Our first critical thinking exercise is about what strategy is or is not. Almost

Question

Our first critical thinking exercise is about what strategy is or is not. Almost every firm wishes to maximize profits and gain a competitive advantage over rivals. However, just as in life, so also in business, you don’t always get what you want. History and current business news are full of examples where companies have tried to take a strategic action and failed. For example, Arby’s and Wendy’s tried to merge and failed. So did eBay and Skype. Setbacks and failed strategic actions offer important lessons to learn, so one of your jobs this week is to research on Google or any other information source of your choice and find examples where companies tried to attempt/execute/design a potential strategy and failed. Then, based on what you have studied so far in the course, describe why you think they failed. Finally, describe in your own words, the performance implications for companies if they do not undertake such strategic actions. In summary, your responses should contain the following: (1) Examples of companies that have tried to attempt/execute/design strategic actions and failed. (2) Your detailed explanation of the reason for these failures. (3) Your opinion on the implications of not taking such strategic actions for the performance of companies. Taken together, these three answers will provide evidence of your level of critical thinking in understanding the meaning and importance of strategy in business. Please note that your response must be at least 500 words (total for all 3 answers), and you must also post at least one comment on any of your classmates’ response. Your comment on other’s post does not have a minimum word-limit. Your responses are due by September 11 at 11:59 PM. Your responses will be graded based on the following criteria: Logic and reasoning in arguments Supplementary evidence and supporting examples Clarity of explanation Insightfulness Creativity/novelty in the information provided Additional Information: A high quality answer demonstrates you have read the assigned material, reflected and thought about it, and then provided a thorough and well considered response to the question. Anyone can have an opinion, but educated people incorporate into their discussions supporting facts and data to strengthen and enhance their arguments. Don't just give opinions, support your discussion by citing well vetted information or data from the assigned or self-researched materials. Always make sure your answers reflect the fact that you have studied the assigned material.

Explanation / Answer

(1) Examples of companies that have tried to attempt/execute/design strategic actions and failed-

Strategy is the core area which involve strategical thinking at one end and strategy implementation at another end. Both the steps taken together contribute to the strategical actions. When any of the step ignored or doesn’t given the due importance it deserves, this results in failure. Now what matters in strategy formulation and implementation is the secret not known to everyone in the industry due to which many companies face failure and dead lock.

To execute the strategy policy and plans, what all matters is 10% technical knowledge, 10% innovated ideas, and 80 % your people. Yes, Employees and labours are considered the most important assets for any company as they are the one who contributes 80% largest share to the execution and implementation of your strategy.

Let's check the example wherein the strategy planned by the different companies failed -

(2) Your detailed explanation of the reason for these failures –

The reason of failure of any strategy starts from the manner of its implementation. Execution of the successful strategy is not everyone cup of tea, having said that, you may have seen the cases wherein the people are buying the business idea. Why! simply because one is good at making strategy and other its good in its implementationTherefore, implementation is itself a course of action taken for survival of any business strategy. Implementing the strategies involve the steps which is first based on technical information and knowledge of the project undertaken and later depends on the man power training and enthusiasm. Leaders play a key role in guiding the employees towards the interest of the organization and keeping their personal interest at the same direction. Proper training and taking employees under decision making process induce them towards the execution of the work which they themselves formed decision and know the steps coming in future as well as at present. This comforts them. When the employees feel ignored or compared to others specially in case of mergers wherein they feel insecure and discomfort, settling them together is BIG task.

(3) Your opinion on the implications of not taking such strategic actions for the performance of companies-

Innovation and change is necessary for the survival of any company as well as for the growth of the employees. Market is uncertain and consumer preferences is changing overtime therefore, to keep the same pace and update to the new changes, it is important to form new strategies to gain the competitive advantage over the others. Forming strategic plans is one things and taking actions to achieve the set goals is other. Performance of the company stagnant and constant if no new actions taken and it will slow down gradually like Kodak. Therefore, forming and implementing both are the keys for the business success.

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