Facts of the Case
Profitel Inc. is a publicly traded enterprise in the telephone business. It spent many years in the market with minimal competition and currently controls majority of the telephone copper wiring across the country. The company began to have increased pressure and competition in the cellular telephone business as new technologies are emerging in the industry. Since Profitel’s dominance in the market was being threatened, the company decided to search for a new chief executive; someone who is not currently in the organization, more like an “outsider”.
The board of directors decided on Lars Peeters, a man who had been CEO of a European company for six years, as well as briefly being a CEO for a cellular company in the United States. Peeters brought extensive knowledge, leadership skills, and an impressive strategy to increase Profitel’s profit margins. Some key parts of Peeters strategy involved: investing in a wireless broadband company; trying to reduce costs by laying employees off and last, putting pressure on the government in attempt to make them deregulate businesses.
Although it seemed like a perfect plan, it did not play out as Profitel had hoped for. They implemented the cutbacks as well as the new technology but the end result was not positive. Costs increased by five percent due to downsizing, the new technology brought in many customers but the customer satisfaction fell; Profitel was being labelled as offering the country’s worst broadband value; the company also did not do enough research on the other possible alternative technologies available before making their decision to invest in the company they chose. Employee morale decreased due to the workforce cutbacks along with the company’s public im...
... middle of paper ...
...t adopts the same strategy. Every organization functions differently and requires different outcomes from the strategies they implement. One company may want to increase their profit margin, while another may want to expand internationally. Both companies require different strategic approaches and they need to be flexible to achieve the end goal.
We also learned that when a company is making such a large decision like hiring a new CEO, they need to not just look at their experience, but also their leadership style. This person is going to be the one who your employees have to trust and listen too; you have to make sure the new hire is leading your employees in a direction that positively impacts the organization and their experience when they come to work.
References
McShane, S. & Steen, S. (2012). Canadian organizational behavior. Toronto: McGraw-Hill Ryerson.
The weaknesses of Verizon are often directly related to its strengths in some ways. For example, if we could summarize the strengths of Verizon in two words we w...
Wednesday, September 20, 1995, AT&T Chairman and Chief Executive Officer Robert E. Allen announced plans for a strategic restructuring that would separate AT&T into three publicly traded global companies. Robert E. Allen said, "The company was taking this bold step to capitalize on the opportunities in each business' segment of the global information industry -- communications services, communications equipment, and transaction-intensive computing." Under the plan, a fourth business -- AT&T Capital Corporation -- would be sold, and AT&T shareowners would hold shares in each of the three remaining companies. "Changes in customer needs, technology and public policy are radically transforming our industry," said Robert E. Allen. "We now see this restructuring as the next logical turn in AT&T's journey since divestiture. It will make AT&T's businesses more valuable to our shareowners, even more responsively to their customers, and better able to focus on the growth opportunities in their individual markets."
The world is experiencing a communications revolution. The Internet, e-Commerce and other developments (including the convergence of communication technologies) are profoundly reshaping economic and social life. AT&T must position itself to meet the challenge of this revolution. The strategic development of information-based industries is a key to the future social and economic development of the world.
“Since joining TELUS in 2000, Darren has led the company to deliver the highest total shareholder returns amongst global telecoms.” Stress distinguishing feature, form dimensions, attention to guarantee the shareholders’ profit are the paving stones for sustainable development. Also, Darren is a strong proponent of the Privacy By Design approach and the need to increase educarion about privacy and security issues within the context of our digital environment. He has been comparatively successful in maintaining customers’ privacy while they are using the TELUS sevice. Both indicate that fulfill the demander is the trump to let him be the longest-serving CEO amongst global incumbent telecom
• Strategic management is fluid and complex. Change creates original combinations of conditions requiring shapeless non-repetitive responses.
He believes that leaders and managers should be flexible with their strategies (McKeown, 2012). The author states that it is not always the best option to copy the competitor and his strategy. What is good for one business might not always be good for the other even if they are producing identical products. Lastly, the strategies can be changed. If a business person believes that a strategy constructed ten years ago is not conducive anymore then, it can be altered or completely changed according to where the business stands in the present.
Firstly, the report will introduce the company and give an outline of the current operations, with focus on their current position in the market, and discuss the main competition faced in a global market. Secondly, focus will lie on the external forces and their influences on the company’s operations, along with discussing the strategic opportunities in order to overcome any facing competition. Finally, the report will include recommendations for the future of Vodafone and how they can become a market leader.
Orman, N. (2001). Cisco move: Risky business. Silicon Valley/San Jose Business Journal, 19(18), 13. Retrieved from http://ezproxy.snhu.edu/login?url=http://search.proquest.com/docview/217033005?accountid=3783
The General Electric Company (GE) is organized with its chief executive officer, shareowner, and board of directors on the top of the pyramid, followed by their executive leaders and corporate staff. GE’s Board of Directors ensures the company serves the interests of shareowners and other key stakeholders with the highest standards of integrity and compliance. Serving equally as tough critics and wise counselors, they provide in-depth oversight of the major strategic issues of the company (General Electric Company, 2012). The authority officially vested in the board of directors is assigned to a chief executive officer (CEO), who occupies the top of the organizational pyramid (Bateman & Snell, 2011). There chai...
In a competitive environment where market is changing instantly, organizations are in a fix to design a strategy that could market their products enticing the consumers to buy their products and services. Market is the arena for business gladiators who fight out for maximum share and profitability and this is possible only through effective marketing strategy. Competing in present economy means finding ways to break out of commodity status to meet customers’ needs better than competing firms (Ferrell and Hartline, 2010). The intensity of competition has increased after the introduction of media and internet where the companies present their product in the best way through advertisements, product reviews, blog entries, etc. With the advancement in technological innovations, companies have found various ways of providing services to the consumers in a cheaper and effective way and this has resulted in communication revolution in late 1990’s as the cellular technology was unfold in most of the regions. Singtel Optus Pty Limited (Optus) is one such company that has evolved during this period as a leader in integrated communications and this paper is assumed to make an analysis of the company’s marketing strategy and its financial position in the market industry.
According to Josh Bersin, it isn’t the leader but the leadership strategy that makes the difference (2012). In his article, “It’s not the CEO, it’s the leadership strategy that matters, Bersin offered why several newly hired CEOs for organizations like Apple have managed to “pull it off” (2012, p.1). In other words, be successful after replacing the previous CEO. Moreover, after conducting extensive research on companies and their correlated business performance, Bersin identified several best practices which include “high-performing organizations directly link leadership strategy to business strategy” and “high-performers develop leaders at all levels” (2012,
Covering sixty-three nations, the vital union will see Vodafone Global Enterprise supply about 50,000 Unilever workers with gadgets, network and Managed Mobile Services, which will enhance the conventional path and direction of Unilever's portable interchanges spend, upgrading cost efficiency and effectiveness in relation to the delivering of products and services. Vodafone Global Enterprise deals with the correspondence demands and needs of its clients in relation to the agreement, Vodafone will likewise supply services to Unilever with important information on the most proficient method to increase more prominent upper hand through conveying inventive versatile arrangements. Likewise, Vodafone will give key guidance on new patterns, for example, the successful administration of purchaser gadgets and applications in the working environment. Vodafone and Unilever will work a graduate learner trade project to empower further versatile development in the work environment. To rearrange the administration of Unilever's versatile interchanges, Vodafone will send a variety of arrangements including Vodafone Telecoms Management, a completely facilitated and oversaw administration intended to eliminate various operational issues. Supported by Vodafone's worldwide backing and administration level understandings, Vodafone Telecoms Management will give Unilever more prominent perceivability and administration control over its telecoms consumption, and additionally enhance the nature of administration conveyed to representatives. (Technology Marketing Corporation,
Both Porter and Miles and Snow’s strategy typologies are based on the concept of strategic equifinality, or the ability for firms to be successful via differing managerial strategies (Hambrick, 2003, p. 116). Porter 's strategy is more generic while Miles and Snow’s is more specific in nature. Porter’s generic strategy typology is based on economic factors centering on the source of a firm’s competitive advantage and the scope of a firm’s target market (González-Benito & Suárez-González, 2010). Porter’s typology emphasizes a firm’s cost, product differentiation or non-differentiation and market focus. When utilizing Porter’s strategy typology, a firm must first decide to target its products toward the mass market versus a market niche or focus. Secondly, a firm will determine if it wishes to minimize costs or differentiate its products with differentiation meaning that firms will most likely forego lower costs (Parnell, 2014, p. 184). This can lead a firm to develop a myriad of strategies between these options. Strategies which may have or not have focus, may or not be differentiated, may or not be low cost or any combination of strategies. In contrast to Porter, Miles and Snow’s typology is more specific in nature.
Hamel introduces the topic of revolutionary strategy by explaining the differences between contemporary strategy and revolutionary strategy. Contemporary strategy in his opinion coincides with the “Age of Progress”. The Age of Progress tries to improve current processes and production techniques and attempts to squeeze every last penny from the same strategy that has always been used at a given company. In Hamel’s opinion, this will not work in his “Age of Revolution”. The revolutionary strategy will try to turn an industry upside down. He pounds home his point by illustrating the differences between companies that still try to improve and companies that revolutionize an industry, by stating the differences in the new wealth that revolutionaries create for their stockholders. At first, I felt that he would only be describing internet companies, but he pointed out examples such as Midwest Airlines , who has a higher income percent than the rest of the industry. He talked about companies such as the Body Shop, Virgin-Direct, Dell, Sony and IBM. Hamel shows how even stodgy companies (IBM and Sony) can become revolutionaries.
Orman, N. (2001). Cisco move: Risky business. Silicon Valley/San Jose Business Journal, 19(18), 13. Retrieved from http://ezproxy.snhu.edu/login?url=http://search.proquest.com/docview/217033005?accountid=3783