Business Management Available Business Resources

Question: Describe about the Business Management for Available Business Resources. Answer: Strategic Management A strategy is a plan of action to be followed with an aim of achieving certain set business goals and objectives with the available resources [1]. Some examples of goals or objectives may be to improve customer service, improve the production methods and equipment e.g. the machines and technology [2]. Business managers have to be able to choose the best course of strategy to implement in their organizations to ensure continuous success of the business. They therefore have to utilize their available inner strengths and opportunities to be able to compete with their competitors in the market. A good strategy must be able to achieve the following key roles [3]. Help the business be better than its competitors Help the business achieve its unique objectives and goals Help the business utilize the available resources efficiently and effectively Keep the business as a going concern and successful as much as possible 1Langfield-Smith, Kim. "Management control systems and strategy: a critical review."Accounting, organizations and society22, no. 2 (1997): 207-232. 2Kaplan, Robert S., and David P. Norton. "Transforming the balanced scorecard from performance measurement to strategic management: Part I."Accounting horizons15, no. 1 (2001): 87-104. 3Ramosà ¢Ã¢â€š ¬Ã‚ Rodrguez, Antonioà ¢Ã¢â€š ¬Ã‚ Rafael, and Jos Ruzà ¢Ã¢â€š ¬Ã‚ Navarro. "Changes in the intellectual structure of strategic management research: A bibliometric study of the Strategic Management Journal, 19802000."Strategic Management Journal25, no. 10 (2004): 981-1004. The Unilever Company is a world-wide business organization that produces and sells so many different products like soaps and other beauty products. Therefore, Unilever Company can be able to beat other competing companies in the market by improving their methods of advertisement and selling e.g. the New Lifebuoy Soap. Unilever can use the three types of business competitive strategies (Focus, Product Differentiation and Cost leadership) to help it achieve its goals and objectives without any problems or strain [4]. They can focus on a certain group of consumers, make the soap unique and different from its competitors products and also reduce the cost of the soap to be able to attract customers. By doing this they will be able to increase their sales, be better than their competitors, utilize the resources available to the maximum to produce and sell their products and will also be able to stay in business as long as possible i.e. will be a going concern for a very long time. Business Model Innovation Business innovation is the act of coming with new products, ideas, methods, technology among other things which nobody else had before. A Business Model involves four things i.e. the customer, business product, value created by the product to the customer and profit or revenue generation. However, Business Model Innovation is the adapting, refining or combining patterns of other existing business ideas or products to come up with completely different products or ideas. Simply, it involves imitation of existing businesses to produce different products [5]. There are 55 business model patterns that are responsible for all business model innovations e.g. flat rate, supermarkets, rent instead of buy, e-commerce to name just but a few. 4Teece, David J., Gary Pisano, and Amy Shuen. "Dynamic capabilities and strategic management."Strategic management journal(1997): 509-533. 5Chesbrough, Henry. "Business model innovation: opportunities and barriers."Long range planning43, no. 2 (2010): 354-363. In addition to that, there are four steps to follow in order to innovate a business model: Initiation, Ideation, integration and implementation. Furthermore, there are three rules that are put in place to ensure successful business model innovation: Only one business model can be implemented at a time, clear communication of the new business model and the need for change in the business, no long concentration on short term key performance indicators and ensure top management commitment and lastly no concentration on lack of invention of anything in a business [6]. For example the Unilever Company can improve its business model innovation by following the steps mentioned above. During its initiation stage, it has to analyze its current business model once again by concentrating on their consumers or customers, their products, the value of the product to the customer and how it generates its profits. During ideation, they can borrow ideas from the overall 55 business models with an aim of coming up with a better business model e.g. learning from other industries new selling, promoting or advertising methods. During integration Unilever has to check the business progress i.e. whether it is in in line with the companys objectives and goal and whether it is it is serving its general purpose to the society and the company. During implementation stage, the company should now put the new improved business model into action and check out its impact to the business but that is if it has a chance to positively affect it [7]. 6Chesbrough, Henry. "Business model innovation: it's not just about technology anymore."Strategy leadership35, no. 6 (2007): 12-17. 7Zott, Christoph, Raphael Amit, and Lorenzo Massa. "The business model: recent developments and future research."Journal of management37, no. 4 (2011): 1019-1042. If the business model does not positively impact or profit Unilever, then it should not implementation the new business model but if it does then it is important to implement it [8]. Cage Framework This is a framework that was developed by Pankaj Ghemawat that was based on research in international economics. However, CAGE is a short form of Cultural, Administrative/political, Geographic and Economic. This framework was meant to evaluate how different countries trade with each other despite their similarities or differences in many ways or factors like culture, economic, environment and political [9]. Generally, not only trade that is affected by these factors (similarities and differences between countries) but also other relationships and interactions are affected. For instance, looking at a merchandise business trade, if two countries have the same official language, share a boarder, have similar levels of per capita income then they are likely to trade at a higher rate than those without these kind of similarities. 8Zott, Christoph, and Raphael Amit. "Business model design: an activity system perspective."Long range planning43, no. 2 (2010): 216-226. 9Leamer, Edward E., and James Levinsohn. "International trade theory: the evidence."Handbook of international economics3 (1995): 1339-1394. When I consider Unilever Company, it is an international organization that sells its products in most of the countries in the world. This also means that many different countries with different cultures, geographical backgrounds, economic conditions, political status and other differences and similarities are involved with Unilever products trading. Therefore, for these countries to be able to trade well and have good relations, they have to relate themselves to this framework and find out their position [10]. They have to evaluate themselves using the CAGE Framework so that they can be able to understand each other better and improve their terms and conditions of trade. Therefore, this frame work is a very important tool that businesses can use to evaluate and analyze their international trade status in general. References Langfield-Smith, Kim. "Management control systems and strategy: a critical review."Accounting, organizations and society22, no. 2 (1997): 207-232. Kaplan, Robert S., and David P. Norton. "Transforming the balanced scorecard from performance measurement to strategic management: Part I."Accounting horizons15, no. 1 (2001): 87-104. Ramosà ¢Ã¢â€š ¬Ã‚ Rodrguez, Antonioà ¢Ã¢â€š ¬Ã‚ Rafael, and Jos Ruzà ¢Ã¢â€š ¬Ã‚ Navarro. "Changes in the intellectual structure of strategic management research: A bibliometric study of the Strategic Management Journal, 19802000."Strategic Management Journal25, no. 10 (2004): 981-1004. Teece, David J., Gary Pisano, and Amy Shuen. "Dynamic capabilities and strategic management."Strategic management journal(1997): 509-533. Chesbrough, Henry. "Business model innovation: opportunities and barriers."Long range planning43, no. 2 (2010): 354-363. Chesbrough, Henry. "Business model innovation: it's not just about technology anymore."Strategy leadership35, no. 6 (2007): 12-17. Zott, Christoph, Raphael Amit, and Lorenzo Massa. "The business model: recent developments and future research."Journal of management37, no. 4 (2011): 1019-1042. Zott, Christoph, and Raphael Amit. "Business model design: an activity system perspective."Long range planning43, no. 2 (2010): 216-226. Leamer, Edward E., and James Levinsohn. "International trade theory: the evidence."Handbook of international economics3 (1995): 1339-1394. Krugman, Paul R. "Increasing returns, monopolistic competition, and international trade."Journal of international Economics9, no. 4 (1979): 469-479.