Strategic Management: Rolex and Timex - 2198 Words | Term Paper Example (2024)

Executive Summary

Organizations with a desire to thrive in the global market establish and embrace competitive business strategies. Rolex Watches and Timex Watches (as organizations) have strived on creating value to their clients. This is evident in the quality of watches and their cheap products in the market.

Consequently, customers have always felt valued. Secondly, the companies strive to make watch-wearing an exciting venture for all customers.

Competition and Business Unit Strategy

In the context of competition, the 2 selected businesses incorporate Rolex Watches and Timex Watches. Rolex Watches has always adopted strategic differentiation in order to remain competitive in the market.

Concurrently, Timex Watches has endeavored to adopt a strategic cost leadership to defeat its competitors in the electronic industry. The strategies that have been chosen by these companies are appropriate due to numerous factors (Ramamurti & Hashai, 2011).

Both firms are customer-focused and dynamic to remain relevant and competitive in the market. “Although their industry of operation is competitive, they have managed to expand in numerous countries with lucrative stores” (Lin & Edvinsson 2011). The companies have strived to create value for their clients.

This has been proved by quality of their watches and the competitive prices they offer in the market. Consequently, customers have felt valued and contended with the products they receive from these companies.

Secondly, the companies have strived to make wearing of watches exciting ventures for all customers. In the context of business, an efficient supply chain has proved lucrative for them.

They explain why the strategies applied by these 2 companies are appropriate. Businesses have different planning process for their merchandise. This has been proved in some of the traditional stores.

For instance, Rolex Watches and Timex Watches have stronger in-store inventory where development, manufacturing, packaging, and sale of their products occur. This makes the business activities challenging.

It is crucial to consider these aspects before differentiating the merchandise planning processes amidst the two businesses. It is easy for the companies to plan extensively with their products in the context of marketing. In the context of business, they indicate why the strategies chosen by the two companies are fitting.

Globally, Rolex Watches and Timex Watches are popular brands that require a credible communication process in its advertisem*nt.

“Essentially, it is necessary for the organizations to identify and establish their target market in order to formulate credible communication processes applicable in advertisem*nt” (Borkowski 2009).

The companies must identify the traits of potential customers. Additionally, the companies must know the brands that are in high demand and gather for reasons behind the high demand of a product.

Thus, it is necessary to know which part of the market prefers to buy Rolex Watches and which part prefers to buy Timex Watches. “Different brands that are manufactured target a given segment of the market” (Voss 2010).

To facilitate easy marketing, the target market of Rolex Watches and Timex Watches are divided on the basis of age, gender or ethnicity. The division of the market for Rolex Watches and Timex Watches are similar to marketing strategies that many organizations have adopted.

“The strategies that have been chosen by these companies are appropriate due to numerous factors” (Ramamurti & Hashai, 2011). These companies are dynamic customer-focused organizations that remain relevant and competitive in the market.

Competition and Business Unit Strategy

Figure 1 – Ex. Apple Inc. (Business Unit 1: Apples iTunes Store) and (Business Unit 2: Apple iPad)

Explaining what would this indicates about the future investment proposals for these two businesses

Apple Inc.: Business Unit 1: Apples iTunes Store) and (Business Unit 2: Apple iPad)

In the GE business screen, it is important to place different units of the Apple Inc. at different places following their market penetration, rates of withdrawal and technological advancements experienced in this context. In the screen, there are provisions of low, medium, and high rates of performance in both units.

The concerned businesses must strategize in order to capture numerous clients and expand their business basis. The Apple Inc. iTunes Store unit and iPad unit must operate together in order to attain the company goals.

Additionally, the units must know the brands of Apple Inc. that most people buy and reasons why they like them. In the context of business, an efficient supply chain has proved lucrative. It is, also, important to note that both units have been popular as expansion strategies in recent years for Apple Inc.

Nonetheless, some have records of failure. In fact, some have records depicting a disastrous effect on shareholders’ value. In this context, Apple Inc. is an evident example demonstrating some aspects of success.

International Mergers Acquisitions and Joint Ventures

Conventionally, it is evident that cross-border mergers, acquisitions, and joint ventures have been popular as expansion strategies. Nonetheless, some have poor records of success in their operations. They, also, possess negative effects to the shareholder’s value.

In this context, acquisition of IMB’s (USA) PC unit by Lenovo Group (China) is an example demonstrating some aspects of success. The reasons behind this are bountiful and relate to the aspects of business.

The notable occurrences during acquisition of IMB’s (USA) PC unit by Lenovo Group (China) depict critical insights. The incidence remains evidently as one of the most ferocious and viable occurrence of the company in the world.

It was a success since the structures were positioned to ensure that the entire process was successful. This incorporated both legal and economic provisions. Given the legal tussles that ensued between different parties of interest, the takeover seemed to be a more successful occurrence.

Involvement of parties in the takeover process, also, depicts a level of distinction that this occurrence envisaged. Lenovo Group (China) publicized its intentions for the global strategic union with IMB’s (USA) PC unit.

Following a lengthy and tough legal and strategic process, the corporation sold its entire assets considerably. The new company (IMB’s PC unit) that was taking over operated as Lenovo Group (China).

Lenovo Group obtained a preliminary equity interest in the sold IMB’s (USA) PC unit. It, also, engaged into a considerable number of deals with corporations which would offer access to particular IMB’s (USA) PC unit technology. These, also, included platforms as well as power trains.

Despite the narrow share percentage of IMB’s (USA) PC unit, the company holds entitlements in the decision resolution processes. This means that Lenovo Group is able to exercise solitary controls on units.

An analysis of this transaction indicates that horizontal overlaps noted between operations of the organizations are legal. “Therefore, it can be deduced that this takeover may not change the existent of competitive system within the market” (Keillor 2011).

Other terms of the deal that made everything successful are evident. This transaction ensued from rigorous consultations, numerous Departments of Treasury and Presidential Auto Task Force. In observation, the negotiations resulted into a speedy acquisition process.

The commencement period marks the time when both companies agreed to the merger/acquisition. This was done in accordance to chapter 11 of the Federal Bankruptcy Code. The company, also, sought endorsem*nt for an expedited bid procedure and sale. It is vital to indicate that relevant assets got sold.

“Moreover, it involved an assumption of various debts” (Blazey, 2009). This transaction became consummated following a sales direction by both governments. Although the process entailed considerable filings, the advancement, design, and implementation of the sale were mutual deals.

“This called for the skill and familiarity of an extensive transactional squad. Other terms of this transaction specified the relevant operational requirements” (Zino, 2009). This involved support for access to particular technology and enhancement of product distribution competencies.

Lenovo Group (China) is an international organization responsible for providing technological provisions to various people and companies across the world. In addition, the company has numerous workers who are involved actively in retail and profitable banking.

The organization was able to expand its services in the United States after attaining a patent from other organizations. In addition, acquisition for both companies was to make them become international organizations with enhanced operations.

“Moreover, the success was a function of prosperity to both organizations” (Voss, 2010). It is, also, notable that in order to remain competitive in the market, both companies must consider the aspects of logistics in their endeavors.

Evidently, the movement of good from one point to another with an aim of meeting customers’ demand is crucial. One of the logistics performance goals is proper management of information from one point to the next.

Prompt and reliable products’ delivery and management have ensured that the entire business stakeholders achieve satisfaction.

Stakeholder Mapping

Samsung is a company with numerous stakeholders including the Korean government, other governments of nations where plants are established, customers, executives of the company, shareholders, staff, distributors, and large and small scale retailers and suppliers.

It is crucial to agree that all stakeholders have a contribution in decision making processes of the company. The growth-oriented and credible performance issues have been established to steer the production of electronic facilities (with functional value) in Samsung Corporation.

It is necessary to use secondary data which is based on validity and relevance in the provisions of quality products. The results depict information as presented by the electronic data on the topic under discussion and analyzed information from the secondary resources.

“Decision making is a critical provision in the context of majority” (Keillor 2011). Analytical techniques applied in this study provided credible information on quality provisions in Samsung Corporation.

Consequently, all stakeholders are allowed to present recommendations on pertinent issues that may compromise the quality of electronic items. It is imperative to agree that Samsung Corporation endeavors to grasp considerable market share globally.

This could be achieved through establishment, ratification, embracement of quality production processes, and critical decision making.

Figure 2 – Plotting the positioning of the stakeholders on a stakeholder map

How to use stakeholder mapping in future and how useful it is considered to be

The stakeholder mapping will be used in diverse contexts in future so as to attain good managerial efforts. The stakeholder mapping gives a critical inference on how stakeholders can be utilized in growth of the company. There are numerous key factors/conditions favoring sustainable growth among the corporate societies.

One such factor that will be influenced by the stakeholder’s mapping is the increasing human capital in the company’s operations. Competitive, innovative, and industrious workforce is a conditional requirement for sustainable growth in emerging economies.

“It is observable that successful multinational enterprises look for notable institutional voids, competent workforce, and viable work schedules in order to succeed and develop more business empires globally” (Jain, 2006).

They, also, need to involve all stakeholders in their operations including critical decision making processes. Another viable condition (for sustainable growth) that stakeholder must embrace is globalization.

The rate and effects of globalization have influenced major economic giants and other countries from primary economies. Concurrently, emerging economies have fronted critical competition through globalization in order to attain sustainable growth and sustainable environment.

Discussing the extent to which ethical issues/CSR drive strategy in the organization

Samsung has always strived to embrace the aspects of CSR. The company considers incorporating other stakeholders through philanthropic moves. It sponsors numerous activities and charity organizations to enhance its relationship with the society.

It is critical to understand that the company gives critical information on the aspects of CSR. “This is a vital provision that determines whether the company will lead a sustainable development or not” (IRMA 2011).

Given the legal tussles that ensued between different parties of interest, the takeover seemed more of a successful occurrence. The involvement of both parties in the takeover process depicts the level of distinction that this occurrence envisaged.

Precisely, it is notable that the flow of good from one point to the next aiming to meet customers’ demands with promptness is critical. As mentioned before, one of the logistics performance goals in this context is the proper management of information from one point to the next.

Timely and reliable product delivery and management have ensured that the entire business stakeholders achieve satisfaction. Numerous organizations should establish and implement competitive business strategies in order to remain relevant in the market and attain the company’s objectives.

Conclusion

Most organizations need to establish and implement competitive business strategies in order to remain relevant in the market. Rolex Watches and Timex Watches have created value for their clients.

The aspects of mergers and acquisitions, CSR, and other business provisions are considerable in the business context. Shareholder’s mapping has been practiced by Samsung in order to enhance the aspects of decision making within the organization.

References

Blazey, L 2009, Insights to performance excellence: an inside look at the 2009-2010 baldrige award criteria, Asq Quality Press, London.

Borkowski, N 2009, Organizational behavior, theory, and design in health care, Jones and Bartlett Publishers, Sudbury, MA.

IRMA 2011, Green technologies: concepts, methodologies, tools and applications, Information Science Reference, Hershey, US.

JAIN, S 2006, Emerging economies and the transformation of international business: Brazil, Russia, India and China (BRICs), Edward Elgar, Northampton, US.

Keillor, B 2011, International business in the 21st century, Praeger, Santa Barbara, US.

Lin, C & Edvinsson, L 2011, National intellectual capital a comparison of 40 countries, Springer, New York.

Ramamurti, R & Hashai, N 2011, The future of foreign direct investment and the multinational enterprise, Emerald, Bingley.

Voss, H 2010, The determinants of Chinese outward direct investment, Elgar, Cheltenham, UK.