Inside Dyson Essay Example
Inside Dyson Essay Example

Inside Dyson Essay Example

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Thompson, J., and Martin, F. Strategic Management: Awareness and Change, 6th Edition Chapter 1 Strategy Explained Strategies are a means to achieve goals for all organizations, regardless of their size, profit orientation, ownership, or sector. These organizations express their purpose through a mission or vision statement and develop strategies to fulfill this purpose. Our study of strategic management centers on the creation and implementation of these strategies.

In this introductory chapter, the text first discusses the strategies implemented by successful organizations and their accomplishments. It then delves deeper into the concept of strategy. Furthermore, it explains the strategic management process within the framework established by this book and explores various approaches to strategy creation. The evolution of strategic management over the past three decades is also examined. Finally, the text concludes with a brief examination of how strategic management differs in different types of o

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rganizations.

Chapter 2 – Strategic Thinking, Environmental Analysis, Synergy and Strategic Positioning

Good ideas for the future can originate from within the organization or be acquired externally. The organization's ability to synthesize and utilize available information to develop new products, services, and strategic positions reflects its strategic thinking capabilities. Consider how the concept of PartyGaming (Case 2.) may have originated. At its core, leveraging, exploiting, and altering the connections between resource competency and environmental opportunity reflects organizational competitiveness and the presence or absence of competitive advantage. As previously discussed (Chapter 1), it is vital for organizations to strive for competitive advantage across all their products, services, and businesses in their portfolios. Strategic thinking encompasses the past, present, and future.

Understanding patterns and lessons from the past is crucial for informing the future, but i

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the dynamic and uncertain business environments that impact industries and organizations, it would be dangerous to assume that the future will simply mirror the past or continue existing trends. Synergy plays a significant role in either driving sustained growth or becoming an unattainable goal for organizations, as it focuses on the returns derived from resources. Ansoff (1968) argues that combining and managing resources in a way that surpasses their individual benefits results in a synergy effect, where the whole is greater than the sum of its parts. This concept is often referred to as the 2 + 2 = 5 effect. Chapter 3, titled "Resource-Led Strategy," introduces the gradual emergence of the resource-based view of strategy during the 1980s and 1990s. The work by Prahalad and Hamel (1990) on core competency and Kay's (1993) exploration of added value greatly contributed to this perspective.

This perspective offers an explanation for the superior performance of certain organizations in attaining a competitive advantage and generating increased profits compared to others. It delves into strategies that are tailored to individual companies, rather than ones that are available to all competitors through understanding industries and markets. Essentially, it entails recognizing and satisfying market opportunities in a distinct and customized way. Supporters of the resource-based view present numerous arguments.

To maintain a competitive edge, organizations should prioritize identifying and capitalizing on opportunities using their current resources rather than acquiring new skills. It is crucial to discover creative methods of utilizing resources in order to stand out from competitors. Merely possessing a resource is inadequate; it is advantageous if rivals find it difficult to imitate a specific strength. This ties into the ideas of

core competency and strategic capability.

The text highlights how Dyson's case exemplifies the significant impact that innovation and new design methods can have on an entire industry. By being innovative, Dyson was able to establish a dominant position in the market and compel established manufacturers to react. This chapter delves into the concept of a resource audit, resource linkages, synergy through architecture, and the value chain. It also explores reputation and branding as crucial intangible assets. To fully comprehend this chapter, it is recommended to review the sections on core competencies and leveraging resources in the Part One supplement beforehand. Chapter 4 centers around competition dynamics and underscores the importance of actively seeking opportunities to create and maintain a competitive advantage over rivals while fostering customer loyalty. Ideally, this strategy should result in increased profitability. However, it is essential to note that the term "competitive advantage" can be easily misconstrued.

Some organizations mistakenly think that having a clear competitive strategy is advantageous. However, the true advantage lies in being superior or unique in a meaningful way. Case 4.1 exemplifies this concept, as even the most powerful companies cannot afford to stay stagnant. Nintendo's success can be attributed to their understanding of the industry, recognition of a profitable opportunity, and ability to surprise both Sony and Microsoft. Of course, skeptics may argue that a company must adapt faster than its competitors can replicate its ideas!

This section commences by examining the overall nature of competition, followed by an exploration of models and frameworks that enhance our comprehension of competitive strategy, competitive advantage, and competitive dynamics. Chapter 5 - Culture - serves as an introduction. As culture and values play

a role in strategic positioning, the decision-making process, and the viability of implementing change - all of which contribute to determining success - this chapter investigates these ramifications and investigates the factors that influence culture and cultural disparities. While organizations may exhibit varying cultures, certain elements may be shared and applicable across contexts.

It also varies between countries, influencing the relative competitiveness of industries and organizations in different countries. Chapter 6 – Strategic Purpose Strategies refer to the means to achieve specific ends. This chapter focuses on these objectives. Organizations engage in purposeful activity and do not operate without a clear purpose. Ideally, this purpose should be understood, shared, and supported by everyone in the organization, providing a general direction for activities and strategies. The strategic leader plays a crucial role in establishing the purpose and direction, which serves as a foundation for setting detailed objectives and performance targets for individual managers and employees. It is important to note that not everyone will always agree on the specific objectives, and internal conflicts often arise. Additionally, the actions and achievements of individuals directly impact organizational performance. Therefore, this chapter explores the concept of purposeful activity by examining the organizational mission and objectives. To successfully achieve the intended purpose, a clear business model is necessary! Chapter 7 – Strategic Success

The performance of a company, the outcomes of strategies it is pursuing, is typically assessed using financial ratios and other quantitative measures. However, this chapter argues that these metrics alone are insufficient and that a more holistic approach is necessary. This approach should consider subjective performance indicators and also acknowledge the underlying factors contributing to relative success and

failure. In this chapter, we demonstrate how different metrics and evaluations can yield conflicting results, and propose a comprehensive model that incorporates E-V-R (environment-values-resources) congruence.

The chapter explains the importance of financial ratio analysis in management case study analysis. A section on the main ratios is included. Chapter 8 introduces strategy creation and planning and emphasizes that every manager can contribute to strategy making, but not every manager can be a leader or an entrepreneur. The chapter provides an overview of strategic creation and planning, building on themes discussed in Chapter 1. Figure 1.0 illustrates the connection between intended strategy, strategic planning, entrepreneurial leadership, and the development of emergent strategies in a changing environment. Chapter 9 focuses on strategic leadership, entrepreneurship, and intrapreneurship, highlighting that strategic leaders come in various forms and need to possess critical thinking abilities and the ability to drive action, garner support from others, and occasionally serve as the public face of the organization.

Not all strategic leaders can excel at all four tasks. There is no set style or personality for success, but there are specific roles that need to be effectively fulfilled regardless of the organization's type or size. The strategic leader is ultimately responsible for establishing direction, determining strategies by directing or persuading others, and ensuring that these strategies are implemented through the decisions made regarding structure, style, and systems.

The style and culture of an organization can be influenced by the nature of the strategic leader. Over time, the qualities of a leader can have various effects on a company. If leaders are dull, the company may also become dull. On the other hand, belligerent leaders may indirectly foster

a bullying culture. Adventurous leaders are likely to lead adventurous companies, while risk-averse leaders are unlikely to run risk-oriented businesses. Being entrepreneurial and visionary is not mandatory for leaders.

The success or failure of any business relies on the ability to balance the leadership needs and effective management. While visionary leaders may excel as entrepreneurs, they may not be suitable for managing the business at a specific moment. It is crucial for leaders to not only lead from the front but also create an environment that promotes emergent change – empowering, encouraging, and energizing employees who are apt for the task.

Intrapreneurs are the ones who lead the emergent change initiatives. Leadership is a job and a process that involves influence and change. It requires personal characteristics and leadership skills, which can be learned. However, effective leaders need to have certain characteristics from the beginning. Successful leaders also tend to form effective teams to back them up. Before continuing, readers may want to go back and review Chapter 5, specifically the parts about empowerment and learning organizations.

This chapter examines the exploration of issues related to leadership, including the perception of leaders failing and losing favor, as well as the important topic of leadership succession. Leadership encompasses both a job and a process, with a focus on influence and change. It involves the development of personal characteristics and leadership skills, which can be acquired through learning. However, effective leaders must possess specific characteristics from the start. Additionally, successful leaders often create effective teams to support them. Before continuing, readers may find it helpful to review Chapter 5, specifically the sections on empowerment and learning organizations.

Chapter 10 – Strategic

Alternatives, Strategy Evaluation and Strategy Selection

This chapter offers an overview of the various strategic alternatives that organizations can consider to determine their future direction and bridge the planning gap. The attractiveness of these alternatives depends on the organization's objectives. While a wide range of options is examined, it is crucial to acknowledge that not all alternatives can be implemented simultaneously by an organization. Some alternatives may be quickly disregarded due to their costs or risks.

The selection of a suitable strategy is always aligned with the environment, values, and resources. This is demonstrated in Case 10.1, where Diageo changes its strategy over time, resulting in a new corporate profile. When exploring different strategic options, certain organizations adopt an entrepreneurial approach and actively seek opportunities for change. On the other hand, some organizations will only contemplate change if circumstances necessitate it. Additionally, there are organizations that already possess well-developed and successful strategies that yield satisfactory outcomes.

There are those who disregard the necessity of making changes. Certain documents have cited the instance of typewriter companies who were convinced that electric typewriters and word processors would never become popular. What determines the evaluation and choice of strategy are appropriateness, feasibility, and desirability. These factors encompass both objective and subjective elements. It is important to recognize that not all strategic decisions are purely objective. Therefore, it is crucial to comprehend how managers (and subsequently organizations) make decisions and how uncertainty and judgement influence these decisions.

In Chapter 11 titled "Strategic Growth," the text discusses the popularity of external growth strategies among companies, especially larger ones. However, research indicates that these strategies often fall short of expectations. Therefore, it is crucial to

analyze and implement growth strategies with caution, thoroughness, and objectivity. This chapter focuses on exploring diversification and acquisition strategies employed by UK companies and offers insights on effectively managing these strategies. Acquisitions occur for various reasons, including strategic motivations and personal preferences of strategic leaders.

There is a widely held belief that synergy should only be used to justify an acquisition if the companies involved are unable to collaborate through a partnership, alliance, or joint venture. Essentially, alliances and joint ventures may be a more favorable option than complete acquisitions or takeovers for generating synergy and driving growth. However, it should be noted that alliances and joint ventures come with their own set of risks and can sometimes encounter difficulties during the implementation process.

However, while offering greater flexibility, strategic leaders may perceive a downside to partnerships due to the absence of creating a larger and more powerful organization. Within this concise chapter, different forms of partnering and various reasons for doing so are examined. Additionally, franchising and licensing are briefly evaluated. To assess the success or failure of strategies, implementation issues must also be taken into account. As a result, this section examines corporate strategy within the context of both strategy formulation and implementation.

This chapter categorizes three main clusters of alternative directions: limited growth, substantive growth, and retrenchment. The importance of innovation in maintaining competitiveness while pursuing these directions is also discussed. The selection of strategies is heavily influenced by various factors and can differ based on the firm's developmental stages. Although there may be multiple appropriate strategies for the firm to pursue, they should be assessed against specific criteria.

This chapter focuses on determining the best

strategy by considering appropriateness, feasibility, and desirability. It builds upon previous chapters (10 and 11) that explored strategic options for organizations to bridge the planning gap and determine their direction. Specifically, this chapter delves into considerations within an international context, ranging from basic exporting to a comprehensive global strategy and organizational structure.

The organization's objectives will affect the appeal of different options. Some companies are proactive, while others are reactive. Not all organizations should pursue every international opportunity. The right strategy aligns with the environment, values, and resources. This chapter discusses the concept of a global strategy and explores various market entry strategies for expanding the brand's sales abroad.

Chapter 13 – Failure, Consolidation and Recovery Strategies

Ultimate business failure means the organization is no longer financially viable and has not met the expectations of important stakeholders. Closure or liquidation is inevitable and new management cannot salvage the situation. This occurs frequently with small businesses and can also affect larger, established organizations. Nevertheless, larger organizations typically have a better chance of rescuing at least a portion of their operations. However, when a business's prospects have deteriorated to a crisis point and drastic strategic changes are necessary, this is undoubtedly a failure as well.

It is a failure of strategic management due to errors in decision-making or lack of action when change is necessary. Selling an unprofitable business or division can be seen as a failure of the current management team, suggesting that the business may be more successful under different ownership. However, it is important not to assume that all divestments of this kind indicate failure – they could also be a result of a poor strategic fit or

previous misjudgment.

The study of failure in business examines why a company's performance can reach a crisis level that calls for drastic action, such as remedial measures, sale, or closure. Additionally, there is a belief that under-performance and failure to meet potential can also be considered as forms of failure. The main causes of corporate decline and failure are poor strategic leadership, inadequate control over financial management, and a lack of competitiveness. In Chapter 14, the importance of successfully implementing a chosen strategy was highlighted, building on the earlier discussions in Chapter 10.

The success of implementing the strategy relies on its appropriateness, feasibility, and desirability. Competency in implementation is a significant advantage as it can transform ideas into actions and yield positive results rapidly. Internal processes can elevate customer service and reduce costs by eliminating unnecessary delays or duplication of activities. Hence, this book's final section delves into strategy implementation and control.

According to Reed and Buckley (1988), the adoption of new strategies occurs due to the opportunities and benefits they offer, despite the risks associated with implementing change. It is important for implementation strategies to aim at maximizing benefits and minimizing risks. To achieve this, the final section of the text explores the connections between strategy and structure by evaluating various structural forms and examining centralization and decentralization as key factors. The text also discusses the forces that influence and determine the structure.

The text examines the structural obstacles encountered by different businesses and organizations, such as global corporations, small startups, manufacturing firms, service companies, and the public sector. Chapter 15 specifically addresses the topic of guiding organizational change and how managers handle change in

unpredictable settings. Change can arise from external threats or proactive initiatives to capitalize on opportunities and control the environment. It is crucial for organizations to synchronize their environment, values, and resources and implement necessary changes when faced with pressure from either the environment or internal resources.

To stay competitive and enhance their position, organizations must constantly innovate and adapt. This necessitates a willingness to change within the organization and the capability to implement those changes effectively. At times, there might be a need to modify values and culture. During the late 20th century, numerous industries, such as food manufacturers and retailers, faced noticeable pressures for change due to shifting consumer preferences regarding dietary choices.

Mutual societies and banks, along with the film and music industry, are all responding to changes in competitive regulations that directly impact them. While some view these changes as threats, others see them as opportunities. This chapter examines the management of change, focusing on various issues and problems. A crucial aspect of the change process is leadership, particularly when the chief executive of a major business organization faces pressure.

Organizations need to respond to external changes and actively seek opportunities to be strategically effective. Factors such as culture and power also play a role in managing change. It is beneficial to revisit the previous discussions on intrapreneurship, empowerment, and learning organizations. The case study presented examines strategic, structural, and leadership changes at Apple Computers.

The text recounts the history of Apple spanning three decades and highlights the company's varying degrees of success. Apple has experienced both outstanding innovation and triumph as well as challenges posed by competitors that have reshaped the personal computer industry in

significant manners. Consequently, some changes documented have been reactive while others have been proactive. Chapter 16 - Managing Strategy in the Organization emphasizes the significance of growth as a key objective for organizations, often involving expansion into diverse areas through acquisitions, whether they are related or unrelated.

Recently, the effectiveness of large, diversified conglomerates has been called into question. Many organizations have instead decided to concentrate on related businesses, technologies, or core competencies. This allows them to add value and create synergy across their operations. Regardless of the strategic approach chosen, successful implementation is crucial. The case study examines how GE has achieved global dominance as the most valuable company while maintaining extensive diversification.

Conglomerate corporations that have diversified their businesses should not be automatically dismissed. These corporations can achieve success and profitability by acquiring new and suitable businesses, identifying growth opportunities within their subsidiary businesses, and implementing an appropriate strategic control system. In essence, if the strategy can be successfully executed, it can be justified. This chapter delves into alternative approaches to strategic control and examines how these relate to diversified conglomerate corporations. The chapter also explores the relationship between the corporate centre and the individual businesses.

In recent years, corporate offices have been reduced in size as organizations have become more decentralized. To achieve their intended strategies and adapt to a competitive environment, organizations need to efficiently and effectively deploy and manage their strategic resources. It is crucial for organizations to both avoid crises and be prepared to handle them when they arise.

All of these issues revolve around the organization's capacity to understand and handle risk, and they are further explored in this chapter. The

chapter is a platform for debates, opinions, and interpretations, yet it offers few definitive answers. In essence, both the strategy and structure must evolve and remain supportive as the business landscape evolves. If achieving this were simple and straightforward, more organizations would enjoy greater success than they currently do.

Chapter 17 – Final Thoughts: the Purpose of Strategy This chapter brings together the main concepts discussed throughout this book, with the aim of strengthening the core ideas and addressing two important questions: first, what is the purpose of strategy? And second, what exactly is strategy? Numerous organizations are currently functioning or competing in highly dynamic, tumultuous, unpredictable, and chaotic financial and business landscapes. From a business standpoint, this is partly due to the increasing globalization of industries and markets, as well as constant advancements in technology that result in shorter product, service, and strategic life cycles.

Organizations must be more dynamic and agile in response to the need for quicker action and change. These changes can be continuous and emergent, driven by organizations seizing opportunities and innovating ahead of competitors. Alternatively, changes can be discontinuous, resulting in shifts in competitive paradigms. Technology plays a dual role, creating and destroying industries, markets, and windows of opportunity. Breakpoints, or the shift to new competitive rules and agendas, occur at an increasing rate. Despite the potential disruption caused by these changes, organizations cannot afford to ignore the reality or the pressures they bring.

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