Strategy vs Structure in Strategic Management

Strategy vs Structure in Strategic Management Strategic analysis: Strategy versus Structure for International Competitiveness Introduction The strategy structure relationship, that was previously considered reciprocal, is now recognized as being considerably more complex, and there is some agreement that structure can and does have a profound impact on strategy through its direct effect on the strategic decision making process (Bourgeois Astley, 1979; Burgelman, 1983; Fredrickson, 1986). In understanding the role of strategy and structure in international business, one must understand that what has essentially changed is the context within which business operations take place. The well developed and complex associations between structure and strategy in classical studies of firms are also central to research in international business, but the nature of business has changed, and so have the relationships. As such, issues have arisen over the best way for international firms, operating in global marketplaces, to best align their strategy and structure to serve numerous distinct markets, whilst maintaining a global identi ty. This paper looks at the development of business strategy and structure over time, highlighting how the relationships have changed, the implications for organisational behaviour, and how firms can alter their behaviour to best gain competitive advantage in international markets. International Strategies Business strategy refers to how firms compete in an industry or market (Varadarajan and Clark 1994; Walker and Ruekert 1987). The two historically dominant frameworks of business strategy are the Miles and Snow (1978) model, which focuses on intended rate of product-market change, and the Porter (1980) model, which focuses on customers and competitors. Miles and Snow (1978) developed a comprehensive framework that addresses the alternative ways that organisations define and approach their product-market domains and construct structures and processes to achieve competitive advantage in those domains. Miles and Snow identify four archetypes of how firms address these issues: â€Å"prospectors† continuously attempt to locate and exploit new product and market opportunities, â€Å"defenders† attempt to seal off a portion of the total market to create a stable set of products and customers, â€Å"analyzers† occupy an intermediate position by cautiously following prosp ectors into new product-market domains while protecting a stable set of products and customers, and â€Å"reactors† do not have a consistent response to the entrepreneurial problem. In contrast, Porter (1980) proposes that business strategy should be viewed as a product of how the firm creates customer value compared with its competitors, and how it defines its scope of market coverage. Walker and Ruekert (1987) observed that though each of these strategy typologies has inherent strengths, i.e., Porters external focus and Miles and Snows internal focus, each is also limited. To address this, Walker and Ruekert proposed a hybrid model that synthesizes the two foci in a typology that consists of prospectors, low-cost defenders, and differentiated defenders. However, although Walker and Ruekert’s article has been frequently cited in the marketing and management literature, the distinctions between low-cost defenders and differentiated defenders have only recently been supported in empirical analysis (Slater and Olson, 2001). Following on from these initial developments, over the last few years researchers have quite successfully addressed and explicated the various forms of international strategy, and these forms are generally well accepted in the literature. There is now considerable agreement among international business scholars that most firms embarking upon or undertaking international business operations are cognizant of the twin pressures of global integration and local responsiveness. To this end, the integration-responsiveness framework suggested by Prahalad and Doz (1987) has provided a valuable theoretical tool to better understand international strategic behaviours of firms. More recently, we have seen many successful applications of globally integrated strategies (Parente, 2003; Parente Kotabe, 2003). According to Yip (2003), global companies have developed more sophisticated and flexible versions of international strategies and organisational processes, which successfully embraced globaliz ation. Organisational Structures Organisational structure refers to an organisation’s internal pattern of relationships (Finley, 2000). Structure has been characterized by a number of dimensions and illustrated by using a variety of types, like functional or divisional (Fredrickson 1986), however, there are three dimensions of structure: centralization, formalization, and complexity, which have received more attention than any others (Fry, 1982; Fry Slocum, 1984). Each of these dimensions appears to have great implications for strategy and strategic decision making, and are dominant characteristics of the well known structural types (Fredrickson, 1986). Centralization refers to the degree to which the right to make decisions and evaluate activities is concentrated (Fry Slocum, 1984; Hall, 1977). A high level of centralization is the most obvious way to control and coordinate organisation decision making, but places significant cognitive demands on those managers who retain authority (Fredrickson, 1986). Min tzberg (1979) has discussed this issue by suggesting that an individual does not have the cognitive capacity or information that is needed to understand all the decisions that face a complex organisation. The degree of formalization specifies the extent to which an organisation uses rules and procedures to prescribe behaviour (Hage Aiken, 1969; Hall, 1977). Therefore, formalization has significant consequences for organisational members because it specifies how, where, and by whom tasks are to be performed (Fredrickson, 1986). A high level of formalization has the benefit of eliminating role ambiguity, but it also limits members’ decision making discretion. Complexity refers to the condition of being composed of many, usually, though not necessarily, interrelated parts. Hall (1977) suggests that there are three sources of complexity: horizontal and vertical differentiation, and spatial dispersion. Therefore, an organisation that simultaneously has numerous levels, broad spans of control, and multiple geographic locations would be considered as highly complex (Fredrickson, 1986). The Interaction Between Strategy and Structure Whilst strategy and structure have been studied in isolation for a great many years, and are now relatively well understood, what is less understood is the international role of organisational structure and its relationship with international strategy (Finley, 2000). International strategies are the forms and types of actions firms follow to fulfil their long term business objectives. Organisations involved in international business activities usually have two major forces impinging on them. One is the need to standardise products on a global basis, and the other is to respond to local country or local market demands. International strategies may be characterized in different ways, and the integration-responsiveness framework developed by Prahalad and Doz (1987) has extended the conceptualization of industry pressures to incorporate generic strategic responses. The framework suggests that organisations develop their strategies and structures based on the emphasis they place on either one or both forces. At the most basic level, organisational structures are established to coordinate work that has been divided into smaller tasks. Mintzberg (1981, p. 104) noted, â€Å"How that coordination is achievedby whom and with whatdictates what the organisation will look like.† Walker and Ruekert (1987) further hypothesized that firms that follow different generic business strategies adopt different structural designs. Vorhies and Morgan (2003) studied the relationships among marketing organisation structure, business strategy, and performance in the trucking industry. Both of these studies demonstrated that different marketing organisation characteristics are more or less appropriate for different business strategies. The forms of structures typically defined by formalization, centralization, and specialization, which as Walker and Ruekert (1987 p. 27) noted â€Å"seem particularly important in shaping an organisation’s or departments performance†, are also applicable in d ifferent ways to different strategies and geographic factors. For example, in studying the development of America’s dominant industrial organisations, Chandler (1962) observed that major increases in unit volume, geographic dispersion, and vertical and horizontal integration were eventually followed by changes in structural form. Several studies following Chandler’s work confirmed an association between these two variables, in that structure generally followed strategy (Fouraker Stopford, 1968; Rumelt, 1974). In spite of the wide spread acceptance of the structure follows strategy relationship, there is a significant body of literature that suggests that structure has a significant and major effect on strategy (Fredrickson, 1986). Bower, for example, characterized structure broadly as the context within which decisions are made, and observed that â€Å"structure may motivate or impede strategic activity† (1970, p. 67). This view is also supported by other researchers who contend that structure constrains, or in another set of circumstances, enables, strategic choice (Bobbitt Ford, 1980; Duncan, 1979; Hedberg, Nystrom Starbuck, 1976). To understand why it is logical for strategic action to be affected by structure, one must understand the relationship between decision making and structure (Fredrickson, 1986). March and Simon (1958) addressed this critical aspect of the relationship by suggesting that an organisation’s structure imposes boundaries of rationality that accommodate members’ cognitive limitations. By delimiting responsibilities and communication channels, structure allows organisations to achieve organisationally rational outcomes despite their cognitive limitations (Simon, 1976). Structure also allows management to control the decision making environment and facilitate the processing of information (Fredrickson, 1986). The structure-strategy relationship is well explained by Bower when he states that â€Å"when management chooses a particular organisational form, it is providing not only a framework for current operations but also the channels along which strategic information will flow † (1970, p. 287). As a result, the relationships between business strategy and organisational structure become massively complex when considered in the international context, and thus require organisations to strategically examine their fundamental behaviours in order to best align their strategy and structure, without becoming lost in the complexity. Strategic Organisational Behaviour Organisational behaviour refers to organisational members’ work-related activities (Ouchi 1977; Robbins 2002) and, according to Snell (1992), management attempts to influence organisational behaviour through the use of control systems. Control is any process that helps align employees actions with the firm’s interests (Snell 1992; Tannenbaum 1968). Control theory (Snell 1992) identifies three major categories of control mechanisms: behavioural control (e.g., establishing and monitoring of sets of actions), output control (e.g., goal attainment measures), and input control (e.g., training). When applied within an organisational context, control theory posits that management attempts to direct employee behaviour to enhance the probability of desired outcomes. As Snell notes (p. 292), â€Å"Advocates of the behavioural perspective posit that different strategies require different behaviours.† Snell also notes that this view of the link between strategy and behaviour is useful because it provides a clear explanation of why behaviour should be linked to strategy and because it posits a testable set of behaviours. As a result, strategic behaviours have the potential to create superior performance through enhancing the execution of business strategy and identifying the relevant organisational structure (Slater and Narver 1995). There are four behaviours which are all claimed to offer potential competitive advantage to firms. These are customer-oriented behaviours (Deshpandà ©, Farley, and Webster 1993), competitor-oriented behaviours (Armstrong and Collopy 1996), innovation-oriented behaviours (Hurley and Hult 1998), and internal/cost-oriented behaviours (Porter 1980). It is important to understand that these strategic behaviours are not mutually exclusive and that it is common for firms to engage in multiple sets of behaviours simultaneously (Slater and Narver 1995). Furthermore, different combinations of emphases will likely prove more or less beneficial for firms that adopt different business strategies. Customer-Oriented Behaviours Firms with a strong customer orientation pursue competitive advantage by placing the highest priority on the creation and maintenance of customer value. As such, these firms engage in the organisation wide development of and responsiveness to information about the expressed and unexpressed needs of both current and potential customers (Deshpandà ©, Farley, and Webster 1993). Because of the constantly refined market-sensing and customer-relating capabilities of the customer-oriented firm, it should develop strategies and a structure to anticipate customer need evolution and to respond through the development of new customer value-focused capabilities and the addition of valuable products and services (Day 1994). Competitor-Oriented Behaviours A different perspective on competitive advantage is simply to beat the competition (Day 1994). This orientation places a priority on the in-depth assessment of a set of targeted competitors, focusing on targeted competitors goals, strategies, offerings, resources, and capabilities (Porter 1980) and on the organisation wide dissemination of the information generated from this assessment. The result is that managers develop competitor-oriented objectives rather than economic or customer-oriented objectives (Armstrong and Collopy 1996). The behavioural goal of the firm is to match, if not exceed, competitors strengths, both in strategy and structure. Innovation-Oriented Behaviours Another perspective is that firms build and renew competitive advantage through radical or discontinuous innovations. An innovation orientation indicates that the firm not only is open to new ideas but also proactively pursues these ideas (Hurley and Hult 1998) in both its technical and administrative domains An innovation orientation encourages risk taking and enhances the likelihood of developing radically new products. March (1991) argues that firms must be aware of the possibility that an innovation orientation may not allow for the follow-through that is necessary to reap the benefits of earlier innovations fully, unless their strategy and structure are aligned with both the generation and utilisation of innovation. Internal/Cost-Oriented Behaviours Porter (1980) argues that there are two basic sources of competitive advantage. The first is the differentiation advantage that a firm derives from the customer-, competitor-, or innovation-oriented behaviours. The second is the cost advantage that a firm derives from internal orientation and structure, with internally oriented firms pursuing efficiency in all parts of their value chain (Porter 1985). They attempt to reduce costs in primary activities, such as logistics, operations, and sales and marketing, and also attempt to reduce costs in support activities, such as procurement, research and development, and administrative functions. These firms pursue operational excellence, through their strategy and structure, that they can translate into higher sales through lower prices or higher margins. Whereas experimentation is the hallmark of firms with an innovation orientation, exploitation is the hallmark of internally oriented firms (March 1991). Conclusion International business has produced some incredibly competitive and complicated markets, with numerous potential problems for organisations, but also numerous opportunities for firms that can best adapt to their marketplace. However, such is the level of complexity in these markets, that firms who try to engineer specific, rigid strategies and structures will likely find themselves left behind by the latest shift in the market or technology. As a result, firms competing in international markets would be best advised to focus on the organisational behaviour, or behaviours, that best match their capabilities, and let these behaviours drive their strategy and structure to provide the most sustainable competitive advantage possible. Unfortunately, there is currently a paucity of available academic evidence on the most relevant behaviours for firms to best secure competitive advantage under the myriad market conditions, and this should be a key area for future research, as it may soon bec ome a strategic issue of significant importance. Equally, organisational behaviour as a field of study is vastly complex, with ongoing debates between theorists around organistic versus mechanistic structures, the role of teams, and the best styles of leadership needed in an organisation. In particular, organisational behaviour tends to suggest that organistic structures will be required in uncertain, rapidly changing markets, however mechanistic structures will be required in markets where the pace of technological developments is slower (Burns and Stalker, 1961). Thus, more research is needed into the consequences of an organisation in a relatively fast moving market making strategic organisational behaviour choices which would be better facilitated by a more hierarchical, mechanistic structure. Similar research would be recommended into the roles of leaders, and teams within organisations, in implementing and driving these behaviours forward. However, regardless of the need for further research, it is clear that firms can no longer merely define a strategy, focus strongly on it, and expect their strategic focus to guarantee success. Likewise, in the international business world, firms should no longer focus on having a well defined structure, regardless of whether it is organistic or mechanistic. Instead, a key recommendation of the strategic organisational behaviour approach is that firms should concentrate on best aligning themselves to the most appropriate behaviour for their industry. In manufacturing, this is likely to be more internal, or cost oriented, in technology it will tend to be primarily innovation oriented and in professional services a strong customer, or client, orientation would be best. However, it is vital that firms do not neglect the other behaviours: those that are not their primary focus, as these remain important, and can help maintain a balance approach to strategy and structure, offering sustained competitive advantage in international markets. References Armstrong, J. S. and Collopy, F. 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Deshpandà ©, R. Farley, J. and Webster Jr. F. E. (1993) Corporate Culture, Customer Orientation, and Innovativeness in Japanese Firms: A Quadrad Analysis. Journal of Marketing , Vol. 57, January Issue, p. 23. Day, G. S. (1994) The Capabilities of Market-Driven Organisations. Journal of Marketing, Vol. 58, October Issue, p. 37. Duncan, R. (1979) What is the right structure? Decision tree analysis provides the answer. Organisation Dynamics, Vol. 7, p. 59. Finley, P. (2000) Strategic Management. Prentice Hall. Fouraker, L. E. and Stopford, J. M. (1968) Organisation structure and the multi-national strategy. Administrative Science Quarterly; Vol. 13, p. 47. Fredrickson, J. W. (1986) The strategic decision process and the organisational structure. Academy of Management Review; Vol. 11, Issue 2, p. 280. Fry, L. W. and Slocum, J. W. (1984) Technology structure, and workgroup effectiveness: A test of a contingency model. Academy of Management Journal; Vol. 27, p. 221. Fry, L. W. (1982) Technology-structure research: Three critical issues. Academy of Management Journal, Vol. 25, p. 532. Hage, J. and Aiken, M. (1969) Routing technology, social structure and organisational goals. Administrative Science Quarterly, Vol. 14, p. 368. Hall, R. H. (1977) Organisations: Structures and processes. Englewood Cliffs, NJ: Prentice- Hall. Hedberg, B. L. T. Nystrom, P.C. and Starbuck, W. (1976) Camping on seesaws: Prescriptions for a self-designing organisation. Administrative Science Quarterly, Vol. 21, p. 41. Hurley, R. F. and Hult, G. T. M. (1998) Innovation, Market Orientation, and Organisational Learning: An Integration and Empirical Examination. Journal of Marketing; Vol. 62, July Issue, p. 42. March, J. G. (1991) Exploration and Exploitation in Organisational Learning. Organisation Science, Vol. 2, Issue 1, p. 71. March, J. G. and Simon, H. A. (1958) Organisations. New York, NY: Wiley. Miles, R. E. and Snow, C. C. (1978) Organisational, Strategy, Structure, and Process. New York: McGraw-Hill. Mintzberg, H. (1981) Organisation Design: Fashion or Fit? Harvard Business Review, Vol. 59, Issue 1, p. 103. Mintzberg, H. (1979) The structuring of organisations. Englewood Cliffs, NJ: Prentice-Hall. Ouchi, W. G. (1977) The Relationship Between Organisational Structure and Organisational Control. Administrative Science Quarterly, Vol. 20, Issue 1, p. 95. Parente, R. (2003) Strategic modularization in the Brazilian automobile industry: An empirical analysis of its antecedents and performance implications. Doctoral Dissertation, Temple University, August 2003. Parente, R. and Kotabe, M. (2003) Strategic modularization, evolution of sourcing strategies, and performance implications. Proceedings Academy of International Business; Monterey, CA. Porter, M. E. (1980) Competitive Strategy. New York: The Free Press. Prahalad, C. K. and Doz, Y. L. (1987) The multinational mission. New York, NY: Free Press. Robbins, S. P. (2002), Organisational Behavior, 10th ed. Upper Saddle River, NJ: Prentice Hall. Rumelt, R. P. (1974) Strategy, structure and economic performance. Cambridge, MA: Harvard University Press. Simon, H. A. (1976) Administrative behaviour (third edition). New York, NY: Free Press. Slater, S. and Narver, J. (1993) Product-Market Strategy and Performance: An Analysis of the Miles and Snow Strategy Types European Journal of Marketing, Vol. 27, Issue 10, p. 33. Slater, S. and Olson, E. M. (2000) Strategy Type and Performance: The Influence of Sales Force Management Strategic Management Journal, Vol. 21, Issue 8, p. 813. Snell, S. (1992) Control Theory in Strategic Human Resource Management: The Mediating Effect of Administrative Information. Academy of Management Journal, Vol. 35, Issue 2, p. 292. Tannenbaum, A. S. (1968) Control in Organisations. New York: McGraw-Hill. Walker, O. C. and Ruekert, R. W. 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Impressionistic Painting and Music Essay

Looking at the painting of the great Impressionist painter Claude Monet entitled Impression: Soleil Levant and listening to Claude Debussy’s Claire De Lune produces a potent mixture of tranquillity of the senses. This is because the eyes see a very relaxing image in Monet’s Impressions Soleil Levant; while the ears find a very relaxing tune while listening to Claire De Lune. Both works of art possess certain characteristics that made both of them an ideal tool for making the person feel relaxed, tranquil and steady. For Monet, this is found in his style, as well as his use of color. Monet was not afraid to mix warm colors (like red, yellow and hues of orange-red) with cool colors (particularly blue and shades of white) (Web Museum, 2006). What makes it all the more relaxing as an image as a whole is the fact that the combination of these colors created an image combining land, sea and sky. The image of a tranquil and peaceful sea with very little moving ways detected by the eye only through the reflection of the light in it is often a very relaxing image. The colors used to create the image improved the feeling. Debussy, for his part, utilized the power of slow tempo and the use of a solo piano in effectively evoking the hearts of the listener via his melodic (even dramatic) piece Clair De Lune (Last. fm, 2009). The shared similarities of the two may include the presence of something constant that do not break away from a pattern: Debussy played Claire De Lune in a consistent tempo, never going any faster or any slower in any time during the piece. If there were any noticeable breaks from patterns, it was not a break in tempo or speed of the musical piece as it was being played. In this piece it is noticeable how Debussy often resorted to using pauses in between the playing of the slow tempo and the slow rhythm of the music; while the image made by Monet creates an image of a still water; the boat seemed to lay still somewhere in the middle; while everything else – the sky, the waters, the land in the background, all seemed unmoving, as if frozen in time or captured by a moment of peace and stillness of the soul. Debussy’s and Monet’s work are also similar in the sense that they are neither happy nor sad. Some paintings, as well as musical pieces, instantly evoke extreme or polar emotions which the artist/composer might be looking for as effect or result, either displaying happiness or sadness. But in Impressions: Soleil Levant and Claire De Lune, the feeling is somewhere between happiness and sadness. Another similarity is the absence of textual cues to guide the audience/viewer/listener regarding what he or she should feel upon being exposed to the works of art. In Monet’s work, there are no images or no parts of the painting that indicate anything. There are no aspects that contain text which may trigger emotions that the painter may or may have not consciously placed in the painting. It is no secret that some paintings use textual components to assist the viewer/audience in reaching the specific emotion or reaction towards the work of art. But it is not present in Monet’s work, giving the audience a freer hand with regards to reacting without the intrusion of visual textual cues. This is the same case for Claire De Lune. While most (if not all) of the classical music pieces are focused mainly on featuring sounds coming from one or several musical instruments, still, the absence of accompanying lyrics or voice over to the musical piece allows the audience to react to the music on his/her own, in a personal way and not influenced by text or words heard during while listening to the musical piece. An abrasive, scandalous or powerful word found in Monet’s work and a scream, shrill, or powerful utterances of vocal sounds placed inside Claire De Lune, no doubt, has the power to alter the impression that it can make compared to its original state. The beauty of these two works of art is that both relies purely on letting the audience be affected in his or her own personal way through the use of the basics of their own forms: color and image for Monet’s Impressions: Soleil Levant; and the a solo piano performance and pure musical instrument audio for Claire De Lune of Claude Debussy.

SWOT Analysis - Case Study - Free Essay Example

Sample details Pages: 6 Words: 1716 Downloads: 8 Date added: 2017/06/26 Category Marketing Essay Type Analytical essay Did you like this example? Case study Summary of case The studied company was Company X that located in Latvia. It was a subsidiary company of Company P that conducted its business in 27 countries, hired 11, 800 people and supplied metal-based components, systems and integrated systems to the construction and engineering industries. Company X was a middle-size manufacturing and construction company which set up in 1995. It had about 110 employees and classified as top five construction firms in Latviaà ¢Ã¢â€š ¬Ã¢â€ž ¢s construction industry according to its operating income. It implicated in few types of projects lately, the projects were housing and hi-tech buildings, infrastructure and mass transmit projects both in Latvia and aboard. Company X attempted to enhance project progress tracking and resource management in multi-project environment. In the past, different business functions of Company X such as accounting, production, marketing and purchasing used different informatio n systems. The old system used by the company had it own ways to gather and kept information according to needs. Short of functional integration causes difficulties in transmission of message and collaboration between different business functions is problem of the old system. Prefabrication and construction processes were work processes of Company X. The two processes operate concurrently. If production factory did not supply building materials on schedule, company need to bear cost of delay at construction perspective. However, if the materials produce too early or when they not needed then company need to bare cost to store the excess materials such as warehousing. Operation of the materials of Company X became complicated and influenced progress of others projects in a multi-project environment since prefabrication process and construction processes must be complement to each other. Company X began a two months assessment and research to find out was there possibility to pr esent and apply an ERP system in year 2007. A project group was formed by the company in order to handle ERP implementationà ¢Ã¢â€š ¬Ã¢â€ž ¢s matters. Manager from IT department became project manager of the group. Besides, the group also involved three personnel from production, accounting and sales departments and one outsourcing vendor. When the system assessed by the company, employees kept received latest information about the system and they encouraged to give feedback on the new system. Eventually, the chosen system was iScala as other representatives at other countries use this system. A central ERP manufacturing group was established after Company X decide to use the system. The group consists of four department representatives from the company, three external IT consultants and two IT consultants from parent company. Individuals that elected for the group were people from specific department who were familiar and understand regarding ERP systems. Besides, they had atte nded and participated in professional activities with respect to such system. They also participated in the assessment discussion. (Tambovcevs, 2012) Strength Company X able to determine staffs who talent in Information Technology (IT) and who can easily adapt to new technology system of company. Staffs are most important and valuable assets (Duncan, 2013). Every company needs manpower to operate and conduct business process smoothly. Staffs are people who contribute and help company to achieve organizational objectives and gain profit. After staffs of Company X learn and adapt new system and technology it increases core competencies and distinctive competencies of company. Core competencies are competitive advantages for company which not easily imitate by competitors (Core Competencies Working Definition, 2010). Distinctive competencies are a companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s special ability to create and send value to consumers which help to differentiate your company from comp etitors and ensure your success will be continuing in long-run (Distinctive Competence or Nothing, n.d.). Resource-Based View (RBV) is method to analyze and identify strategic advantages of a firm based on combination of assets, skills, capabilities and intangible assets such as brand name, reputation and technology knowledge. Each company hired staffs with different level of skills, capabilities, knowledge, behavior and attitudes so each company have different and special group of human resources, which will bring different level of achievement. (Pearce Robinson, 2013) As Company X let staffs go through training to learn the new system, it indirectly increase IT knowledge of them which will increase satisfaction of staffs because some staffs like to learn new things and gain new experiences. Besides, operation process that using new system will go smoothly as staffs always practice how to use the system. Weakness Implement new ERP system in Company X may cause conflict between ERP consultant and staffs of the company. The consultants think the system is a way to solve companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s problem but staffs feel old system is very convenient for them because functions of the old system are what the company needed (Molla, Loukis, Licker, 2005). So, the staffs consider the new ERP system of Company X is more difficult to use so they unwilling to learn use the system. It increase implementation period of the system as well as increase cost of implementation of company. In addition, if the staffs still not willing to use new system, it will reduce sales, efficiency of companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s work process and company performance. (Molla, Loukis, Licker, 2005) If a company wants to successfully implement ERP system, it needs to find out the main factor that causes the implementation to be fail. (Gattiker and Goodhue, 2005). According to Bobek and Sternad (2010), à ¢Ã¢â€š ¬Ã…“ERP trainingà ¢Ã¢â€š ¬Ã‚  affect acceptance of end user for ERP system. If staffs willing participate formal and informal training, they are more skilled to use ERP system (Bobek Sternad, 2010). Acceptance of end user for new ERP system is most important factor to determine whether the system is successfully implement in company. (Seymour, Makanya BerrangÃÆ' ©, 2007) Opportunity During a company implement a new ERP system, it will change job description and skills require by company. In addition, certain new position may generate whereas certain position will be remove by the company. (Danford, 2010) Company X can implement a talent management program when it implements ERP system. The talent management program assists company to guide staffs throughout the process of implement ERP system. It train and develop staffs to adjust and get ready themselves to new positions and roles after implementation of the new system. (Danford, 2010) By implement talent management program, Company X able to determine talented staffs, staf fs with unique skills and skills need for a new position. Apart from that, Company X can set up new compensation or reward plan for staffs that learn how to use the new system. Staffs always want their contribution will be rewarded by company. Reward is driving force for staffs to give their best contribution to company (4 Ways to Reward, n.d.). As staffs satisfy with company they would not leave and betray the company (Martins, n.d.). After Company X implements new ERP system, job requirement of company will change. The change is due to Company X want to hire right candidates for right position which enable Company X to save cost of hire wrong candidates. Threat Younger generation such as Generation Y (Gen Y) have high turnover rate which is 70 percent of Gen Yà ¢Ã¢â€š ¬Ã¢â€ž ¢s staffs quit their first job within two years of joining a company. (Expericnce.com) They decide to leave a company may not due to money but other reasons such as they feel employer do not trust them, they do not feel like a part of a group or team, they want immediate feedback from superior about their work, they like to use technology products and have flexible time to work. (Maffin, n.d.) After Company X let Gen Y staffs go through training, they know how the new system operate. Then, if they decide to leave Company X due to not satisfy with the company or have better promotion from competitors. It may cause a great loss to the company in terms of human resource and knowledge that they learn from Company X. Staffs who leave Company X and work for competitors may disclose what system use by Company X and how the system runs to competitors. Company X will not have competitive advantages to compete with competitors in market. So Company X need and try to satisfy the staffs especially Gen Yà ¢Ã¢â€š ¬Ã¢â€ž ¢s staffs in order to compete with competitors. (Dantes, Hasibuan, 2011) Recommendation Company X should capture opportunity, overcome threat and strengthen its we akness to have higher achievement. Company X needs to reduce conflict between ERP consultants and staffs by involve senior executives in process of implementation the new system. Trust is willingness of a person to take risk and do favor for another person or party (Mayer Davis, 1999). Trust of employees towards senior executives is a key element to decide success of failure of a company and welfare of employees (Shaw, 1997). According to many studies, employees trust senior executives in the company and willing to change their attitudes that desire by the executives (Albrecht, 2002). The executives are role model for employees (Improving Talent Management Outcomes, 2007). As senior executive of Company X also learn and use the new ERP system, the staffs will follow their actions because the staffs trust them and perceive they are right. Company X need to ensure it has good compensation plan for employees at different level in order to satisfy and motivate them to give best effo rts for company and to complete their works which will increase efficiencies and enhance performance of the company. Generation Y have been identified as to be highly educated and they willing to accept challenges. Company need to provide promised reward to them if they really achieve a target or goal. If they do not receive the rewards, they will felt not valued by organization and lowering trust between organization and employees (Fernandez, 2009) which may cause them to leave the company. Gen Y like non-cash rewards such as flexible work condition and flexible working time (Schawbel, 2011). They also hope company give holiday as reward after they complete their work successfully. (10 Excellent (non-monetary!) Incentives, 2013) Company X has to provide rewards that need and want by the staffs in order to increase their satisfaction towards company and organizational commitment. As staffs satisfy with Company X, they are more willing to contribute and work for the company. Th ey will give their unique opinion and best advice to increase companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s performance and profit. In addition, staffs that have high level of organizational commitment also means they are more loyal to the company (Al-Aameri, 2000). Don’t waste time! Our writers will create an original "SWOT Analysis Case Study" essay for you Create order

Virtue Vs. Moral Virtue - 938 Words

What is virtue? Is it something we can all comprehend? Is it part of our soul, mind or bodies? Perhaps it’s a type of lifestyle where we act a certain way and treat everyone equally. Or maybe it’s a belief or religion which carries its own sets of rules and regulations. Many individuals are mistaken for the true definition of virtue; virtue is a theory used to make moral decisions which leads to happiness. Moral virtue is to be learned through habit and practice, which makes one into a better person. It is not something we can easily comprehend and then apply it with logic; rather it is something that we must live spontaneously. Nor is it based on religion, society or culture; it solely depends on the individuals themselves. Virtue is a character trait. One of the main philosophers of Virtue Ethics is an ancient Greek philosopher Aristotle, where he portraits his point of view on virtue. After observing the human life, Aristotle has come to notice that people do things differently in order to make themselves happy. He also comes to realize that while some have a good life, others have a bad life. In conclusion, everyone had the same goal: happiness. Aristotle begins Book I of Nicomachean Ethics, by defining the word happiness. He claims that every action aims at some end which means that everything you do has some purpose to it (every activity has some end) that leads to happiness. Happiness is the highest good which means living well. Happiness depends on us; it is theShow MoreRelatedMorality Vs. Moral Virtue1897 Words   |  8 PagesAristotle claims that moral virtue is a mean between two extremes. The two extremes or vices which he describes as being one of excess and one of deficiency. Moral virtue is considered a mean because virtue aims for the intermediate or balance point in one s passions, their emotions, and actions resulting from these passions. Moral virtue itself has to do with a person deliberately choosing to act and feel appropriately at the right time, on the correct occasions, towards the appropriate peopleRead MoreChild Development Theories1324 Words   |  6 Pagescrisis) is successful, a virtue (or strength) develops. 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It will include an introduction to ethical theories, virtue ethics, and care ethics. There will be sections discussing absolutism versus relativism, consequentialism versus deontological ethics, and lastly, free will versus determinism. It will also include a discussion about the study of morality and identifyRead MoreNicomachean Ethics: Ruminations on Virtue Essay1088 Words   |  5 PagesNicomachean Ethics: Ruminations on Virtue Humans are categorized as the only rational animal; we have the ability to reason, and using our skills of reasoning allows us to oftentimes act against what (could be considered) a â€Å"natural† instinct and do something seemingly selfless simply because it conforms to the individual’s notion of what is right. There is an inherent self-awareness to human sentience that does, indeed reasonably separate us from the animal kingdom. However our defining self-awarenessRead MoreThe Ethical Theories Of Aristotle Vs. His Contemporary1019 Words   |  5 Pages A Comparative Essay Analysis of the Ethical Theories of Aristotle vs. his Contemporary, Epictetus. __________________________________________________________ C. Femia Desiree Llanes HRE4M1-03 Monday, October 19, 2015 The theory of ethics explore through various topics of human behaviour, involving the constructive guidance of concepts that are right or wrong in one’s performance. Many philosophers argue that people should be just and ethical because it is the only source of true andRead MoreAristotle s Formulation Vs. Ed Harris Views On Virtue Ethics921 Words   |  4 PagesVirtue Ethics Short Paper Aristotle’s formulation vs. Ed Harris’ views on virtue ethics The role of virtue ethics in engineering is one often overlooked by engineering students and those beginning this profession. The theory impounded by Ed Harris that described the importance of virtues to engineer’s is one I strongly agree with. Also, these ethical virtues can be applied and studied only because of Aristotle’s brilliantly clear and concise definition of ethical concepts. Aristotle’s extensiveRead MoreThe Ethics Of Virtue Ethics1502 Words   |  7 PagesVirtue ethics is a philosophical theory that focuses on what sort of person one should be, instead of on actions. Aristotle focuses greatly on virtue ethics in his writing, and is a strong believer in a moral person being one of virtue. He is seen as the person whodeveloped the theory. Unlike some of the other ethical theories, virtue ethics focuses on what makes a life moral, not so much how to become moral, or behave morally. For example, utilitarianism questions how one should act in certain situationsRead MoreThe Spiritual Persective to the Book of Proverbs is Faith, Hope, and Charity664 Words   |  3 PagesProverbs Chapter 3, verses 5-6 says: â€Å"Trust the Lord with all you do. Do not depend on your own understanding and seek HIS will in all you do. He will make straight your path† (NLT). This verse is evidenced in every aspect of theological virtues. These virtues are infuse d through divine grace (Sokolowski, 1995), and are characteristics of human personality that manifest themselves only through eternal salvation. The three characteristics are Faith, Hope, and Charity. I was quite pleased to find