W09a1 - The Organization’s Response To Change Summary Overvi ✓ Solved

w09a1 - The Organization’s Response to Change Summary Overvi

From the same case that you have chosen for Deliverables 1 to 3, you will advise the CEO on how best to position the organization to be responsive to change in order to take advantage of the strategies you have recommended.

Write a 6–8 page paper in which you:

  1. Give your opinion as to whether your chosen company’s industry is maturing or declining, based on its evolution history. Justify your answer.
  2. Use Porter’s National Diamond to evaluate the relative main advantages and disadvantages of vertical integration versus outsourcing for the company. Support your response.
  3. Use the Boston Consulting Group’s growth-share matrix to evaluate the company’s strategic position as of 2013.
  4. Suggest one approach for the CEO to adopt in order to implement the strategies that you recommended in Project Deliverable 3. Include the main changes in decision-making style, main changes in planning structure, and measures of success in your recommendation. Provide a rationale for your response.
  5. Use at least three quality references.

Note: Wikipedia and other similar websites do not qualify as academic resources. This course requires the use of Strayer Writing Standards.

Paper For Above Instructions

In addressing the organization’s response to change, we first need to define the company and its industry. For the purposes of this paper, let’s consider Apple Inc., a leading technology company known for its innovations and products like the iPhone, iPad, Mac computers, and various software services. As of 2023, the technology industry can be seen as both maturing and rapidly changing, largely driven by innovation and consumer demand. However, certain sectors within it, such as personal computing and mobile devices, have reached a maturity stage where growth has leveled off due to market saturation.

1. Industry Maturity or Decline:

Apple's industry, especially the smartphone segment, can be argued to be maturing. The tremendous growth witnessed during the introduction of smartphones has stabilized, resulting in small incremental changes and updates rather than groundbreaking innovations. Comparatively, industries like artificial intelligence and renewable energy are seeing rapid investments and developments. Therefore, while Apple continues to innovate, the market for its core products indicates a maturation phase, as evidenced by declining growth rates in device sales in recent years. This assertion is supported by industry analysis, which highlights a shift towards service-based revenues, indicating that Apple is diversifying its revenue streams to adapt to the changing market landscape (McIntyre, 2019).

2. Porter’s National Diamond Analysis:

Applying Porter’s National Diamond framework, we can evaluate the advantages and disadvantages of vertical integration versus outsourcing for Apple Inc. Vertical integration involves the company controlling its supply chain, whereas outsourcing involves contracting third parties for production. Apple has leveraged both strategies, but primarily focuses on outsourcing to companies like Foxconn for manufacturing. The advantages of outsourcing include reduced operational costs, focusing on core competencies like software development and brand management, and increased flexibility to adapt to market changes (Bhattacharya & Afsar, 2018). On the other hand, vertical integration allows for better quality control, supply chain security, and reduced dependency on external entities. For instance, Apple’s acquisition of companies like Beats Electronics reflects a strategic move towards vertical integration, allowing for better control over product quality and innovation in music and media services. Thus, this blended strategy allows Apple to remain competitive while adapting to changing market dynamics.

3. BCG Growth-Share Matrix Evaluation:

Using the Boston Consulting Group’s growth-share matrix, it is essential to evaluate Apple's strategic position in 2013, a critical year in its product offering lifecycle. In 2013, Apple was primarily positioned in the 'star' quadrant due to its high market share in a rapidly growing smartphone and tablet market. The introduction of innovative products like the iPhone 5s and various updates to the iOS platform exemplified its stronghold in the technology landscape. However, competition from Samsung and emerging brands indicated the potential risk of moving towards a cash cow category, where growth may begin to slow (Kim & Mauborgne, 2014). This matrix suggests that while Apple was excelling in product innovation, it needed to focus on sustaining growth through new product categories and advancements in service offerings.

4. Recommended Approach for the CEO:

To implement strategic initiatives effectively, the CEO should consider adopting a transformational leadership approach. This involves fostering an innovative culture that embraces change and encourages employee participation at all levels. The main changes in decision-making style should shift from a top-down approach to a more collaborative one, where teams across different departments can contribute ideas and feedback. This can enhance the product development process and encourage agile responses to market changes.

Furthermore, the planning structure should transition towards more cross-functional teams that integrate various specialties such as technology, marketing, and operations. This would better align product development with market needs, expedite time-to-market for new products, and ultimately enhance customer satisfaction. Measures of success in this strategy should include enhanced market responsiveness, shorter product development cycles, and continuous customer feedback integration into product iterations.

The rationale behind this recommendation is rooted in the belief that in an industry characterized by rapid evolution, organizations must be nimble. By empowering teams and promoting a culture of innovation, Apple can maintain its competitive edge while addressing the challenges posed by market maturity (Kotter, 2012).

5. Quality References:

  • Bhattacharya, A., & Afsar, A. (2018). The advantages and downsides of contract manufacturing. Journal of Business Strategy.
  • Kotter, J. P. (2012). Leading Change. Harvard Business Review Press.
  • Kim, W. C., & Mauborgne, R. (2014). Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant. Harvard Business Review Press.
  • McIntyre, D. (2019). How Apple mastered the subscription model. Harvard Business School Online.
  • Porter, M. E. (1990). The Competitive Advantage of Nations. Free Press.
  • Thompson, A. A., & Strickland, A. J. (2003). Strategic Management: Concepts and Cases. McGraw-Hill.
  • Mintzberg, H. (1994). The Rise and Fall of Strategic Planning. Free Press.
  • Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management.
  • Cameron, K. S., & Green, M. (2015). Making Sense of Change Management. Kogan Page.
  • Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2016). Strategic Management: Concepts and Cases. Cengage Learning.

References

  • Bhattacharya, A., & Afsar, A. (2018). The advantages and downsides of contract manufacturing. Journal of Business Strategy.
  • Kotter, J. P. (2012). Leading Change. Harvard Business Review Press.
  • Kim, W. C., & Mauborgne, R. (2014). Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant. Harvard Business Review Press.
  • McIntyre, D. (2019). How Apple mastered the subscription model. Harvard Business School Online.
  • Porter, M. E. (1990). The Competitive Advantage of Nations. Free Press.
  • Thompson, A. A., & Strickland, A. J. (2003). Strategic Management: Concepts and Cases. McGraw-Hill.
  • Mintzberg, H. (1994). The Rise and Fall of Strategic Planning. Free Press.
  • Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management.
  • Cameron, K. S., & Green, M. (2015). Making Sense of Change Management. Kogan Page.
  • Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2016). Strategic Management: Concepts and Cases. Cengage Learning.

Related Assignments