商务文化与策略报告 outcome3,4,5.doc

Content1.0 Introduction12.0Outcome 3 & 412.1 business strategies12.2 business strategy and strategic choice32.3Two different business strategies42.4 forces for change52.5 Four potential benefits63.0 outcome 563.1 The function of management63.2 Influences on change management programme73.3 Analyse change by using a recognised model73.4 The way to minimize changes84.0 conclusion95.0Reference101.0 IntroductionThis report through to The AG of data and information collection, analysis The problem a lot of AG, such as The influences on change management programme, The function of management, and The influences on change management programme, and so on. At the same time, through this report we also learn a lot of knowledge on business culture strategy.2.0Outcome 3 & 42.1 business strategies Porter's Generic StrategiesMichael Porter has argued that a firm's strengths ultimately fall into one of two headings: cost advantage and differentiation. By applying these strengths in either a broad or narrow scope, four generic strategies result: cost leadership, differentiation, and focus. These strategies are applied at the business unit level.Cost Leadership StrategyDefinition The Cost Leadership strategy is exactly that it involves being the leader in terms of cost in your industry or market. Simply being amongst the lowest-cost producers is not good enough, as you leave yourself wide open to attack by other low-cost producers who may undercut your prices and therefore block your attempts to increase market share.Business environment The business environment is usually in a fierce competition in Cost Leadership Strategy, so this strategy applies to big companies, which has a considerable market share advantage or preferential access to raw materials, components and some other important input. In other words, these companies usually get economy of scale and can realize scale production and gain the competitive advantage from market with the lowest cost.Differentiation StrategyDefinition Differentiation involves making your products or services different from and more attractive those of your competitors. How you do this depends on the exact nature of your industry and of the products and services themselves, but will typically involve features, functionality, durability, support and also brand image that your customers value.Business environmentDifferentiation is suitable for the business environment whose competition comes from the differentiated products. Differentiated goods and services satisfy the needs of customers through a sustainable competitive advantage. Companies usually provide better products and services for customers, because they can generates a higher than average price. Differentiation focus Definition The differentiation focus strategy concentrates on a narrow segment and within that segment attempts to achieve differentiation. The narrow market usually is a particular customer group, a niche segment of a product line or a regional market.Business environmentDifferentiation focus is suitable for the narrow market, and the narrow market usually is a particular customer group, a niche segment of a product line or a regional market.Companies try their best to meet differentiated consumer demands. Firms pursuing a differentiation-focused strategy may be able to pass higher costs on to customers since close substitute products do not exist.Cost focus DefinitionThe cost focus strategy concentrates on a narrow segment and within that segment attempts to achieve a cost advantage. Business environment The cost focus strategy is suitable for narrow market. In this narrow market, companies attempt to meet customer needs on the basis of controlling cost.2.2 business strategy and strategic choiceThe definition of business strategy and strategic choiceBusiness strategy is the direction and scope of an organization over the long-term, which achieves advantage in a changing environment through its configuration of resources and competences with the aim of fulfilling stakeholders expectations.In organizational theory, a topic in sociology, Strategic Choice Theory describes the role that leaders or leading groups play in influencing an organization through making choices in a dynamic political process. Previous to this theory, a common view was that organizations were thought to be designed along operational requirements based on the external environment. Strategic choice theory provided an alternative that emphasized the agency of individuals and groups within organizations to make choices, sometimes serving their own ends that dynamically influenced the development of those organizations. These strategic choices formed part of an organizational learning process that adapted to the external environment as well as the internal political situation.The differences The business strategy is an enterprise policy, and it is usually a comprehensive and detailed plan or program which provides the direction of development of an organization. In current situation, the business strategy of AG Company is cost focus. It is a detailed strategy that states the AG Company the direction of its development. However, the main characteristic of strategic choice is making choice. It means that an organization should make a good choice of strategy from a series of business strategy, and one of the business strategies that enterprise choose should be most suitable for their development. In AG Company, its current business strategy its cost focus, with its continuous development, the fierce competition existing in the software and games development market and the evolution of games development needs innovated technology to meet customer needs, the strategic choice of AG Company will be differentiation for in the future other than cost leadership and differentiation in the porters model. RelationshipsThe relationship between the business strategy and strategic choice is that business strategy is a current detailed policy existing in an organization, however, with the development of an organization, its business strategy may not suitable for the company. The company needs to make a better choice that is more suitable for its current stages. That is to say, in this stage, the company will transfer one strategy to another strategy. For example, the current business strategy of AG Company is cost focus, however, because of the future development, cost focus is not suitable for the company any more, and then the company may have to make a strategic choice, choosing a better business choice for the company in the same model. They found the differentiation will be fit for them in the future development; the strategy may be change from cost focus to differentiation. 2.3Two different business strategiesThe two different business strategies are Cost focus and Differentiation respectively. In my opinion, the current strategy of AG is cost focus, and the future strategy is differentiation with the development of the company.Focus costs: The company was small, aimed at a narrow market, so they are used to make concentrated cost strategy is one of the most important strategy.Therefore, the focus cost strategy. When it comes to the focused differentiation, it has limited resources and ability. At the same time, the low degree of differentiation in the Alphabet Games. This is why it is a hard work or attitude, it provides a low value culture, low-cost manufacturing products.the company will tight over cost control. And it wants to achieve lowest costs and will reduce the value chain costs by cutting unnecessary waist cost and labor cost.This strategy is focus on controlling cost of an organization, before the company conducting a series of plans or policies; they will always consider the factor of cost. They will always control cost at first and then conduct organizational behavior to attempt to meet their customer demands. For example, in AG Company, before they develop a new technology, such as the graphic, they will consider the cost, if the cost is too high, they may not spend money in this technology, because they can only try their best to meet customer needs, the core component is to reduce the cost.Focus differentiation:In this case,Alphabet Games company has plans to expand,their former products could only be used for the entertainment and fun, but now their new product have new function,such as educational tool. The product is suitable for the market.more and more product are has been realize by people.Compared to the cost focus strategy, the differentiation strategy aimed to provide a better goods and services for customers in a higher price. The business activities of this strategy often conduct with a high cost instead of controlling cost. For example, in this case, the AG Company may spend a lot of money to develop the new generation games consoles to meet customer needs in this strategy. Because the importance in this strategy is that they should provide better products to their customers and pay less attention to the cost.I think the differentiation strategy is suitable for the Alphabet Games company. Under the more capital investment.differentiation strategy can bring more opportunity for Alphabet Games company2.4 forces for change Management strategyIn the management phase, the strategy of AG Company is cost focus; the two examples of forces of change are as follow.Financial incentivesIn this case, it is clear that AG Company is a small-scale software and games development company. In this market, the cost is increasing sharply, such as the investment of a new game, research and development cost, production cost and technological cost. The cost is a huge burden in this company and the company need to become increasingly in funding developments because they lack of money. Therefore, a financial incentive is a force of change in this company, In order to earn more money; the company may change business strategy to solve the problem of financial funds.Changing markets In this case, more and more customer needs exist in this software and games development market. For example, the evolution of games development has led to users demanding increasingly breathtaking graphics, the demand of this technology is a challenge for AG Company. Besides, the innovation of technology is also an important factor. Consumer needs will overtake the old technology and demand for more innovated technical products. Therefore, the changing market is also a force of change. In order to satisfy customer needs better and increase their loyalty, the company may change the business strategy.updating strategyRecruitmentWith the continuous expansion of AG Company, its former employees can not satisfy the development of this company. The AG Company has recruit 25 staffs, ranging from software and games programmers to a new breed of marketing professionals and business/IT managers to act as the conduit between technical development and business development. The recruitment of these new talents are the strengths of AG Company, they can make full use of these talents to achieve a good updating strategy. Therefore, the recruitment is a force of change for updating stage.Internet viral marketThe rise of inter viral marketing has provided substantial opportunities and AG has strive to be at the forefront of that development within the UK. This is new segmentation of AG Company, and the company has opportunity in this market, it means that the company has lots of potential development in this market. Therefore, the new internet viral market is also a force of change for the company to updating strategy. With the opportunity in this company, the company can make a better updating strategy.2.5 Four potential benefitsMarket developmentThe company can expand a new market to Promote the company's products.It can gain more customers.Focus costThe company can set high entry barrier and can gain high competitive advantage to win in the price war with the lower cost.DifferentiationThe company have some product that competitors havent,So the product have competitive advantage and can gain high customer loyalty and can increase the price by added value.Therefore can make more profit.Product development strategycan correctly determine the company's direction, choose the appropriate business areas the company or product, make the product develop quickly and let it have a competitive advantage,the company will make more profit3.0 outcome 53.1 The function of managementManagement in business and organizations is the function that coordinates the efforts of people to accomplish goals and objectives using available resources efficiently and effectively. Management comprises planning, organizing, staffing, leading or directing, and controlling an organization to accomplish the goal. Resourcing encompasses the deployment and manipulation of human resources, financial resources, technological resources, and natural resources.  In AG company, it business strategy changed from cost focus to differentiation for the future development. During this stage, the functions of manager in AG Company are as follow. First of all, the manager should make an approiate research for their company to find out different strategies. Secondly, the manager should make a good strategic choice, that is to say, the manager of AG should choose a suitable strategic from a series of strategies. Thirdly, the manager should set a strategic objective for their company. Fourthly, the manager should implement the objectives, besides; they should also monitor the implementation of the business strategic objectives, to make sure the effectiveness of the objective. Finally, the manager of AG Company should make an evaluation of this process.3.2 Influences on change management programmeMacro-environmentEvery company has the corresponding rivals, The competitor of Alphabet Games want to make more profit,so they would change management programme. If Alphabet Games want to gain a competitive advantage,they should change management programme to solve the problem.Business objectivesWith the development of the company. AG has expanded from a small company with a large company. This means that the business objectives should also be along with the change. In this case, they should be the pursuit of innovation, quality and excellence. Constantly in the development of the company won't achieve the aim of the present is satisfied, will pursue higher broader development goals.Social responsibilityIn the current situation, the AG Company is a small-scale company; this means that the company does not take much social responsibility. However, with the further development of this company, has