Sample Business Studies Paper on Crafting strategy, Corporate governance and Corporate diversification

Introduction.

This paper addresses three Business strategies that were discovered by various authors. Basically the strategies discussed are meant to help in shaping and development of business organizations. The three strategies includes, crafting strategy, corporate governance and corporate diversification and last Comparative forces. The study points out major advantages, Dis Advantages, Characteristic, and the contribution of the strategies in the development and promotion of the business world. The journal shall analyze each strategy one by one evaluating them according to their historical expression and their objectives as far as business is a concern.

Analysis and Summary

Rethinking and Reinventing Michael Porter’s Five Forces Model

This review reports a study, of the three strategies, each of the strategy is discussed on its own. I begin with Tony Grundy’s paper, “Rethinking and reinventing Michael Porter’s five forces model” which is meant for propelling strategic management agenda of business organizations.

Key areas Addressed.

Particularly the research is concerned with illustrating major adjustment for Porter’s five competitive forces model, the importance of the five competitive forces to the strategic management of the business,

A Survey research strategy is used to understand that over twenty years since Porter’s original publication, there is little knowledge among mainstream managers in both tops and middle levels of Porter’s competitive forces. It brings an understanding of how Michael Porter’s five competitive forces model can be incorporated with other factors to show the interdependency of the five competitive forces and other factors. This indicates the effectiveness and essence of Porter’s five competitive forces to managers of business institutions but not applied well for the success of the business.

Findings of the research

It is evident that Porter’s five Competitive forces have got both advantages and disadvantages to the managers. However some of the advantages are brought in comparison and that is mapping competitive forces horizontally and vertically, these are illustrated in diagrams by Tony in his journal (figure 14 and figure 15 on page 223 and 224 respectively). This shows the reason as to why some industries are more attractive than others.

Contributions of the journal

The author attempts to explore ways of improving, developing and integrating Porter’s competitive forces with other factors to create a better solution for managing challenges in businesses organizations. A strategist can come up with the strengths and the

Weaknesses of an organization and is able create a plan for a

Stronger position within the industry (Dälken 2014)

Crafting Strategy.

            Key areas Addressed

Craft strategy is a publication of Henry Mintzberg that is discussing the aspect of crafting in the field of business as far as Management is a concern. The strategy is based on the formulation and implementation of creativity. The author argues that Crafting is more advantageous since it assists managers to think of the past and develop the feature.

 

 

 

Knowledge gap addressed in the journal.

Henry Mintzberg used the potter parallel to describe how crafting strategy can be applied by managers to come up with strategies that may help develop and promote prosperity in business. He used to represent the managers while clay represents the strategies hence managers should craft their strategies in the development of the business.  Other illustrations used by Henry Mintzberg to explain the relevance of Craft Strategy are Future plans and past patterns, deliberate and emergent strategies, Brief quantum leaps to a strategic reorientation and Crafting thought and action. This is to examine how crafting strategy is effective to the management of a business in fulfilling the end user desire and Mintzberg spoke of a change of mind in crafting a port as per the customer need.

Mintzberg (1987) stated that Potter who sits before a lump of clay on the wheel and his mind is on the clay, but he is also aware of “sitting between his past experiences and his future prospects” (p.73). He knows what worked and what did not work for him before. Managers are expected to be the same in that they sit between a past of corporate capabilities and a future of market opportunities.

 Findings of the Journal.

One idea leads to another until a new pattern is formed. If a salesman visits a customer and the product does not meet customer needs they work out on modification together, the latter salesman returned to the company and implement the changes till he finally gets it right. In this, a new product is formed which eventually opens up a new market but this may require more time hence it is a sense of delay.

 

Contributions of the journal.

Crafting strategy requires managers of organizations to make sense of the past if they hope to manage feature successfully through understanding the patterns that form in their own behavior.

Corporate Governance and Corporate Diversification Strategies.

  Key areas Addressed

These strategies were authored by Raluca Florentina CREŢU. The study focuses on the causality relationship between Corporate Governance and the Corporate Diversification Strategy, their mutual interdependence in the context of the global economic crisis, theories that elaborate them, merits and limitations of the strategies. The arguments were developed through a critical review of Raluca Florentina CREŢU’s paper, explaining, in turn, its conceptual bases, main findings, and practical implications.

This journal reports a study on the concept of Corporate Governance, its Fundamental theories, Principles, Advantages, The Causality Relationship between Corporate Governance and Corporate diversification and lastly Company Value and Structures of Corporate Governance in the Context of Diversification.

Knowledge gap addressed in the journal

The Author justifies how Corporate Governance brings about diversification of resource in a company for the benefit of its stakeholders, managers and the entire fraternity of employees.

The study applies a survey research strategy to show different approaches to corporate governance and factors that would lead to companies’ failure.

CHEN (2019) defines corporate governance as “the system of rules, practices, and processes by which a firm is directed and controlled”, while one online firm defines corporate diversification as, “branching out into new business opportunities, not just expanding your existing business” (Edmunds 2019). From this journal, it is evident that Corporate Governance brings about diversification of company resources hence without Corporate Governance there would be no Corporate Diversification. This is portrayed by this statement, “the diversification strategy represents the degree in which the activity on the market of a new product uses the general management’s ability and the created administrative structure” (Raluca Florentina and CRETU 2012, p.5).

  Findings of the journal

It is important to study the organizational structure while applying diversification strategy, this is because “diversification move should pass three tests or it should be rejected” (Porter 1987). The three tests of diversification that should be viewed before implementation are: “How attractive are the industry that a firm is considering to enter, how much it will cost to enter the industry and will the new unit and the firm be better off” (Porter 1987).

Contributions of the journal.

It is evident in the study that corporate diversification strategy is the merging of the industry and firms for better productivity. However, there are disadvantages associated with corporate governance. For example, the cost of administration may be higher and disagreements may arise if a corporation’s shareholders do not show active participation in the business.

 

 

Conclusion.

The strategies discussed are majorly aiming in developing, improving and changing the face of a business organization to take a new shape that may yield more revenues. They advocates for standard conducts that are required in a company to ensure a good relationship between top management and its workers, stakeholders and other corporations. As a result of the implementation of these an organization reduces risks, increases performance and opens the way to financial markets.

 

References

Dälken, F., 2014. Are Porter’s five competitive forces still applicable? A critical examination concerning the relevance for today’s business (Bachelor’s thesis, University of Twente).

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Griseri, P. and Seppala, N., 2010. Business ethics and corporate social responsibility. Cengage Learning.

Indiatsy, C.M., Mwangi, M.S., Mandere, E.N., Bichanga, J.M. and George, G.E., 2014. The application of Porter’s five forces model on organization performance: cooperative bank of Kenya Ltd. European Journal of Business and Management, 6(16), pp.75-85.

Porter, M.E. and Heppelmann, J.E., 2014. How smart, connected products are transforming competition. Harvard business review, 92(11), pp.64-88.

Purce, J., 2014. The impact of corporate strategy on human resource management. New Perspectives on Human Resource Management (Routledge Revivals), 67.