Research Korner: Sample MBA Essay

Strategic Planning and Implementation of Sony Ericsson

Part 1 Sony Ericsson, its resources and its competencies   In 2000 Ericsson and Sony established a London-based joint venture, Sony Ericsson, to exploit the opportunities of third generation mobile systems, whose implementation had begun in Japan. Ericsson's strategies were broadly emulated by its major competitors in the world telecom industry, including Nokia, the Canadian firm Nortel, the US firms Lucent, Cisco Systems, and Motorola, and Germany's Siemens, all of whom had telecom equipment sales in excess of $22 billion in 2000. These firms all moved, although at varying rates, to outsource production to contract manufacturers. They also progressively outsourced innovation to cheaper locations (Wallach 2005).   Resources Sony Ericsson’s resources come from reliable suppliers and manufacturers.  The materials used in creating the products have to agree with the company’s greenheart process wherein most part of the product should be recyclable or harmless to the environment.   Financial The funds can either come from the parent company or from other sources like investors. The budget will be used to pay for the different expenses of the firm. The budget will be used to pay for the rent expenses, the payment for all the employees, the cost of supplies used in creating the products, the cost of electricity, the cost of office materials and other costs or expenses.   Human In providing excellent service to the clients, a company needs to have a dedicated staff that performs well and knows that the service they give to the client can help the company have a positive or negative image. The staff of the company is well trained to ensure that the best service can be given to the clients. The company makes sure that it hires promising individuals that can assist in the company’s task of reaching their goals.   Skill The personnel of the Sony Ericsson are well skilled in creating and selling their products.  The company makes sure that they hire individuals who are skilled in management, manufacturing or selling.  The company also looks for various activities that will help them improve their skill.   Competencies Core Capabilities   Sony Ericsson’s core competences include its highly advanced product, competitive products and concept of sustainability. Sony Ericsson makes use of its competences to achieve continuous growth and development   Distinct Capabilities Sony Ericsson’s distinct capabilities include its ability to create products that costs lesser than other cell phone.  The company’s product cost less but it is durable like the other company’s products.   Scope Capabilities Sony Ericsson’s capabilities include its use of sophisticated technologies to create the best product. Sony Ericsson has commendable personnel that were well trained to create the best product and provide efficient service.   5m’s Money Sony Ericsson is well funded. The funds of the company come from its profits, capital and from investors. The company makes sure that its finances are well budgeted and will go directly to the division that needs it the most.   Minutes Time is important for the Sony Ericsson. The company gives importance to time just like it gives importance to finances and human resources. The company has organized schedules that will ensure that products can be made at an appropriate time. The company makes sure that every member of the organization has a balance of work and rest.   Materials Sony Ericsson’s materials come from reliable suppliers. The company keeps the materials in reliable storage areas. The company makes sure that its materials will not harm the environment and can still be recycled.   Manpower Sony Ericsson makes sure that it hires the best personnel that have an idea on the cell phones and its related products. The company engages in online recruitment, personal recruitment and the use of third party to recruit and choose the personnel that fit their needs.   The company trains the personnel in accordance with their tasks and role. The company allows their personnel to attend seminars that will increase their knowledge on their forte. The company makes sure that the personnel are given an appropriate compensation based from their role and contribution to the firm. The company makes sure that all social benefits are received by the personnel.   Machines The company makes use of the best machinery to create the products. The company has a research division that searches for the latest technology that will help them achieve efficiency and effectiveness in creating their products.  The machines are well maintained by a special group of personnel. The company makes sure that the machines are regularly checked for problems.   Implications on Management The use of 5m’s makes it easier for the management to operate the firm. The use of 5m helps Sony Ericsson and its management to focus on strategizing and determining what acts will provide benefits to the company.  Through the 5m the management receives assistance in attaining the goals of the firm.   Current strategies of the company The company is focused on the use of sustainable products. Sustainability is said to be the act of maintaining supplies for future generations.  Supplies do have its own limitation; it will run out of stock eventually. Through the use of sustainability companies can make sure that there can be supplies for the present and the future.  Sustainability goes with the need to have green supplies. The company makes sure that it uses sustainable supplies. The company makes sure that its supply will not run out.  The makes sure that the materials they use are recyclable and will not cause damage to the environment. To maintain the sustainability of supplies the firm makes sure that parts can be recycled.   Stakeholders Internal stakeholders The internal stakeholders of Sony Ericsson include the management of the company, employees and creditors. The Stakeholders’ impact on the governance of the firm is it affects the way the company is managed. It makes sure that the company performs well according to the stake holder’s standards.  The management of the firm is a stakeholder because the company’s success or failure is conjoined with the management’s success or failure.  The employees of the firm are stakeholders because the success or failure of the firm will impact their salary and its increase or decrease. The creditors are stakeholders because they contributed a certain amount that contributes to the financial resources of the company.   External stakeholders The government, clients and potential investors are those groups that are external stakeholders to the company. The government is a stakeholder for the firm because they are the ones that checks if the company follows regulations and laws.  The government also observes for any negative effect for the company’s products. The clients are stakeholders because they are the ones that are affected by any changes initiated by the company.  The clients are the end destination for the product, thus they need to know what stages a product goes through before it reaches them. The potential investors are stakeholders because they observe the financial status of the company and use this as a basis for any transactions that they will do with the company.   Stakeholder’s strategy             The stakeholders provide assistance in running the firm. They give a little feedback on how the firm should operate. The stakeholders give their opinion on the company and the condition it faces.   Future strategy for stakeholders The future strategy for the stakeholder will focus on improving their relationship with the company. This can be done through the use of communication systems that will create a greater bond between the firm and the stakeholders. The communication strategy can be in the form of internet or other online system.   Governance Chain Corporate governance is concerned with holding to account the modern corporation, whether it is a large or small holding company and subsidiaries, listed, private, government or non-profit entity. One influential interpretation of corporate governance is to find a way to maximize wealth creation in a manner that does not impose inappropriate costs on third parities or on society as a whole. Corporate governance application requires a system of checks and balances designed to define appropriately the parameters of authority through accountability (Kakabadse 2001). The following presents the governance chain for the company. The key players include the stakeholders, board of directors and the employees. The stakeholders, board of directors and employees are the ones that will be affected by any change in management strategy.  Any changes in management strategy can affect the service given to the stakeholders. Any changes in the management strategy can alter the position and responsibility of the management team and the personnel. The beneficiaries of any change in the management strategy include the clients and the government. The clients are beneficiaries because any change in the management strategy can lead to better service to them and it can lead to the emergence of better products.  The government is a beneficiary of the change in the management strategy because they can now make business dealings with Sony Ericsson. The government can ask the company to make products that fits with their communication needs. This in turn can help the government provide better service to their constituents and deal better with outside forces.   Principal- Agent Theory The management and the employees have a principal – agent relationship wherein the managers give fair treatment of the personnel. The managers make sure that the personnel acts as agents of providing service to clients.   Employee Unions Worker Unions are vital because it gives personnel the chance to express his/her concern to other workers. The union can be used for one personnel to have better benefits and compensation from the firm. The management allows for unions and other groups that intend to unite the ideas and concerns of the personnel. The management makes sure that they respect any union that the employee has formed or joined.   Sony Ericsson ethics and Social Responsibility Corporate responsibility is a pact for the mutual benefit between society that needs business for economic and social development, and business that needs a supportive business environment. It is also a pact between capital and management in modern companies, which has been as shaken up by some recent scandals where management disregarded the bond of transparency with shareholders (Dunning 2003).   a. within Sony Ericsson Sony Ericsson has and believes in corporate responsibility. The company makes sure that it follows all laws and regulations in every country they operate in. It has procedures and processes that make sure that corporate responsibility is implemented not only in internal environment but within its suppliers and trading partners. Sony Ericsson gives much importance to their personnel; the company makes sure that the welfare of the personnel is given appropriate attention.    b. what can still be improved Sony Ericsson can improve its social responsibility by engaging in charitable works such as donation to charity or other non government institutions. They can even create a charity that will focus on a certain market. Sony Ericsson can improve its ethical standards by reviewing its current scandals and adjusting it towards the current situation.  c. alternatives philosophy Aside from the use of corporate responsibility and ethics, Sony Ericsson can make use of the fair competition philosophy wherein the company will make use of strategies that will be just and fair. The company will refrain from committing acts that are demeaning to fairness in the telecommunication industry. The company will refrain from engaging in unwanted acts against other cellular phone companies.   d. Freedmanism Freedmanism is the belief in ideas such as Deontology, Utilitarianism, Teleology, Egoism and Ethical relativism. Deontology is the philosophy that focuses on the rightness or wrongness of intentions or motives behind action such as respect for rights, duties, or principles. Utilitarianism is the belief that the worth of an action is determined by its contribution to overall use of that action. Teleology is the belief that things are designed for or directed toward a final result.  Egoism is the idea that people should do that they think satisfies their self interest. Ethical Relativism is the belief that ethical ideas do not reflect objective and/or universal moral truths. All the ideas under Freedmanism relates to different characteristics of the personnel. The limitation of Freedmanism revolves on the contrasting characteristic of each belief under it. Deontology, Utilitarianism, Teleology, Egoism and Ethical relativism each have a characteristic that contrasts the other, the use of it under one philosophy can create confusion and does not help in making one productive and efficient.   The management strategy that will be changed Expanding into additional segments, after reaching an acceptable market share position in the primary market is a prudent option. The common strategy is to penetrate with either line extensions or technology applications. It is an acceptable and logical move for a market leader particularly in a flat market. It's only advisable though if sufficient resources are available to penetrate the new segment and, providing sufficient management attention and resources are available to vigorously protect the primary segment (Paley 2006). The target market of the company involves almost all sectors of the society. The company aims to provide mobile products to young or old, boy or girl. The company as much as possible aims to reach all walks of life. This target market is a good source of income. The company has different strategies that can cater to the taste and appeal of such markets.  The change in management strategy will focus on increasing the market of the company. In increasing the market the company will need to make sure that the stores where its products are located will be in the most profitable places. The distribution stores for the products should be in places where clients can easily see the store and they can be encouraged to visit the store and buy products.  The distribution store should make sure that competition in the location they want to put up the branch will not be too heavy. The market of the company can still be expanded to accommodate the elder people market. The company can consider such clients as a different segment that should receive a different kind of product. They should also provide a different kind of mobile products for such market.   Part 2 Tradeoffs The change in strategy would help the firm gain more clients and increase its income. The change in strategy would help the firm improve its status in its industry. The potential problem with changing the strategy is a situation wherein the firm would lose control over its current markets. The new market would keep the company busy and may cause it to neglect the older markets.   Nature of People   Purpose Ambitions and objectives are formulated at three levels. For the long term, guiding objectives are important. For the short and medium term, a system of measurable objectives must be created. Finally, the actual missions are the concrete translation of those objectives to the social players involved (Keijzers 2004).  Communication is a key element of establishing focus, because employees usually perform better and accomplish more when they understand their role and how it relates to the bigger picture (Zwell 2000).   In setting the objective a clear picture of the internal and external environment was used by the firm. The environment showed the firm its weak points or problem areas. Through knowing its weak points the company was able to plan for future possibilities and future plan of actions. After the company knew its weak points it was able to create the objectives by determining the weak points or problem areas that should be given top concern and priority.  The company engaged in constant communication to determine what will be their objectives. To further identify the nature of the objective of the firm the lynch polygon will be used. Lynch’s Polygon of purpose Timing Sony Ericsson’s plan for change should begin as soon as it has enough funds and resources to introduce the change. The company cannot wait for too long before it introduces the change because the new strategy might not fight the future situation.   Innovation Sony Ericsson is one company that has proven its innovativeness through combining cell phones with walkman functionality.  The company can use such innovativeness to create more products that will be accepted by the market. Value Added The innovative nature of Sony Ericsson adds value to their products. If the company wants to show that they have value then they need to prove it by creating more innovative products and services.   Survival Survival in the telecommunication industry can be achieved by innovation and the use of appropriate strategies. Sony Ericsson is already innovative, it just needs to make sure that it will use appropriate strategies or make new strategies to continue to survive in a competitive cell phone industry.   Growth One goal of Sony Ericsson is continuous growth. The company has already risen from its humble beginnings but it still wants to reach better heights. To do that the company needs to focus on the new strategy and defend itself against competitive traps.   Brand Apart from each other Sony and Ericsson has created a name for themselves in their respective industries. Together they have become one of the biggest cellular phone companies. With proper use of marketing strategies and the use of unique packaging, the company can still create a more unique brand that can create a huge impact on the cell phone industry.   Leadership Sony Ericsson has good leaders that have guided them from their birth up to this day. The current and former leaders have helped the company make a name for itself in its field.  The leaders of the firm are one reason for its success and they are the ones that can truly guide the company to its objectives.   Stakeholders The stakeholders are a vital group that contributes to the success of Sony Ericsson. Their guidance and assistance have helped the firm achieve its current status. Without the stakeholders the firm will lose its focus and will do things unnecessary for its survival.   Value and Lifestyle The company has achieved its current status because it was able to maintain its value at the same time it introduced new trends that increased its value. The company has achieved a household status and is becoming a need rather than a want.   Knowledge Sony Ericsson values the gathering and use of knowledge.  The company makes sure that through its research and development division it gathers the data that it needs to survive its environment. The company uses knowledge to innovate its products and services. Time Time is of the essence. All planned actions of Sony Ericsson should be implemented so that the company can reap its benefits and initiate changes if there is such a need for it.  The company cannot afford to delay the implementation of the new strategy since the new strategy was only made for the current situation of the firm.   Company Mission   Evaluation An innovative organization must be led by a leader who develops and aligns the organization with the mission and vision, develops and maintains trust, ensures that coordinating and communicating occur, and encourages creativity and learning (Oden 1997).At the heart of the innovative culture lies the vision of the leader. This vision includes the broader sense of who the company is, why the company is doing this work, why it's important, the promises they have made to customers, and the code of conduct (Cook Jr. 2000). The mission and vision should definitely be consistent and supportive, but they will not be exactly alike since they serve two different purposes (Kanji 2002). Sony Ericsson’s mission statement concentrate on making sure that the company will produce the most attractive products.  This mission statement fits well with what the company is doing and showing to the public.  This mission statement can still be used to achieve the company’s overall goals.  Sony Ericsson has partly achieved its mission because it has created a wide array of eye catching products that are globally competitive and full of innovation.   Evaluation of mission statement against the five elements   Innovation   The mission statement of the firm has innovation as its core. The company innovates to achieve its mission. In every aspect of the firm, innovation is the concept deemed as most vital.   Brand The company has made sure that it is known all over the world. The company has established itself on various parts of the world. This coincides with the firm’s mission of having a global identity.   Growth The firm already has fully developed and grown it can be seen through its global brand. Sony Ericsson’s worldwide fame proves that the firm has achieved some basic goals and it has matured from its initial identity.   Stakeholders The company works with the stakeholders in achieving growth and development. The stakeholders boost the company for it to achieve its goals and compete well in its industry.   Value and Lifestyle Sony Ericsson wants to be attractive. They have achieved this mission through producing unique products that catches one’s attention.   References Cook Jr., WJ 2000, The art and science of holistic strategy, Quorum Books, Westport, CT.   Dunning, J 2003, Making globalization good: The moral challenges of global capitalism, Oxford University Press, Oxford, England.   Jones, G 2005, Multinationals and global capitalism: From the nineteenth to the twenty-first century, Oxford University Press, Oxford.   Kakabadse, A 2001, The Geopolitics of governance: The impact of contrasting philosophies, Palgrave, New York.   Kanji, GK 2002, Measuring business excellence, Routledge, London.   Keijzers, G 2004, Government and sustainable development, Routledge, New York.   Nielsen, RP 1996, The politics of ethics: Methods for acting, learning, and sometimes fighting with others in addressing ethics problems in organizational life, Oxford University Press, New York.   Oden, HW 1997, Managing corporate culture, innovation and intrapreneurship, Westport, CT, Quorum Books.   Paley, N 2006, The manager's guide to competitive marketing strategies, Thorogood, London.   Wallach, B 2005, Understanding the cultural landscape, Guilford Press, New York.   Zwell, M 2000, Creating a culture of competence, Wiley, New York.

Strategic Planning and Implementation of Sony Ericsson

Part 1 Sony Ericsson, its resources and its competencies In 2000 Ericsson and Sony established a London-based joint venture, Sony ...

Discuss your post-MBA career plans. In particular, describe the first MBA position you plan to pursue. Explain how your past experiences or personal characteristics make this position a good career choice for you

I am born in a middle class family in Nepal. As a child I wanted to be a civil engineer like my Father. He worked as a civil engineer in a remote area in Jhomsom, 9000 feet elevated, in the foothills of Himalayas of Nepal.  My father did not finish his degree in Engineering. He worked as an engineer in that area, because no engineers in their right mind would want to go there and work. That is why the Nepal government appointed him as the civil engineer of the district. The town has less than 3000 people, my father was the “engineer” and I was the “little engineer” then. I completely forgot about engineering after high school, during summer 1993, I took some computer classes that in some ways changed my career plans. However, I did not take it by heart, because I didn’t even enjoy going to those classes, but my parents were spending fortune, so I had to finish.  Taking it one step at a time, I started to realize that computer is useful and I should learn more about it.  Although I was enrolled in a local university for two years Bachelors in Commerce programs, my mind was flying all over in search of place to study "computers".              There is a need for me to go to America, so I told my parents about it. However, I don’t have any means to go there. My family was not rich.  My parents barely had enough money for my travel expenses.  They probably could have managed for my travel expenses and a semester's tuition fee if they stretch it out.  I have to find a college where I can get some scholarships.  For the next two years, that's all I did.  Finally, in July of 1995, my two Years of hard work paid off.  I got admitted to  University in Iowa, a private University that gave me free room and board plus some grants for tuition. At  I decided to do Computer Information System instead of Computer Science in the hopes that I will get best of the 2 worlds "computers" and "business" with one degree. That was my first real attempt to hash out a career for me, a technical business leader, or something like that.   Ambivalences I have heard everything and I was too skeptical about it. I have always believed that acquiring does not mean a person needs to gain a fancy degree and for a long time I felt that studying MBA is nothing but hype. I still feel the urge to do it. The only reason I have is that I want to do it! I consider my self as a “techie", I have felt that you do not get the boarder picture of the business world.  We only make the systems work but the whole purpose of systems and decision as to why we even do projects always eluded me.  Sure they wanted the faster and reliable systems, but how does it play with the overall goals of the organization. I want to learn about businesses, management, finances that basically make up the business world.             I Love my job.  It’s allowing it to hone my IT and Project management skills together.  But it's not challenging enough.  I feel like I am capable of so many things.  I need to challenge myself. I like to move up to the corporate ladder so to speak.  I like to get into the corporate strategy or business development side of a technical company.  Frankly, they hire MBA’s most of the time and choices for people like me who don’t have MBA’s are very limited. I want to learn more about marketing and communications. In the marketing concept, there are many approaches that can be used in order to make a company more competitive and successful. One of these approaches includes the notion of strategic management. As this definition entails, strategic management gives emphasis on integrating management, marketing, finance, production/operations, research and development and computer information systems to achieve organizational success I know it's vague and clichéd.  But I really want to learn more about finances, operations, management.  I think the classes I will be taking, the projects/home works and case studies of a MBA Program, will make me a very well rounded person. I need to acquire specific business domain knowledge and skills that will not be acquired as an IT specialist. Instead a formal training will be needed that MBA can provide me with the training in core business areas, including finance, accounting, and general management. Furthermore, as a future technology manager, I will need to learn mange the business effort with strategic initiatives and how IT can make different. Working on case study problems in a team environment will develop important communication and analytical skills. The case study method will expose me to a broad range of real company problems. Working on case study and team projects with a diverse group of professional will give me exposure to business practices, techniques and differences thought process. Finally, I also want to finish what I started out with my CIS degree at Drake. Be a technical management/business leader.   How MBA fits with my experience and education   My experience in major aspects of software development and web hosting, from writing code to designing applications, from systems administration to web hosting, from customer support to project management is broad. I work for a small company, a web company that had a consulting as well as in-house software development business.  I worked for this small company for 7 years. My responsibility are to write codes, provide customer support, managed projects, prepared course materials for technical class the company was going to teach, represented companies in trade shows and so and so on.  I also worked over time for some client consultancy. I am working for a company, which is a member of the big fortune 100.  I was able to earn the trust of the client in a very short period of time that they made me the “technical owner” of the project.  I would like to find a position in Corporate Strategy or Business Development in technical company.  Tackle some of the toughest strategic and operational challenges faced across all of company's business groups. Business building strategies will shape the future of leading technologies and help define new ones. Work with business groups, analyze technology trends and data, interview customers and stakeholders, and develop creative solutions to key business issues. In the near future, I may establish a Brach of a company like IBM or Microsoft in Katmandu Nepal.  Or, may be venture out and do some of those things on my own.  There's a lot of talent to be used in Nepal - especially in science and technology.

Discuss your post-MBA career plans. In particular, describe the first MBA position you plan to pursue. Explain how your past experiences or personal characteristics make this position a good career choice for you

I am born in a middle class family in Nepal. As a child I wanted to be a civil engineer like my Father. He worked as a civil engineer in ...

MBA paper

Simple life-cycle models of labor supply and savings generally omit uncertainty. Yet people experience considerable uncertainty about wealth accumulation, financial needs, health, and job opportunities (1997). These uncertainties imply that people are continuously reconsidering their plans for retirement and wealth accumulation as their economic and health positions develop. The starting point of our research is to recognize the central place of these uncertainties and to explore the potential of longitudinal data for estimating labor supply in this setting. The benefits of preparation for retirement are overlooked by many. The oversight while one is still employed to think through the possibilities and possible problems is often based on some resistance to the idea of retirement, and a lack of confidence in the ability to plan. This is not to say that detailed preparation is a requisite for everyone. But some awareness of those changes that occur after leaving one's job might well contribute to a person's attitude toward retirement. Retiree health plans often are continuations of the health coverage that the employer provides for similarly situated active workers, but just as often there are distinctions in the retiree coverage that reflect the special needs of that population (2001). In particular, all employer-provided retiree health coverage is designed around Medicare or its absence. Many employers pay at least some part of the cost of the retiree coverage that they offer, at least for the retired employee. Some plans require contributions from retirees that are higher than what active employees have to pay. Implicitly if not expressly, this recognizes that active employees also are "paying" the employer's share, which is offset directly or indirectly against their wages. Even where the employee and retiree contributions are set at the same levels, retiree payments are effectively higher because they are after tax, whereas almost all companies now enable their employees to pay their share of the cost of health coverage on a pre-tax basis (2001). It is not unusual for an employer to offer retiree health coverage on a retiree-pay-all basis. The plan offered to retirees is ordinarily the employer's active-employee health plan. The ability to buy it at cost (i.e, at age-neutral, large-group rates) could be a substantial benefit for retirees. The employer plan thus becomes another option for retirees who are shopping for Medigap coverage.   Compensation entails pay and benefits such as wage and salary administration, job descriptions, executive compensation, incentive pay, insurance, vacation/leave administration, retirement plans, profit sharing, and stock plans. These bring a variety of perspectives to the employees to bear in deciding whether they are satisfied with the compensation they receive, thus making management of compensation a particularly challenging HRM activity ( 2001)). In the Human Resources Management’s participation in maintaining balance between the goals of the business firm and its employees, fostering a safe and healthy work environment can help the employees increase their productivity, work well with their colleagues, and improve their performance, which are all helpful for the success of the company. The success of the company, thus, brings each employee shared success and stable work opportunities. The amount of the employee's benefits depends in part on average earnings upon which Social Security taxes have been paid. These average earnings are adjusted for changes in average earnings that have occurred for the American workforce in general. The benefits also depend on the employee's family composition (e.g., whether or not the individual has a spouse that is eligible for benefits) and on the changes that occur after the individual becomes entitled to claim benefits. Since taxable earnings on which the benefits are based are subject to a maximum, the benefits are de facto limited as well.   An insured asset allocation strategy can be implemented by way of formula approach or a portfolio insurance approach ( 2004). The formula approach is a strategy done when as the portfolio decreases, more and more risk-free assets are being purchased so that when the portfolio reaches its base levels it is entirely invested in risk-free assets. The portfolio insurance uses put options and or future contracts to preserve the base capital. These two approaches are considered active management strategies, but when the base amount is reached, a passive approach is adopted. It would be suitable to risk-averse investors who desire a specific level of active portfolio management and at the same time appreciates the security of establishing a specific level where the portfolio should not be allowed to decline beyond that. For example, an investor who wishes a minimum standard of living during retirement might find an insured asset allocation strategy ideally suited to his management goals.                                                     Credit:ivythesis.typepad.com

MBA paper

Simple life-cycle models of labor supply and savings generally omit uncertainty. Yet people experience considerable uncertainty about wea...

MBA paper

BCG ANALYSIS OBJECTIVES As a person with knowledge of the BCG growth/share matrix, the author has always brought up to his superiors the viability of strategy formation regarding its analysis and at times fail to understand the reasons or logic behind certain strategic implementations imposed on it. By delving into this project paper, the author intends to have better insights into how the analysis of the BCG growth/share matrix is thought up, formulated and then imparted down into its subsidiaries of the company or organization. The author hopes to have an in-depth understanding as to how the critical information provided by the BCG growth/share matrix enables companies and organizations to compete effectively and profitably in this era of internationalization where competition is extremely intense. In order to reinforce the learning objectives, two key focal issues were focussed upon, i.e. innovation and diversity. Innovation was discussed with regard to the BCG growth/share matrix analysis of a company where it was renowned for its developmental capabilities to constantly innovate. Diversity came under strategic thinking and formation as the author considered the diverse culture, political climate, economic surroundings, social environment, technological settings, government policies and legal systems in order to better understand the issues being discussed.   EXECUTIVE BRIEF This essay utilized Palm, Inc. as the model organization to review its present utilization of B.C.G. analysis and how they dealt with critical situations. From the analysis, key trends in the company’s utilization of B.C.G. analysis were then identified, how it worked and its effectiveness in dealing with critical situations was ascertained. The paper then moved on to assess the benefits of using B.C.G. analysis with regard to its suitability to critical situations, during which the internal capabilities of Palm, Inc. in relation to the strategy being followed by the company was determined also. An overall analysis of the performance and effectiveness of B.C.G. analysis was also conducted in reference to Palm, Inc. to assess and compare the capabilities of B.C.G. analysis with those of others. Gaps and limitations in the capabilities of B.C.G. analysis were then identified. Finally, several choices of strategies to improve the operations management of Palm, Inc. using B.C.G. analysis as effective means in critical situations were recommended and evaluated in terms of appropriateness to the issues reviewed, feasibility in carrying out the options and acceptability within the key stakeholders and decision makers. Several key implementation issues related to managing strategic change were also addressed as well.       INTRODUCTION B.C.G. analysis refers to a marketing procedure involved in brand marketing and strategic management which most companies and business organizations utilize to determine what products to add to its portfolio. The results of the analysis significantly help in the efficient and effective implementation of the policies and tasks necessary to satisfy a firm's customers, employees, and management. B.C.G. analysis also focuses on the careful management of the processes involved in the production and distribution of products and services (2001). More often than not, small companies don't really have the capabilities to implement B.C.G. analysis. Instead, these companies engage in activities that various schools of business management typically associate with B.C.G. analysis. These activities include the monitoring of products, product development, production and distribution. However, B.C.G. analysis deals with all operations done within companies and organizations. Activities such as the management of purchases, the control of inventories, logistics and evaluations are often related with B.C.G. analysis. A great deal of emphasis lies on the efficiency and effectiveness of processes. Therefore, B.C.G. analysis includes the analysis and management of internal processes. Palm, Inc. will be the model business entity that will be used in this research based on their history in the effective use of B.C.G. analysis. OVERVIEW OF PALM, INC. Palm, Inc. is a business entity specializing in mobile computing. Its products enable its customers to put the power of computing in their hands, along the process accessing the information they need.  Palm, Inc. was established in 1992 by  and , which later co-invented  the Palm Pilot. In 1995, Palm, Inc. was acquired by U.S. Robotics Corporation. In June 1997, Palm, Inc. became a subsidiary of 3Com when the U.S. Robotics Corporation was acquired by 3Com. As its subsidiary, 3Com then made Palm, Inc. an independent company on March 2, 2000 through a public trade under the ticker symbol PALM (). However, after the September 11, 2001 bombings of the Twin Towers in New York, the value of the company also came falling down. This drastic fall was also being blamed to the mistakes in the choice of marketing strategies that were implemented at that time.  In August 2003, the company renamed its hardware division to palmOne, Inc. In April 2005 palmOne was bale to buy PalmSource's share in the 'Palm' trademark for  about US million. Then just last July 2005, palmOne launched its new name and brand going back to Palm, Inc. and trading under the ticker symbol PALM.     Company Mission / Corporate Objectives Palm, Inc. aims for sustainable growth as a broad market leader in mobile computing as well as for segment leadership. In both cases, the Palm, Inc. brands will play a crucial part. Palm, Inc. is able to establish its broad leadership usually by acquiring other strong mobile computing companies and their products, which are then combined into a new, larger company (1989).  Offering training to its employees, improving the company operations, and the introduction of new technologies then reinforces the positions of the various Palm products. This practically results in economies of scale that is able to create a distribution network for both the local and international Palm products. If a market is already in the control of other mobile computing companies, Palm, Inc. devotes its attention towards the development of a premium segment with its various Palm products (1995).             The mission of Palm, Inc. is to secure the growth of the business in a sustainable manner, while at the same time constantly improving the company’s profitability. The strategy to achieve this involves four elements: <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Striving in order to reach a leading position in attractive markets </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Focusing on securing a competitive share of the mobile computing market segments. </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Working in order to improve the company’s efficiency and cut costs in operations. </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Continuous growth through selective acquisitions for as long as they are able to create shareholder value. </li> PALM, INC. GROWTH-SHARE MATRIX A. Cash Cows Palm products include smart-phones and handheld computers. These are equipped with a Personal Information Management (PIM) software and other note-taking applications.  A range of additional features including high resolution colored screens and wireless capabilities ensure that there's a Palm product designed to meet the needs of clients anywhere in the world. B. Dogs Hand-held computers are different from a laptop. Palm products focus more on the management and access of information rather the creation and editing of documents. For this reason, Palm, Inc. has developed a unique set of guiding principles - simplicity, wearability and mobility. Total commitment to these principles makes Palm products very user-friendly to its customers. C. Question Marks It is a common knowledge that the mobile devices industry is still a relatively new industry and is still in its early stages of development. However, it has shown signs of rapid growth and it is being estimated that there will be more than a million mobile devices that will be shipped within the year. And it is further being expected that within the next years the tremendous growth and technological advancements will continue in the mobile world. Mobile commerce and multimedia terminals are just some of the technological advancements already being expected. Therefore, the continued growth and development will also make it imperative for localization to occur in the mobile industry in the years to come. The software development for mobile devices of Palm, Inc. certainly will become the target for localization because of its dynamism. There are still plenty of operating systems for mobile devices that software developers can use. But since development cycles are much shorter than computer software development cycles, Palm, Inc. may need to rush the release of its localized versions of software. By doing this measure, they will be the first to launch software in various markets, thus putting more pressure on the localization process. Also, the redesigning and streamlining of both software development and the localization process will become imperative if this scenario. D. Stars Palm, Inc. is making an effort to increase awareness of its various Mobile Workforce solutions. These are actually solutions for people who rely on carrying computers around as part of their jobs. The first part of this initiative revolves around the concept of sales in the mobile field. The purpose of Palm, Inc. in this effort is to show how they can help their customers and clients incorporate their Palm devices into their sales force automation strategy.       Palm, Inc. BCG Matrix   Each circle represents a Palm product or brand. The size of the circle indicates the value of the sales of that Palm product or brand.   PALM SBUs Palm, Inc. is the world's leading producer of hand-held computers. Interestingly enough, Palm, Inc. has an even larger share in the market for hand-held computer operating systems. Around eighty (80) percent of hand-held computers in the United States operate on a Palm operating system. Microsoft is the only major competitor with a share of sixteen (16) percent. The hardware market gives Palm, Inc. a market share of sixty (60) %. Of the major competitors, Sony Corporation and Handspring are both using Palm's operating system, and hold about 7% and 14% market shares respectively. Other competitors, such as Compaq and H-P, use Microsoft's operating system, but both companies have below 10% market share. Palm, Inc. has had so much success in the consumer market, but the future goals include selling more products to corporations. BENEFITS OF B.C.G. ANALYSIS Because of Palm, Inc.’s successful application of its B.C.G. analysis, the following benefits were achieved over the years: ·        Financial Stability Financial stability is crucial especially in the pursuit of research and development activities. In the mobile computing industry, it is important to remain updated with the latest technological developments to be able to stay competitive in the market. ·        Excellent Product Performance and Price The designing of the best mobile products comes as a result of well-funded research and development activities. The strong performance of mobile products in the market could also be linked to their cost-effectiveness. However, the company has to be aware of the positioning in terms of process so as to maintain satisfactory profits margin and remain competitive in the market. ·        Effective Distribution of Products High brand awareness among the buyers has created the need for aggressive marketing, and access to strong distribution channels is critical for the introduction of new models (2001). ·        Economies of Scale and Scope in manufacturing and research and development arising from its numerous facilities situated in the United States and other countries worldwide. ·        Unique Quality Technology Palm, Inc.’s commitment to research & development activities has always been one of its top strategies to remain competitive in the market.       ·        Differentiated Products Through the production and marketing of differentiated products originating from their research and development activities, Palm, Inc. is able to create its own firm-specific advantages. The continuous pursuit of research and development processes enables Palm, Inc. to produce a steady stream of originally differentiated products which makes it difficult for competitors to find substitutes. Because of this differentiated approach, Palm, Inc. is able to market their products worldwide, which enables them in turn to maximize the returns on research and development expenditures (1997). LIMITATIONS OF B.C.G. ANALYSIS The BCG growth-share matrix is only able to determine market share and industry growth rate. This means that this business tool is limited towards determining only the factors of profitability, the purpose of any business. The matrix also fails to consider integral elements of industry attractiveness and competitive advantages. Because of these significant limitations of the B.C.G. Analysis, Palm, Inc. has experienced several problems in its operations over the years, especially in the ASEAN region. These are: Macro-Environment-Strategy Gaps Political Crises The occurrence of political and electoral crises within ASEAN region was not helpful at all to Palm, Inc.’s strategy to solidify its top position in the mobile computing industry. While the implementation of AFTA promoted common tariffs among member countries, other non-member countries had no choice but to follow the individual national tariffs imposed on their products. Nevertheless, Palm, Inc. viewed the liberalization of the mobile computing industry as an opportunity rather than threat as the earlier issues have identified (1997). Economic Instability The occurrence of global recessions brought about by companies closing down and the loss of jobs had a direct impact on Palm, Inc.’s strategy of dominating the world market. Also, there were huge differences in terms of the GDP per capita earnings among the ASEAN member countries. This situation made Palm, Inc. ponder about its positioning strategies in certain ASEAN countries. Social/Cultural Uprising With the rise in the middle to upper-middle class households in certain countries within the ASEAN region, there existed a strategy mismatch for not considering the potential for consumer market. Technological Revolution There was a need for Palm, Inc.’s business strategy to be aligned to the revolutionary technological changes that impacted the mobile computing industry. Industry Environment-Strategy Gaps Intensified Industry Rivalry There was a high level of rivalry that occurred in the mobile computing industry. This certainly had a grave impact on the overall mobile computing industry profitability, and posed a threat to Palm, Inc. Buyers Since the bargaining power of buyers was high, it offered both opportunities and threats. It also had a deep impact on the mobile computing industry profitability. Thus, gaps existed in the form of customer segmentation, in which Palm, Inc.  also considered positioning itself. Suppliers Suppliers had only average bargaining powers resulting in lower profitability for the mobile computing industry. Palm, Inc. capitalized on this situation by forming strategic alliances with other mobile companies or even acquisitions.   Substitutes & New Entrants Both of these industry elements posed very little threat to the mobile computing industry, much less on the industry’s profitability. The only issue that had a major impact on Palm, Inc.’s strategy was the technological changes that produced substitutes which threatened the industry. B. Strategy-Capabilities Gaps Palm, Inc.’s technical expertise in the manufacturing processes and its continuous pursuit of research and development activities became a stumbling block with changes in the technological trends. There became an impending need to have better market insights. Sound marketing strategies and the access to distribution channels were not enough to guarantee success for Palm, Inc. STRATEGIC OPTIONS Deriving from the gap analysis between the environment, strategy and capabilities, many strategic options would become imperative. It is therefore essential to evaluate these strategic options as to whether they are appropriate to the issues addressed, whether they are feasible enough to be implemented and their acceptability to key stakeholders. A. Business Level Strategy There is definitely a need to reconcile both the inside-out and outside-in capabilities. While Palm, Inc.’s business strategy involves focusing on the results of the B.C.G. analysis with market position following its resource base, the company will be put into a disadvantageous position should it choose to neglect both the macro as well as industry environment. Therefore, Palm, Inc. has to be aware of the latest technological changes, as well as changes in political, economic, legal and even demographic trends in order to develop the outside-in capabilities, such as market sensing, customer linking, channel bonding and technology monitoring (2002). The advantages enjoyed by the company may come in the form of increased revenues. Knowing what the market demands and the latest trends could help Palm, Inc. fully exploit its research and development capabilities to come out with product designs which are cost-effective but high in quality and performance. The strategic option can even be used as marketing tool where the focus is on staying close to your customers and listening to their feedbacks. On the flip side of the coin, there will be huge mobilization of resources involved, and the associated risks bestowed on the company. Nevertheless, the mentioned strategic option seems the most practical in the wake of globalization, since there is a sudden shift towards a more integrated and independent world economy. The key stakeholders too should not have any objections so long the company’s core business is not threatened. By virtue of Palm, Inc.’s centralized control of its subsidiaries, it is being expected that major barriers should not exist in carrying out such an option except additional time may be required given the scope and span of Palm, Inc.’s operations. RECOMMENDATIONS A tie-up or merger with various local telecommunications company offers tremendous benefits in terms of access to the company’s subscribers, infrastructure and even its resources. However, Palm, Inc. must not lose sight of its core competencies while pursuing these tie-ups. Otherwise, the image of Palm, Inc. might be put in jeopardy. Meanwhile, the collaboration of Palm, Inc. with its major competitors can be seen as a ridiculous move at first.  However, upon close examination, this move could pave the way for Palm, Inc. to increase even more its market shares and revenues. The bottom line is both sides would be able significantly gain financially in such an alliance. Palm, Inc.’s strengths in product development combined with the financial capabilities of either Compaq or Microsoft can transform them suddenly into an unbeatable force to reckon with. One possible setback, however, is the differences in the cultures of the companies involved. Another possible setback could be whether any of Palm, Inc.’s competitors has the need to form alliances (1997). The third option also focuses on alliances, but this time with either one of the suppliers specializing in manufacturing of mobile products or the product’s operating system. The benefits of these alliances should outweigh the costs in the long run. In terms of appropriateness, all three options are able to directly address the current issues mentioned. However, the question remains whether Palm, Inc.  could be able to implement any of these options, and whether these options can be acceptable to the key stakeholders. Any merger or alliances may also involve the sharing of expertise. Palm, Inc. has traditionally relied on the inside-out approach. It is important to note that any merger transactions would have many implications on the company’s values and culture as well as the resources. The key stakeholders definitely would be concerned with such options and need to be convinced of the positive aspects. Somehow, Palm, Inc. will be able to overcome this barrier in managing strategic changes in the process of implementing any of the above mentioned strategic options.     CONCLUSION The results of the analysis carried out on the impacts of B.C.G. analysis on Palm, Inc. indicated very significant effects, even amidst the threats of unrest. Therefore, we could conclude that the continued utilization of Palm, Inc. on B.C.G. analysis could lead to its improvement faster than average. The review of the capabilities and resources of B.C.G. analysis revealed very little inconsistencies regarding Palm, Inc.’s strategies. This is coherent with their traditional inside-out approach. However, the need to reconcile both the inside-out and outside-in approaches becomes imperative now for the company. The analysis among the environment as well as the capabilities of B.C.G. analysis revealed certain limitations, most of which are biased towards the environment. However, these limitations paved the way towards determining a number of recommended strategic options to secure the competitiveness of Palm, Inc. Also, Palm, Inc. has to find a balance between adherence to internal forces within the management and to the changing forces of the environment in order to implement such strategic options.         Credit:ivythesis.typepad.com

MBA paper

BCG ANALYSIS OBJECTIVES As a person with knowledge of the BCG growth/share matrix , the author has always brought up to his superi...