Proctor And Gamble
1. Why are some organizations more successful than others? Give a concrete example to demonstrate your point.
In the business world as competitive as today, to outperform and maintain success is by no mean an easy job. While the secrets to success may vary among different organizations, and may have been modified and informed from different standpoint, the fundamentals remain essentially true. Most of the successful corporations share the same critical drivers for their business success: strategic vision of the business, leadership of the management team, innovation capability, spot-on position and marketing, consistent good quality of the products, just to name a few. One organization that clearly exemplifies this is Procter & Gamble. With a few annotations and comments, the core of them is outlined below:
First, P&G boasts an enviable stable of successful products. With a clear focus to capture its market share, each brand …show more content…
distinguishes itself by delivering different values to customers, and the main claimed benefit are consistent with the product. The Tide brand, which is about strength, differs from the products which are mild and gentle, such as typical Ivory branded products.
Secondly, the brands are constantly competing with each other and the products under each brand are competing with each other. P&G uses two Heavy Duty brands (Tide and Ariel), which even co-exist in a few markets, and has different brands across countries forming a global advantage. This enables the whole organization to remain innovative, to continually improve itself and to react better to the changing environment.
Thirdly, P&G emphasizes innovation strategy. Driven by an efficient leadership team and the strategic vision of the business, senior managers create a positive climate and culture for innovation and entrepreneurship thorough out the organization.
These are the main practices that separate P&G from the rest.
2. Explain each of the component activities in the definition of the strategic management process. Which of these activities do you think is most important to the success of an organization? Why?
The strategic management process includes the following activities: 1) situation analysis, which evaluates the external environment and the organization; 2)strategic directions, which refers to the creation of organizational mission and goal; 3) the strategy formulation, that is developing strategies to take advantage of strengths and opportunities or overcome weaknesses and threats; 4) strategy implementation, which means developing and execution of implementing plans including organizational design, control and management.
I think situation analysis is vital to the success. Because external and internal analysis are the crucial path to understand the environment the business operates and allow organization to discern the threats and opportunities associated with the area of business. It is the first step to diagnose the company’s own internal strengths and weaknesses. Situation analysis serves as the foundation of a successful strategy management progress. It enables the organization to look for opportunities that play to its strengths, to decide what to do about threats and how to overcome important weaknesses. An accurate analysis of the situation promises the following work on the right direction.
3.
Summarize the traditional, resource-based, and stakeholder perspectives of strategic management.
The traditional origins in Economics, other business disciplines, and consulting firms; it views the firm as an economic entity; its approach to strategy formulation is Situation analysis of internal and external environments, leading to formulation of mission and strategies; according to the theory, the source of competitive advantage is best adapting the organization to its environment by taking advantage of strengths and opportunities and overcoming weaknesses and threats.
The resource-based view origins is in Economics, distinctive competencies, and general management capability; it views the firm as A collection of resources, skills, and abilities; its approach to strategy formulation is the acquisition of superior resources, skills, and abilities; according to the theory, the source of competitive advantage is the possession of resources, skills, and abilities that are valuable, rare, and difficult to imitate by
competitors.
The stakeholder view origins in Business ethics and social responsibility; it views the firm as A network of relationships among the firm and its stakeholders; its approach to strategy formulation is analysis of the economic power, political influence, rights, and demands of various stakeholders; according to the theory, the source of competitive advantage is Superior linkages with stakeholder leading to trust, goodwill, reduced uncertainty, improved business dealings, and ultimately higher firm perforemence.
4. What are the important characteristics associated with strategic thinking? How can an organization encourage this sort of thinking?
In the business world as competitive as today, to outperform and maintain success is by no mean an easy job. While the secrets to success may vary among different organizations, and may have been modified and informed from different standpoint, the fundamentals remain essentially true. Most of the successful corporations share the same critical drivers for their business success: strategic vision of the business, leadership of the management team, innovation capability, spot-on position and marketing, consistent good quality of the products, just to name a few. One organization that clearly exemplifies this is Procter & Gamble. With a few annotations and comments, the core of them is outlined below:
First, P&G boasts an enviable stable of successful products. With a clear focus to capture its market share, each brand …show more content…
distinguishes itself by delivering different values to customers, and the main claimed benefit are consistent with the product. The Tide brand, which is about strength, differs from the products which are mild and gentle, such as typical Ivory branded products.
Secondly, the brands are constantly competing with each other and the products under each brand are competing with each other. P&G uses two Heavy Duty brands (Tide and Ariel), which even co-exist in a few markets, and has different brands across countries forming a global advantage. This enables the whole organization to remain innovative, to continually improve itself and to react better to the changing environment.
Thirdly, P&G emphasizes innovation strategy. Driven by an efficient leadership team and the strategic vision of the business, senior managers create a positive climate and culture for innovation and entrepreneurship thorough out the organization.
These are the main practices that separate P&G from the rest.
2. Explain each of the component activities in the definition of the strategic management process. Which of these activities do you think is most important to the success of an organization? Why?
The strategic management process includes the following activities: 1) situation analysis, which evaluates the external environment and the organization; 2)strategic directions, which refers to the creation of organizational mission and goal; 3) the strategy formulation, that is developing strategies to take advantage of strengths and opportunities or overcome weaknesses and threats; 4) strategy implementation, which means developing and execution of implementing plans including organizational design, control and management.
I think situation analysis is vital to the success. Because external and internal analysis are the crucial path to understand the environment the business operates and allow organization to discern the threats and opportunities associated with the area of business. It is the first step to diagnose the company’s own internal strengths and weaknesses. Situation analysis serves as the foundation of a successful strategy management progress. It enables the organization to look for opportunities that play to its strengths, to decide what to do about threats and how to overcome important weaknesses. An accurate analysis of the situation promises the following work on the right direction.
3.
Summarize the traditional, resource-based, and stakeholder perspectives of strategic management.
The traditional origins in Economics, other business disciplines, and consulting firms; it views the firm as an economic entity; its approach to strategy formulation is Situation analysis of internal and external environments, leading to formulation of mission and strategies; according to the theory, the source of competitive advantage is best adapting the organization to its environment by taking advantage of strengths and opportunities and overcoming weaknesses and threats.
The resource-based view origins is in Economics, distinctive competencies, and general management capability; it views the firm as A collection of resources, skills, and abilities; its approach to strategy formulation is the acquisition of superior resources, skills, and abilities; according to the theory, the source of competitive advantage is the possession of resources, skills, and abilities that are valuable, rare, and difficult to imitate by
competitors.
The stakeholder view origins in Business ethics and social responsibility; it views the firm as A network of relationships among the firm and its stakeholders; its approach to strategy formulation is analysis of the economic power, political influence, rights, and demands of various stakeholders; according to the theory, the source of competitive advantage is Superior linkages with stakeholder leading to trust, goodwill, reduced uncertainty, improved business dealings, and ultimately higher firm perforemence.
4. What are the important characteristics associated with strategic thinking? How can an organization encourage this sort of thinking?