Organizational Strategy Essays - Management, Strategic Management

Organizational Strategy Essays - Management, Strategic Management Organizational Strategy The organization that has been selected for the process alignment exercise is Lego A/S which is a Denmark Based organization. It was founded in 1932 and is basically known for its Lego brand of toys. This company had been chosen because of its continual improvement in its offerings. It has done innovations not only in its products but also its business model, process and means of communication. Lego has tried to gain competitive advantage by means of adopting innovation as one of its strategy (LEGO, 2009) Key Success Factors 1.Current Strategy The company (LEGO) follows the strategy of focused differentiation. This again comes from the fact that the product offering of the industry player are very unique and the market segment is very narrow as it caters mainly to the children, their parents and teachers on some occasion only. Thus the price of the product offered is on the higher side with a higher perceived value. Forces influencing the strategy in LEGO The EnvironmentStakeholder Influence and CompetenciesResources/Capabilities External Regulatory BodiesInnovation that is sustainable Cant be imitated CompetitorsConsumersCustomized product with differentiation InternalEmployeeempowering them and cost cutting The Toy and games business follows the strategy of focused differentiation. This again comes from the fact that the product offering of the industry player are very unique and the market segment is very narrow as it caters mainly to the children, their parents and teachers on some occasion only. Thus the price of the product offered is on the higher side with a higher perceived value. Resources and competencies Resources and the competencies that are required to support the competitive strategy of focused differentiation: In the focused strategy the main emphasis is on a narrow segment wherein advantage cost and differentiation (product/offering) becomes the key. Commitment The company will have a narrow segment thereby having a lower volume and thereby less bargaining power with the suppliers. The company pursues a focused differentiation strategy because of which it will be able to pass on the higher cost to the customers as its product offering will be only of its kind in the market. One of the important characteristic that the company need to showcase is the wide product offering. The company should also be in the lookout to carve in and identify the sub segment in the market. The company should also be in the lookout for customer insights and needs such that the company is able to offer the customized products to its customer. The Supply chain strategy as is followed by Lego provides it with the competitive advantage. Lego believes getting the supply chain right was essential to meeting other business challenges. Getting the right product to the right place at the right time at the right cost was an important early step in grappling with an array of strategic challenges Core competencies The company should be able to offer a variety of unique products at a competitive price. Thus the focus here should be on the uniqueness of the product. The product can be a customized product that is being offered by the company Strategy and KSFs This is the first step in the process requires doing a 7 S assessment of the organization LEGO as it currently exists along either 7 Ss or those Ss that are relevant given your units size and scope. It is very useful to have your assessment of the current state validated by other members of your team to ensure that your analysis is correct. They may have experience or insights that you do not have. Strategy: Strategy is the plan of action an organization prepares in response to, or anticipation of, changes in its external environment. The strategy deals with mainly three important questions LEGO (Current Strategy) The company (LEGO) follows the strategy of focused differentiation. This again comes from the fact that the product offering of the industry player are very unique and the market segment is very narrow as it caters mainly to the children, their parents and teachers on some occasion only. Thus the price of the product offered is on the higher side with a higher perceived value. LEGO (Future Strategies) The major scenarios those are possible in future for LEGO are as follows: Organic and Green Toys-As the new laws for the safety are been developed the Topy makers would be forced