Assignment 2

Strategic management

Submitted by Submitted to
Tejas Vig (2020992614) Dr. Tanvi Jindal

Case 1

In the year 1999, inspired by his family members shopping online during Christmas break, Jack
Welch, Chairman, General Electric company, challenged its managers to find out ways to sell
their product lines through the Internet. He further asked the top 600 managers in his
organization to find an internal Internet mentor who would guide them in adopting the World
Wide Web. He was seeking to develop a strategy for using the Internet for trading.

1. Evaluate the scenario to identify which phase of strategic management is being adopted
at GE?
2. Is this a feasible way for effective strategy formulation? What can be the probable
limitations?
3. What other factors need to be considered to make it better?

Answers

1. Developing a strategy to employ an internal online mentor who is competent and has
access to the Internet is part of a strategic management phase conducted by General
Electric Company. Because no plans have been established and the firm is at the seed
stage/early stage, it might be classified as formulation. During this phase, a GE firm will
pay more attention to details and monitor procedures in order to deliver a timely
response to a question.

2. Despite the fact that the internet was developed in 1983, the majority of people in 1999
do not have simple access to it. When we consider the current situation, we can see that
many individuals do not have access to the internet or do not know how to utilise it. If
they can identify an inside online mentor, they have the highest chance of succeeding.
This element is difficult to assess in terms of risk. Managers employ statistical analysis,
decision analysis, and mathematical models to assess risk.
 3. The capacity to change and adapt is an essential feature to consider while developing
and implementing a plan. Because the environment is dynamic and changes regularly.
Change is required for any plan to be implemented. Depending on the company, some
embrace change while others resist it. The business process is iterative.

Case 2

Assume a small scale start-up is planning to scale its business by adding a few more
customers. The product that they sell and the customers that they serve is a steady market. The
firm employs a few employees and all of them work together in a small office. They have a
friendly relationship with each other as well as the CEO of the start-up. Although a few of them
do not believe scaling is feasible right now, they agree to implement this strategy, however they
often discuss probable bad consequences if it fails.

1. Which school of thought can be applied to the above scenario?

2. If suppose all of them believed in the CEO's plan for implementation, would the school of
thought change?
3. Can positioning school play a role here? Why or why not?

Answers

1. The issue indicated above can be addressed using the School of Design (School of
Thought). This school of thinking is primarily concerned with strategy formulation. SWOT
analysis was used to undertake internal analyses. Following that, the company seeks to
adapt its skills to market trends. As long as the market is stable, the company may
respond to market developments without concern of being disrupted by potential
competitors. This market is often referred to as steady.

2. Yes, the Entrepreneurial School will replace the School of Design as the dominant
school of thought. This school is exclusively made up of CEOs. As a result of this
strategic approach, the company, whether it is a small business looking to expand into a
major corporation or a giant corporation that trusts its executives, follows what the CEO
says.

3. Yes, because they evaluate the market first, positioning schools always produce the
greatest outcomes. Managers pick which items to prioritize and make knowledgeable
judgments throughout the strategic planning process. Managers must assess which
rivals are existing on the market as well as the location of their organization. It can use
approaches like the five armies, value chains, matrices, BCG, and others to determine
the quality of its items.

Case 3-
A global pharma company decided to discontinue the sale of tobacco products in its U.S. retail
locations. Although this resulted in a loss of billions of dollars in revenue from sales of these
products, the CEO was firm on his stand for discontinuation. The purpose of the company was
“Help people on their path to better health.”

1. Do you think that the CEO's decision is justified?

2. Which concept are we talking about here?
3. What is the role of this concept in strategy design?

Answers

1. There will be two parts to it. The first is that if things continue as they are, the company
will eventually be unable to meet its obligations and will be forced to exit the market. The
CEO, on the other hand, sees this as a positive because he is focused on the company's
CSR programmes while also following his objective of "Helping individuals on their
journey to better health."

2. We're talking about the company's corporate social responsibility. He is much more
focused as a CEO on aiding individuals on their journey to improved health. He is much
more concerned with society, in order to project a favorable image in the public's opinion.
This is due to the company's only goal of improving society.

3. Tobacco goods provide an income stream. Companies that willingly quit utilizing them
will incur significant losses and may be forced to commit bank fraud if they are unable to
pay their debts. Despite this, the losses may be handled if the firm creates a suitable
plan and releases a new product. This is because part of the losses will be offset by new
items, and the corporation will be able to progressively reduce Tabaco's product line
rather than abruptly exiting the market.

Case 4-

Learning from the success of sales of its motorbikes in Asian markets, Honda has successfully
made an entry into the U.S. motorcycle market. This has provided a battleground for the debate
between those who view strategy making as primarily a rational, analytical process of deliberate
planning (the design school) and those that envisage strategy as emerging from a complex
process of organizational decision making (the emergence or learning school). a.

1. Which school of thought does it fall into in your opinion?

2. Which strategy would this be termed as – Intended, Realized, Deliberate or Emergent?
Justify your answer.

Answers
 1. It will be part of the Learning School initiative. Honda has had success in the Asian
motorcycle industry and is now attempting to replicate that success in the United States.
Honda should follow a different strategy because our people and demands differ greatly
from those in the US market. It will fail because Honda will be unable to concentrate on a
single goal, and the same method used previously will not provide the same results.

2. Honda has selected an Asian market strategy and aims to apply the same strategy in the
US market, which is a realized strategy in my opinion because it is a plan that a
company follows.

Case 5-

When HP and Compaq merged, it had a strong focus on business issues and an equally strong
focus on managing employee transition well. For this purpose, it provided an interactive forum
for employees using the Internet. Post-merger, they decided whether to retain or integrate ways
of doing business by different product divisions. For example, for the Printer division, HP culture
was kept intact, while for others, a roadmap for integration was proposed. The integration effort
began with a two-day leadership kickoff. Expectations and rules of engagement were set firmly
from the top down. Short deadlines were established to achieve clearly defined synergy targets.
This forced collaboration in the interest of achieving desired goals. An employee portal was
used to drive extensive communication and interaction, including feedback. On Day One alone,
that portal received 50,000 hits from employees.

1. Analyze from the above scenario, how strategy formulation is a collective process?
2. How can the cultural school of thought aid in mergers and acquisitions?

Answers

1. Because it includes a group of individuals, strategic planning is a collaborative activity.

HP and Compaq personnel must work together to manage personal transitions and
solve corporate difficulties. The internet is used to implement a comprehensive plan.
They create a coordinated approach in order to achieve their synergy aims.
Collaboration is crucial to their success.

2. According to the School of Cultural Thinking, an organization is psychologically

beneficial to individuals and has a high level of social capital. A strong corporate culture
may assist in steering a firm in the proper path. The cultural school is open to all
employees from all departments. During mergers and acquisitions, it comes in handy.
Social conventions, beliefs, and traditions all impact decision-making. Cultural schools
may be antagonistic since the individuals we're attempting to reach dislike change; as a
consequence, they merge, and the company progresses.