).

Operational Strategy 1: Acquisition of Capital Staffing

StilSim has already lost a great deal of market share. One of the ways to attain a greater market share is through the acquisition of Capital Staffing. This will not only diminish the level of direct competition but at the same time will increase the market share of the company.

Operational Strategy 2: Differentiation in including marketing and technology

The company has been experiencing losses owing to the lack of integration of technology and marketing into its business operation. The incorporation of social media implies that the company will have a greater reach and increase its consumer base. More so, StilSim will benefit from having a proficient group of potential workers displaying both the company's consumer base and staffing implements. In addition, the marketing of the company will increase its reach to potential consumers and clients.

Operational Strategy 3: Employee Motivation and Satisfaction

Employees play a great role in the success of the business. Lately, there have been poor performances owing to the lack of motivation and satisfaction of employees. By providing incentives to employees and increasing their motivation and satisfaction, StilSlim will benefit from a better organizational performance.

Operational Strategy 4: Cost-effectiveness in operations

It is imperative for the company to properly utilize its resources in order to improve its financial performance. The ROA and ROE of the company have been declining which is indicative of poor management and use of assets and equity. It is important to have increased utilization of resources so as to increase the financial performance and ensure that StilSim does not become obsolete.

Weighted Decision Matrix

Decision-making is an important skill for business owners, leaders and managers. These sorts of decisions have substantial influence on the achievement of a corporation, whether it is deciding whether to bring in a new product or employ personnel. A decision matrix assists managers to assess and rank all of their options when making an allowance for solutions to a challenging and demanding task (Brooks, 2015). The following chart illustrates the decision matrix for StilSim.

Criteria

Impact on overall organizational performance

3.5

Ease to implement

3

Effect on other organizational systems

2

Speed to solve

1.5

Score

Problems

Poor Financial Performance

High -- Can render it obsolete

5 x 3.5 = 17.5

High

5 x 3 = 15

High

5 x 2 = 10

Medium

3 x 1.5 = 4.5

47

Lack of Employee Satisfaction

High -- Reliant on employee work

4 x 3.5 = 14

High -- Incentives

5 x 3 =15

High -- Personnel impact all departments

4 x 2 =8

High

4 x 1.5 =6

43

Lack of Differentiation in social media and technology

Medium -- Poor consumer reach

3 x 3.5 = 10.5

High -- Creation of website and social media can be easily.....

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