The Power of Strategy Innovation

2021-05-19 06:19:27
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As the world becomes a global village, most business organizations have been presented with several benefits as well as challenges in the process of adjusting to new markets CITATION JBe12 \l 1033 (Bennett, 2012). One of such companies is General Motors. The companies has been operating in the Chinese market for several decades now and as the Chinese automobile market continues to grow, GM has enjoyed tremendous opportunities CITATION JBe12 \l 1033 (Bennett, 2012). Moreover, in anticipation of more growth, GM has positioned itself in China by investing even more. For GM, globalization is not about having readily available and cheap labour but is also about tapping more market especially where demand is growing.

Some Implications of Globalization

Human resources departments have undergone tremendous changes in strategy in the recent past due to several factors that are facing modern businesses CITATION Bam14 \l 1033 (Bamberger, 2014). One of these factors is Globalization. In todays global business competition, organizations decision making has become increasingly convoluted. As such, human resource managers need to adopt their strategies to enable them enjoy all the benefits that come with globalization CITATION Bam14 \l 1033 (Bamberger, 2014). Here are some of the implications that globalization has on the existing organization workforce and the human resource management strategies.

The global world has increased the talent pool for both marginal and skilled workers, casual and permanent workers CITATION Dav16 \l 1033 (David, 2016). An organizations workforces talent can be the backbone of a sustained competitive advantage. A skillful workforce can be the determinants on whether an organization will remain profitable while other decline. It is a competent workforce that determines such outcomes like survival, customer satisfaction and overall profitability of an organization.

Another implication of globalization in the strategic management of an organization workforce is the globalization of employees data and information CITATION Bam14 \l 1033 (Bamberger, 2014). An employee can take advantage of the data available on a potential employee or even compare different employees in different places around the globe. The globalization of human resource information gives the employers insights as well as enables them predict the future trends in employment and devise ways to fulfill those needs.

Scenario Summary: Competing via Technology: The Risks of Technological Innovation

The company Boeing attempted some drastic technological advancement back in 2004 by beginning the work of making a sophisticated commercial airline not seen in the aviation history CITATION DMi13 \l 1033 (Micheals, 2013). However, the company faced a lot of challenges during the realization of such a huge innovation. The Dreamliner project did not come through as anticipated and the company ended up wasting a lot of resources CITATION DMi13 \l 1033 (Micheals, 2013). Innovation is very important in any organization willing to maintain a competitive advantage but sometime innovation comes at a cost. But the question remains, is it worth it?

Is It Worth It for Companies to Innovate?

Yes, companies need to continue with innovation. In todays business world, product innovation is not an option. It has become a necessity CITATION Bat13 \l 1033 (Bate, 2013). Gone are the days when companies relied on their trade mark and signature products while remaining very traditional. Now, companies have to keep pace with the rapid technological changes as well as the dynamic consumer preferences and behaviors. Companies need to keep improving their existing products as well as coming with new and more admirable products and services if they are going to continue growing and earning profits CITATION Bat13 \l 1033 (Bate, 2013). The following are some of the advantages associated with innovation in an organization:

 

The company gets to enjoy increased market share. Innovating the product or service that the company is offering can greatly elevate its market share CITATION Bat13 \l 1033 (Bate, 2013). Product innovation that is targeted on customers preferences help alleviates their shopping head and disrupt the market in a way that favors the company that came up with the solution or the more attractive product. At the same time, product innovation is one way of increasing the economies of scale which has the ability to increase the market power of the said company.

Innovation increases the company profits CITATION Bat13 \l 1033 (Bate, 2013). Developing an innovative product that serve consumers need or capture their interest means that the company gets to enjoy increased sale and hence more profits. The more innovative a company is, the more profits they enjoys.

Last but not least, there is success even in failure CITATION Bat13 \l 1033 (Bate, 2013). Not all innovations go according to how they were anticipated. Some innovation fail during their pilot projects, while others fail when they are being launch, still others do not get the reception that was intended and the company end up experiencing financial loss. However, there is success in failure as some of the failure that befall projects only serve to enlighten people. When a product innovation fails, it is high time the company evaluate where they went wrong as use the experience to make better choice and plan for a comeback CITATION Bat13 \l 1033 (Bate, 2013). As such, innovation are totally worth it.

 

Scenario Summary: Competing via Sustainability: Sustainable Goal, Unsustainable Business Model

A company Solyndra was producing a new brand of solar power panel CITATION YCh11 \l 1033 (Chernova, 2011). In the wake of the global sensitization for the company to practice sustainable and responsible business practices aimed at protecting the environment, Solyndra decided to go green. The company set very high standards and demonstrated the interest in producing sustainable energy products with the solar power panels. They operated under the philosophy of if we produce it, people will buy it CITATION YCh11 \l 1033 (Chernova, 2011). However, the company faced excessive financial losses and even with the recent government business stimulus package that was aimed at helping struggling organization, the company could not be salvage. At the end, the company learnt the hard way that their business model good as it was, was unsustainable.

Balancing Sustainability: From a Green Perspective and Financial Perspective

While most companies and business organizations are looking to keep up and even improve their sustainability practices especially from a green perspective, the cost of such ends are just too high to justify especially in the current economy CITATION Loz15 \l 1033 (Lozano, 2015). But how can companies balance the cost of protecting the environment or going green with their primary goal of making profit. Going green and protecting the environment is not an option anymore and it is the responsibility of all business to continue their operation in a way that does just that CITATION Loz15 \l 1033 (Lozano, 2015). The following are some of the ways that business can earn profits while still protecting the environment.

First, organizations must make sure that all the stakeholders within the organization understand what they are trying to do and that they are on board with these decision CITATION Dav11 \l 1033 (Lubin, 2011). This calls for aligning the sustainability strategy with the vision and mission of the company. This involves asking every stakeholder to engage in activities that promote sustainability.

Secondly, the organization should allocate a considerable budget to such endeavors without compromising on other sectors of the organization CITATION Dav11 \l 1033 (Lubin, 2011). A certain amount should be put aside to cater for environmental concern at every financial year to avoid encroaching on the company funds to do impromptu projects.

If the company is involved in the production of green product, the company should conduct market research to determine how the potential customer prefers instead of assuming that what they produce will have automatic market just because it is green.

Finally, the organization should partner with like-minded companies or NGOs as the work of saving the world is a not a one man show but a collective responsibility for all CITATION Dav11 \l 1033 (Lubin, 2011).

Lessons from the Devotional

From this Christian perspective putting faith and reason to work, human being have been given the responsibility to be the stewards of all that God created- the environment. According to Genesis 2:8-15, God commanded Adam to cultivate and protect the earth. Verse 15 actually states clearly the role of man towards the environment as that of stewardship. God calls us to take care of the world we live in and to carry out our activities in a way that respects and protect the environment.

Scenario Summary: Integrity in Action: Samsungs Equal Opportunity Employment

In 1993, Samsung underwent a series of transformation, and among the transformation within the company was the value systemCITATION Per12 \l 1033 (Samsung HR, 2012). Samsung chairman Mr. Lee, decided to adopt an open system of employment whose principle was embracing equality and diversity. Mr. Lees vision was to create an organization that did not discriminate against anybody but rather offered equal employment opportunities to everyone who had any skill to share with the companyCITATION Per12 \l 1033 (Samsung HR, 2012). By so doing, Samsung become of the first among many companies to allow women equal opportunities and wages just like their male colleagues.

Samsungs Open Employment Policy: Competitive Advantage or Not?

Samsungs open employment policy indeed brought the company a competitive edge then and now CITATION Dav16 \l 1033 (David, 2016). By declaring an open employment practice, the company opened itself to enjoy all the pool of talents available both in South Korea and the rest of the world as a whole. Women who until then were not allowed to hold positions of influence or contribute in technical things were now able to share whatever skills they had with this company. What this did is increase innovativeness and creativity within the company

At the same time, the declaration of equal pay for equal type of work was a morale booster to the employees CITATION Dav16 \l 1033 (David, 2016). The women were now entitled to the same salary as their male counterparts and with a promise for career mobility when they work harder. This morale boosting has the effects of increasing productivity among employees. People tend to work hard with little motivation, and the open employment policy was all the motivation the employee at Samsung needed. An increase in productivity means increase in sale and consequently an edge in the competition.

Finally, the open employment policy played well with the public. Samsung was seen as a company dedicated to improve the wellbeing of people, especially women CITATION Dav16 \l 1033 (David, 2016). With the world pressing for gender equality and women empowerment, Samsung served as an example of how women should be treated and by so doing cutting a special niche for itself among the tech companies in Korea and the world at large.

References

Bamberger, P. A. (2014). Human resource strategy: Formulation, implementation, and impact.

Bate, J. D. (2013). The power of strategy innovation: a new way of linking creativity and

Bennett, J. (2012). GM Plans $1 Billion Investment in China. Wall Street Journal, 2.

Chernova, Y. (2011). Loan Was Solyndra Undoing. Wall Street Journal, 96.

Concepts and Cases.David, F., & David, F. R. (2016). Strategic Management: A C...

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