A Strategy To Align Organization And Environment Essay Example for Free

A Strategy To Align Organization And Environment Essay This paper analyzes the term ‘strategic fit’ exactly means, types of strategic fit, necessities to focus on strategic fit, and most importantly how well an organization can align its resources capabilities with the opportunities that exist in the external environment so as to achieve peak performance in the business. Strategy of Nestle as an example to discuss how far it is true that effective strategic fit ensures organization’s resources capabilities and what the environment exactly needs from it. Key Words Strategic, Fit, Strategy, Resource, Capabilities, Opportunities, Environment, Business Introduction It should be recognized that any strategy or management style is appropriate only in a particular set of circumstances. Strategic fit enables an organization to operate in its particular competitive situation at peak effectiveness. It expresses the degree to which an organization is matching its resources and capabilities with the opportunities in the external environment. The matching takes place through strategy and it is therefore vital that the company have the actual resources and capabilities to execute and support the strategy. Meaning of Strategic Fit The contingency theorist’s argument that performance outcomes are maximized when a firm achieves an alignment or â€Å"fit† between a firm’s external environment, its internal factors and its strategy has been well established in the literature (Burns Stalker 1967; Lawrence Lorsch 1967; Keats Hitt, 1988). Nadler and Tushman (1979) theorized that the greater the total degree of congruence or fit between the various components, the more effective will be the organization, leading to higher levels of goal attainment, utilization of resources, and adaptation. Need for Strategic Fit Strategic fit is a quest to align the organization’s operation with the needs of the market. It also involves identification of the opportunities and the action to capitalize on the opportunities. Strategic fit can be used actively to evaluate the current strategic situation of a company as well as opportunities such as MA and divestitures of organizational divisions. Strategic fit is related to the Resource-based view of the firm which suggests that the key to profitability is not only through positioning and industry selection but rather through an internal focus which seeks to utilize the unique characteristics of the company’s portfolio of resources and capabilities. Resources s Capabilities A unique combination of resources and capabilities can eventually be developed into a competitive advantage which the company can profit from. However, it is important to differentiate between resources and capabilities. Resources relate to the inputs to production owned by the company, whereas capabilities describe the accumulation of learning the company possesses. Types of Resources Resources can be classified as tangible resources and intangible resources. Tangible Resources The term tangible means capable of being touched, real or actual, rather than imaginary or visionary, definite; not vague or elusive, having actual physical existence, as real estate or chattels, and therefore capable of being assigned a value in monetary terms. Financial (Cash, securities) †¢ Physical (Location, plant, machinery) are some of the tangible resources Intangible Resources Resources that are not physical in nature are said to be Intangible resources. Corporate intellectual property (items such as patents, trademarks, copyrights, business methodologies), goodwill and brand recognition are all common intangible resources in business point of view. An intangible resource can be classified as either indefinite o r definite depending on the specifics of that resource. A company brand name is considered to be an indefinite resource, as it stays with the company as long as the company continues operations. However, if a company enters a legal agreement to operate under another companys patent, with no plans of extending the agreement, it would have a limited life and would be classified as a definite resource. †¢ Technology (Patents, copyrights) †¢ Human resources †¢ Reputation (Brands) †¢ Culture, are some of the intangible resources. Capabilities Capabilities are what a firm does, and represents the firm’s capacity to deploy resources that have been purposely integrated to achieve the desired end state. Capabilities become important when they are combined in unique combinations which create core competencies which have strategic value and can lead to competitive advantage. Capabilities needed for strategic fit are 1. Coordination 2. Commitment 3. Competence (technology, management and leadership) 4. Communication 5. Creativity 6. Capacity management (allocation of resources) Benefits of Strategic Fit The extent to which the activities of a single organization or of organizations working in partnership complement each other in such a way as to contribute to competitive advantage. The benefits of good strategic fit include cost reduction, due to economies of scale, and the transfer of knowledge and skills (technological expertise, managerial know how), use of common brand name. The success of a merger, joint venture, or strategic alliance may be affected by the degree of strategic fit between the organizations involved. Similarly, the strategic fit of one organization with another is often a factor in decisions about acquisitions, mergers, diversification, or divestment. Types of Strategic Fit 1. Market related fit 2. Operating fit 3. Management fit Market Related Fit Market related fit arises when value chains of different businesses overlap so that the products can be used by same customers, marketed and promoted in similar ways, distributed through common dealers and retailers.

Sir Gawain and the Green Knight Essay -- Sir Gawain Green Knight Essay

Sir Gawain and the Green Knight In this passage taken from Sir Gawain and the Green Knight Lines 1623-1718, the reader sees how Sir Gawain is the hero of the poem, through the tests of the host. Sir Gawain is speaking to the host of the castle where he is staying for a few days before journeying on to the Green Chapel. The host has just returned from hunting and killing some boar. While the host is out hunting for the boar, we learn that Sir Gawain is developing a love interest in a special lady friend, the wife of the host, who makes several attempts to seduce him. Before this hunt, Gawain and the host make a promise to each other that they will exchange whatever they may win that day for the other's winnings. The host gives Sir Gawain the boar in exchange for two kisses. Then the host says to Sir Gawain "Now we are even" (Norton, 236, line 1641.) There is a vivid description of the meal that follows, as well as the singing of Christmas songs. Then Gawain tells the host that he should be on his way to the Green Ch apel to face the Green Knight. The host comments on the fact that he has tested Gawain twice and is quite impressed with his performance. The host then tells Gawain about the third test. In the test, the winner will take all, and the loser takes nothing. Gawain thinks this is all just a game and doesn't realize that it is actually a test. Sir Gawain later decides that he will stay, after learning from the host that the Green Chapel is not too far away from the castle. He has some more drinks with the host. After this, he goes to bed and gets the best night's rest, and is up early the next morning. That morning, the host hunts for some fox as Gawain lies in bed. The passage ends with a description of how the host an... ...n suffers a wound to his neck. But, that does not stop him. He points out to the Green Knight that he is not immortal as the Green Knight is. The wound in his neck shows this. Unlike the Green Knight, Sir Gawain cannot just put his head back on his head. This also shows that he is a hero. He is not a "superman" like the Green Knight appears to be. He can die, and he still risks his life in fighting the Green Knight. In conclusion, this passage taken from Sir Gawain and the Green Knight shows the reader how brave Sir Gawain really is. Here, the reader sees that Gawain is ready and able to face any challenge and obstacle that cross his path. Rather, he approaches these challenges and obstacles with the utmost bravery that a true hero can have. Works Cited: Abrams, M. H. The Norton Anthology of English Literature. New York: W.W. Norton & Company, Inc., 1993. Sir Gawain and the Green Knight Essay -- Sir Gawain Green Knight Essay Sir Gawain and the Green Knight In this passage taken from Sir Gawain and the Green Knight Lines 1623-1718, the reader sees how Sir Gawain is the hero of the poem, through the tests of the host. Sir Gawain is speaking to the host of the castle where he is staying for a few days before journeying on to the Green Chapel. The host has just returned from hunting and killing some boar. While the host is out hunting for the boar, we learn that Sir Gawain is developing a love interest in a special lady friend, the wife of the host, who makes several attempts to seduce him. Before this hunt, Gawain and the host make a promise to each other that they will exchange whatever they may win that day for the other's winnings. The host gives Sir Gawain the boar in exchange for two kisses. Then the host says to Sir Gawain "Now we are even" (Norton, 236, line 1641.) There is a vivid description of the meal that follows, as well as the singing of Christmas songs. Then Gawain tells the host that he should be on his way to the Green Ch apel to face the Green Knight. The host comments on the fact that he has tested Gawain twice and is quite impressed with his performance. The host then tells Gawain about the third test. In the test, the winner will take all, and the loser takes nothing. Gawain thinks this is all just a game and doesn't realize that it is actually a test. Sir Gawain later decides that he will stay, after learning from the host that the Green Chapel is not too far away from the castle. He has some more drinks with the host. After this, he goes to bed and gets the best night's rest, and is up early the next morning. That morning, the host hunts for some fox as Gawain lies in bed. The passage ends with a description of how the host an... ...n suffers a wound to his neck. But, that does not stop him. He points out to the Green Knight that he is not immortal as the Green Knight is. The wound in his neck shows this. Unlike the Green Knight, Sir Gawain cannot just put his head back on his head. This also shows that he is a hero. He is not a "superman" like the Green Knight appears to be. He can die, and he still risks his life in fighting the Green Knight. In conclusion, this passage taken from Sir Gawain and the Green Knight shows the reader how brave Sir Gawain really is. Here, the reader sees that Gawain is ready and able to face any challenge and obstacle that cross his path. Rather, he approaches these challenges and obstacles with the utmost bravery that a true hero can have. Works Cited: Abrams, M. H. The Norton Anthology of English Literature. New York: W.W. Norton & Company, Inc., 1993.

Precision Worldwide, Inc Havard Case Study

SUBJECT: Precision Worldwide, Inc. RECOMMENDATION: My recommendation for Precision Worldwide, Inc. (PWI) is to immediately stop the production of steel rings. PWI then needs to sell the remaining steel rings to at least recoup some of their initial investment. In the meantime they should start producing, selling, and distributing plastic rings to their entire market of customers while attracting new customers who may prefer this new option. CONCLUSION: By changing their production offering to the plastic rings, PWI will create more profit which in turn will keep them ahead of competitors in the industry. The remaining 15,100 steel rings will have to be calculated as a sunk cost. With this new product offering, PWI will be able to acquire new clientele across the globe and still be able to maintain the loyalty of their existing patrons. RESULTS: When PWI sells 100 plastic rings, they are expected to make $838. 25 more in profit than the sale of 100 steel rings. It costs $1107. 90 to produce one hundred steel rings. When that is compared to creating a hundred plastic rings, which only costs $279. 65, it becomes more evident why PWI should switch their product line. Plastic rings are also more durable than their steel counterparts and ultimately a better product overall. APPENDIX: The choice that Precision Worldwide, Inc. must make can essentially â€Å"make or break† them. Hans Thorborg, the General Manager, faces a predicament with how to deal with their existing and the in process inventory. He also has to come to a decision regarding the materials that have been obtained for inventory but PWI did not have the chance to actually process them before the change was made. Before Thorborg can make a decision, there are three main factors that need to be taken into consideration: the opportunity costs, the product substitution, and sunken costs. I would recommend that Precision Worldwide, Inc. immediately start producing the plastic rings that were created by Bodo Eisenbach and halt the production of the steel rings. The sale and distribution of the plastic rings should begin immediately after to all of their branches so that way PWI can start earning profits as quickly as possible. PWI currently has a specialized inventory because the steel rings that they produced were made from a unique type of steel. There would be sunk costs that would ultimately come from the failure of PWI to sell back the specialized steel because of the same features that make the steel unique would in the end be the reason that they are difficult to resell. There is over $390,000 in estimated costs of the specialized unprocessed steel and the already completed rings, as well as steel rings that were a work in process. By immediately stopping production of the steel rings PWI will lose quite a bit of money, but in the long run they will be able to bring in a larger profit and more clientele with the production of the plastic rings. To minimize the amount of that Precision Worldwide, Inc. stands to lose (close to $400,000); they can raise its opportunity cost by bringing to an end the work in process of the specialized steel rings. During the production phase of the new plastic rings, PWI can try to sell all of the remaining steel rings that they have in stock. By doing so, they will be able to decrease the amount of money that they stand to lose when switching product lines. The new profit margin is $828. 25 per hundred rings (Cost of the steel rings $1,107. 90 minus cost of the plastic rings $279. 65). PWI has the potential to earn $1070. 35 per one hundred plastic rings because they are going to be sold at the same price as the steel rings $1350. By completing a product substitution, PWI will help reduce the debt and hopefully increase the amount of sales by generating new customers and maintaining the trust and loyalty of their current clientele. Due to the profit margin being over $1000/100 rings sold, PWI will be able to completely wipe out their debt in a matter of a few months. Although there will be competitors selling other plastic rings, they will be few and far between. PWI will be one of the first companies to sell it therefore obtaining more of the market share and becoming a leader in this field. The fact that PWI is worldwide will prove to be an advantage in generating new clientele in new areas by being the first to have the merchandise in their regions. By creating new clientele, PWI will produce larger profits and hopefully due to the quality of their product offerings, trust and loyalty in the new clientele. Company shareholders will also have more trust in PWI for making a wise decision and eventually increasing the value of their shares. Fortunately for PWI that the profit margin is high enough to offset the quantities of plastic rings that are sold. Since they are stronger and more durable than the steel rings, less plastic rings will be purchased. One of the reasons that Precision Worldwide, Inc. eeds to take the risk in producing the plastic rings is because they can afford to halt production of the steel rings. After taking into consideration their opportunity costs it would be the wisest decision for GM Thorborg to proceed with the production of plastic rings and immediately halt the production of the steel ones. PWI not only stands to bring in larger profits in the long term, they will also open the eyes of consumers who w ill soon become their clientele due to a better product offering APPENDIX: Fixed Overhead: Item Plastic Rings Steel Rings Material$17. 65$321. 90 Direct labor$65. 50$196. 50 Direct o/h $52. 40$157. 20 Total$135. 55$675. 60 Item Plastic RingsSteel Rings Profit Made (per 100 sold) $1,070. 35$232. 10 Life of Ring 8 Months 2 Months Steel profit x4 (plastic lifespan) $928. 40 Profit Difference $141. 95($141. 95) Total Revenue: Item Plastic Rings:Steel Rings: Profit per 100$1,350. 00 $1,350. 00 Cost per 100 $279. 65 $1,107. 90 Total $1070. 35$232. 10

The Undeserved Discrimination and Exclusion of the Chinese...

Millions of immigrants over the previous centuries have shaped the United States of America into what it is today. America is known as a â€Å"melting pot†, a multicultural country that welcomes and is home to an array of every ethnic and cultural background imaginable. We are a place of opportunity, offering homes and jobs and new economic gains to anyone who should want it. However, America was not always such a â€Å"come one, come all† kind of country. The large numbers of immigrants that came during the nineteenth century angered many of the American natives and lead to them to blame the lack of jobs and low wages on the immigrants, especially the Asian communities. This resentment lead to the discrimination and legal exclusion of immigrants,†¦show more content†¦When an earthquake destroyed the area in 1906, natives thought that they would be able to reclaim the area and kick the immigrants out. To their surprise, the old, run-down Chinatown was rebuilt i n the exact same location but had an entirely different feel. The new Chinatown was bright, cheery, and characteristically oriental with â€Å"curved eaves, colorful street lanterns, recessed balconies, and gilded facades† (Bancroft). The new Chinatown brought to California exactly what it was intended to: more attraction, more people, and therefore more business. With filling the job spots that were difficult and grueling and then attracting tourism to California, the immigrants were now boosting our economy in more way than one. The Chinese immigrants also contributed to us a whole new culture of which we had not been familiar with before. They brought their religious beliefs, prompting a Chinese Temple to be built in 1863 in Oroville, which provided a place of worship for Taoism, Confucianism, and Buddhism (Bancroft). They also brought their traditions, like the celebrations that they’d have for certain holidays like the Lunar New Year. These celebrations entailed f estivals, parades, partying and all of the Chinese community coming together in the streets. Another one of the traditions they held dear to their culture was theatre, and so they continued these performances and even built their own Chinese theatre in 1852 (Bancroft). TheyShow MoreRelatedSummary Of The Chinese Inclusion Act Of 18821496 Words   |  6 PagesThe Chinese Exclusion Act of 1882 Summary The Chinese Exclusion Act of 1882 was a nativist act passed by people who were afraid of a Chinese dominated workforce and the resulting backlash. The white people thought of the Chinese as lesser people to themselves. This is inherently obvious based on published works that depict racist stereotypes of Chinese immigrants who conspire together to make sure that all jobs are held by the Chinese. Large amounts of white people were willing to act in a hostile