Strategic Management Competitiveness and Globalization Concepts

Discuss about the Strategic Management Competitiveness and Globalization Concepts.

Introduction:

In the present complex business environment, understanding of the business strategies are critical for the success of the organization. I believe that understanding of the business strategies will allow organizations to implement effective plan in order to remain competitive in the market. In this assignment, I am focusing on the business strategy implemented by NTUC Fairprice. I selected NTUC Fairprice, as it is considered as one of the most popular supermarkets of the Singapore market (Welcome to Fairprice 2016). I felt the company has always put huge amount of focus on its implemented business strategies so that it can able to create positive impact in the market.

Main body:

I think that NTUC Fairprice has able to consider all the factors related to business strategies effectively in order to maintain its position in the market. The unique implemented strategies have able to gain the attention of the customers effectively. For that reason, I feel that the selected company has gone through several internal and external analysis processes in order to achieve its desired objective in the market. I feel that implemented pattern of business strategies can be described through the Industrial Organization (I/O) model effectively. Since, I feel that utilization I/O model will help organization to identify several internal and external factors that can have impact on the effectiveness on the business strategies of organization. Specifically, in this present global business environment, organization has to understand, analyze and manage the business in such a way so that it could able to face the market challenges in a much more effective way.

I found that I/O model helps organizations to analyze environmental factors for the effective utilization of the business strategies. I believe that I/O model helps NTUC Fairprice to identify possible opportunities and threats that the organization has to face in order to maintain its position in the market. However, I feel that global business environment have increases the level of competition that NTUC Fairprice has to maintain its position in the market. Therefore, the company has to identify its major competitors that create difficulties on the business perspectives. On the other hand, I feel that environmental analysis also allows NTUC Fairprice to identify the potential market that can have huge amount of positive on the business perspectives of the organization. However, I also do believe that identification of the potential market will help the selected organization enhance the present value of the organization. I think that every organization focuses on to provide high quality products and services in order to create additional value. Since, it helps organization to retain their customers for a longer period of time (Hitt, Ireland and Hoskisson 2012, pp. 81-87). Furthermore, analysis of the external environment can actually provide an idea about the kind of strategies might have best impact on the success of the organization. For that reason, I think that NTUC Fairprice have considered the I/O model at the time of developing business strategies for the organization. I feel that without proper identification of the future factors, business strategies of the organization do not able to fulfill its desire objectives. Furthermore, I found that internal factors like uncertainty, complexity and intra-organizational conflicts can also have huge amount of impact on the business strategies of the organization. However, the market performance of NTUC Fairprice, I feel that the company is providing immense focus on all the complex internal factors that can have negative impact on the business perspectives of the organization.

On the other hand, I have found that I/O model also considers external environment factors at the time of developing any strategy for the business development. I believe that consideration of the external environmental factors is necessary for the effective development of the business strategies. I believe external business factors like economic, demographic, political, global, socio-cultural and technological factor can actually have huge amount of impact on fulfilling the objectives of the company. In this situation, I found that NTUC Fairprice has to identify about the capabilities of the organization for the successful implementation of a particular business strategy. I believe that NTUC Fairprice focuses on developing customer value in order to cope up with challenges of external business environment (Hitt, Ireland and Hoskisson 2012, pp. 91-94). I have identified that business strategy of NTUC Fairprice heavily focuses on the effective utilization of the internal resources for the successful fulfillment of the business objectives. Therefore, NTUC Fairprice has utilizing its distribution and supply chain technique in an effective way so that it can able to increase the satisfaction level of the customers. Furthermore, business strategy of NTUC Fairprice includes follow up service, as it will help to improve the satisfaction level of the customers. The company also focuses on the building core competencies for maintaining its position in the market. The company focuses on four criteria for the sustaining advantage in the market. I found NTUC Fairprice utilizes valuable capabilities, rare capabilities, costly-to-imitate capabilities and non-substitutable capabilities. I think valuable capabilities help the organization to exploit opportunity and neutralize threats from the market. The company utilizes its rare capabilities to represent itself as uniquely in the market. Furthermore, it also helps the organization to grab the attention of the people. NTUC Fairprice also utilizes costly-to-imitate capabilities in order to develop effective organizational culture (Hitt, Ireland and Hoskisson 2012, pp. 87-92). The organization also focuses on the non-substitutable capabilities, as it can improve the operational process of the company. Therefore, I think it eventually help to enhance the effectiveness of the business strategies implemented by the organization.

Conclusion:

From the above analysis, I found that organization have to consider many factors in order to utilize business strategy effectively. Specially, I feel that present business environment has increases the complexity for the effective utilization of the business strategy. Therefore, I believe that organizations have to analyze both internal and external factors so that the implemented strategies of the business can actually able to create the desire amount of impact on the marketplaces. I have also learned that organizations have to utilize all its internal resources and capabilities for the successful utilization of the business strategies so that it can able to maintain sustainable growth in the market.

References:

Hitt, M.A., Ireland, R.D. and Hoskisson, R.E., 2012. Strategic management cases: competitiveness and globalization. Cengage Learning.

www.fairprice.com.sg, 2016. Welcome to Fairprice. [online] Fairprice.com.sg. Available at: [Accessed 10 Aug. 2016].