1) Watch the video on the following link and take notes of “key Points”
Things required to do :-
Explaining the various terminology of what is called strategy? Example- history of strategy word derived from.
The next paragraph needs to discuss the steps followed by organization. (not IKEA)
Watch the video on the following link:
Define business model, significance of business model.
Discuss the factors involved in the business model. There are 4 factors.
This assignment mainly contains the two aspects needed for the growth of a company that is-Strategy and Business Model. It primarily deals with the significance of strategy and strategies of a particular company. The assignment also deals with the fact that in what ways the strategies failed to retain the reputation of that company. One can also know the actual motive of formulating a strategy in a company. The strategy of a company often is misleading with the goals and vision of a company. There is a detail description regarding the origin of the word ‘strategy’. Next, there is an analysis regarding the significance of a Business Model. Moreover, one will also get to learn about the different types of leadership, which is applied in a company.
Section I: Definition of Strategy
The word ‘strategy’ comes from the Greek word ‘STRATEGOS’ which means ‘THE ART OF THE GENERAL’ in a war which species the role and responsibilities of a general (Rothaermel, 2015). There was a treatise on strategy named ‘THE ART OF WAR’ written by Suntzu who was a well known Chinese general in the 2nd century B.C . The focus of the ‘THE ART OF WAR’ is to win in the battle. If one wins then it very good and encouraging but if one lost the battle then it is not good. For example, Hannibal’s goal was to conquer Rome that one cannot call strategy of Hannibal. His strategy was to attack at the weakness of the enemy. His farsightedness was far ahead of other field commanders. In present day, business has become the source of modern day war.
Strategies of an Organization
The National Bank of Australia has formulated different strategies:-The first strategy is to emphasize on the franchises of this bank and on the international position of this bank and build impulsion on the Personal Banking system by applying different strategies for it. Another important strategy is to increase the profit of this bank in all its franchises and retain the strength and security of this company by solidifying its funds (Grant 2016). The other strategy is to diversify the sources from where the bank gets funds. One of the important strategies is to regulate the expenses of the management. It is important to improve the technological system of the bank so that it enables the bank to become more efficient and it reduces the risk factors in finance and banking. Another significant strategy is to focus on the increasing requirements of the customer. The bank follows the strategy to upgrade the leadership skills of the employees of the bank. The bank has also aimed to take social responsibility in education and other factors.
Faults in the Strategies of the Organization
The National Australia Bank emerged as a reputed bank in the financial industry in 1987 It brought Yorkshire bank in 1990 and Bank of New Zealand ( BNZ) in 1992 and US based Michigan National Corporation. It was assumed that the National Australia Bank would retain its leading position in the Finance and Banking industry. The main reason of the success of this banking is its acquisition strategy (Hatherly 2016). However, unfortunately the bank could not retain its position due to its arrogance. The bank also cannot handle the increasing demand and it produced limited growth in the market. Finally, it also failed to handle the risk factor that is always there in banking and financial industry (Parker and Alstyne 2013). The acquisition strategy of this bank has become worst by the the global financial crisis of 2008. The scandal related to this company also hard hit the overall growth of the company. Insurance had been unethically sold, along with the loans, mortgages and the credit cards. The bank had to compensate the customer’s loss wherever this corruption has occurred. There are also faults in the strategies of the National Australia Bank for which it cannot sustain properly:-
- This Bank has never formulated any unique strategy comparative to other banking and financial industry (Martins, Rindova and Greenbaum 2015).
- Moreover, the bank also needs to be use a large range of resources.
- Finally, it has failed to retain its reputation and productivity.
A banking organization or a company must remember the important difference between the aims and goals of the company or an organization and the strategies of the organization. Strategy is the procedure or the methods by which the company will achieve its target. It is mentioned in the definition that strategy is the art of war. So, if business is a modern day war then strategy should be considered as the diplomatic decisions needed to reach the goals and aims of a company.
Section II: Definition and Significance of Business Model
Business model of an organization mainly is a model of variety of of customers in an organization, service given to the customers, creation of value-proposition and the assumed revenue generation of a company (Afuah 2014). Every day the world is changing, thus a company or organization must change with the momentum (Ritala and Sainio 2014) . Companies like Kodak and Nokia have no market value presently. This is because they failed to compete with the changing world. Innovation is very necessary to compete in this market (Morris et al.2015). The creativity is based upon the uniqueness of the company and revolutionizing the company according to new technologies (Casadesus?Masanell and Zhu 2013). A company must also study and have a thorough knowledge about other companies. Every company must learn the positive attributes from every other company so that they can execute in their own company inevitably with uniqueness (Lehoux et al. 2014). Hence, it is very important to have a business model for a company.
Important factors in the Business Model
The four factors of the Business Model are: - Initiation, ideation, integration and implementation. During initiation, the old Business is analyzed based on the target customers, service provided to the customers, value proposition and generation of profits. During ideation the business models is compared with another 55-business model and finally formulates and create a new business model. Creating another model does not mean copying from other models but it means to re-invent another by learning and acquiring knowledge from all these models (DaSilva and Trkman 2014). Integration means to check the consistency of the existence model and finally during the implementation part everything should be executed as per the business model.
Difference between Value Proposition and 4 I’s Leadership
The different features of Value Proposition are as follows:-The first leadership quality is about fixing the proper strategic direction of a company (Ghezzi, Cortimiglia, and Frank 2015) .The second leadership quality is constructing an efficient and capable team. The third leadership quality is about providing the best business result. The fourth leadership quality is about building trust between the customer and the company.
The various features of 4 ‘I’ leadership are as follows:-The first attribute is ‘inspiration’. It is very important for the CEO and other leaders of the company to inspire the employees of the company. Moreover, inspiration is also required to create new ideas for the company. John Hancock explained, “The greatest ability in business is to get along with others and to influence their actions. It is very significant for a leader to inspire its co-workers because it helps them to be more focused and walk along the footsteps of the leader. A leadership quality is judged on the effects of its leadership quality by challenging critical situation and developing creating environment in a company.
4 I’s leadership quality is basically called the transformational leadership quality (Ozleblebici, Pinto and Antonio 2015). Companies like IBM have started his journey by selling large mainframes and has become one of the leading global companies (Fageda, Suau-Sanchez and Mason 2015) . This has only happen due to the efficiency of a great leader who has executed the transformational leadership qualities.
Conclusion of this Section
The Business Model Innovation is very useful for the reputation and profit of any company. For example, different global companies like Apple, IBM and Starbucks are the successful global organizations. They are constantly updating their business model so that they can sustain their position in this competitive market. Transformational and value proposition leadership quality is very much significant for creating new ideas for the company. Finally, it is very important for any organization and company to fulfill the demands of the customers.
Strategy and the Business Model Innovation are the two important pillars of an organization. Strategy is one of the important features of the value proposition. Business model includes all these attributes, which forms the structure of a company. A person who has a leading position in a company must have innovative power so that the company can cope up with the changing situation in the market. It is mentioned that various well-known multinational company failed to sustain its recognition for a long time. This happened due to inability of that company to create innovative ideas and to gratify the rising demands of the society. However, it does not mean that upgrading technology is the only criterion to adapt with the changing situation. A company must fabricate ideas in terms of revolutionizing the strategy to fulfill the mission. Strategy should not be considered as the aims and goals of a company. Strategy is the secret weapon of a company to sustain its position and generate profit in the company. However, business is considered as the modern day war, but every company should perpetuate a healthy competition among the companies so that they can learn from each other and also maintain a cordial relation between them. Another important thing is that the leaders must continuously guide and inspire the employees of a company and they must allow the employees to take decisions in critical matters of a company. This will encourage the employees to work enthusiastically and in the end, it is fruitful for the growth of a company. Business model should also include strategies for the benefits of the employees.
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