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Influence factors of strategy

Term Paper 2005 11 Pages

Business economics - Business Management, Corporate Governance

Excerpt

Content

1. Introduction

2.1. Environment
2.2. Competences and resources
2.3. Stakeholder

3. Stakeholder Analysis
3.1. Identify stakeholder
3.2. Power/ interest matrix
3.3. Stakeholder conflicts

4. Comparison
4.1. Stakeholder/ Environment
4.2. Stakeholder/ resources and competences

5. Conclusion

7. References

1. Introduction

Stakeholders are one factor which influences the strategies of organisations.

This assignment evaluates how important they are. According to Johnson et al (2005) strategies are systematic plans to achieve the objectives of an organisation. They are the domain in which organisations operate and have a long term direction. Strategies are affected by an inconstant environment, the constellation of resources and competences and the expectations of stakeholders. There are a lot of other factors, but this essay will describe just these three with examples.

However the main part is about stakeholders. The authors define stakeholders as one or more persons with specific interests in companies. The essay will explain the stakeholder analysis and their benefits. It will show how companies could identify, classify their interest groups and how these interests conflict. In the conclusion, the paper evaluates the importance of stakeholders for organisations and their strategies.

2.1. Environment

The environment of an organisation is difficult, because of three major reasons.

First companies surroundings are affected by different influences. Such impacts could be for example political-, economic- and technological factors.

They are also influenced by customers, suppliers and employees.

For this reason it is difficult for companies to order and acquire the manifoldness of influences. The second reason is the complexity of the environment. Most of the different influences are linked. Therefore it is for companies hard to identify relationships between these impacts. The last reason is the rapidly change of it. That contains for instance technological development like computers and cell phones. (Johnson, et al 2005, p 64) Vodafone for instance, is the biggest company in the mobile phone market which operates in more than 10 countries on all continents. The company is influenced by different cultures, political systems, economies and so on. Therefore it is not easy for them to identify all the impacts. Nowadays different industries are connected.

The mobile phone industry is linked very close with chip- and optical industry. Novelties concerning digital cameras and new chips with more memory space have a direct influence on the new generation of mobile phones. Trough the connection between different industries the environment becomes very complex. Since 1992 the figure of Vodafone Germany consumer has increased from 0,1 million to 27,7 million in 2005. Within 13 years 33 per cent of the German population are Vodafone users. (www.vodafone.de)

2.2. Competences and resources

To be successful in the market an organisation has to consider their resources and competences. The former one are for instance the number of plants, capital, employees, as well as information, experience and knowledge. However it is not enough for organisations just to have such resources. They also must esteem to use the available resources effectively and efficiently referring to the latter term. (Johnson, et al, 2005, p 117-119) With the right configuration of the resources and the right development of competences organisations gain a competitive advantage. Such advantage is achieved if a company has resources and is able to use such more efficiently than competitors which leads to better competences.

A competitive advantage is essential for the long-term success. The problem is that competitor tries to copy competitive advantage. So the convenience is often limited in time. That's why it is fundamental to consider the external drifts and circumstances as well as the resources and competences. That helps the organisation to take the right steps and also to prolong the competitive advantage. (David, 2005, p 8-9) An example for a company which uses its resources and competences effectively is the German Sportlifestyle brand Puma. Despite that Puma has less financial- and market power than giants like Nike or Adidas they are more successful in the recent years. Nike and Adidas are more focused at sports like football and basketball while Puma concentrate on Sportlifestyle products. These products combine sports and fashion elements.

Puma’s products are developed in cooperation with designer like Jil Sander, Neil Barret etc. (www.puma.com) The company is using its resources and competences more efficiently than its competitors. With the combination of sport and fashion they have been creating a competitive advantage.

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Details

Pages
11
Year
2005
ISBN (eBook)
9783638461832
ISBN (Book)
9783656071549
File size
387 KB
Language
English
Catalog Number
v49826
Institution / College
University of Sheffield
Grade
1.8
Tags
Influence Strategic Management

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Title: Influence factors of strategy