168996863 Walker Company
TO: Professor Vasu Ramanujam
FROM: Tatsunori Sasaki
SUBJ: Analysis of Walker and Company
DATE: February 22, 2007
Before discussing the stated questions, I will analyze the strategic issues and strategy of Walker and Company by using frameworks from the course.
Balancing Organizational Tensions
Growth - profit – control
For Walker and Company, profitability is a main issue. Manager’s eyes focus on profit. To achieve a goal of profit, they need to carefully consider growth and control at the same time. In this case, employees may give no attention to any aspects. Creating good books are likely to be a priority for people in a publishing company. The company has to develop a performance measurement and control system which creates strong attentions to profit and growth among the employees.
Short-term versus long-term
Ramsey’s strategy seems short-term focus and lacks a long-term vision of the business. Even though the company has the long history and longstanding employees, it doesn’t mean that all people in the company are doing their job with a clear image of the future. Again, a person in a publishing company tends to care about his/her books and readers with a short-term view. The company needs to develop a way to communicate to the employees the long-term strategic goals of the business and what they should do now to achieve those goals.
Demands of different constituencies or stakeholders
There is a significant tension between the owners (Ramsey and his two brothers) and employees and customers. For the employees and customers, strong financial performance is not so important. The bankruptcy of a publishing company is not a big deal for customers of the company. The employees don’t necessarily have a strong passion to words like ROI, ROA, and gross margin. The company must translate those performance measures into applicable ways to the employees.
Opportunity versus attention
For a small company like Walker and Company,
FROM: Tatsunori Sasaki
SUBJ: Analysis of Walker and Company
DATE: February 22, 2007
Before discussing the stated questions, I will analyze the strategic issues and strategy of Walker and Company by using frameworks from the course.
Balancing Organizational Tensions
Growth - profit – control
For Walker and Company, profitability is a main issue. Manager’s eyes focus on profit. To achieve a goal of profit, they need to carefully consider growth and control at the same time. In this case, employees may give no attention to any aspects. Creating good books are likely to be a priority for people in a publishing company. The company has to develop a performance measurement and control system which creates strong attentions to profit and growth among the employees.
Short-term versus long-term
Ramsey’s strategy seems short-term focus and lacks a long-term vision of the business. Even though the company has the long history and longstanding employees, it doesn’t mean that all people in the company are doing their job with a clear image of the future. Again, a person in a publishing company tends to care about his/her books and readers with a short-term view. The company needs to develop a way to communicate to the employees the long-term strategic goals of the business and what they should do now to achieve those goals.
Demands of different constituencies or stakeholders
There is a significant tension between the owners (Ramsey and his two brothers) and employees and customers. For the employees and customers, strong financial performance is not so important. The bankruptcy of a publishing company is not a big deal for customers of the company. The employees don’t necessarily have a strong passion to words like ROI, ROA, and gross margin. The company must translate those performance measures into applicable ways to the employees.
Opportunity versus attention
For a small company like Walker and Company,