Discussion Questions on Business Administration - Paper Example

Date:  2021-07-02 12:31:17
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There are two types of broad generic business strategies including the differentiation and cost leadership strategies (Morris et al., 2015). Both have their advantages and disadvantages compared to focused strategies. One of the disadvantages is that a company is at the vulnerability of being copied its cost reduction sources. They are never unique to one organization and can easily be copied. Another disadvantage is that companies need to be on the alert especially in their development strategies for new products. Otherwise, the company will encounter attacks from competitors who are in different segments of the market pursuing various differentiation strategies. A focused strategy, on the other hand, will ensure that the organization concentrates on a given niche within the market. The company will need to learn and understand its market clearly to ensure that it adds something extra that competitors cannot access. A focused strategy will ensure that the organization is set apart from its competitors and stay a step ahead.

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Discussion Question 6.3

Companies will use different strategies for their value chain priorities. The cost leadership strategy will be evident when the company competes with others based on reduced prices (Klettner, Clarke & Boersma, 2014). An example of a company with the cost leadership strategy is Bic which often focuses on the production of cigarettes and pens that are disposable at decreased costs. Differentiation strategy will focus on having unique products, therefore, creating higher value for customers than that which they get from competitors. A company with such a strategy is Mont Blanc. Its aim is often to give customers a unique pen. The company, therefore, offers exquisite types of pens at a few hundred dollars. The value innovation business-level strategy is present in IKEA which is an international furniture company. The strategy bases on the elimination, reduction, raise and create a framework. IKEA applied the strategy in the initiation of its blue ocean, which ensured the achievement of a stable and sustainable competitive advantage within its market.

Discussion Question 7.1

The life cycle is not just a phenomenon that can be attributed to the life sciences. The concept has developed its place in business and economics, and any industry in the current market will experience a life cycle (Karniouchina et al., 2013). Similar to how people and other living organisms are born and transition their way through life and eventually to death, product line and industries have similar experiences. The online marketing industry has and continues to experience its life cycle as it advances through the stages of its development. The growth in sales of the industry will indicate the phase in the life cycle where the industry has reached (Karniouchina et al., 2013). It begins with the introduction phase where the industry is a new concept with unique products, and people are trying to work their way through it. Therefore, the sales are not as attractive. The industry then moves to the growth face where there is rapid growth. The online marketing industry is at this stage due to the increased sales various online marketing firms are recording. It will then move to the maturity stage where there is stagnation in the sales made, but the profits continue to rise. The decline phase is characterized by a decrease in the sales due to lack of keeping up with other industries. The phase is often inevitable.

Discussion Question 7.2

McDonald's the giant firm in the food industry stands out as one innovative enterprise. Its success can highly be accredited to the innovations that have taken place within the company over time. It is not only innovative in technology but also in the types and variety of food items and experience it makes available to its customers. The enterprise applies the incremental innovation as it endeavors for uniqueness from its competitors and offering their customer something different and better (Povod, Roldugina & Dmitrienko, 2016). As is evident the company continually makes improvements on the products it gives to the market. For example, it is currently working on using fresh beef in its burgers in various regions of Texas. The company often uses flash frozen patties, but it wants to improve quality through the use of fresh beef for its burgers. It has also had numerous other innovations like that all day breakfast initiative, the automated ordering service and much more. These innovations are the reasons why it continues to gain headway against its competitors.

Discussion Question 7.4

The current market will often take note of innovations that seem to stand out and get the attention of the consumers. However there is usually little or no consideration of low-technology innovations which often take minimal budgets to develop and have similar impacts as any other form of innovation (Reichert, Zawislak & Arundel, 2016). A type of low-technology innovation that is slowly creating value is the adjustable reading eyeglasses for children. They are eyeglasses where the user can adjust the prescription individually and was invented by Joshua Silver, and they are providing children across the world with a way to see, learn and finish their homework. It aims at individuals with a need for vision correction around the world through the provision of self-adjustable eyewear not only for children but those in need of it. Through incremental innovation, the low-technology innovation and program as a whole continue to improve and to ensure the provision of better quality for its consumers.

Discussion Question 8.1

A business-level strategy involves an organizations decision-making as it works towards the creation, maintenance and use of its competitive advantage (Rothaermel, 2015). It occurs through an evaluation of the market by an enterprise to identify where the competitive advantage lies. The corporate strategy involves working towards diversification in instances where a company identifies opportunities that will lie outside of its original market (Rothaermel, 2015). Wal-Mart may be described as one of the best-known retailers across the world. Their first supercenter was opened in 2005, in McKinney Texas. It company also started to incorporate grocery stores into its locations. The decision marked a corporate-level strategy because the company was venturing into an opportunity that was outside its original market. The company was aiming at diversification and gaining a competitive advantage and therefore ventured into an area that was not traditionally part of the retail store market. It has eventually worked for Wal-Mart as it offers a diversified experience for its consumers.

Discussion Question 9.1

A strategic alliance is described as an agreement developed between two or more enterprises with the aim of working towards objectives that all involved parties have agreed upon while retaining their independences and different organizations (Ozmel, Robinson, & Stuart, 2013). Such alliances often involve three types of governing mechanisms including non-equity, equity, and joint ventures. The non-equity governing mechanism has various advantages including that it is flexible. It is a fast and easy to initiate mechanism and will be easy to terminate. However, the mechanism is often characterized by the lack of trust and commitment and the ties created are often weak. An equity mechanism, on the other hand, will act as a window to new technology, it also has stronger ties, and there may develop trust and commitment. The disadvantages are that it may involve significant investments; it is slower and less flexible. The joint venture has strong ties and trust and commitment will be present. It, however, involves significant investments and long negotiations, has double reporting lines, and will act as long-term solutions.

Discussion Question 10.3

The Coca-Cola company is the leading beverage company in the world and is also the leading producer and marketer of soft drinks. It has the five leading soft drinks in the world including Coca-Cola, Diet Coke, Fanta and Sprite (Meyer & Peng, 2016). It operates in numerous regions across the world which means that it needs to have a global strategy in place to ensure its success in the international markets. Its global strategy revolves around various factors including a unique and recognizable brand (Meyer & Peng, 2016). It is among the most recognizable trademarks across the world. It also works towards offering the highest quality products for its consumers. It works towards the delivery of innovative and creative marketing programs in its international markets. The company often ensures that its products and available and distributed across the world and it continues to come up with innovations that give it a competitive advantage at the global level. Some of these innovations include Coca-Cola Vanilla, Diet Coke and much more.

References

Karniouchina, E. V., Carson, S. J., Short, J. C., & Ketchen, D. J. (2013). Extending the firm vs. industry debate: Does industry life cycle stage matter?. Strategic Management Journal, 34(8), 1010-1018.

Klettner, A., Clarke, T., & Boersma, M. (2014). The governance of corporate sustainability: Empirical insights into the development, leadership and implementation of responsible business strategy. Journal of Business Ethics, 122(1), 145-165.

Meyer, K., & Peng, M. (2016). International business. Cengage Learning.

Morris, M., Schindehutte, M., Richardson, J., & Allen, J. (2015). Is the business model a useful strategic concept? Conceptual, theoretical, and empirical insights. Journal of Small Business Strategy, 17(1), 27-50.

Ozmel, U., Robinson, D. T., & Stuart, T. E. (2013). Strategic alliances, venture capital, and exit decisions in early stage high-tech firms. Journal of Financial Economics, 107(3), 655-670.

Povod, E. A., Roldugina, A. E., & Dmitrienko, N. A. (2016). Analysis and opportunities of innovations in restaurant business" McDonalds"(as an example). 59.

Reichert, F. M., Zawislak, P. A., & Arundel, A. (2016). Exploring innovation success recipes in low-technology firms using fuzzy-set QCA. Journal of Business Research, 69(11), 5437-5441.

Rothaermel, F. T. (2015). Strategic management. New York, NY: McGraw-Hill.

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