Week 3: What is Strategy
Executive Summary
The video presented a description of the core value of strategy for the success of the organization. In that process, the write-up will highlight the integration of various activities associated with the organization. Further, there is also the description of the utilization of various uncommon resources to meet the objectives of the organization. Thus the report engrosses the proper definition of strategy along with the description of its key factors concerning the organizational goals as well as objectives. Moreover, the report will make the proper understanding of the concept of strategy that will help in the business processing of IKEA for its success in the global market.
Introduction
While starting the report it is necessary to get the knowledge that what is the concept of strategy. It is the word that comes from the Greek word strategos. The strategy is a proper planning that is needed for the growth of the business (Morgan & Strong, 2015). It will help the organization in achieving its goal as well as objectives by providing a requisite solution to the raised problem.
In other words, the strategy involves the basic proportion of a plan or action that has been properly designed to do achievement of the long-term goal (Acquaah, Amoako-Gyampah & Jayaram, 2016). In addition, scholars have defined strategy as one of the arts of planning as well as directing military operations along with the movements in the war. Moreover, it is the part that provides the proper definition of the business processes that have been carried out by the company concerning their customers, shareholders, and society (Block, et al., 2015).
The strategy part
When it comes to the strategy part it is evident that a good strategy always provides a clear view as well as an opinion that will satisfy four key requirements (Madsen & Walker, 2015). In that context, it becomes clear that a good and clear strategy should be formulated by knowing where the company competes and what are the basic unique values the organization brings about (Huo, et al., 2014).
In addition, there must be a description of the utilization of the usage of the capabilities of the resources along with the fact of how the organization can sustain its unique value. This is very well defined by the example of IKEA which delivers inexpensive and attractive Scandinavian furniture and home furnishings globally. Its market choice helped it to offer unique value to the customers. In that case, IKEA went through the key strategic ideas (Jayawardhana & Weerawardena, 2014). Those key strategic ideas are the intent of strategy, vision, statement of mission, and goals and objectives (Madsen & Walker, 2015).
Conclusion and Recommendation
The strategic process described in the video involves the management strategies undertaken by the organization for the continuous growth of its organization. It also enables the organization to provide appraisals for its business. Thus it can be recommended that the organization should make the proper assessment regarding the competitors within the market. About that, the company should follow the value addition to its products that will help in meeting the demands of the customers and the organization can be able to withstand the current as well as future competitors.
Week 4- Business Model Innovation
Executive summary
The report involves the concept of business model innovation which has been a key component behind the success of the business for a long. The business model innovation in this report provides the key ideas that are involved in taking the business forward. Moreover, the report will also provide an idea of how the organization prepares itself to make various decisions important decisions through the use of business model innovation. However, the reason behind it is that business model innovation provides the rethinking or reshaping of the business to satisfy the customers and bring a new value proposition to the business.
Introduction
The concept of business model innovation is the part that brings innovation to the business with the incorporation of new ideologies in the business. Thus a proper business model is a part that provides an answer to four questions who is the target customer, what is offered to the customer, what the processes of creating the value propositions are, and finally how the revenue is generated. In that context, the business model innovation brings change in two of the dimensions (Sagwa, K’Obonyo & Martin, 2015).
Importance of Business Model
While looking at all the business processes globally it is seen that there have been a lot of changes in the business models of various companies. IKEA has seen to be redefined the process of selling furniture (Block, et al., 2015). In that context, it is seen that 10% of business models make the introduction of new business processes and the rest of the processes go through the adaptation, refinement, and combining of patterns to make a new business model. Thus in that manner, it is essential to understand the key ideas that will help in transforming the businesses which will further help in unlocking the substantial growth. In that case, they also think about how the business processes of other industries will bring revolution to any organization (Huo, et al., 2014). Thus to bring innovation to the business models there will be the adoption of a strong framework consisting of four factors. Those factors are the initiation, ideation, integration, and implementation.
- Initiation: This process helps in the proper identification of growth opportunities along with finding the process where the model has to be developed.
- Ideation: There will be the generation of valuable as well as new ideas that will help in fulfilling the needs of the customers.
- Integration: This process helps in getting successful entry into the market by developing the unique needs of the market.
- Implementation: Depending upon the previous three factors there will be the implementation of requisite factors in the business for its success.
Conclusion and Recommendation
The report highlighted the four building blocks of the business models that help the organization attain its goals as well as objectives. Thus by bringing innovations or changes in its value propositions and finding resources by which the revenue can be generated, the company can be able to reshape its business processes. Therefore it can be concluded that the business model with initiation, ideation, integration, and implementation will bring success to the organization in the competitive market
References
Acquaah, M., Amoako-Gyampah, K. and Jayaram, J., 2016. Human Resource Management and Market Orientation Strategies in Family and Non-family Firms in Ghana: How do they relate to Competitive Strategy and Firm Performance? In Family Businesses in Sub-Saharan Africa (pp. 123-153). Palgrave Macmillan US.
Block, J.H., Kohn, K., Miller, D. and Ullrich, K., 2015. Necessity entrepreneurship and competitive strategy. Small Business Economics, 44(1), pp.37-54.
Huo, B., Qi, Y., Wang, Z. and Zhao, X., 2014. The impact of supply chain integration on firm performance: The moderating role of competitive strategy. Supply Chain Management: An International Journal, 19(4), pp.369-384.
Jayawardhana, K. and Weerawardena, J., 2014. Conceptualizing the Role of Market Learning in Social Innovation-Based Competitive Strategy.
Madsen, T.L. and Walker, G., 2015. Modern competitive strategy. McGraw Hill.
Morgan, R.E. and Strong, C.A., 2015. Competitive Strategy and Market Orientation: The Relationship and its Implications. In Proceedings of the 1998 Academy of Marketing Science (AMS) Annual Conference (pp. 232-232). Springer International Publishing.
Noordin, R., Zainuddin, Y. and Mail, R., 2017. COMPETITIVE STRATEGY, ELEMENTS OF STRATEGIC MANAGEMENT ACCOUNTING INFORMATION, AND PERFORMANCE CONSEQUENCES CONCEPTUAL LINK. Journal of Accounting and Business, 8(1).
Sagwa, E.V., K’Obonyo, P. and Martin, O., 2015. Joint and Individual Effects of Human Resource Management Practices, Organizational Learning, Employee Outcomes and Competitive Strategy on Performance of Firms Listed on the Nairobi Securities Exchange.
