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Essay: Company strategy notes

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  • Published: 2 October 2015*
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Marketing Mix Component Questions the functional tactics should address
Product/Service Which service image do we need to project?
– A modern and innovative company
– A customer-oriented organisation
Price Are we competing on price?
– Reduced cost will help being more competitive
What is our pricing policy?
– We shall opt for a price penetration strategy.
Can we offer discounts?
– Depending on the contract amount, we can offer commissions and discounts to the concerned parties.
Place Do we have to cover the market?
– Our aim is more specifically for housing projects, educational projects and so on.
Do we segment have to change our current location?
– Port Louis is the capital of the country. We are close to the harbour which will be beneficial to us. Thus, we have to maintain our strategic location. However, in the long term we can afford to have other offices in other regions of the country.
Do we need a warehouse?
– Having a warehouse / production unit specialised for offsite manufacturing (OSM) will be a determining factor for the success of the project.
Promotion What are the key promotion priorities?
– We will have to communicate our new method via different means (online presence, magazines, newspaper, brochures and leaflets and so on)
– We will need to participate in specific events such as exhibitions and fairs (Salon de la Maison for example).
A. Functional Tactics in HR
Porter’s Generic Strategies and HR
Organisational Strategy Strategic Focus HR Strategy HR Activities
Cost Leadership ‘ Efficiency
‘ Stability
‘ Cost Control ‘ Long HR planning horizon
‘ Build skills in existing employee
‘ Job and employee specialization efficiency ‘ Promote from within
‘ Extensive training
‘ Hire and train for specific capabilities
Differentiation ‘ Growth
‘ Innovation
‘ Customer responsiveness ‘ Shorter HR planning horizon
‘ Hire the HR capabilities needed
‘ Broader, more flexible jobs and employees ‘ External staffing
‘ Less training
‘ Hire and train for broad capabilities
7.1.3 Policies for empowering personnel
While functional tactics already initiate and guide action in implementing a strategy, this is considered insufficient in today’s competitive environment. Line managers being in the forefront of organisations are responsible for delivering customer value. It is therefore critical to empower line personnel to make decisions to fulfil customer needs.
Policies are guidelines designed to guide the thinking, decision making and actions of people in implementing company strategy. They increase managerial effectiveness by standardising routine decisions while still allowing some discretion. Policies achieve this in a number of ways:
1. Policies establish indirect control over independent action
2. Policies promote uniform handling of similar activities
3. Policies ensure quicker decisions
4. Policies institutionalise basic organisation behaviour
5. Policies reduce uncertainty in day to day decision making
6. Policies counteract resistance of members to strategies
Policies may therefore be both written & formal and unwritten & informal.
Genesis PM can develop the following policies:
1) Grooming and Dress Code
– With a view to promote a professional image and contribute to an impression of a high-quality organisation, proper business attire is expected for all employees depending on their roles and responsilibilities.
2) Equal Employment Opportunity
– The same consideration will be given to all staffs regardless of race, color, religion, age, sex, marital status, national origin, ancestry, physical or mental disability, sexual orientation, genetic information, or any other legally protected class in accordance with all applicable laws.
3) Open Door Policy
– It is advisable that employees bring out their issues. They can communicate to their respective supervisors.
4) Overtime
According to the employment laws and regulations of Mauritius,
– Overtime should be on mutual agreement (employer & employee). On expected future overtime, the employer has the duty to give a 24 hour notice to his employee (wherever possible) and the latter may refuse to attend such overtime work, with a 24 hour notice.
– A worker performing on a public holiday earns twice his hourly rate for each hour worked on that day.
– For each 4 hours of work, an employee has a right to 1 meal break of 1 hour AND to 1 tea-break of 20 minutes Or 2 tea-breaks of 10 minutes each.

7.1.4 Reward Plans
Since the relationship mentioned above is uncertain, it has become strategically necessary to link compensation plans with the successful implementation of strategies. Apart from normal reward policies for employees, much attention is now given to executive bonus compensation plans.
(a) Executive Bonus Plans
The purpose of an executive bonus compensation plan is to motivate executives to maximize shareholder wealth ‘ which is the underlying goal of private firms. However, investors and owners, being often absent from day to day management, expect (or at least wish) the firm’s executives to act concurrently with their own goals and executives.
An executive compensation plan can be instrumental towards orienting managers in the direction of corporate strategy. The success of such a compensation plan depends therefore on the match between the executive bonus plan and the firm’s strategic objectives.
James. E. Nelson, The Journal of Business Strategy, 1998, states that: ‘Companies can succeed by clarifying their business vision or strategy and aligning company programs with strategic direction.’
(b) Performance Bonus
Along with their normal salaries, Genesis PM can propose to offer special performance bonuses to its most effective employee. This can be done every 3 month.
8.0 Structuring of Genesis PM
Genesis PM currently has a functional organisational structure as show below:
In order to ensure the implementation of the new strategies, the company will have to adopt a matrix structure as follows:
The matrix structure superimposes a divisional structure over a functional structure. It combines the efficiency of the functional approach with the responsiveness of the divisional approach. Each employee in the matrix reports to two supervisors ‘ a functional manager and a project manager.
The strategic advantages of this new structure will be:
– Accommodates variety
– Good training ground for strategy managers
– Efficient use of functional managers
– Fosters creativity

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