HND 商务文化策略 2.doc

A ReportonBusiness Culture and StrategyPrepared by Zhang ChenPrepared for Tang YanStudent Number : 135139793Date: June 25, 2013Content1.0 Introduction2.0 Findings2.1 Four Business Strategies2.1.1 Market Penetration2.1.2 Differentiation 2.1.3 Cost Leadership2.1.4 Diversification2.2 Differences and Relationships between Strategy and Strategic Choice2.3 Influence of Two Different Business Strategies2.4 the Forces for Change2.4.1 Market/Industry Knowledge2.4.2 Sufficiency of Resources and Capabilities2.5 the Effect of Business Strategy2.6 the Role of Management2.7 the Influence of Changing management2.8 Lewin's Force Field Analysis2.9 Method to Overcome Resistance3.0 Conclusion4.0 Reference1.0 IntroductionAG Company is a software company and games development company based in 2011. The company began as three friends pursuing a passion,This report will indicate the for business strategies, and differences and realationships between strategy and strategy choices,the identify the effect of the current and future strategy and tell the impact of both, last,this report will use Lewin's Force Field Analysis and decide some approach to change 2.0 Findings2.1 Four Business Strategies2.1.1 Market PenetrationHere we market our existing products to our existing customer groups. This means increasing our revenue by, promoting the product, repositioning the brand, and so on. However, the product is not altered and we do not seek any new types of customers. It involves an increase in sales of existing products to existing markets-selling more of the same to the same people. It has two methods; the first one is using the existing product break new market to penetrated, the other is offer new products to existing market to penetrate. This strategy has the lower risk and dont need more investment. It is suitable for the product being in the growth process, when the market is not saturated the business would growth in the market and increased volumes lead to economies of scale, especially for some business which not have some clearly goals and development strategies.2.1.2 Differentiation It is the company would offer the unique products or services. Company could use the unique materials or research the new technology or new materials, then make consumers have the better and totally different products or services than competitors. If the AG Company wants to carry out this strategy, it should meet some requirements: First, AG Company need a strong research and develop their capability, the reputation of quality, innovation and technology. It would have the strength of marketing management and a team with high-level research staff, creative staff and high level skill staff. Then the business can make more superior difference than competitors. And the need of consumers will be various. The main competition is mainly about the product innovation.2.1.3 Cost LeadershipIt involves the firm winning market share by appealing to cost-conscious or price-sensitive customers. And it focuses on efficiency and lower cost. It means business reduce their cost and gain the competitive advantage about lower cost.The company in any market will gain lots of advantages from being able to produce at the lowest cost. A cost leadership strategy is appropriate when the company has its competitive advantages at producing efficiency, and the cost is lowest.It is useful for the product market share is much larger than competitors and the business that could reduce the cost of product through saving the materials, improve the technology, innovation of produce 2.1.4 DiversificationThis is where we market completely new products to new customers. There are two types of diversification. The first is related diversification and the second is unrelated diversification. Related diversification means that the company remains in a market or industry with which we are familiar. Unrelated diversification is where the company has no previous experience in the market or industry. This strategy could be used in a company with many competitors in the same industry. And its products are on the stage of market saturation, and not perform as good as other competitor. Then the company could choose to produce new products in a different industry. At last it will attract new consumers and increase the market shares.2.2 Differences and Relationships between Strategy and Strategic ChoiceBusiness strategy includes planning choice, implementation and evaluation that guide the company to gain great profit and success. An inspired and clearly strategy would bring about successful, while a weak or unsuitable strategy may result the company astray. Strategic choice is consider the competitive advantage, the influence from environmental, the pressures, and then make a decision about the company future.In Alphabet Game, the strategy may be faced more choice. In this case, we could know that AG Company was a small-size company therefore they chose the cost focus strategy. The main difference between the business strategy and strategic choice is that strategic choice is a step of business strategy not a strategy. But it decided the best choice for organization strategy. 2.3 Influence of Two Different Business StrategiesCurrentFrom the case, we could know that at the beginning, AG Company is a small-size company and lack of differentiation. And it only has fewer clients and low value manufacturing. The company began as three friends in 2001, house research, development and production which rank alongside any of its comparable competitors. According to the case, we could know that the cost focus strategy is most suitable for AG Company. They need cut down the cost by managing the value chain effectively. In AG Company, production cost have tripled in recent years with the introduction of next generation games consoles, the manager could make some decision about cut cost. Finding the new low-cost purchasing channel, purchasing the high quality materials cut the waste, saving the materials, improving the labor skill to improve the working efficiency.As the matter of fact, managers are considering all the possibility to cut down the cost. With the development of industry, there will be more and more consumers demand variety. Therefore AG Company needs to make a change about the strategy to meet new challenges. FutureConsumers need expectations of appearance, movement and behavior has raised the bar in terms of graphic believability and authenticity. These make a request of new technique and creative. They should carry out the differentiation strategy to create the totally different products and service to customers aiming to have their competitive edge. AG Company should increase the investment in research and development to create unique goods and services.The new function marketing and educational tools, internet competitive marketing are the unique products offer to consumers. Company used the marketing or educational tools to clients. The rise of internet competitive marketing has also provided substantial opportunities and AG has striven to be at the forefront of that development.2.4 The Forces for Change2.4.1 Market/Industry KnowledgeSome market/industry knowledge is necessary to AG managers. By environmental research, we could clearly know the trends of market and the need of consumers. And by investigating the consumers, AG Company will realize the game worlds must react in a realistic manner and expectations of appearance, movement and behavior has raised the bar in terms of graphic believability and authenticity.When the managers have collected this information from consumers, AG Company would make the right decisions for the future development. They would focus on the new technique research and development and improving the staff skills. Therefore the market/industry knowledge is full of importance and it could affect the future and development of AG Company.2.4.2 Sufficiency of Resources and CapabilitiesWhen AG Company carries out a strategy, they should ensure that AG Company has enough resource and capabilities, the reason of which is that enough resource is the requirement when do the researching and developing of new products and service. In AG company, production cost and technological cost have risen most sharply in relation to graphics as HD gaming requires large scale investment in staff and equipment., therefore , AG Company should add the investment capital in production and technological to meet the ever-growing demand of new production and services. With the development of AG Company the demand of resource would become larger and more various. AG Company should more focus on the resource channel and capabilities.2.5 the Effect of Business StrategyAfter analyzing this case, the better business strategy for AG Company is differentiation. This choice will bring many advantages.The first one is that it could help AG Company make more profits. AG Company select the differentiation strategy, then it will give the consumer a clear reason why choose them, such as the high-quantity of product and products with unique technology. The second one is that it could improve the innovation ability. AG Company uses the flash game as marketing or educational tools that is a innovation. It not can increase the sale, but increase the innovation competitive advantage which has provide a long-term plan for AG CompanyThe third one is that it will secure the customer loyalty. It makes the substitute goods have no strength in performance. Consumer will continue use this software until the new production appears.The last one is that it will increase the market share of AG Company. According to this case, we can know that there are many competitors in this industry, such as Microsoft and SONY which hit AG deeply. The product saturated lead to the lack market share. Therefore AG should innovate its unique product which has its own feathers like the games used as promotional tool and educational tool. Thus many consumers would become be willing to buy them, and the market share will increase quickly.2.6 the Role of ManagementWith the development of AG Company, it has met with some troubles. If AG Company want to solve this problem, it is necessary to change the strategy. There are four strategic steps to change the management: strategic planning, strategic choice, strategic implement and strategic evaluation. Strategic PlanningStrategic planning manager is a designer of new strategy who should identify the problem and find the innovative ways to solve it. For the AG Companys future, it is full of importance to change and design a innovative method. Strategic ChoiceStrategic Choice manger takes the role of a decision maker. They have enough rights to decide the organization choice about strategy, the way solve the problem and the development of future. They make a decision that Alphabet try to differentiation strategy, and create the production as educational or marketing tools for example internet viral marketing. Strategic Implement Strategic Implement manager is responsible to operate the strategy, do well at working planning and time arrangement which is helpful for the staff to research and develop the unique production and service. From the case, we could know that AG Company creates flash games designed for client as marketing and educational tools, NHS, Pepsi, Virgin Media and many small businesses all become those clients. This software change the function it can enable data capture, provide key message to consumers or employees, providing a competitive advantage over other companies. Strategic EvaluationIn this step, manager is a evaluator who is have rights to decide whether the strategy is suitable for the organization or not, whether will change the trend of organization or not, whether its helpful to solve the problems faced or not. By analyzing the case, differentiation strategy would be better in AG Company. Internet viral marketing has provided AG Company with much income and recognition in an increasingly competitive marketplace and them has striven to be at the forefront of that development.2.7 the Influence of Changing managementWhen business is change strategy, they would have some factors effect on business, such as social responsibilities, business goals, environment, stakeholders, organizational culture, AG Company is mainly about a game company; therefore they should take the responsibility to children or teenagers. AG Company should take some methods to limit the hours for the game and AG Company must ensure the game content is positive and healthy. Business goal is the second factor could effect AG change management. AG Companys goal is that it will focus the innovation, quality and excellence in the future. To achieve this goal, they will improve the technique and train the staff skills and to be creative.Environment factor also will have an effect on business management, including the market trend, consumer demand, level of income. The up-to-date technology software must become future software market trend. And there will be more and more target consumer with high income to buy specialized and custom products. So AGs managers should focus on researching and developing to make innovation on the new product.2.8 Lewin's Force Field AnalysisAccording to the research, Lewin thought everything under a pair of opposite force and it keeps balance. Driving force is a force of push things change, restrained force is forces to keep the original state. The change is happen when the driving force exceeds restrained force and the balance is broken.In AG Company, there are driving force and restrained force. AG Companys driving force comes from the pressure from competitors, such as Microsoft and Sony. If AG Company wants to make progress under the huge pressure, AG Company should retrain the personnel, changing markets, extend the lifecycle of product, changing the employee into the hard working nature, establish the global view of market development, social transformations, increased competition, new technology, management leadership change, new products and services, which will help AG Company make great achievement.The restraining forces are from individuals: fear of status, loss of status, inertia (habit), fear of the unknown, loss of friends. From organizations: strength of culture, rigidity of structure, lack of resources and contractual agreements. If AG Company wants to gain next strategy, it should continue to use the cost focus strategy. And it will cost too much change the companys strategy from cost focus into the differentiation, so its necessary to find reliable investor to help AG Company accomplish this huge change.2.9