Strategic Management Report Assignment Sample

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1. INTRODUCTION

Managing the resources and being able to achieve the targets and objectives of the business is strategic management. Booking.com is having its headquarters in Amsterdam, Netherlands which is having Glenn Fogel who is the CEO of the company. Zappos is a retailer which is having its headquarters in Las Vegas, US. The company is producing shoes, handbags, eye wears, etc. The following report would be discussing the internal factors like structure and external factors which impact the company so that the business would be able to make the right decisions at the right time accordingly.

 

2. TASK 1

1. AC 1.1 Advantages and disadvantages of two different types of organizational structure

Organizations in the market have to make sure that they are having an effective structure to follow so that they would be able to have the right working and performance. Booking.com is having tall organizational structure for management which is making the company have a unique feature for itself. This structure is going to have several layers which make the company be able to operate effectively (Schilling and Shankar, 2019). Layers get in better understands for all the employees and more ideas can generate as well which is going to be good for the overall working which is going to be there. Advantages- Booking.com is going to have a specialized working as the management would be trained for that specific working. The roles and responsibilities of each employee will be decided in advance so that the functioning would be effective for the company to have as well. Performance of the management is going to be higher as well and make sure that the company is having better working. Power is going to be disturbed and this would make sure that there is going to be no discrimination and purely on the talent which is present. Disadvantages- The communication would take a lot of time to travel in the organization which impacts in slow working and performance of the company. Decision making is going to be impacted as well for the long run as there is would be a lack of communication and there are risks for mismanagement (Chofreh and et.al., 2020). Flexibility is not that high for the lower managers of the company which is going to get in negativity which is not good for achieving the targets and objectives of the company.

There are not many layers which are present in flat organizational structure which is present in Zappos. The roles and responsibilities are not fixed and not divided as well in this type of structure and leadership is going to be decentralized as well. The company is going to have a lot of advantages and disadvantages using this method but it is right in this small organization to be able to find loyalty and trust of the workers which are present in the company (Ansoff and et.al., 2018). Advantages- The business will not have to invest much on the structure of the company and make the morale level of the employees are higher as well which is necessary for the growth of the organization. There are chances of less miscommunication and there is good interaction which is going to be there between all the employees that are present. Employees are less dominating on the other employees who make the retention level is improved of Zappos for the long run. Disadvantages- Decisions which are made in this structure are not going to be right as there is no one who would be an expert that would be there. Wastage of time is going to be there as the ideas are going to be many and taking a decision without having a head is going to make a lot of confusion and time taking for the company (Jabbar and Hussein, 2017). There is limitation on the productivity as well of the company as the supervision is minimal and make the company not be able to match the demands of the clients on time.

 

2. AC 1.2 Organizational strategy linked to products, services, customers and revenue

Products services

Booking.com and Zappos needs to make sure that the quality and design of the products are according to the expectations of the clients so that there would be better operations (Grant and Baden-Fuller, 2018). Company has to make sure that the experience of the customers is being improved so that they would be able to have better working.

Customers

Investment in workforce has to be made in order to find the right working and to be able to have that the company will have to make investment in the technological aspect. Experience of the clients can be gained from this as the demands are matched.

Revenue

The company will be able to have better brand awareness in the market when the revenue is used well and social media investment and inventory checking has to be done as well (Burlov and et.al., 2018). Resources must be used well to make the revenue be maintained and make the company have better profitability.

 

3. AC 1.3 Current impact on organization of external factors and trends

Covid-19

Advantages- Company got online and that is going to be good for the long run and the social pressure would be lower as well. Trends are being followed by the companies and that is going to get in more customers be attracted (Pfarrer and et.al., 2019).

Disadvantages- Zappos had to invest a lot in making sure that they have shifted online successfully to be able to have the right base. Covid-19 made the travellers be limited or stopped in most of the countries therefore this industry went into loss.

Change in spending habits

Advantages- Company has got time to invest in social media promotions and presences avoiding the demands of the customers. Booking.com and Zappos got time to make more decisions about the changes according to the competition which has to be taken by the organization.

Disadvantages- It is due to Covid-19 that the economy and lifestyle of the population has reduced which has to be maintained (Wang and et.al., 2020). Trends of low and sustainable products would be higher in the market therefore Zappos has reduced their prices as well.

Reducing carbon footprints

Advantages- The brand value of the business is going to be higher when they start using implementing the policies and working which is present. 

Disadvantages- Company has to invest in the trends and lower the resources as well which is going to impact the quality and production of the products in Zappos (Bondarenko and et.al., 2017).

 

4. AC 1.4 & 3.3 Issues and causes affecting the product and service delivery

Turnover of employees in business

• Issues and Causes

Due to Covid-19 the Company has faced a limitation on the resources as of economic factor which got in a lot of changes in the company. The company let loose of a lot of employees especially in Booking.com as the organization was not being able to work effectively.

• Impact of issues and causes on products and services

The products are not being sold by Zappos till they did not get online and online also there are limited promotions therefore the company is not being able to make a place for themselves sooner (Teece, 2019). Booking.com, they have a good base online but they are not being able to have a good working as the clients are having a fear about their health factor.

• Solution

Promotions have to be made by Zappos of being online to make the customers be aware so that they would be able to get in loyal employees back in the organization. Booking.com will have to make more training and loyal employees to be hired to be able to get the right support in difficult time as well.

Customer’s limitations

• Issues and Causes

Customers are not being able to reach out to Zappos which is a retailer as there is lockdown and Booking.com is not operating effectively as there are limited travellers which are present (Barbosa, Castañeda-Ayarza and Ferreira, 2020).

• Impact of issues and causes on products and services

Both the companies are going to go in loss which it is already as the customers are not being able to utilize the services of the organization. Further the resources would be waste which is already bought.

• Solution

Zappos will have to make sure that the awareness of the brand is present in the market so that they can get in the right customers again (Bryson and George, 2020). And as per Booking.com they have to get in better performance that is going to be there by taking the governmental guidelines seriously for the customers and employees.

 

5. AC 1.5 People practices impact on organisational systems and structures

People practise like organization design and performance in this time of Covid-19 has to be maintained otherwise the company will not be able to have a better working. Businesses have to make sure that their aims and objectives are being achieved on time and for that they need to have the right performance in the market as well as organization design has to be present. Organizations have to invest a lot on the performance to be maintained online and social media has been very helpful in the situation which rose (Ketchen Jr and Craighead, 2020). Business has to make the right decisions on time for the people practices like HR policies and make the system be improved with time as well. Retaining the employees was important as the loyal and experienced employees wanted to find jobs were they were being paid well even in this difficult time as their lifestyle was not being maintained.

Negative impact of people practices on systems and structures of an organization are that there were limitations on employments which used to take place. It is important for the company to make sure that they are being able to have the right working and performance but for that there has to be management and development of the people as well which was missing. Many people lost their jobs as well in the current situation which is present. Management was not being able to maintain the economic factor as the customers were not present in Booking.com and due to lockdowns and uninvolved government in this situation the business was not being able to do well in the market (Barbosa, Castañeda-Ayarza and Ferreira, 2020). Structures of most of the businesses in the market have changed which has to be understood by the company so that they would be able to make the right decisions in the future as well. Influence is present of other businesses in the market as well which is why Booking.com and Zappos were not being able to have the right employees which helped the business to grow.

 

6. AC 1.6 Impact that technology has on people, work and working practices

Technology has a good impression of its on the people which are working in Booking.com and Zappos which is that they are being able to access the business whenever they want to. Businesses online do not stop and make sure that there would be a good growth that is present as well.  Work life balance of the population is also well maintained as the customer does have to come to the store physically to see the products and would be able to purchase them online which are going to be a great factor for the economic condition of the business (Makadok, Burton and Barney, 2018). Companies are getting online so that they would be able to gain the right working and performance for themselves which is helping them get competitive edge in the market as well for the long run.

Working of the businesses online has made the working so much easier as there is a better control and monitoring which is present of the company. Technology has removed errors on maximum level which would make sure that there is a better working and operations that is going to be there. Businesses have to make the right decisions of working and make sure that there is going to be right automatic working through the medium of training and development of the employees which are working in the organization (Velikorossov and et.al., 2020). Businesses have to make sure that they are taking the right changes according to the trends which are impacting the company in a positive manner for the long run.

 

3. CONCLUSION

From the above report it can be concluded that business need to work according to the structure and analysed planning in order to be able to find the right working which is going to make sure that the company would have the right profit margins. Trends and external factors of the business must match and decisions to be made on it effectively so that they would have the right working and performance which is going to be there.

4. presentation">References

Books and Journals

Ansoff, H.I and et.al., 2018. Implanting strategic management. Springer.

Barbosa, M., Castañeda-Ayarza, J.A. and Ferreira, D.H.L., 2020. Sustainable strategic management (GES): Sustainability in small business. Journal of cleaner production. 258. p.120880.

Bondarenko, T.G and et.al., 2017. Optimization of the company strategic management system in the context of economic instability.

Bryson, J. and George, B., 2020. Strategic management in public administration. In Oxford Research Encyclopedia of Politics.

Burlov, V.G and et.al., 2018. The methodological basis for the strategic management of territory development. International Multidisciplinary Scientific GeConference Surveying Geology and Mining Ecology Management, SGEM, Bulgaria.

Chofreh, A.G and et.al., 2020. Covid-19 shock: Development of strategic management framework for global energy. Renewable and Sustainable Energy Reviews. p.110643.

Grant, R.M. and Baden-Fuller, C., 2018. How to develop strategic management competency: Reconsidering the learning goals and knowledge requirements of the core strategy course. Academy of Management Learning & Education. 17(3). pp.322-338.

Jabbar, A.A. and Hussein, A.M., 2017. The role of leadership in strategic management. International Journal of Research-Granthaalayah. 5(5). pp.99-106.

Ketchen Jr, D.J. and Craighead, C.W., 2020. Research at the intersection of entrepreneurship, supply chain management, and strategic management: opportunities highlighted by COVID-19. Journal of Management. 46(8). pp.1330-1341.

Makadok, R., Burton, R. and Barney, J., 2018. A practical guide for making theory contributions in strategic management.

Pfarrer, M.D and et.al., 2019. Sociocognitive perspectives in strategic management. Academy of Management Review. 44(4). pp.767-774.

Schilling, M.A. and Shankar, R., 2019. Strategic management of technological innovation. McGraw-Hill Education.

Teece, D.J., 2019. A capability theory of the firm: an economics and (strategic) management perspective. New Zealand Economic Papers. 53(1). pp.1-43.

Velikorossov, V.V and et.al., 2020. Strategic management.

Wang, Z and et.al., 2020. Strategic management of product recovery and its environmental impact. International Journal of Production Research. pp.1-21.

 

5. presentation">APPENDIX

External environment of the company has to be understood in order to be able to have the right working which is going to be present. The following report would discuss the pestle of booking.com and Zappos.

• Political factors

Brexit did get a lot of changes in Booking.com to be able to operate effectively in UK and so did Zappos have in making the productivity be maintained. US government is not stable as well which is why Booking.com will have to change their working and processing from time to time.

• Economic factors

GDP of the countries have fallen and investment still needs to be made in order to find the right sustainability in the market as well. Company needs to have the right working for the long run therefore they need to make the economic factor of the company be present.

• Social factors

The customers have to be understood because the economic factor and lifestyle of the customers is changing as well. Business has to get in new pricing strategy and production methods to lower their costing which would be beneficial.

• Technological factors

Investment is being done by Booking.com and Zappos which is high in technological aspect so that they would be able to maintain and gain the customer base which they have been having in the market for the long run.

• Legal factors

Customers and employees regulations and laws have to be matched with the organization in order to find the right working and performance that is going to be there.

• Environmental factors

Carbon footprint and other policies which are being put out by government and international bodies on the organizations need to be followed in order to have the right performance. This way the organization would be able to have the right functioning and brand value also increases.