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The change objective for the Dollar Tree, Inc. is to ensure that all retail stores receive product and promotional materials in a timely manner. Product distribution is a main emphasis in the Dollar Tree’s operational processes. Management has decided to implement a change model system that creates interlinking communication and collaboration between departments.
The McKinsey 7S Framework Model (2014) provides seven internal essentials the Dollar Tree can use to align communication and collaborative practices. The first ‘S’ is for strategy. Strategy is how an organization defines their ability to assert and maintain a competitive advantage. For the Dollar Tree, the strategy is simple. By providing each and every product for only 1$, they ensure their competitive advantage by drawing in consumers who are overly concerned with spending less money instead of looking for the highest quality. However, if the consumer is unable to find hot ticket items that should be displayed on the end caps, then Dollar Tree runs the risk of losing profits or sales because individuals are unable to locate their desired product and would rather pay the extra bit if money then spend more time looking on the shelves.
The second, ‘S’ is structure. Structure is the “organization chart and accompanying baggage that shows who reports to whom and how both tasks are both divided and integrated” (Waterman, 1982). An accountability system is lacking within the organization’s structure. Somebody, somewhere, is not being held responsible for ensuring that the proper merchandise is on the right truck, heading to the right store. This could be a result of a few different scenarios. There could be a lack of reciprocity between the organizational pl...
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...e accountability throughout the entire organization.
Works Cited
Akin, G., Dunford, R., & Palmer, I. (2006). Managing Organizational Change: A Multiple Perspectives Approach, 1e. New York, NY: The McGraw-Hill Companies, Inc.
Singh, A. (2013, Fall). A Study of Role of McKinsey's 7S Framework in Achieving Organizational Excellence. Organization Development Journal, 31(3), 39-50.
Strategic Management Insight (2012). The McKinsey 7-S Framework Model. Retrieved from
http://www.strategicmanagementinsight.com/tools/mckinsey-7s-model-framework.html
The McKinsey 7S Framework. (2014). Retrieved from
http://www.mindtools.com/pages/article/newSTR_91.htm
Waterman, Robert H., Jr. (1982). The seven elements of strategic fit. Journal of Business
Strategy (Pre-1986), 2(000003), 69. Retrieved from http://search.proquest.com/docview/209887909?accountid=458
Per Kalogeropoulos (2016), the company is better able to ensure product availability while managing their costs because of their latest logistics initiative. They have recently created a network of deployment centers that reduces the time between when the product leaves a supplier to when it hits the shelf at the Home Depot store which drives profits higher. Parnell (2014), relays that companies who use low-cost strategy seek distribution channels that minimize cost. Home Depot’s new logistics initiative provides the company with economies of scale and a market advantage because it adds to their low-cost
Based on the Miles and Snow strategy typology, Dollar Tree would be categorized as a prospector and an analyzer. Dollar Tree initially started off as a prospector when it was created as an off-shoot of the retail chain K &K Toys (Parnell, 2014). Prospectors focus on intrapreneurship, which involves the creation of new business ventures within an existing organization (Parnell, 2014). When K & K Toys was divested in 1991, it was done so in order to focus their energies on developing the concept of the dollar store, which in turn gave them the first mover advantage for being first in that particular market (Parnell, 2014). Just as prospector companies places priority on new product and service development to meet the changing needs and
Target Corporation needs to increase product availability based on the customer needs using a forecasting and supply chain
Target Corporation pioneered value chain activities like focusing on customer experience through superior marketing, ability to attract global talent, sustain in and outbound supply logistics, develop supplies with a high-quality vendor and partners, a great customer service, extend return by 30 more days if purchased through Target brand store cards, and a skilled workforce supports its generic strategy of "Expect more Pay Less" improves competitive position that its rival cannot match. --
Palmer, I., Dunford, R., & Akin, G (2009). Managing organizational change: A multiple perspectives approach (2nd ed.). New York, NY: McGraw/Hill. ISBN: 978-0-07-340499-8
This essay describes how Costco has undergone evolutionary changes from its inception to present through its value chain model to become a success story. For example, in its distribution system, Costco utilizes the cross-docking technology to help in the conveyance of products in the different locations. This ensures that there are no product delays in the respective markets (Guo, 2016). Accordingly, Costco can attract more customers who prefer the warehousing services provided by the company.
middle of paper ... ... ml?printversion=yes http://www.informationweek.com/701/01iucul2.htm http://www.primesmoked.com/tim/writing/hdepot.html http://www.auxillium.com/culture.shtml http://www.ituedu.ca/emba/materials/strategic_management_and_busines.htm http://www.multexinvestor.com http://www.broadvision.com http://www.google.com http://www.homedepot.com http://www.lowes.com http://www.businessweek.com http://www.financialtimes.com http://www.actionpoint.com/services/support/hd.asp http://technidigm.org/essays/jhu/tech/strategic.ppt Case Study: Home Depot; The Home Depot Team Case 24: The Home Depot, Inc: Growing the professional Market (Revised) Essentials of Strategic Management, by J. David Hunger and Thomas L. Wheelen Organisational Behaviour by Stephan P. Robbins 9th edition
Some core competencies that must be exploited are: Brand Kmart is an existing well-known and trusted national brand in USA Kmart has private label and designer clothing that is well endorsed Infrastructure Kmart has a large number of well-located, low-cost, leased stores in urban far away from competitors through out the country ( Appendix B ). Staffing Confidence by the market in Kmart is created by the achievements of its staff and management. With the turn-around strategy in place, new blood has been put into the top management structures. In any renewal there will be retrenchment as unprofitable stores are closed. This can be used as an opportunity to retain and move high performing staff to where they are needed and to get rid of non-performing staff. Anderson the chairperson of Kmart is well supported by Wall Street and the board of Directors. These new staff members enter the company with needed skills to address problems in certain areas that previously were poorly managed such as inventory control and merchandising. Store locations, layout and Performance Stores conveniently located away from competitors like Wal-mart and Target therefore less to compete for customers face-to-face. There are 250 non-performing stores who have already been identified as being more cost effective to close than continue with running costs. Expertise exists in-house for the planning of store layout and appearance to meet different customer segments. This concentration of effort will enable focus on key areas Technology Kmart has already invested in good retailing systems. The system can be use to control inventory, supplier payments, track customer buying and monitor income versus profit margins across all stores. Research and Development The planning department is well established and in cross-functional to provide various perspective. The planning department to ensure that strategies at all levels are executed can further use the access to past data and knowledge of changes in buying patterns. Financial Backing JP Morgan Chase has agreed to support Kmart to avert the current threat of closure due to bankruptcy.
Graetz, F., & Smith, A. C. T. (June 2010). Managing organizational change: A philosophies of change approach. Journal of Change Management 10(2), 135–154.
Management experience will also play a large role in the success of the forecast. The current team is quite new and will gain some needed experience over the next year in the hopes of staying on track for success. The ability of management to ensure product is readily available for the client, their training techniques with new and seasoned associates, and general management style will ensure success or spell defeat for the store.
The Strategy plays an important and vital role in the 7-S’s Model as the strategy is the detailed plan devised to maintain and build the competitive advantage over the competition for achieving and accomplishing the targeted common goals.
Pitts and Koufopoulos (2012) argue that resources and capability are highly important internal factors that should be taken into account by the organization in order to obtain the successful performance in the long run.
...M. E. (2008). Competitive advantage: Creating and sustaining superior performance. New York: Simon and Schuster.
For over half of a century there has been major changes made in the retail industry. Retail stores are no longer just selling the regular items – electronics, clothing, home supplies – that are used during everyday life. Today’s retail stores have evolved; now selling groceries, offering auto services and includes built in pharmacies where customers are able to order and pick up their prescriptions. Thanks to an advancement in technology, they even give consumers the option of shopping online whenever and wherever they want. That way they can either pick them up at their local store or have them shipped directly to their home. Retail stores also give customers the opportunity to price match with the ads of their competitors. Shopping has become much easier, however, this transformation would’ve never taken place if it weren’t for one store in particular: Walmart. At the moment, Walmart is known as the world’s largest retailer in the
Walmart has demonstrated that it is not just a small retailer but an innovator on operations management since it was founded. Sam Walton started a small company but by having a solid operations strategy he was able to develop a global empire. Operations management is more than just the day to day workings but is of forecasting the future and finding innovative ways to improve to reduce costs and increase efficiency. Walton’s strategy follows the ideas of the basic lean principles. Even though Walmart provides some of the lowest cost products on the market today, they are constantly looking for ways to eliminate waste, increase speed and response, and reduce costs. Walmart is a company to watch when it comes to supply chain management as they work on ways to apply the lean principles to their already lean stores.