Strategic Issues Paper
General Electric (GE) is headquartered in Fairfield, Connecticut. The company is widely spread over 100 countries and has a workforce of more than 300,000 employees worldwide. GE has a diversified technology – six businesses are all aligned – reflecting the company’s capability to deliver and achieve excellent results (GE, 2008). The accomplishment of GE’s businesses is reflected in the expansive line of products and services the company offers which span many industries and customers worldwide. GE partners with its suppliers to create value and competitive advantage.
As part of its supply chain management strategies, GE uses the partnerships to ensure timeliness and quality from the suppliers. GE also relies on the experiences of the suppliers when designing new product and delivering services to the supplier as well. The strategic process that the company uses includes integration with the suppliers, financial support, and training (GE, 2008). In structuring this GE has found an ideal way to keep costs low and quality high. This is a key benefit to the managers and the suppliers of the company especially for the company’s future success.
In order to understand the way the strategic management process operates, one has to know the definition of the term. Strategic management is defined as a process with the flow of information. In the strategic management process, the flow of information involves historical, current, and forecast data on the operations and environment of the business. Managers evaluate the data in light of the values and priorities of influential individuals’ and stakeholders which are vitally interested in the actions of the business (Pearce & Robinson, 2004).
All information collected from GE and many other companies in their situation could be beneficial to the company.
Wal-Mart’s strategy is simple as well; cater the stakeholders and the customers. The strategic processes used by the managers of Wal-Mart offers positive outcomes for leadership, stakeholders and provide the moral and ethical culture for their employees. The strategy for future years to come is to keep customers happy and continue to follow their vision. Keep offering the lowest prices and striving to have the best customer service for the retail industry.
Dell-Low Cost Leadership and Differentiation People around the globe are familiar with one of the world’s leading personal computer (PC) manufacturer.
Dell produces customized computers, laptops, and processors, which have made a common name for the PC and technology industry. The executives of Dell pride themselves in being one of the industries low cost leaders in the computer industry. This strategy of having low prices on computers and laptops has set them apart from the other leading competitors in the market.
It was CEO Michael Dell’s vision for the company to produce high quality products and services at a low price in the PC industry. This particular strategy has worked for the company over the years, while sustaining the number two position in the industry. Although, the company has a low cost strategy in which has worked for the company over the years, but the company also has a differentiation strategy process.
Dell is the only PC manufacturer that offers a customized product. Dell sells directly to its customers and manufactures to the customers orders.
This has differentiated the company amongst the competition. Wal-Mart has had similar success with being a low cost leadership in the retail industry. It was the vision of Sam Walton, Wal-Mart’s founder wanted to setup a grocery/general merchandise discount store. It was this strategy of having the lowest prices in town that has set Wal-Mart apart from all competitors.
The company has stuck to the vision of Sam Walton by offering the lowest prices to the consumers in the retail industry. Best Buy-Joint Venture Many businesses and organizations may decide to form a joint venture.
A joint venture involves establishing a third company (child), operated for the benefit of the co-owners (parents) (Pearce & Robinson, 2004). There have been many successful joint ventures among many businesses. Best Buy announced that they would be strategically forming a joint venture with Britain’s cellphone retailer, Carphone warehouse.
The CEO of Best Buy stated that the joint venture between the two companies would be a financial gain for the company in the European market. This merger between the two companies are said to be a major factor that will differentiate the company from the competition (Washington Post, 2008).
Wal-Mart decided to form a joint venture with Bharti Enterprises, a joint venture for wholesale cash-and-carry and back-end supply chain management operations in India, in line with Government of India guidelines. This venture promises to bring great value to millions of farmers, artisans, small manufacturers and retailers across India. We are pleased to be a partner in developing this sector which is set to become a significant engine of India’s economic growth (Wal-Mart Store)”.
Joint ventures can benefit any company involved due to the benefits of the merging of the products or services being offered by either company.
Home Depot- Strategic Alliance Many companies or organizations make the decision to form a strategic alliance to benefit both involving parties. The definition of strategic alliance, involves creating a partnership between two or more companies that contribute skills and expertise to a cooperative project (Pearce & Robinson, 2004). Home Depot decided in 2004 that it would benefit the company greatly if the overall organization decided to look into a different market. The company made a decision to attract the mature customer base by forming an alliance with AARP.
This decision was mutual for both parties involved.
The executives of Home Depot believed that by forming such an alliance, the older Americans would be more prone to buy their products from the store. The CEO William Novelli of AARP stated that this expanded alliance with Home Depot is a major step to their ongoing commitment to enhance the AARP member experience with products, services, information, and benefits of value (AARP, 2004). In 2001, Wal-Mart decided to form a strategic alliance with the Stanley Works in order to expand the products and features that the tools have to offer.
The key benefits of forming the alliance in Wal-Mart’s favor are: “Wal-Mart in March will begin phasing in 112 Stanley® hand tools, mechanics’ tools and Stanley®/ZAG® toolboxes at all U. S. Wal-Mart stores and Supercenters, and will discontinue sales of a private-label brand of carpenters’ and mechanics’ hand tools.
Wal-Mart will feature such Stanley® hand tools as tape measures, knives and blades, saws, hammers and screwdrivers, and such Stanley® mechanics’ tools as wrenches, ratchets and sockets” (Wal-Mart Stores, 2001).