Strategic Management Tools

Moving to Blue Ocean Strategy – Shift from Red Ocean to Blue Ocean

In global market today, it can be supposed that there are two typical kinds of oceans: read oceans and blue oceans. Of two sorts of market, red oceans are defined as a known space for all existent industries nowadays. On the contrary, blue oceans are regarded as an unknown area for industries which do not exist.

As a result, red oceans present all existing rules related to business competition and industrial regulations. This market defines and determines the boundaries for all games and rules. In this market, companies strive to compete with their competitors and rivals in order to gain better benefit and dominate more market share of current demand.… Read the rest

Abey Francis

What are Dynamic Capabilities?

Concept of Dynamic Capabilities of a Firm

A dynamic capability refers to company’s ability to integrate, build and transform internal and external competencies. They can help an organization to achieve innovative forms of competitive advantage through integration, building and transformation of internal and external competencies, as to respond to changes in the environment. This management theory was defined by David Teece, Gary Pisano, and Amy Shuen in their 1997 paper Dynamic Capabilities and  Strategic Management. In the context of achieving organizational change, aligned to the external pressure: namely, these capabilities are perceived as business processes that use resources — specifically the processes of integration, restructuring, acquisition and release resources — to adapt or create market changes.… Read the rest

Abey Francis

Business Excellence Implementation in Organizations

For business to be successful, organizations need to realize that business excellence is a tool which helps them translate their plan into action and is a way of executing strategy. The best way to implement ‘business excellence’ practices in any organization is to balance the differential elements or variables of ‘business excellence’ models in such a way that development is strongly aligned to organizational imperatives.

The successful implementation of ‘business excellence’ practices requires focused leadership whose concern for improvement (excellence) or financial necessity outweighs their attachment to traditional norms. One of the major issues faced by organizations implementing business excellence or quality management practices is the change in the culture of organizations as ‘business excellence’ implementation process may need to change the current work practices.… Read the rest

Abey Francis

The Importance of Core Competencies in Strategy Formulation

Strategy allows an organisation to deliver its vision. To develop a deliberate strategy which could potentially increase the sustainability of an organisation clearly requires the identification of core competencies but often a single strategy is not the answer. Organisations require a headline strategy to fit a brief which resonates the vision but several strategies are required over many departments such as research and development, production and marketing to deliver the main strategy. The process of strategy development is complex and methodology depends on several factors including the availability of resources and the external environment. The first step in strategy development is the identification of core competencies then followed by the the process of leveraging resources so they can be exploited for maximum benefit.… Read the rest

Abey Francis

Managing Collaborative Relationships with Stakeholders in Organizations

Understanding the principles of effective collaboration with other organizations is important in an organization as the current stakeholders have an active interest, the interests could be financial, environmental or charitably within the organizations. Within an organization, building relationships with stakeholders can prove to help your business by using their expertise’s and knowledge. There can be both moral and business reasons to collaborate with stakeholders. By working with stakeholders that have current interests allows you to have a common ground and want the best outcomes for your organization, it allows you to create outcomes together, improve current systems and work on these together to create a better functioning organization.… Read the rest

Abey Francis

Competitive Intelligence (CI) – Definition, Need and Benefits

The growing competition in the business industry has made it necessary for any company to stay in competition or have a competitive advantage over its competitors, adequate and relevant information about the competitors need to be received or known at the right time in other to make a good strategic business decision.

Competitive intelligence is defined as a systematic process that transforms random bits and pieces of data into strategic knowledge. This information comprises about competitors, customers, technological, environmental, product and market in. other to make a good strategic decision. Competitive intelligence is described as those activities a company undertake in determining and understanding its industry as well as identifying and understanding the competitors, also determine and understand their weaknesses and strength and anticipate their next move(s).… Read the rest

Abey Francis