Re-engineering as strategy implementation:

Reengineering an organization is simply the process of reviewing all the different levels of an
organization's way of doing business and considering how to improve things. The goals
of reengineering include increased company profits, improved competitive advantage in the
marketplace and enhanced public image. Referring to the case study, Tomtom’s financial structure was
disturbed after the acquisition of Tele Atlas. Since TomTom choose the strategy of vertical integration,
disadvantages that arise when demand is unpredictable as in TomTom’s case sales revenue decreased
by 3.7%, So in order to improve this cost structure TomTom should adjust its expenses to spend on
market forecasting and demand prediction. TomTom is working in Europe and U.S, so it should treat
geographically dispersed resources as though they were centralized and link parallel activities. Currently
TomTom is facing a high cost structure but it should spend more resources on R&D and maintain focus
on R & D department to find out changing customers’ needs in order to gain market share and to
increases sales revenue. For example, the real-road view.

Action Planning, MBO and TQM:

Action planning states what actions are going to be placed and with what expected results. Now
Referring to the case study, in order to recover sales growth, I recommend TomTom to invest in
more areas other than navigation manufacturing industry. TomTom should move its business to
providing navigational services. For example, providing navigational information for people how
they can get the public transmissions and to provide the real road view to avoid accidents, so in
order to accomplish this, Both Corporate and functional level strategies need to be modified. All
the relevant departments and management should communicate these objectives and then set
individually objectives for each department. R&D’s objective is to innovate customer friendly
product/service (real-road view), Marketing department should work on the forecasting and
varying demands in market. Financial department should adjust cost structure to minimize the
decrease in operating margin. Every department will be responsible for timeliness and
effectiveness of each action so implementation of these actions will allow marketing department
to make company flexible to customer requirements. Finance department will lower the cost
through quality improvement, when teamwork will achieve these objectives and response to the
customers’ requirements then ultimately customer satisfaction will be achieved

Hofstede's five dimensions of a nation's culture:

Power Distance: In TomTom’s company, Low power distance culture is recommended where
employees prefer to be consulted with regards to decision making. In low PD culture, employees will
actively participate and all departments will give their inputs in setting and achieving objectives which
will help TomTom to perform well in market.

Individualism VS Collectivism: In TomTom’s company, Collectivist structure is recommended where

top level management to lower level management will work together to implement strategies
effectively.
Masculinity VS Feminism: According to Hofstede, masculinity represents cultures with distinct gender
roles where men focus on success, competition and rewards while women focus on tender values such
as quality of life and modesty. Femininity represents cultures where gender roles overlap. In masculine
cultures managers are defined as more assertive and decisive, whereas feminine cultures breed more
intuitive managers who negotiate disputes and encourage participation in decisions. So in TomTom
company, both cultures should be blended to achieve the best output.

Uncertainty avoidance: In high uncertainty avoidance cultures, people prefer a structured

environment with rules and policies in place. TomTom should avoid uncertain issues from legal areas.
TomTom should make a good prediction and should pay attention on the movement of policy changes
and make correct reaction on time.

Long term orientation: This describes the extent to which people have a dynamic, future-oriented
perspective. As TomTom is recommended to move its navigation services in order to gain market share
and maintain profits and to spend more on R&D to obtain reward in future so TomTom is recommended
to focus on the future