商务文化与策略HND

1、Business Culture and Strategy Prepared by Student Number : Date: Content1.0 Introduction12.0 Main body12.1 Porters generic strategic12.2 Business strategies and strategic choice22.3 Two different business strategies within Alphabet Games32.4 Forces for changes32.5 Potential benefits52.6 The role of

2、management52.7 Possible impact of competing influences62.8 Three-step change model72.9 Suggestions on minimizing and overcoming resistance83.0 Conclusion94.0 References101.0 IntroductionThis report based on case study of Alphabet Games, mainly include business strategies, the main differences and wo

3、rking relationship between strategies and strategic choice, potential benefits, and analyze the role of management, the possible impact, as well as suggestions for resistance minimize within Alphabet Games. 2.0 Main body2.1 Porters generic strategicCost leadership strategy focuses on efficiency and

4、lowest cost, in order to fight rivals to obtain competitive advantage(cost-leadership, 2015). It aims gain the initiative of the price and take low cost as market entry barriers, thus making the company become the leader in the industry. So the applicable business environment of this strategy is tha

5、t the market competition is fierce, and the industry products or services are standard with lots of substitutes in the market, but there are few ways to achieve differentiation. Because the market has large buyers and significant bargaining power, company can use amount change price. When this strat

6、egy can be implemented successfully, the low cost will be used as the barriers to prevent others to entry, as times passes, the company will become the leader in this market.Differentiation involves creating a product that is perceived as unique. Differentiated goods and services satisfy the needs o

7、f customers through a sustainable competitive advantage. So this strategy suits the environment that there are many methods to distinguish the products or service, most consumers in the market are not switching low cost with diversified needs, and they can recognize and value this kind of uniqueness

8、. And the firm should have strong research and development skills, strong product engineering skills, strong creativity skills and strong marketing skills. 0Because differentiation lead to a comparatively higher price, if consumers pursuit the low price and can not accept the price and this kind of

9、differentiation, they may not willing to buy your product. And once the strategy be implemented successfully, it can bring company customer loyalty and brand loyalty.Cost focus refers to provide products and services to a few customers at the lowest prices. This strategy adapt to a narrow, niche mar

10、ket, used by smaller firms. In this business environment, consumers switching on low cost. Because this strategy focuses on a few consumers, so the organization can afford neither a wide scope cost leadership nor a wide scope differentiation strategy, in order to provide better products or services

11、for consumers with low cost, cost focus strategy is most suitable for this kind of environment.Differentiation focus refers to one can provide products and services to a small number of customers better than rivals by differentiation. This kind of strategy is suitable for a narrow, niche market to s

12、maller firms, and in the market, consumers have different demands. Because this strategy focuses on a few consumers, and with differentiation focus strategy, the company can meet various different demands of consumers, providing better products and services. 2.2 Business strategies and strategic cho

13、iceBusiness strategy is the long-term plan and decision used to guide a company, in order to achieve greater profitability and success. Strategic choice is a matching process of environment, advantages and disadvantages inside and outside(TANG Dongfang 2011, p15). It is concerned about an organizati

14、ons future and many pressures and influences form its external and internal environments.A business strategy is a plan, a concrete program, while a strategic choice is a process to decide the better one, and pick up the appropriate choice for the company among many different designated strategies. T

15、he connection between the two is that only through the a matching process of strategic choice, can the company draw the most appropriate business strategy which contribute to the companys development.At the start-up stage, Alphabet Games resources and funding is limited, it is impossible for Alphabe

16、t Games to expand the scale of production to reduce production costs. And the game market is flourishing, profits back is quick, the competitors are also very few. So according to companys present situation and the external environment such as competition within the industry, Alphabet Games choose d

17、ifferentiation strategy which is the most suitable for the present stage of the companys development.2.3 Two different business strategies within Alphabet GamesIn the case, the game market has fierce competitiveness, so according to the analysis of business environment of strategic choice, Alphabet

18、Games apply the differentiation strategy that providing bespoke software solutions to clients around the world, in order to meet market challenges and individual needs. Then, with the change of business environment that a recent growth in demand for flash game, so Alphabet Games apply the cost leade

19、rship that using data capture to provide key messages to Comprehensive consumer market with comparative lower costs for survival in market.On the one hand, different strategies may lead to the same behavior. Because Alphabet Games always pursuit the innovation, quality and excellence, and emphasize

20、the passion in the work, so no matter how the strategy change, the employees value would not be changed that they still insist the philosophy of the innovation, quality and excellence.On the other hand, in the initial differentiation strategy that corporate s profits is come from the special core wh

21、ich different form others, but the employees in Alphabet Games may have different understand on the value and the differentiation strategy, thus leading to the different behavior.2.4 Forces for changesStrategy management includes strategy formulation and the planning and monitoring of strategy imple

22、mentation, in order to achieve company goals(Strategy management, 2015). While strategy updating is that because of the change of external environment, enterprises have to take advantage of new knowledge and innovative behavior to change the product or market(Strategy updating, 2015). One of forces

23、for changes Alphabet Games must considered when managing its business strategy is establishing a key differentiator. Only adopt a model that is hard to imitate can organization maintain the success. And the differentiation of Alphabet Games reflects in its pursuit of innovation, quality and excellen

24、ce, which enabled Alphabet Games to develop successfully. And Alphabet Games also provide bespoke software solutions which is different to others, in order to meet market challenges and individual needs.Another one can be offering consumers a unique value, perceived or real. Only the consumers can r

25、eceive and acknowledge companys product or service, can organization achieve its strategic goals. So in order to meet market challenges and individuals needs, and gain recognition and acceptance from consumers, Alphabet Games consider on offering consumers a unique value that providing the bespoke s

26、oftware solutions.The forces for change Alphabet Games must considered when updating its business strategy can be the inflation. Because inflation would result in higher game production cost, which is an important factors in deciding the success or failure of the Alphabet Games strategy updating. Fo

27、r example, in the case, the game development cost £50000 in1980 while now it cost £5 million, because of the inflation, the costs associated with development and marketing have seen a significant rise, so in order to cope with this situation, Alphabet Games tend to consider the strategy up

28、dating.And the demand for higher quality, new generations, developed technology also need to be consider by Alphabet Games. Consumers tend to pursuit the concept that game worlds must also react in a realistic manner, so this change of market demand also led to strategy updating in Alphabet Games.2.

29、5 Potential benefitsThe first benefit is the increased scale. Because of the effective strategy, Alphabet Games scale also be expanded. The rented office that housed three students has been replaced by a custom built facility that houses research, development and production which ranks alongside any

30、 of its comparable competitors. And its expansion and subsequent development has led to the recruitment of 25staff ranging from software and games programmers to a new breed of marketing professionals and business managers .Stable consumers is also one of the benefits. Because of the effective busin

31、ess strategy, Alphabet Games has developed a world renowned reputation for excellence, quality and innovation, so customers can rely on the Alphabet Games products, thus forming the stable customer base.The other benefit is the loyalty from staff to Alphabet Games. Due to the effective strategy, Alp

32、habet Games developed rapidly, providing many job opportunities and the chance of promotion to employees. Employees think the job is promising, and salary and benefits can be ensured in the company, their enthusiasm on work and loyalty of Alphabet Games will also be improved.The effective strategy a

33、lso bring Alphabet Games the increased profits. In the case, Alphabet Games no only expand its scale, but also develop more life-like video game, which means it profits has also improved.2.6 The role of managementThe management in Alphabet Games play a role of effective decision makers. In the case,

34、 when Alphabet Games face with the fierce competition and the products would become unprofitable in the market, the management quickly decide to quit the current game market, changing the product, developing the new market, and focus in the data capture that providing key messages to consumers and e

35、mployees. Because of the effective and efficient decision by management, company can transform successfully.In addition, the management in Alphabet Games also play a role of proactive forecasters. When Alphabet Games face with the pressure from the game market, the management in Alphabet Games has s

36、een a recent growth in demand for flash game, and think these can be used as marketing or educational tools, thus according to these reliable industry trend prediction Alphabet Games can develop the data capture business successfully.2.7 Possible impact of competing influences For stakeholders, Alph

37、abet Games began as three friend pursuing a passion for software, therefore, as the shareholders of Alphabet Games, their initial goal is that making the enterprise stronger and stronger. So when external environment become competitive and the company could not find the profits in the game market, t

38、he shareholders tend to updating the strategy and change the management mode to promote the reform of Alphabet Games, in order to develop the company unceasingly.In the external environment, as the competitors of Alphabet Games, Sony and Microsoft hope that the fewer competitors in game market the b

39、etter, so they invest and budget for huge amounts to make even bigger profits, making small and medium enterprises could not survive in this market, which virtually impel the transformation of the Alphabet Games.However, as the employees in Alphabet Games, they are expert in game making, and due to

40、the unknown risks, the uncertainty of the position change and salary, they may not willing to change the current situation, which to a certain extent can hinder the Alphabet Games reform.For business goal, the Alphabet Games founder is designed to make the company bigger and stronger, and insist the

41、 passion for software, and pursuit the innovation, quality and excellence. When external environment is change and Alphabet Games could not gain the profits from the game market, in order to achieve the goal, Alphabet Games transfer the market to data collection. Therefore, the business goal of Alph

42、abet Games also promote the reform.2.8 Three-step change model Lewin introduced the three-step change model in 1951. The model involve three stages including unfreezng the present, moving to the new level and refreezing the new level(Three-step-change-theory, 2015), which help managers understand wh

43、at activities must take place in order to carry out successful organizational change.The first stage focus on recognizing the need for change and improvement. In the case, driving forces for change are as following:The market competition, as the loading of costs provides the big firms like Microsoft

44、 and Sony a huge advantage over the smaller game producers as Alphabet Games, they invest and budget for huge amounts to make even bigger profits, while many small companies as tight profit margins are driving many to the wall, this drive Alphabet Games to making change to expansion, in order to inc

45、rease profitability of the company.The booming market for prated copies and imitations of game is also an significant factor, its low cost has led to the loss of sales. So small and medium enterprises, such as Alphabet Games, could not invest heavily and have to transfer the market.In addition, the

46、inflation lead to the small profits with huge investment in game development that the research and development costs now is nearly one hundred times over which in the eighties. Alphabet Games could not afford the huge cost, so be promoted to change.While restraining forces against change are as foll

47、ow:Partnerships with other companies. Alphabet Games has established partnership with many film production companies, and have worked exceptionally hard to enter into working agreements with film and TV production companies and magazine, comic and book publishers. Alphabet Games has spend lots of mo

48、ney and time on this, but reform means quitting up these, so it may restrain the company to change.The employee's resistance. Due to the unknown risks, the uncertainty of the position change and salary, the employees in Alphabet Games may not willing to change the current situation, which to a c

49、ertain extent can hinder the Alphabet Games reform.Only when the driving forces are much more than restraining forces, can the present be unfrozen. The second stage is moving to the new level which focus on encouraging staff to adopt new behavior and attitudes. In this stage, Alphabet Games first sh

50、ould make a specific call for change and announce re-structuring within organization. Then Alphabet Games gather the views on possible solution such as appoint the new senior manager. In the process of reform, the employees in Alphabet Games may not approve the change, so Alphabet Games should make

51、the whole staff to participate in considering possible solution, in order to change employee awareness of reforms, improve the identification of change and solve the resistance in the process of reform implementation. Lastly, Alphabet Games should announces job losses and plant closures and begin th

52、o conduct the reform.The third stage is focus on stabilize the organization in its new state of equilibrium by.Alphabet Games should announce the the new rules, regulations and system of rewards and punishments, then communicate that change will take time and reassure remaining employees.2.9 Suggestions on minimizing and overcoming resistanceThe six change approach was introduced by Kotter and Schlesinger, which is for dealing with resistance to change and help manger realize that different types of change and different stages in the change proces