Strategic and Operational Management Practices of Global Organizations

1 Research and evaluate a range of key issues in strategic and operational management.
2 Critique a range of key theoretical models and apply them to case study-based examples.
3 Critically evaluate strategic management practice in organisations and its relationship to managing operations.
4 Identify and analyse complex problems using appropriate knowledge.

a) Strategic management can be defined as the continuous process of identifying and implementing appropriate strategies that allow an organisation to realise better performance and gain a competitive advantage in its operating environment. It is a broad discipline, but the main aspects of the strategic management process are:

Strategy Formulation

1. Analysing the organisations current internal resource and capabilities.
2. Analysing current general external environmental factors that could impact the organisation.
3. Generating, evaluating and selecting appropriate sustainable strategies at the corporate, business and functional levels of the organisation.

Strategy Implementation

1. Ensuring that appropriate leadership, management, staff, structures, systems and processes are available to realise the organisations formulated strategy.
2. Monitoring and evaluating the performance of the implemented strategy.

For two (2) of the above aspects of the strategic management process, research the key issues of each aspect.

Then evaluate how the issues are likely to impact the strategic management practices of a global financial or banking organisation in its contemporary operating environment.

b) Operational management involves decision-making that is responsible for the transformation of resources into an organisations goods and services. This occurs in many different areas of an organisations operational business environment. For any two (2) of the following areas, research the key issues of decision-making in each area. Then evaluate how the issues are likely to impact the strategic management practices of a global automotive organisation in its contemporary operating environment.

1. Product/Service Design
2. Quality Management
3. Process & Capacity Design
4. Location Strategy
5. Layout Design Strategy
6. Human Resource Management & Job Design
7. Supply Chain Management
8. Inventory Management
9. Scheduling
10. Facilities Management

Read Case Study – ‘Tony Hsieh at Zappos: Structure, Culture and Change’ (Appendix A). You will then answer questions Q1(c) to Q1(f) inclusive as part of your individual assignment.

c) Evaluate the reasons why Zappos strategically adopted holacracy as its preferred organisational culture paradigm? 

d) Evaluate how successful Zappos was by strategically changing their organisational culture to a holacracy in terms of its impact on their operational performance?

e) Evaluate, what generic business-level strategy Zappos is pursuing? Does this strategy give it an advantage over its rivals in the online shoe and clothing retail market? If so, how?

f) In order to successfully implement its business level strategy; evaluate what Zappos needs to do at the functional level? Is Zappos currently doing these things?

a) Briefly critique the relevancy of Professor Michael Porter’s Competitive Five Forces model as an approach for strategic management practice in the contemporary business environment

b) Proctor & Gamble (P&G) Ltd, has been selected as a real-world organisation for you to use as a case study example for Q2(b). The main reference document selected to assist is the P&G Ltd, 2018 Annual Report:

P&G Ltd 2018 10-K Report. (2018). www.pg.com. Retrieved 8 January 2019, from https://www.pg.com/annualreport2018/static/PG-2018-Annual-Report.pdf

Apply Professor Michael Porter’s Competitive Five Forces model to P&G Ltd, as an approach that they can use for strategic management practice in their contemporary operational environment.

c) Briefly critique the relevancy of Professor Michael Porter’s Value Chain model as an approach for strategic management practice in the contemporary business environment.

d) IKEA has been selected as a real-world organisation for you to use as a case study example for Q2(d). The main reference document selected to assist is the IKEA 2018 Annual Report:

IKEA 2018 Annual Report. www.ikea.com. Retrieved 8 January 2019, from https://newsroom.inter.ikea.com/publications/all/inter-ikea-group-financial-summary-fy18/s/a80ce9a8- 1f0a-4e91-89e0-5458e367f692

Apply Professor Michael Porter’s Value Chain model to IKEA as an approach they can use for strategic management practice in their contemporary operational environment.

e) Using the reference material ‘Starbucks Company Profile and Timeline’ complete a SWOT analysis of Starbuck’s internal and external general environments. Ensure your answer includes at least three (3) factors for each quadrant. Also ensure that your SWOT analysis also relates to the operational context in which Starbuck’s operates.

Question 1

f) Using the information from your SWOT analysis in Q2e, complete a TOWS analysis to evaluate the impact the listed internal and external general environmental factors have on Starbucks operations. Ensure that you include at least five (5) strategies from any of the TOWS quadrants. Ensure that your TOWS analysis also relates to the operational context in which Starbucks operates.

Definition: Operational management can be defined as a continuous process of related activities across the interrelated functions of planning, organising, coordinating and controlling an organisations resources to productively realise an organisations objectives.

There are different frameworks and methodologies for strategic management practice in organisations. Whilst there are no absolutes regarding the most appropriate one to adopt, most of them follow a similar pattern of four (4) set phases with similar common shared attributes:

1) Analysis and Assessment: is where an understanding of the current internal organisational environmental and external environmental factors impacting an organisation are developed.

2) Strategy Formulation: is where a high-level strategy is developed and where the organisational level strategic plan is documented.

3) Strategy Implementation: is where the high-level strategic plan is translated into operational planning with actionable and measurable outcomes.

4) Strategy Evaluation: is where the ongoing iteration and evaluation of organisational performance against the implemented strategic plan occurs.

a) Critically evaluate the analysis and assessment phase of strategic management practice in organisations and its relationship to the operational management of a global technology organisation in its contemporary operating environment. You must ensure that your answer shows any relationships between this phase and to the points provided in the definition of operational management above ‘a continuous process of related activities across the interrelated functions of planning, organising, coordinating and controlling an organisations resources to productively realise an organisations objectives.’

b) Critically evaluate the strategy formulation phase of strategic management practice in organisations and its relationship to the operational management of a global technology organisation in its contemporary operating environment. You must ensure that your answer shows any relationships between this phase and to the points provided in the definition of operational management provided ‘a continuous process of related activities across the interrelated functions of planning, organising, coordinating and controlling an organisations resources to productively realise an organisations objectives.’

c) Critically evaluate the strategy implementation phase of strategic management practice in organisations and its relationship to the operational management of a global technology organisation in its contemporary operating environment. You must ensure that your answer shows any relationships between this phase and to the points provided in the definition of operational management provided ‘a continuous process of related activities across the interrelated functions of planning, organising, coordinating and controlling an organisations resources to productively realise an organisations objectives.’

d) Critically evaluate the strategy evaluation phase of strategic management practice in organisations and its relationship to the organisational operational management of a global technology organisation in its contemporary operating environment. You must ensure that your answer shows any relationships between this phase and to the points provided in the definition of operational management provided ‘a continuous process of related activities across the interrelated functions of planning, organising, coordinating and controlling an organisations resources to productively realise an organisations objectives.’

Read Case Study – ‘Lean Production at Virginia Mason Hospital’ (Appendix B). You will then answer questions Q3(e) and Q3(f) as part of your individual assignment.

e) Lean production originally developed at a manufacturing organisation, Toyota, is being applied in Case Study 2 at a hospital. Evaluate what this tells you about strategically adopting a lean production philosophy for managing operational performance improvements?

f) Evaluate what you perceive were the keys to the apparently successful strategic implementation of lean production techniques to improving operational management performance at Virginia Mason Hospital?

Q4a, Q4b and Q4c are designed to provide learners with practical experience in analysing problems using appropriate knowledge. Microsoft Excel® includes a tool called Solver that uses techniques from operational management research to find optimal solutions for various kinds of problems. You will use Solver for questions Q4(a) and Q4(c) only.

In order to complete the Q4(a) and Q4(b) and Q4(c) activities you will need access to Microsoft Excel®. This software has been made freely available to all Aspire2 International students learning DAM762 via Microsoft's Imagine Academy. Your DAM767 course tutor will provide you with instructions of how to obtain, download and install Microsoft Excel®. Those activities are not part of this assessment and no marks will be awarded for undertaking these activities. Note that only students activity files completed in Microsoft Excel® will be accepted for assessment. Any work undertaken in other spreadsheet platforms, software or applications; Google Docs, Libre Office, Open Office etc.

File Saving and Backup Requirements

You are strongly recommended to regularly save and back up your work when working on these questions. It is also strongly recommended that you keep separate backup files on separate media storage options. Loss of files cannot be used as an excuse for not handing in work for assessment on the due date and time. It is a student’s responsibility that they complete all activities in a timely, accurate and complete manner. Any issues caused by hardware failure, malware, viruses or theft etc cannot be used as an excuse for not handing in work for assessment on the due date and time. Save your work for Q4(a), Q4(b) and Q4(c) inclusive using the Save As command under the File menu. Ensure that you have selected the appropriate drive in the drives box on the Save As screen.