Contemporary Issues in Strategic Management
In the advent of the technological expertise that vouches to define current generation, the accessibility to information has been increased in the identical rate of the urge to preserve it intact. This holds good for the domain of tools that chiefly oriented to knowledge and intellect since Encyclopedia Britannica has been able to morph itself into the virtual bibliotheque called Wikipedia that strictly relies on the cumulative wisdom (Heizer, 2016). Furthermore, in terms of financial accomplishment, the amount of annual revenue that Wikipedia has been able to procure is significantly high as compared to Britannica or its intermediate CD version Encarta. On that note, the corresponding study is supposed to address,
- The issues and challenges that business organization are currently undergoing in terms of Porter’s Five Force analytical tool
- Subsequent evaluation of the underlying issues and challenges
- The Modus Operandi of implementing business strategies
Analysis of the External Environment
External environment, in terms of the mode of operation and implementation of business strategies of an administration that deals with the rudimentary tasks associated with maintaining a Digital Library can be primarily characterized by the information revolution that causes significant alteration in the strategic execution of the business objectives. In the context of the attached case study, in order to explore the potential opportunities and threats and several other external governing marketing parameters, Porter’s Five Force analytical framework needs to be deployed and the outcomes might look like;
- The incorporation of several other analytical software might magnify the quotient of authenticity of the information.
- The employment of several Big Data analytics might enable them to transform as a universal virtual library.
- Wikipedia is supposed to be the encyclopedia that operates free. This might be posed as a potential threat as it can collapse the support system due to the deficiency of revenue generation.
Proportion of Rivalry:
- This pursuit of this external component is principally shaped on the enquiry that wishes to conduct a comparative study on the expense of the departure from a prevalent market and entering into a new one (Peppard, 2016). In this regard, the evolution of printing and publishing industries into the virtual library has significantly stabilized the annual revenue and it is difficult for the potential rival or the peers to replace Wikipedia with other identical multidisciplinary digital library. The moot dispute that most of the respective organizations face is the absolute objectives and the long-term goals do not evolve in the identical fluidity and pace that technological expertise evolve. Thus, it is difficult to monitor the economic aspirations within this parameter since most of the identical concerns deals with similar technological expertise.
- The proportion of market share held by the respective unit decides the Industry Concentration of the concern in terms of the protocols posed by N.A.I.C.S. Moreover, the market concentration can be identified in terms of prevalent Economic Census and several other financial statistics (Rothaermel, 2015).
- The proportion of adversity significantly fluctuates in terms of the cost of fixed assets and the variable assets. The incorporation of technological expertise may encourage a considerable investment as it indulges the alteration the foundational equipments that significantly increases the cost of the variable assets and subsequently reflected in the annual financial performance.
- The organizations need to be strategically sound in order to ensure industrial growth and expansion and the confidence to pursue extra-market interests. Furthermore, the individual competence to avail projects of higher excellence ensures the relative competitive rivalry of the respective organization.
- The intermittence to run the entire unit with a capacity that is invariably above the proclaimed capacity might consolidate the market status of the respective unit since the dimension of intermittent overcapacity bears the potential to cater their competitive advantage. Wikipedia has been able to dispense extensive strata of information, which is adequate to quench the social awareness while drawing the response of the concrete research communities (Grant, 2016).
- It has been an established fact that the intensive distinctive feature that has been introduced to address a specific demand create differences in product value and simultaneously endow the respective organization with relative competitive edge.
- The consolidation of Brand Identity is essential in order to earn competitive advantage. Since the brand identity segments the respective concern with similar concerns.
Threats of New Entries:
These threats and the potential origins can be categorized as,
- Major alteration in the cost structure
- Proclivity of the potential customers towards substitute
- The respective Price-performance and Trade-off of the Substitutes
This segment is supposed to categorize the Buyer’s intent regarding
- Buyer Volume
- Bargaining Leverage
- Brand Identity
- Price Sensitivity
- Product Differentiation
- Substitute Available
- Buyers Incentives
In terms of the suppliers bargaining power can be categorized as,
- Significance of volume to the supplier
- Segmentation of Inputs
- Influence of Inputs on price or segmentation
- Availability of the Substitute Inputs
Functional Contemporary Issues and Consequent Challenges
Being a unit that is stringently dependent on the aspects of compatibility with the technological expertise, this has to develop the acumen to cope with the potential impediments that the sectors are prone to face. For instance, Wikipedia is prone to preserve their information within their own premises and wishes to command them within themselves. On that note, it is imperative to address that, Wikipedia needs to revise their infrastructural hierarchy that chiefly governs the virtual platform. This will further assist them to devise their Cloud Plans.
Furthermore, as per some current anticipation, Information is supposed to grow by 800 percent in the upcoming decade and supposed to evoke in an unarranged manner. Units like Wikipedia need to incorporate this vast amount of data while employing prudent organizational insight. This might assist the respective organization to explore several encounters that are prevalent to the processing of interpretation of the information. This also urges for the several framework for big data analysis as an imperative requisite. They can be recommended to employ the benefits of the remedies such as employing Ethernet or being capable with parallel processing.
Moreover, Wikipedia need to acquire the competence to cope with the aspect of Virtualization. In context with a recent study, The Distributed Management Task Force (DMTF) needs to seek the principles that standardize the specifications of Virtualization Management. On that note, Wikipedia can be recommended to deploy VMAN’s Open Virtualization Format (OVF) that might assist the respective organization with the guideline to operate virtual machines and several other applications (Galliers, 2014).
Strategy Implementation and Control Systems
Analyzing the Control Systems to implement strategies
As it is mentioned earlier, concerns like Wikipedia is destined to face gross dilemma as the ultimate objectives of the concern does not evolved with the evolution of technological expertise. In order to cope with the aftermath of the confusion, organizations like Wikipedia needs to fix their priorities since it is potent enough to shape the marketing strategies. Since the inclination towards progressive education and collective wisdom in order to generate a circumspect social awareness posed an urge to acquire prudence in creation, dissemination and preservation of information, the essence of electronic publishing encourages the digital libraries the organize the collection over and over again (Bryce, 2017). The last phase of the decade has exhibited a boom in terms of creation of information due to the leap in the affordability and accessibility of digital devices and several other information-capturing apparatus enables the respective authorities to shed more attention in organizing the available information.
Organizational Change: Change can be acknowledged as the prelude of innovation. Wikipedia has been able to acquire a prudence regarding the compatibility to cope with change. Their portal strictly relies on the notion of collective wisdom and designed their format that anyone can edit the content. This also holds good for the workplace ambience as well as the management is supposed to encourage their potential employees to thrive for innovation in order to develop the competency the project of higher excellence.
Employee Rewards: The management is prone to acknowledge the efficient employees in terms of verbal appreciation. Moreover, the substantial financial analogue has been regularly in their pay matrices in terms of incentives.
Levels of Hierarchy: Wikipedia is one of those organizations who appear adamant to refuse the standard organizational hierarchy. The all love to consider them as labors as they never occupy themselves with the underlying conflict of labor and intellect.
Conflicts: The management denies entertaining any intolerance with conviction. The absence of hostility and mutual envy is one of the most symbolic features of their workplaces.
The strategic objective of Wikipedia is to accomplish the outcomes regarding,
- A vision that transcends the boundary; strategic intent
- To acquire an introspection regarding the significant benefits of strategic shareholders
- Alignment and further morphing of the intentions of the organization