Cultural Considerations in Business
Phase 4 Individual Project
Collins, Bruce A.
Colorado Technical University
Mike, Tiffany and I have just met. Mike is confident about the analysis we did of our strategy and says all we have to do is “put the pieces together before the final presentation.” ("Mgmt690-1404b-05 strategic management,") Tiffany says “We do have solid information, but we have to look at all the parts to see if we can remain competitive.” ("Mgmt690-1404b-05 strategic management,") First, “What are the considerations that you need to be aware of to remain competitive?” ("Mgmt690-1404b-05 strategic management,") Second, “based on the research that we have done, ...view middle of the document...
Companies have been left behind by being complacent or acting to slowly to the changing market. Kodak is an excellent example and in the article “Barriers to Change: The Real Reason Behind the Kodak Downfall” (Kotter, 2012) John Kotter stated that “Everyone thinks of all this in terms of strategic decisions either avoided or made poorly. What no one seems to do is go back and ask: Why did Kodak make the poor strategic decisions they made? In 1993 they brought in from the outside a technology expert to be CEO. George Fisher was believed to be almost as good as Jack Welch or Lou Gerstner. Great CEO, people buried in the hierarchy who had all sorts of good ideas, and still poor strategic decisions. Why?” The answer was “The organization overflowed with complacency.” (Kotter, 2012) You would have thought that Kodak would have been the leader in implementing digital film technology but they were not and paid for that mistake. Rebecca Bagley said “Innovation has to be part of a company’s culture.” (Bagley, 2013) Making sure you have the right people with different viewpoints, experiences and backgrounds is the catalyst for innovation.
Can we compete?
Absolutely. After doing SWOT, PEST, and a competitive analysis on our two largest competitors, Ashley Furniture and IKEA, we determined that we would use the strategy of differentiating our company from their companies. In Phase 3 Discussion Board we said “We should take the strategy to differentiate our company from them. IKEA targets the low to middle income market while Ashley Furniture targets the middle income market. These consumers are not as price conscious but are looking for quality first and price second. With our company’s reputation of exceptional customer service and superior quality, and our current market of the upper middle class we fit nicely into that market.” (Collins, 2014 December 7) We also stated in the Phase 3 IP (Collins, 2014 December 8) that we have our own in-house design team and our company is well known to have “exceptional customer service and superior quality products.” ("Course materials: Mgmt690-1404b-05," 2014) Once we have proven ourselves we can then evaluate other opportunities in the market.
Should some dispute my position I would just give them the following facts. China has over 1.3 billion in population which is equivalent to 19.24% of the world’s population ("China population," 2014). 54% (756,300,115) of that number are urban with growing incomes and appetites for luxury products. In her article, Bernice Chan points out “According to the 2013 Julius Baer Wealth Report, affluent Chinese consumers see buying luxury products and services not as an occasional treat, but an integral part of their lives.” (Chan, 2014) Chan explains that status symbols but for the Chinese “materialism is really an indicator of hope for the future.” (Chan, 2014) Integral is the key word from that sentence. With our product line targeting the upper middle class we are...