Strategy Impact and Choice
2.0 Case study analysis
Question 2:
Compare and contrast the internal features of the organization when it was run by the MOD and Royal Navy (up to 2001) with when it was run by Babcock Marine (2002-2010).
Faslane was run by MOD and the Royal Navy up to 2001. The two organizational leaders focused on reducing the cost and improve the effectiveness of operations. By the year 200, Faslane did not achieve the expected growth forcing naval bases and MOD management to partner with other industrial firms. When Babcock took over from 2002 to 2010, the production cost was reduced and maintenance of high customer relation prevailed (Carnall 1997:87). McKinsey’s 7s framework would be of significance in analyzing how Faslane focuses on achieving its intended objectives. The model calls for organizations to align various elements in order to support their vision. The 7s that Faslane management used are; strategy, skills, style, systems, structure and shared values. On the other hand, Johnson’s cultural web would assist in analyzing Faslane Culture through stories, symbols, routines, control, structure, and power (Hoggar 2012).
Figure 1: The 7s framework (source: Johnson, Whittington and Scholes 2011).
Figure 2: The cultural web of an organization (source: Johnson, Whittington and Scholes 2011)
Marketing challenges are overcome by developing a perfect marketing strategy in order to win the competition. Entrepreneurs should develop a value and gain loyalty towards their customers by proper analyzing the market needs, and delivering what the customers want. Managers have the responsibility of ensuring that they fully understand the market sector in which an organization falls in order to come up with the necessary strategies for growth (Kotler and Armstrong 2011; Johnson, Whittington & Scholes 2011). When MOD and Royal navy was under Faslane management the company experienced the increased cost of production and lower customer turnout because of poor strategies. Under the Babcock management, perfect strategies were put in place and the organization experienced reduced production cost and high returns.
Organizations also should hire people with skills to head various departments. Under MOD and Royal Navy management, the public sector manager could not device incentives to reduce costs reducing the amount of profits expected. On the other hand, when Babcock took the organizational management, skilled and experienced leaders were selected who moved the company to the next level in terms of production cost reduction. Moreover, the management under Babcock changed the organization structure in order to ensure smooth flow of commands from top to the bottom and from bottom to the top.
After realizing the need to offer more for her customers, MOD and Royal Navy management created a team made up of all the senior managers in the company. The company staff was responsible for all operations and each senior manager was responsible for a given department, but the most sensitive areas were on manufacturing, finance, and sales. The team held several meeting to discuss the way forward whereby every staff member was given a chance to suggest an implementation that could assist the company succeed on the innovation process. On the other hand, Babcock reshuffled the company staff upon arrival in order to put individuals in systems where they could easily work.
Question 3
Comment critically on the Strategic Leadership style that was evident at Faslane during 2002 to 2010
Proper leadership is very important in an organization aiming at achieving its goals, objectives, and missions. In any organization, employment of staff has a correlation to the staff performance. The recruitment process of the organization will have a major goal of getting the highly qualified employee among all the applicants. In addition, the employee should possess excellent personal skills and have the ability to adapt to the organization culture that is established. A successful and effective leadership should follow five strategies as discussed by Lynch. The 5 elements of successful and effective strategic leadership are; sustaining competitive advantage over time, managing human resources and organizational decisions, setting ethical standards, defining and delivering to stake holders and developing and communicating the organization’s purpose (Lynch 2008).
Faslane was faced with the problem of employees failing to respect their colleagues. Babcock should adopt a perfect management of human resource and organizational decisions strategy that ensures those who fail to respect their partners face a kind of penalty. Authority and social-order-maintaining orientation is very important in a leader. This involves proclivity to doing duty and displaying respect for those in authority, as well as feeling the need to maintain social order. The management should set ethical standards in order to maintain the social and cultural values of the organization. The organization staffs believe that law must prevail over individual needs due to the greater good and functionality for society. Alternatively, the morality of individual principles of conscience should be considered. The individual is not only oriented toward organizational rules that already exist but also toward the conscience, respect and mutual trust, and when logical universalities are in question, principles of moral choice are picked for consistency.
On the other hand, performance ought to be the main concern for Faslane in order to improve the quality of leadership experienced in the company. Sustenance of competitive advantage over time ensures increased performance and progressive growth of the organization. Managing strategy helps an organization to collect and utilize the available resources and opportunities to realize profits and become competitive in the market (Whittington & Scholes 2011). The management styles used between 2002 and 2010 failed to achieve a competitive advantage and Babcock should have focused on the issue. Development of appropriate managerial strategy is essential for every organization. During the period between 2002 and 2010, Babcock ensured the organization recognized the presence of stakeholders through quality definition and delivery of information. As such, effective communication of the organization’s purpose to all stakeholders would play a significant role in achieving their goals and objectives.
3.0 Conclusion
Faslane strategy on cost cut down a project can be adopted by many other industries in the world so that we improve the services we deliver and create a space in employment in order to deal with the problem of underutilization of human resources. The application of force field analysis was very critical in implementing the desired change within the Faslane Company. The force field addresses all the various aspects of a change such as the urgency of the change, the need for change and the resources required to implement change. With force field analysis, Howie was able to implement the desired change at the Faslane Company. Scope of change is also a major consideration in implementing change. This is important in ensuring the company has its marketing strategy that enables it to compete with other companies in the market. Having a unique culture is important as it enables a company to attractive in the eyes of consumers. Preservation of the company is important as it makes the culture distinguishable. Just like other business organizations across the world, Faslane has undergone a major change in management. This was in 2001 when the company’s management was taken by a company known as Bablock, from the Ministry of Defense (MOD). The change in management was occasioned by dismal performance of the company under the management of the Ministry of Defense.
4.0 References
Carnall, C. A. (1997). Strategic change. Oxford, OX, UK: Butterworth-Heinemann
Hoggar, S. 2012. Delivering the plan: the organizational perspective. James Walker Group
Buddies Program. Retrieved from:
http://www.awberymanagement.co.uk/resources/files/JWG_11_H_Delivering_the_Plan.pdf
Johnson, G. Whittington, R. & Scholes, K. 2011. Exploring Strategy (9th Ed). Prentice-Hall
Kotler, P. and Armstrong, G. 2011. Principles of Marketing, the Fourteenth edition. Prentice
Hall.
Lynch, R. 2008. Strategic Management (5th Ed). Prentice-Hall, pp 619.
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