: Within the Discussion Board area, write 600–800 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas.You are speaking on the phone with Mike when he asks about what sort of cultural aspects you are considering in this plan.You think about this and say, “There may well be some considerable cultural differences that need addressing. I remember last year when there was a language mix-up with a doll. It was just saying ‘I love you’ in a different language, but it sounded like ‘kill mommy.’ It’s funny now, but imagine being the marketing team in that building!” Both of you laugh as you hang up the phone, but the memory does get you thinking seriously about cultural differences. Complete the following:What cultural considerations should you take into account for your strategy?Will this negatively impact your current strategy?Does this change your approach? Why or why not? Apa in citationCompany BiographyIn January of 2002, John Ferrer and his wife Deborah started their own corporation, a large custom furniture manufacturer located in Boston, MA. Their initial accounts were in the Northeastern region of the United States, and they annually observed a constant profit increase. By March of 2006, they were able to grow the company enough to go from five distribution and manufacturing plants to 10 to allow shipping to 48 states. Although they have two retail stores, one located in Phoenix and one in Boston, their primary source of revenue is online catalog sales. They have 10 manufacturing plants and distribution centers throughout the country.John and Deborah’s corporation is known throughout the industry for its exceptional customer service and superior quality. The contemporary designs lend themselves to a younger market, and the customer base is predominantly upper-middle class because it is one of the highest priced furniture companies in the market. Part of the appeal of John and Deborah’s brand is their consistent involvement with the local communities to create green gardens. They have also been a major contributor to organizations that build houses for people in need.One of their primary strengths is their vertical integration. They have a team of in-house designers saving the company design costs and allowing the flexibility to rapidly change designs as the market changes. Their products have been featured on several prominent home design and gardening shows and have been endorsed by several well-known designers.Because of the recent housing market sales decline (8% from 2005–2006), home renovations have slowed significantly. This has impacted the amount of furniture and fixture sales and continues to impact revenue. Furniture sales in the United States have decreased significantly, and John and Deborah have recently been discussing the possibility of global expansion.Another potential threat to their company is that many higher-end brands have been marketing aggressively and creating lines for popular retail stores. These allow the lower-income consumers to have access to high-end brands at a much lower price point. So far, these lines have been incredibly successful and have significantly increased profits for competitors. Many of these competitors have also had great success in the global marketplace with these lower cost replicas.John and Deborah know that it is time to seriously consider expanding their business. They want to be able to make it through the economic crisis and rely on other ways to increase sales and business. They are open to looking into the global market, but they want to be sure that it is the right move for the business. They have requested an advisory board meeting next month in which you will present the global marketing strategy. As the market strategist, you will play a key role in helping the board decide if this is the right move for the company.The ProblemYou are sitting in Deborah Ferrer’s office. After the customary small talk, Deborah sits forward and states, “I am very impressed with the work that you have done as the strategic marketing manager. Since John and I started this company in Boston, we have seen continuous growth, but nothing like what we have seen since you started. However, the housing market is really starting to impact our profits. This last quarter’s numbers were not looking good.”You reply, “The crisis has really hit us hard. We have some stiff competition, too, with the other brands creating retail knock-offs.”She counters, “We’ve had great success with your strategies in the domestic markets, but we do need to think of a new approach and strategy. I have complete faith in your abilities to take this company exactly where it needs to go. I must say that we are really counting on you, and I know that you will follow through.”“I will make sure that we do well. Do you have any new projects for me?” you ask.Deborah smiles and says, “You know me well. I do have a new project for you. I sent you an e-mail just before our meeting. I’m curious if expanding in a global market would be a good move for our company. I would like you to look into this for me.”“Our team is definitely up for the challenge,” you say with enthusiasm.Deborah shakes hands with you warmly, and you make your way out of the meeting. As you drive out of the parking garage, you think about your success with the company. You cannot wait to get started.
strategic_management_unit_3_ip.docx
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Running head: STRATEGIC MANAGEMENT
Strategic Management
Jolynn Patsy
CTU
Unit 3 – IP
3/6/18
1
STRATEGIC MANAGEMENT
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Strategic Management
Strategies give specifics on an organization’s capabilities to match with opportunities in
the market place to realize its objectives. Two generic strategies can be utilized in an
organization. They include the product differentiation strategy and the cost leadership strategy.
Product differentiation strategy gives an organization the ability to provide unique and superior
products against their competitors. The cost leadership strategy allows an organization to achieve
lower costs concerning improved productivity and efficiency, waste elimination as well as tightly
controlling costs.
There are four perspectives useful on a balanced scorecard, that is, the financial
perspective, the consumer perspective, the internal business process, as well as the learning and
growth perspective. All organizations that are money-oriented, the financial perspective is most
preferred. It primarily involves all the key objectives in matters related to financial health as well
as performance. This perspective naturally incorporates the revenue and profits of organizations.
Sources of revenue, profit margins, and cost savings are part of the financial aspects. The
customer perspective focuses on the objective of performance about the customers as well as the
market. It answers the question about what to deliver to the consumers in case the organization
has achieved a financial perspective. Serving customers and satisfying them, understanding the
market shares and brand awareness are some of the inclusions on the customer perspective. The
internal process aims to answer the question of the process to be adapted to deliver to the
customer perspective and the financial objectives. In this perspective, the organizational
managers set out internal operational goals as well as objectives relevant to improve
performance. Lastly, learning and growth put into consideration performance drivers. It involves
STRATEGIC MANAGEMENT
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a broad spectrum and therefore, is fragmented into various components. The human capital, the
information, as well as the organizational capital, make up the components of this perspective.
Having multiple strategies in case of international expansion is essential. This is because
it is hard to establish risks and uncertainties in the worldwide market. This indicates that the
choices of strategies made by a given organization cannot be secure and highly expected.
Relying on a single strategy is prone to losses and misfortunes if the organization fails to strive
in the competitive market successfully. Therefore to reduce the threats associated with global
expansion having multiple strategies is essential to focus on matters related to growth and
development. More so, numerous approaches are excellent and useful to maintain competition on
the market. This helps the organization to avoid being kicked out of the market as well as
stagnation challenges. Many strategies ensure that when one approach fails, the organization can
opt for a second strategy, more competitive than the previous one to maintain its position in the
market while getting profits. Besides, more strategies ensure that the organization continuously
grows and expands.
In conclusion, an organization expands only if its growth and performance are improved
on the market. This means that organizational managers should develop and adopt the best
strategies that can continuously expand their organization and ensure that its profile is
competitively at the top of the market rank. Subsequently, organizations ought to put the four
critical perspectives into practice to ensure that the organization functions well and can help the
managers achieve their objectives.
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References
Douglas, S. P., & Craig, C. S. (2009).Global marketing strategy. New York: McGraw-Hill.
Luo, Y. (2005). Entry and cooperative strategies in international business expansion. Westport,
Conn: Quorum
Hladchenko, M. (2015). Balanced Scorecard–a strategic management system of the higher
education institution. International Journal of Educational Management, 29(2), 167-176.
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