Strategic Review
Assignment Module 1
Product development
Product development is important, because it helps many firms to position their products in the market that is highly changing as well as competitive. In addition, product development is a platform upon which organizations use to enhance the features of the product. However, on a lighter note, product development assists organizations to decrease production costs and enhance the volume of sales while maximizing the company’s image and profile. Nevertheless, with respect to Clipboard Tablet Company, the previous marketing Vice president Joe Schmoe, executed a poor strategy for X5, X6 and X7 products. Moreover, this strategy is not creative because he failed to conduct and R& D for the past 6 years. It is important to differentiate products based on their quality. In general, customers prefer decisive aspects are centered on the rather a few characteristics of the product. Therefore, marketers utilize a few quality characteristics as a basis on which they gain competitive edge. This means that attempting to differentiate on many features can be confusing to customers leading to weariness of product characteristics. Aspects to do with quality features employed by organizations rely heavily on marketing and product positioning (London, 2012). In case the brand, categorization and customers are appropriately understood, marketing tools can be employed to assess customers’ requirements as well as their favorites. However, this is not the situation of products X5, X6 AND X7 to perform R &D to make sure that, customers requirements are met and keep up with the marketing strategies. Moreover, R & D is essential since it provides companies with opportunities to distinguish products from their competitors. Under certain conditions, especially when the goal is develop products that are completely different from previous ones, the marketing vice president’s strategy is not suitable to get the vital proof necessary in the improvement of X5, X6 and X7 products. With such cases, new approaches have been adopted that are easily understood by customers and disclose their requirements. Utilization of approaches like emphatic and ethnography to response to critics who have embraced customer-based decision processes are likely to blind-fold companies to fully understand the needs of customers.
Branding
Branding is important step as it helps in the identification of products across different organizations. In addition, branding is an essential aspect since it leads to prices increment contributing to competitive advantage, an aspect that the marketing vice president never considered by rejecting to change product prices as well as allocation of R&D. Branding is also important because it helps firms in assessing effectiveness of a given marketing approach particularly those that related to promotion. On the contrary, branding contributes to increase in returns as it is basically economical to keep customers rather than attracting new ones. As such, branding helps firms to enhance their competitive edge in the industry; it comprises of name of the product, loyalty of the brand and its quality. Hence, with the element of maximizing ability of branding, it is surprising that attention is put on brand management, especially creating an attractive branding name.
There a wide range of branding techniques that organization can adopt to brand a single product or many products. With respect to a single product, firms have to give each product a unique identity just like what Clipboard Tablet Company has done (for example X5, X6 and X7). This form of branding reduces risks of failure. Furthermore, individual branding assists firms to compete in many market entries with same product line (Siddiqui, 2011). When creating new brands, whether new or old, firms must state clearly the brand or create a product whose features should be developed. The former approach is simple and cost effective in creating awareness and obtains customer feedback at the commencement; nevertheless it has the possibility of restricting flexibility to adapt to the changing market. In addition, the former approach is considered non-specific as well as dull since it is intricate to formulate and distinguish a brand identity. Nonetheless, the later technique the brand has a unique identity is most likely appropriate that non-specific approach in the modern competitive and changing market condition.
Corporate identity and branding helps a firm survive regardless of the high competition and give it a long-term benefit. With regards to corporate identity it comprises of elements such as personality, communication and image projected by a firm. It is assessed by the firm’s vision, mission, operational competency, product features, quality, and communication channels. Therefore, to determine positive, attractive and regular identity, Clipboard Tablet Company has formulated policies to help them in making sure that all business operations are communicated and demonstrate their unique values as well as competencies. Such kinds of corporate identity provide firms with opportunity to develop synergies that enhances efficiency and effectiveness of the marketing strategies. By concentrating on a popular core of organizational values and competencies, images produced by each single product’ s branding and promotion can be useful in reinforcing the firm’s idea to its customers, shareholders and the society at large.
Packaging
Packaging entails many aims such as promote objectives, safety, enhance use, description among others (Shimp, 2008). Because of the increasing competition as well as the varying marketing conditions, presently packaging is regarded as extension and a technique for classifying and distinguishing products that increase customer loyalty and increase volume of sales. An aspect that the marketing vice president of Clipboard Tablet Company did not execute. In many instances, packaging increases easy use of a product. Additionally, packaging enhances customer safety when handling products. At procurement centers, packaging presents a product with a higher marketing opportunity. Many potential customers are more likely to distinguish packaging compared to advertising initiatives. As such, many firms are attempting to create wide-ranging packaging patterns, hence develop a greater impact on customers. Because customers buy impulsively from shopping malls, packaging is specifically important for such kinds of products.
Managing Product Lines for Customer Appeal and Profit Performance
Based on the size of the product stripe, be it short or long, is largely anchored on the point of market segmentation and how the organisation intents to align itself. It is also dependant on the stage of product-market development. At the initial phases, a short product line is appropriate; this is owing to the complexities of managing a long line. Additionally, it is lucrative because of the economies of scale and abridges a given company inventories and associates. Even though, a short product line is risk owing to competition that divides the market and manufacture quality merchandise to satisfy the conditions of these divisions. Consequently, for short merchandise line to blossom and stay alive they should typically position themselves against their business competitors- this is to say, the company should maintain disparity benefits of the product line. At the present, companies are pursuing product extension methods (Kabalarian 2011). This is partly because they aim to expand, diminish competition, meet the expectations of clients and enhance strong management of shelf space, hence making it complex for business competitors to grow its line. The challenge however, is that as the product line becomes bigger, it also becomes complex to position unique products to avoid cannibalization that lessens the scale effect realized by older items, hence heavily impact performance of the line.
References
London (2012) A sponsorship game, 2012. Available from: <http:www.clarkstonconsulting.com/insight…> (accessed 14th January, 2014)
Kabalarian Philosophy. (2011) Choosing a successful business name. Available from: <http://www.kabalarians.com/../kalex-intro.cfm> (accessed 14th January, 2014)
Siddiqui, H. (2011) McDonald’s Marketing Strategy of Innovation and Trendsetting. Available from: <hammadsiddiquiblog.com/follow-mcdon…> (accessed 14th January, 2014
Shimp, T.A. (2008). Advertising, promotion, and other aspects of integrated marketing communications. Connecticut: Cengage Learning.
Assignment Module 2 – SLP
R&D is important in the development of products, functionality, upgrading, quality and usability guarantees that client demands and competitive in the changing market. In addition, R&D is important for survival and responsible for continuous competitiveness. With respect to this recognition, it would be important for Clipboard Tablet Company to adequately invest in R&D.
Product prices
In 2012, product prices were increased to cover operation expenses. During this phase, retail prices are usually maintained so as to strengthen client base. In 2012 and 2013, the business was not good in terms of profitability, however in early 2014 the investments are likely to raise. Moreover, in 2013 the number of clients increased and retail prices would considerably increase.
Discontinuation of products
The choice to discontinue production of X7 product was centered on assumption that it was causing monetary losses for the company. For instance in 2011, the company used about USD 22 million. Consequently, this product at this period could not be terminated because it symbolizes the main company’s product with the ability to concurrently fulfill the terms for price accessibility and performance conditions. This implies that X7 product is Clipboard’s Tablet Company device suitable to create an effective account between cost as well as quality. In many instances, the account is searched by millions of buyers.
Furthermore, in early 2012, X7 product was able to develop this account at a theoretical stage, with practical results of the X7 in the market being unsuccessful and comprising the basis of termination. Nonetheless, with more allocation in R&D, Clipboard should be in position to enhance X7 tablet to increase its quality as well as the number of buyers.
| Year by Year Decisions: Costing & R & D allotments | ||||||
| Item | Resolution | 2011 | 2012 | 2013 | 2014 | 2015 |
| X5 | Cost | $ 273 | $ 273 | $ 260 | $ 260 | $ – |
| R&D % | 33% | 33% | 25% | 25% | 0% | |
| Discontinue? | NO | NO | NO | NO | YES | |
| X6 | Price | $ 420 | $ 420 | $ 420 | $ 415 | $ 415 |
| R&D % | 34% | 40% | 35% | 25% | 25% | |
| Discontinue? | NO | NO | NO | NO | NO | |
| X7 | Price | $ 195 | $ 195 | $ 195 | $ 185 | $ 185 |
| R&D % | 33% | 27% | 40% | 50% | 75% | |
| Discontinue? | NO | NO | NO | NO | NO | |
| Year by Year Advisor Summary | |
| 2011 | Clients’ pay higher for x6 products compared to X5 and X7 products |
| In the product development of Clipboard company the sales of X6 is in the growth stages. This was possibly because many clients had not acquired the product. | |
| Performance of X5 competed positively with other products. | |
| 2012 |
X7 products were higher than other competing products. |
| X5 product reached shakeout stage as the volume of sales was decreasing.
|
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| The performance of X7 performance was way below X5 and X6 products.
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| 2013 | Clients paid same price for the company’s products just like other competing goods. |
| X6 product reached shakeout stage because volume of sales from new clients was decreasing. | |
| Clients paid same price for the company’s products just like other competing goods | |
| 2014 | Clients paid same price for the company’s products just like other competing goods. |
| X7 product is in the development phase. There are several potential clients for the product. | |
| The performance of X5 is similar to other products. | |
| 2015 | Clients will pay same price for the company’s products just like other competing goods. |
| The volume of sales for X5 will be mature. As a result, the company will be selling replacements for X5. | |
| Clients will pay same price for the company’s products just like other competing goods. | |
Inconsistency in how Information flows
Information management is a significant issue across any corporate structure and Clipboard Tablet Company should consider putting in place a systems that ensure the efficacy of information management. This would help innovative ideas flow down with easy and for the benefit of the organization. In the age of technological advances, Clipboard Tablet Company should progressively build on the internet and intranet infrastructures to ensure that information trickles down hitch free. According to research when workers understand the vision of the company, they tend to work passionately towards the realization of the same, especially when they are seen to be dream carriers or part of the bigger company. Clipboard Tablet Company should perfect the art of relaying the strategy perfectly to their workers, with respect where the companies see themselves relative to the markets they want to be in. Additionally Clipboard Tablet Company should set out the culture that enables attaining such goals. Human resource at Clipboard Tablet Company should always be at the core of the honing tactic, because their reactions tell widely about how their approaches affect the market. This is to say, managers should acquire reports from their worker’s gathered reaction to the worker involvement review, and is anticipated to work with their team to highlight the outcomes.
Clipboard Tablet Company should operate a system for gathering information from workers and implementing proposals. They should also support a daily jumble where workers communicate face to face with managers and the senior administrators. This will ensure enhanced output as workers feel motivated under the guise of them being typical assets of the company. Clipboard Tablet Company should also have several communication platforms that are critical in acquiring worker response, and also ensuring that clients’ responses are passed on to workers. This approach of relaying information across the corporate structure is geared toward enhancing performance among workers and also informed decision makings processes for purposes of innovation and creativity. However, with the economic crunch that has pitched camp on corporate entities, around the globe, resources to most organizations have been strained; this makes it composite for firms to attain futuristic aims hence stifling competition. This is so because worker engagement is about unlocking the potential of employees. Much as Clipboard Tablet Company will try hard to put in place conditions that augment workers to work proficiently.
Poor Corporate Structure
The organizational structure is one of the key areas that determine the success of an industry in meeting its goals and thus determining the goals of an organization, but this is not the case with Clipboard Tablet Company. This is to say, the firm’s structure should determine the communication process, the policy formulation, culture and thus the entire operation process in an organization. Innovation as a process is thus dependent to a large degree on the organizational structure in its operational environment (Griffin & Pusrtay, 2004). The structure of the organization needs to be one that is invention friendly, in the case the approach to management is a hierarchical approach where the organization is headed by a CEO and that various departments should have various technicians and a number of specialists depending on the main role of the department role. Under this structure all communication to and from the departments should not go through a given department. This is as a result of the inherent nature of the innovation that requires one to keep in touch with the current development in related fields. Therefore, in this case the success of the innovation process can be attribute to a good organizational culture as the interface between those responsible for the formulation of the policies and those that carryout the policies is very good. The structure adopted should be one that places more emphasis on the implementation and smooth coordination of the entire process. An organization structure that supports the inclusion of marketing and invention is very important for in the case of Clipboard Tablet Company as an opportunity to combine science, invention, commercialization and marketing as a way of changing peoples lives. Integration of various fields in innovation determines to a great extent the success of an organization and therefore organizational structure must complement integration.
Innovation is best achieved through good coordination and the implementation of a good organizational structure ensures exactly that. In the case, whenever one had a problem they would bring it to the resident experts who would cook up a number of promising batch products based on their experience an intuition. The results would be a working model or one that would work with some little modification. The case therefore shows clear coordination within the departments, teams are implemented as a group of researchers are well coordinated. Therefore, coordination at team and organizational levels is important to the innovation process and therefore the organizational structure should be one that allows good coordination between all entities in the innovation process.
Skill and education are two interdependent aspects in invention (Balett & Ghoshal, 2009). Clipboard Tablet Company success should be pegged on the organizational structure that is based on highly skilled and experienced employees. Many of the Clipboard Tablet Company intellectual capital should pride themselves in years of experience; the departments are headed by vastly experienced and widely knowledgeable people. The structure implements a mechanism where the inexperienced work directly with the inexperienced so that skills can be acquired by both (Friedman, 1999). Therefore, as organizations seek innovation they should seek potential, skill and experience and create a structure that is suitable for the interaction of the various aspects.
Clipboard Table Company has failed to support both the firm level and the interconnection approach in order to reap from both while reduces associated with them. The organizational culture should promote interdependence while still maintaining individual autonomy; invention as a process is very complex and any small changes or error that are common in group initiatives could lead to diversions, on the other hand the wealth of creativity associated with groups if well used could lead to a more successful innovation process (Daniels & Sulivan, 2001).
References
Balett& Goshal (2009) Exam Prep for Transnational Management. 4th Ed. Paperback
Daniels, C.W. & Sulivan, K.W (2001). Globalisation and Business. NJ: Prentice Hall.
Evans, K. & Barsox, J. (2002). The Global Challenge: Framework for IHRM, Boston, McGraw- Hill.
Friedman, E & Simon Johnson & Peter Boone & Alasdair Breach, 1999. “Corporate Governance in the Asian Financial Crisis,” Rutgers University, Department of Economics.
Griffin, K. M. & Pusrtay, M.B. (2004). International Business: A Managerial Perspective, NJ, Pearson Prentice Hall.
Module 3
Market Segmentation
Clipboard Tablet Company should focus on past customers to whom they had built confidence and also new customers. This will be done easily since there is no competition still from other manufacturers, and there are other opportunities. Moreover, the new technology used to produce and the acceptable state of trade rules and regulations, Clipboard Tablet Company should be able to differentiate their products during design processes. Studies indicate that customers have the ability to go for the services offered using these products; therefore the company expects to sell a lot and make maximum profit. All these are due to the customer confidence in the company’s products that when used, reveal only quality and satisfaction (Lyndon 2008). For Clipboard Tablet Company to be able to reach the big number of customers, it has to make advertisements apart from the distributors they already have. The differentiation strategy is best suited for marketing and would be a very appropriate strategy for Clipboard Tablet Company to maximize on profit. Since the products are new and have brand names that are suggestive of the quality of service outcome when they are used, the products have an advantage in the market and can be easily advertised and quickly known to customers. A suggestive combination brand name, and individual product brand names and the good qualities should be part of Clipboard Tablet Company marketing strategy. Clipboard Tablet Company products are nicely packed and this is an aspect that attracts customers. The manual indicating the procedures of products should also accompany the package box (Larry Lockshin, 2011). Although Clipboard Tablet Company has intentions of getting control over other markets, it should therefore consider the price suitable for conquering the market. The company should consider the low income earning group and accept different payment methods so that they can also get to use the products and appreciate the products’ quality. In some case, Clipboard Tablet Company should use this strategy in the development of their products.
Adoption of Modern Technology in Product Design
To remain effective and make huge sales, maximize on profits and meet clientele needs, Clipboard Tablet Company should use modern technology in terms of Enterprise Management Systems. It should take the advantage of the new qualities to implement strategies of making sales. Clipboard Tablet Company should also make sales through decentralized retail stores that act as one-stop centers housing various products.
Even though Clipboard Tablet Company experience problems making sales due to high costs of the new combination of materials used, the brand name chosen for the each product gives an advantage of marketing since it gives an idea of what features each product has and will attract the attention of customers. The combined name of these products gives an idea to the customers of what quality the products are and for what reason are they out in the market (Fisher, 2012).
There is confidence in this strategy of selling the company’s products since the targeted customers are people who accept the changing world and embrace new products. Because business world is highly competitive, Clipboard Tablet Company should embrace new technology in product design such as nanotechnology in manufacturing products; this gives firms a competitive edge. The competitors can have an advantage of the low income group of customers but organizations have ensured their products are well designed to ensure quality as well as uniqueness. Because of globalization, firms enjoy a proportionate market share so there is need for a tough sales strategy like differentiation. This is important because it gives a basis for different firms to sells quality products and customer confidence (Fisher, 2012).
Merger and acquisition
The words merger and acquisition are applied time and again, with the choice for the phrase merger since it is a less competitive phrase and indicates approval. Nonetheless, there are lawful, economical and visible. According to Burns, (2011) a merger can be described as the integration of two companies where investors involved with respect to each company agree to combine their value investment to constitute one new organization. Contract between investors includes the invoice of stocks in the merged organization in surrogate for stocks in the defunct firms at some reasonably quantified rates. According to Sherman, (2011), merger can be defined as scenario where two or more organizations abandon their independence, whereas an acquisition is a scenario where one company forms an existing corporation. Daude & Fratzscher’ (2012) asserts that a merger implies that two organizations collapse into one to become a single organization. The underlying principle beneath a probable merger can be substantiated by the following equation.
In this respect, Clipboard Tablet Company should merge with other companies in the same industry to enhance their capital base, concentrate on core activities and maximize on profits. Three levels of mergers and acquisitions exist namely; horizontal merger, in which two analogous companies collapse into one, vertical mergers when two companies at different levels in the supply chain collapse into one entity and diversification in which two firms that hardly share nothing in common integrate.
An essentially underlying factor that involves formulating a merger or acquisition procedure is that of complete advantages. Synergistic advantages are designed when there is a combination of players that will make a higher value jointly than could otherwise have been probable evaluating the companies operating independently. Moreover, it is essential before coming into such a procedure to do some research before engaging in a full scale merger and acquisition. Sherman,(2011), explain this review as a process where firms on a merger’s/acquisition’s both aspects try to discover out if a possible procedure actually is befitting and can give rise to achievements. These objectives concentrate on taking abilities or sources in one company and using them in the other company to form scale; financial systems of scale into a competitive device. The second variety of goals and objectives indicates that Mergers & Acquisitions are a key procedure, by which supervisors cope with critical and continuing interdependencies with companies in their environment. Examples within this group of objectives can be discovered in continuous interdependencies between a merging company and its goals, a need for application of the other firm’s managerial prudence, availability of cooperation or perpendicular merger that reacts to continuous supply dependencies. The third group with objectives indicates that Mergers and Acquisitions are enhanced by supervisors who are sired to enhance their current product and market positions. Objectives within this group highlight the significance of improving a company’s market operations, supervisors are using Mergers and Acquisitions to advance their competence to serve clients within a given market and enhance the distributional competencies for available items (Carney, 2011).
The forth group of objectives recognized in the research Walter and Barney (1990) performed indicates that Mergers and Acquisitions present a way for supervisors to formulate a new business entity. Objectives in this cluster factor in for example that the revenue stream mobilized through a purchase is employed to obtain useful or possibly useful sources. Supposedly, these properties could be captured within an acquiring company’s present business or within another company. In this group there is also an objective that highly indicates that these firms are inspired go beyond their present markets and items in merger and acquisition processes.
The last group in the research indicates that Mergers and Acquisitions are a method in which organizations optimize and make use of a company’s fiscal abilities. If the cooperation can generate improved economical performance there is an inspiration to do so. In addition, the process of productivity, particularly with regards to the development of economies of scale, whether it is a merger or an acquisition, are some aspects giving rewards for pursuing such techniques.
References
Burns, M. R. (2011). ’Predatory pricing and acquisitions costs of competitors’, Journal of Political Economy, 94, 266-296.
Carney, William J. (2011). Mergers and Acquisitions: Cases and Materials. 3rd. New York, NY Foundation Press Thomson/West, 2011
Chin-Feng Lin, (2002). “Segmenting customer brand preference: demographic or psychographic”, Journal of Product & Brand Management, Vol. 11 Iss: 4, pp.249 – 268.
Daude, Christian & Fratzscher, Marcel. (2012). “Cross-Border Mergers and acquisitions: Financial and institutional forces,” . Working Paper Series 1018.
Fisher, Thomas (2012). “Design’s Invisible Century.” Places/Design Observer, April 23. Web.
Larry Lockshin, Eli Cohen, (2011). “Using product and retail choice attributes for cross-national segmentation”, European Journal of Marketing, Vol. 45 Iss: 7/8, pp.1236 – 1252
Lyndon Simkin, (2008). “Achieving market segmentation from B2B sectorisation”, Journal of Business & Industrial Marketing, Vol. 23 Iss: 7, pp.464 – 474
Sherman, A. J. (2012). Merger and acquisition from A to Z 2nd edition Kindle Edition.
Walter, G.A. & Barney, J. B. (1990). Management objectives in merger and acquisition. Strategic management journal, Volume 11, Issue 1, 79-86. John Wiley & Sons, Ltd.
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