Strategic Management It Is Very Important That Term Paper

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Strategic Management

It is very important that the factor of 'change' figures within an organization prominently. Different people utilize different approaches to implement these changes, and most often, it is that particular method that suits the organization the best that is used. Among some of the tried and tested methods of implementing change within an organization is the 'Delta Technique', which is one of the more popular and extremely successful methods used by the management. 'Delta' in fact means 'a small change' in Greek, and this is in essence what it represents. This technique has its base on the theory of Lewin, 1952, and it revolves around the three stages of change, like for example, when a piece of ice changes its shape, and it goes through unfreezing, changing, and refreezing. (Strategies for implementing change: an experiential approach)

Lewin has stated that it is very important to devote both time and energy to help a client to unfreeze, and even though it is a crucial stage when attempting to implement change, it is often ignored. Unfreezing therefore has to start with the individual acknowledging the fact that his methods may not be the best; after which he must prepare himself to face negative criticism. The next step would be to suggest alternatives to the existing process, and then state what information he would need to start to implement change. This approach would be relatively 'low-risk', and the change agent must be able to provide the client with the necessary control over the change. When change has been implemented in this manner, regular feedbacks as to the progress after the change has been made are necessary, and the organization would profit with the method. (Strategies for implementing change: an experiential approach)

Another approach to implementing change within an organization is that of laying primary focus on the fundamentals so that a stronger foundation may be built. The Three methods of such change are the 'top-down' method, the 'transformational leadership' model, and the different strategic approaches. While the first model lays emphasis on leadership, and depends on the method of rapid change described by the CEO of the company, the second method is about creating an environment where the people involved would be able to think for themselves and make their own plans and initiatives so that change may grow from the grass roots level, where all the employees can think and make wise decisions. Professor John Kotler underlines the eight-step approach to strategic change, and this is the initial establishment of a keen sense of urgency, after which the vision for the change may be developed. The next step would be to communicate the vision and incite the employees into taking action, after which short-term wins could be achieved. This change can subsequently be anchored in the vision of the organization. (Changing management culture: Models and Strategies to make it happen)

Question-2

All organizations that are in the business for the purpose of earning a profit may do one of three things: they can pay the profit that they have gained out to shareholders, or, they can reinvest that profit into the business for the purpose of expansion, or, they may want to manage share repurchases, or in debt reduction activities. Whatever the company may decide to do, what is important is that when a portion of the profit that has been made by the company is paid out to a shareholder. Then that payment is known as a 'dividend'. Why is the payment of dividends important, even if the company has to seek outside resources for the purpose of paying dividends, and even if profit may be reinvested in the company? (All about Dividends)

It is important to remember that during the first half of the twentieth century, the main reason that shareholders purchased stocks of a particular company was because of the dividends that it was paying, and even today, there are many shareholders who expect the company to provide them with a profit because of the fact that they have invested their funds in the organization. Therefore, it is seen that one of the main reasons why a company pays dividends is when it has become unable to reinvest its funds at a higher rate than that of the shareholders would have done if the funds has been in their own hands. In a similar manner, an investor may require ready cash for his own daily needs, and if he were to be made to wait for the company to enjoy long-term appreciation of the money, then he would be completely dissatisfied.

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(All about Dividends)

Another reason why companies pay dividends is that the more the company pays as dividends to its stockholders, the less the chances are of the executives attempting to dump their stock in large numbers. This may be applicable more to the corporate executives of the company than the common shareholders, but the fact is that dumping can be effectively prevented, and this in turn helps the company in the running of its business. Dividends can, therefore, turn executives into long-term stock holders, and this mean that these people would also not resort to short-term accounting tricks in order to move the stock prices, a normal phenomenon among organizations. Dividend selling, therefore, is seen as having an impact insider selling, whether the company is large or small, new or old. (Krantz, 2003)

Question-3

What exactly is 'Forward Integration'? It is a business strategy that is based on a vertical plan whereby all the various activities that take place within the organization are ruled by the control of the direct distribution of the products of the company. (Forward Integration) This type of plan is extremely useful and good to use within an organization, and the reasons for this are manifold. Today, more and more manufacturers are on the look out for newer ways in which they can control how consumers would be able to experience the brand being sold, and this has led to an increasing number of manufacturers selling their products not only through several company owned stores but also through retail outlets, and it is through careful evaluation and consideration on the part of the manufacturer about the conditions under which such a strategy becomes viable, and the manner in which forward integration would deliver a better resale price maintenance to the manufacturer, that this strategy can be adapted. (Bell; Wang; Padmanabhan, 2002)

This is especially true when the prices that are charged by the independent retailer are in competition with another integrated retailer, and these prices are at a higher level than those prices that are charged when independent retailers deal with each other. Therefore, today, the manufacturer has become a virtual marketer to end consumers, and this in turn means that forward integration is now possible as a viable channel strategy, wherein 'dual distribution' becomes possible. Now, the benchmarking of the performance of independent retailers is possible, and the manufacturer is also given the permission to serve a different segment. (Bell; Wang; Padmanabhan, 2002)

The advantages of forward integration strategy are manifold. The first one is that it is of innate benefit for the organization if it were able to set up its own wholesale and retail distribution network, if the company was subjected to undependable distribution channels wherein the steady progress of its various operations were to be interrupted frequently, or if when it discovered that the integration into distribution and retailing would be definitely better and more efficient for the company rather than approaching independent distributors. In addition, a greater sense of product differentiation would be achieved, as well as a good escape form price oriented competition. If the dealings were with a manufacturer, then they would enjoy infinitely better access to the final consumer of the product. (Appeal of Forward Integration)

Question-4

The evaluation of the various strategies that are used within an organization for different purposes is a very important aspect of marketing, and the success of the plans depends on the assessment and evaluation of the strategies that are being used. It must be remembered that the basic strategic planning within an organization are generally in the form of a five point plan, whereby the first step is to specify the objectives of the company, the next is to evaluate the plans and strategies, then to evaluate and monitor the results, after which commitment can be sought. It is only when each of the steps is implemented in an organized manner that the company would be able to function at its optimum best. (Evidence of the value of strategic planning in Marketing)

Furthermore, it must be remembered that whether the evaluation is being done by a group or by an online survey, or by any other method, all the different marker research surveys can either be quantitative or qualitative. When it is a question of quantitative analysis, the attempt made is to gauge and judge the quantity, and in general the researcher uses a variety of….....

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