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1、 Report on Business Culture and StrtegyClass: 2012 Global Trade and BusinessSCN: 135738964Name of Student: 刘力文 (Liu Liwen)Name of Tutor: Sun YinSubmission Date: JanuaryContents1. Introduction.22. Main Body.22.1Four business strategies to the business environment.22.2Differences and relationship betw

2、een business strategy and strategic choice.22.3Two different business strategies and their influence over organization behavior.32.4 Managing and updating of the business strategies.42.5 Four potential benefits that Alphabet Games could enjoy.42.6 The role of Management during a change in strategy52

3、.7 The possible impact of two competing influences upon any change management programme.52.8 Beckhard and Harris change formula analyze changes.5 2.9 Suggest the management of Alphabet Games may minimize and overcome resistance.63. Conclusion.64. References.71. IntroductionAlphabet Games is software

4、 games development company which is based in Scotland.In this report, I will detail introduce and analysis about Alphabet Games about their business strategies and strategic choice and it could meet resistance and how to solve it.2. Main Body2.1Four business strategies to the business environmentAns

5、offs matrix is one of the most well-known frameworks for deciding upon strategies for growth. It includes four strategies: market penetration, market development, product development and diversification.Market Penetration: Marketing existing products to existing customer,expanding their existing pro

6、duct in order to improve market share. This means increasing the revenue, but the product altered and not seeks any new types of customers. The market penetration have the appropriate business environment: first, existing market demands is not unsaturated. Second, existing market is remaining profit

7、able. Third, existing market have a new sources of growth and competitors have a big challenge in business. Market Development: Marketing existing product range in a new market. This means that the product remains the same, but it is marketed to new customers. The market development has the appropri

8、ate business environment: first, there is no development of market or the new market is unsaturated. Second, main competitors have higher quality products in a similar price in the existing market but the new market is competiveness is small. Third, there is a new, reliable, economic and high qualit

9、y of sales channels in new market.Product Development: This is a new product to be marketed to existing customers. Develop and innovate new products to replace existing ones. The produce development has the appropriate business environment: first, the existing market has a big competiveness. Second,

10、 existing market need more new product to meet customers demands. Third, new product gets profit in the short term in existing market.Diversification: There are new products to new customers. There are two types of diversification: related and unrelated diversification. The diversification has the a

11、ppropriate business environment: first, the new market and new product means can have higher profits. Second, the competiveness is small and the risk can be also small. Third, new market and new products can have new sources of growth.2.2Differences and relationship between business strategy and str

12、ategic choice.A business strategy is a document that clearly articulates the direction a business will pursue and the steps it will take to achieve its goals. In a standard business plan, the business approach results from goals established to support the stated mission of the business. It is planni

13、ng and long-term. A business strategic choice is that analyze the organization current situation, the organizations external macro environment and the macro environment of the organization, through the choice to find the position of the organization. Main Differences between business strategy and st

14、rategic choice: The strategy is a direction and destination, where you are going and how you will get there. But the strategic choice is show what are the company doing and what not to do. The strategy is ubiquitous, it can found at the any levels of corporate, but the strategic choice is fixed, suc

15、h as the small company chooses different strategy. The strategic choice is the best alternative strategies. Main relationship between business strategy and strategic choice: the organization through the environment of the screening and analysis, strategic choice eventually find strategy. In the Port

16、ers generic strategies, for the Alphabet Games, at the beginning, it is a small company, there are only three friends and their office is rented. The Alphabet Games did not ability to provide Comprehensive product type, so their early days are the differentiation strategy. With the development of th

17、e Alphabet Games, the company in demand for flash games designed for clients and be used as marketing or educational tools in order to collect the customers data. Providing key messages to consumers or employees and providing a competitive edge over other organizations, so the Alphabet Games is cost

18、 leadership strategy.2.3Two different business strategies and their influence over organization behaviorAlphabet Games Companys have two strategies which are cost leadership and differentiation.At the beginning, it is a small company, there are only three friends and their office is rented. The Alph

19、abet Games did not ability to provide Comprehensive product type, so the Alphabet Games need to consider the differentiation strategy. With the development of the Alphabet Games, the company in demand for flash games designed for clients and be used as marketing or educational tools in order to coll

20、ect the customers data. Providing key messages to consumers or employees and providing a competitive edge over other organizations, so the Alphabet Games need to consider the cost leadership strategy.The cost leadership and differentiation will affect the business behavior. Different strategies but

21、same values can have a same behavior, same strategies but different values can have different behavior. At the beginning, the Alphabet Games is differentiation strategies, they are in order to expand the market shares and get a good reputation, so they designs, builds and customizes software solutio

22、ns to meet market challenge and individual needs. After that, the Alphabet Games is the cost leadership strategy, the Alphabet Games in order to survive in the competitive environment, they design the flash games and have an educational tools. 2.4 Managing and updating of the business strategiesStra

23、tegic management refers to the management of the enterprise strategy, including Strategy formulation or form, strategic implementation. However, updating of the business strategies make use of the new knowledge and innovative behavior in order to make the core ability of organization and product mar

24、ket revolution become a process of slow evolution or intermittent revolution. When the company manage its business strategy, there are several forces for change need the company to consider. The first one is that the shorter product life cycle. Due to the AG is a high-tech company, the update of tec

25、hnology become more faster, so the company need updating the strategy. For example, the graphics as HD gaming. Due to the shorter product life cycles, the company may meet some difficult, such as the companys product can not follow the speed of update, so the company need updating the strategy. Howe

26、ver, due to the staff has their own habit, they want a steady environment, it may become the forces against change. The second one is that due to the pirated copies and imitations of game development, the company will face the loss and the damage of firms image. Due to these, the manager may conside

27、r to updating the strategy, the present strategy can not deal with the problem and threat. Compare with these two forces for change, the first one may increase the pressure on R&D department, the company need hire more technicist to shorter the product life cycle, this will increase the cost of

28、human resource. The second one will improve the companys property protection consciousness and affect the company enter a new market.When the company updating the strategy, there are also have some forces for change. Due to the strategy can not adapt to the need and requirement of society, the compa

29、ny need to update its strategy. The first one is that offering consumer a unique value perceived or real. In the AG, the ability to identify and capture behavioral and physical elements is very good, to updating the strategy, the company can use the capture behavioral and physical elements technolog

30、y to offer a unique value for customer and complete the updating. The second one is increase the competition. The AG has a good atmosphere and extensive experience, it will improve the competition and help the company to updating the strategy to differentiation. Of course, the passion and EGDF also

31、will help the company to updating. Good atmosphere can reduce the conflict due to the updating. The company improve the quality of service and offer unique product will help the AG to attract more customer and improve the loyalty of consumer. Increasing the competition will help the company to defea

32、t with other company and survival in the market.2.5 Four potential benefits that Alphabet Games could enjoy.The effective business strategy can have potential benefits to the Alphabet Games: the first, the expansion of the scale: the Alphabet Games can have rapid development, the second, the expansi

33、on of the profit: the Alphabet Games expand their assets such as their working office, the third, the Alphabet Games also provide employee's employment opportunity and the chance of the reward to the employee. The last, the Alphabet Games also have a good reputation and image represent the Alpha

34、bet Games have a brand loyalty in certain range. 2.6 The role of Management during a change in strategyWhen the Alphabet Games during a change in strategy, their management have a very decisive role. First, the manager play a role in a dominated by action, fast decisions for strategic transformation

35、. As games development becomes more akin to movie production, the costs associated have risen sharply, in addition, there is force competiveness and the opportunities for longer term reward, the manager give up the games market without hesitation and they began transfer into the new internet viral m

36、arket.Second, the manager is also proactive and enterprising. The Alphabet Games replace original products and make use of their technology advantage which designed flash games for clients. These can be used as marketing or educational tools and some of the companys recent clients and much small bus

37、iness. 2.7 The possible impact of two competing influences upon any change management programmeThere are many competing influences, such as the stakeholder powers, business goals, business culture and business ethic and business responsibility. These competing influences will affect the change manag

38、ement programme.The business responsibility will affect the Alphabet Games Companys management programe. The Alphabet Games as a games maker, they did not produce any Violence or bloodshed and unhealthy products. They can have a series of rules which screen in the theme or material. They can give so

39、me useful suggestions to the games and remind consumers don't indulge in the game. When the Alphabet Games transfer and revolute, they consider how to arrange the employee to a suitable position. When they choose the new product which makes it, they choose positive produce.The business ethic als

40、o will affect the Alphabet Games Companys management programe. The Alphabet Games seriously consider employees welfare and safe and the working environment. They can give employees appropriate vacation and they do not have Mandatory requirement. Of course, the Alphabet Games also , they do not lay o

41、ff employee without reasons and they help employees present problems.2.8 Beckhard and Harris change formula analyze changes Backhard and Harris change formula is a mathematical representation of the change process. Their equation gives a quick, first impression of possibilities and conditions to cha

42、nge an organization.Resistance: The employees can fear of failure in the future and themselves interests can be reduced. Some of employees are not willing to leave their familiar industry. Dissatisfaction: the Alphabet Games employees are unsatisfied with the present situation. The driving force is

43、the market profit reduced and long-term rewards in the games industry and increasing competiveness. The driving force is greater than the resistance.Vision: Before the reform is tough, employees hope to find low pressure after the reform and the industry is increasing than the games market.First ste

44、ps: the Alphabet Games have the cash of flow is limited, so they enter the less cost of the industry and the related diversification technology. They can make use of related technology save the cost and improve the industry environment.2.9 Suggest the management of Alphabet Games may minimize and ov

45、ercome resistanceSix Change Approaches include Education and communication, Participation, Support, Negotiation and agreement, Manipulation and co-opting, Coercion. Kotter and Schlesingers management styles for dealing with change helps the organization realize that different types of change and dif

46、ferent stages in a change process will require different approaches. It is effective of the Six Change Approaches, so the Alphabet Games may adopt the six change approaches what minimize and overcome resistance.The Alphabet Games resistance is the employees can fear of failure in the future and them

47、selves interests can be reduced. Some of employees are not willing to leave their familiar industry. So there is education and communication, participation, support approaches are appropriate to minimize and overcome resistance.Education and communication: Resistance can be reduced by communicating with employees to help them see the logic of s change. Some of employees are not willing to leave their familiar industry, communicating with staff in order to make the staff know the real industry environment

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