Imagine you are presenting to WRSX investors. Referring to data from the performance log
and your notes on the decisions that were made, assess a specific decision (or group of related
decisions) which explains the performance outcome. Include a discussion of the
underpinning theoretical frameworks you either used, or could have used, to assist your
decision making. Did the theory support the decision, or mislead you, and why?
While conflict of interest is a common happening in board meetings, it is important to note
that all board is governed by well defined rules. The most important factors that drive the
board’s decision is to maximize their wealth. This is also the main role of the manager.
WRSX’s share prices improved after each boards meeting, and this can be directly attributed
to the board’s deliberation and decisions. It is therefore healthy for the board to hold their
meetings as it is an impetus to WRSX’s financial performances. With the increases in
WRSX’s price earnings (PE) ratios over three fiscal years, one can say that the board
meetings yield results because of their financial and operational recommendations (Greenley,
1993)
Secondly, while there were many internal operation strategies, WRSX leveraged its strong
brands and superior marketing strategy for growth in the first board meeting. When WRSX
strategic plan was to diversify into the Asian market, its choice of corporate social
responsibility in the Chinese market may have contributed to WRSX performance because
there is a significant positive relationship between CSR and corporate performances. It is also
important to note that ethical consideration in the international market may have contributed
to the stellar performance in the Chinese market. However, while Ansoff’s matrix was the
preferred strategy, it would have been advisable for the management to use the porter’s five
forces strategy to analyze the market to identify the market because there could have been
other better opportunities for driving growth and revenue.
Third, WRSX’s non financial performance would have been an important factor to consider
in their strategic plans. For example, considering WRSX’s image in the international market
is an important factor. A strong brand is like WRSX reputation. Reputation management
requires that WRSX analyze and understand the armlet before availing any products, or value
proposition. This does not only affect the brand, but ales WRSX’s financial resources as this
is a financial risk as well as a business risk. Therefore, even thought the they supported the
decision, it was not a risk worth taking in the initial board meetings. This only indicates that
the Carnelley, WRSX Business Analyst Hello, Andy Carnelley was anxious to go
international but did not do proper SWOT analyses. The Ansoff’s matrix is only suitable for
strategic planning and not for market or SWOT analyses. It should be done in combination
with SWOT analysis, and or, McKinsey's
When their former employee reported about more services and less costs, WRSX should have
taken this as a cue to change their strategy from products market development to products
developments (more services), and market penetration (low cost). Therefore, the idea is to
deliver low cost to the clients.
Secondly, it is advisable to diversity in a market full of uncertainty. International market
have different market forces and factors, it is not realistic to enter an international market
without an exit strategy. It is important for companies to diversify adequately (Qadri, 2015).
While there was market growth opportunity as evidenced by the gaps, it is important for
prospective or potential market entrants to diversity as one product may not provide the
growth impetus required by all companies.Finally, it is healthy to conclude that while WRSX
growth management, and risk management strategies were censurably more effective, their
corporate social responsibility strategies were not effective (Greenley, 1993).
2.
Consider your original analysis of the strategic position and strategic choices.
To what extent did your assessment of the strategic position and strategic choices change or
evolve over the three year period? Did key changes occur, or new information emerges, that
changed your original summary and did this lead to a change in strategy?
25 marks
Based on the initial strategic position and strategic choices, the assessment of the strategic
position and strategic choices changed a lot. It was after the realization of the level of
competition, the nature of the international market as well as the growth opportunity did
WRSX realize its growth prospects. For example, in china, the company realized that there is
general increase in consumer spending and this can be strongly correlated with the economic
performance of the Asian market. Additionally, WRSX realized those growth prospects are
hinged on WRSX’s ability to meet the changing consumer needs and the cultures. Without
the initial analysis in the first, second den third board meetings, the company could not brave
properly positioned it services in the market.
Thirdly, in target marketing, it is not the ability of WRSX to provide high quality and
innovative products at cheaper prices, but the company’s ability to meet the customer needs.
Therefore, if the company offered the best products to the wrong market segments, it could
be considered a loss. Finally, changing strategic position and strategic choices is informed by
the market research outcomes, SWOT analysis, or environmental scanning.
Over the three years, the market factors (external environment), and company's factors
(internal environment). For example, WRSX s financial, position changed over the three
years. On the other hand, the external factors also changed and the most notable one is the
changing nature of the consumer market. The middle class consumers become more affluent
with the better wages and income levels, the buying behaviors also changed as well as their
spending powered (Buckley, 2002).
These changes in both the internal and external environment prompted a change in strategy.
The company has to change its marketing strategy as well as strategic planning from products
development and diversification to market penetration and market development. These two
growth strategies were informed by the changing demands and several market facets.
Conclusion
WRSX can owe its success to its flexible policies, responsiveness to customer needs
as well as market forces. These behaviors are supported by Jay Bravura, the CEO of
Silverfish New Media, Londonay. For example, Bravura stated that a clear strategy for
resourcing the business adequately and the necessary financial investment to make this
happen. Additionally, it is also important to note that the success of every venture is hinged
on capital planning and execution, and clear strategy.
References
Ansoff, I.(1957). Strategies for Diversification, Harvard Business Review, Vol. 35
Issue 5,Sep-Oct 1957, pp. 113-124
Cateora, P. (1983). International marketing. Homewood, Ill.: R.D. Irwin.
Buckley, P. (2002). International business versus international marketing.
International Marketing Review, 19(1), pp.16-20.
Greenley, G. (1993). Perceptions of marketing strategy and strategic marketing in UK
companies. Journal of Strategic Marketing, 1(3), pp.189-209.