Presentation on Steinways Strategic Orientation

PRESENTED BY
Md. Ariful Islam Bhuiyan Md. Omar Farook Khan Syed Rafiqul Azam

Group: EQUILLIBRIUM

STEINWAY & SONS

Piano Division of Steinway Musical Instruments Company. Founded in 1853 by Henry E. Steinway. Finest Piano Maker.

STEINWAY & SONS

Brands:

Steinway

Boston

Essex

STEINWAY & SONS

Models:
Grand Piano

Upright Piano

STEINWAY & SONS

Production Process:
Step 1: Wood-Drying Operation Step 2: Parts-Making Operation Step 3: Piano-Making Operation

Retail Outlets:
New York New Jersey London Munich Hamburg Berlin

Manufacturing
New York o Germany
o

Plant:

Dealers: 200

STEINWAY & SONS

Customers:
Professional Artists o Amateur Pianists o Institutions
o

Competitors:
Baldwin Piano Organ Company Bosendorfer Fazioli Yamaha Kawai Young Chang Samick

DIAGNOSIS OF THE STEINWAY ORGANIZATION

Assessment of Inputs
Companys General Environment: Moderately Uncertain
Social Environment Political Environment Technological Environment Ecological Environment

DIAGNOSIS OF THE STEINWAY ORGANIZATION

Companys Industry Structure: Moderately Competitive

Threat of Entry Fairly Low Threat of Substitute Products Moderate Bargaining Power of Suppliers High Bargaining Power of Buyers Moderate Rivalry among Firms Severe

ASSESSMENT OF STRATEGIC ORIENTATION: DESIGN COMPONENT

Companys Strategy:

Primary Strategy: Sophisticated Niche and differentiation strategy.

Stienways technology, structure, measurement and human resource system:

Technology: Technology is highly uncertain and moderately interdependent. Structure: The corporate organization is divisional while the piano subsidiary appears to have functional structure. Measurement System: Formal measurement systems within the production process are clearly present. Human Resource System: The HR system is highly developed. Reward system, union relationship, retention programs, global hiring, compensation and training programs.

Culture is affected by:

Focus on the high-end segment Craft nature of the production process Long history of the family.

THE GOOD FIT OF THE INPUTS, COMPONENTS AND OUTPUTS.

1.

The fit between environmental inputs and the strategic orientation:

- Moderate complexity and uncertainty in the general environment. - Flexible and responsive manufacturing process.

2.

Alignment of the design components:

- The flexible structure. - Formal inspection system. - Responsive culture.

3.

The well developed human resource system:

- Socializing and developing people. - Increasing coordination among the employees.

POSSIBLE INTERVENTION BASED ON THE DIAGNOSIS

1.

Collaboration with the client:

- Increasing the clarity about its strategy. - Talk about formalizing rather than changing.

2.

Increasing integration and coordination:

- Structure. - Measurement system. - Human resource system.

THANK YOU

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