Ideas For Strategy in a Company

Ideas For Strategy in a Company 

A company's purpose, or corporate idea, guides its operations, which are directed toward particular objectives under a framework created by strategy. Top management defines strategies, which are predicated on an examination of both internal and external factors. According to Kotler (1967), strategy can be defined as a foundation of broad ideas that a firm uses to protect its customers, maintain its competitive advantage, and make the most use of its resources. This illustrates the growth of firm resources, competitive analysis, and consumer attraction the three pillars of strategic thinking (Juslin & Amp, 2018). Nevertheless, the real contents of the plan are sometimes left unclear when employing a framework idea of strategy. The definitions that characterize strategy as an environment or a framework are not useful. Clear metrics for strategy concepts are necessary to make judgments and draw conclusions about them. Therefore, while creating ideas for PK Sports Horses in step VI of the report, I majorly focused on the Rich Picture I had drawn at step 2.  I further considered Porters’ Five Forces for the development of PKSH strategy. I believe that viewing company strategy from outside makes it hard to distinguish the two, company and the strategy. Strategies can be observed in a company's operations even if they were not created via the rational school's suggested logical procedure (Juslin & Amp, 2018). In other words, business activities and their outcomes can be utilized to develop strategies even in the absence of a clear plan. 

In my view, designing a business strategy needs consideration of activities happening in the company from management down to subordinate staff. While developing PK Sports Horse company, I considered a Rich Picture which portrays the current situation of the company. I also, considered Porters’ Five Forces to understand the outside forces influencing the company. Firstly, A rich picture can be used to investigate, identify, and characterize a scenario (Rich pictures. Better Evaluation, n.d). The tool was first created as a crucial component of the Soft Systems Methodology by Peter Checkland and his colleagues. He came to see that systems involving human activity are intricate and disorganized, with events that don't always follow established protocols or standards (Rich pictures. Better Evaluation, n.d). Simple language and/or traditional system modeling tools were unable to convey the intricacy, nuance, and variety of viewpoints that characterized the systems he was interested in. He required a device that could record the apparent "richness" of the event. 

Checkland offers the following recommendations for what should be in the description in order to foster a deep comprehension of the circumstances: People, Issues conveyed by people, Conflict, Climate, Structure, and Processes. Using diagrams, symbols, cartoons, and text, the scenario is described as an image that can be created manually or digitally (Rich pictures. Better Evaluation, n.d). To develop an effective Rich Picture, this, as noted by Williams and Hummelbrunner, consider mind maps, discussion maps, and sketching. It is crucial, therefore, that the image does not (as in a logic model or process chain) shape the situation. A rich picture's main goal is to capture as much of the scene as it can without favoring, asserting, or determining any one viewpoint above another." From my Rich Picture, I identified the situation at PK Sports Horse Company where Pippa and Chris's cooperation displays conflicting viewpoints. Pippa takes a more conventional, passion-driven approach, while Chris uses techniques that are driven by technology and business. Similarly, I pointed out problems including Pippa's age-inappropriate promotion to a managerial role, PKSH's lack of thorough competitor and market research, and the company's consideration of other revenue streams or service improvements in response to changing customer demands.. With the Rich Picture, I was able to visualize the real issues impacting the company making it easier to develop and create ideas for the company’s strategy. 

Additionally, Porters’ Five Forces played a crucial role when developing ideas for PKSH Strategy. Companies frequently utilize the Porter's Five Forces Model, a tool for strategic analysis, to comprehend the profitability and structural underpinnings of projects and to create competitive strategies (Team, n.d.). These five forces are: buyer power, supplier power, rivalry among rivals, threat of substitution, and threat of new entrant. The goal of the model is to help identify the advantages and disadvantages of a project so that the best possible structure and approach may be chosen. A detailed understanding of the project's competitive environment contributes to the development of competitive strategy. These five factors represent the law of competition in any enterprise or industry, whether it is creating goods or rendering services (Team, n.d.). Unknown factors can easily cause confusion in project operation for operators and managers. This is a useful tool for determining the true profitability of the sector. The organization may be able to identify a genuinely strong competitive position by analyzing which trends will have a significant impact on the project, where the limits are, and whether those constraints may be loosened.   Using PSF’s analysis, I noted PKSH threats, new entrants, threat of substitutes, bargaining power of buyers and suppliers and competition from rivals. In light of this, Porter's Five Forces framework highlights the most important variables to consider when analyzing the competitive landscape of a firm. Rising threat levels typically portend a possible downturn in profitability in the future, and vice versa. 

As such, a successful business strategy must be a fusion of internal values and external circumstances. While tools such as Porter's Five Forces may provide useful guidelines, they cannot fully encapsulate the intricacies of a company's direction. Through my examination of PK Sports Horses, it's clear that strategy is not merely a set plan, but a dynamic force. The purpose and strategy of a company are intertwined, shaped by the varied viewpoints of its stakeholders. As illustrated by the Rich Picture, strategy must organically develop from within, taking into account the complex and ever-changing dynamics of human systems.  Notably, effective business strategy needs more than just rational decision-making.  Thus, despite Porter’s framework being undoubtedly valuable, it must be mixed with an organic understanding of the company's internal dynamics. Their exclusion can result in overlooking critical internal issues. Therefore, a strong and comprehensive strategy lies in blending the company's internal values, industry analysis, and market trends. 

References 

Juslin, E. H. & H. (2018, December 1). Chapter 4: Strategy and strategic planning. Strategic Marketing in the Global Forest Industries. https://open.oregonstate.education/strategicmarketing/chapter/chapter-4-strategy-and-strategic-planning/ 

Kotler, P. 1967. Marketing Management: Analysis, Planning , and Control. Prentice-Hall, Inc. Englewood Cliffs, New Jersey. 722 pp Rich pictures. 

Better Evaluation. (n.d.). https://www.betterevaluation.org/methods-approaches/methods/rich-pictures.

Team, T. I. (n.d.). Porter’s five forces explained and how to use the model. Investopedia. https://www.investopedia.com/terms/p/porter.asp