Strategic Management

Posted: October 17th, 2013

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Strategic Management

General Motors woes according to the author Julian Birkinshaw in the article Reinventing Management, states that the 2007-2008 was because of the inadequacies of management. Majority of entities such as General Motors and others such as Lehman Brothers had inadequate risk management approaches to avoid risky organizational practices. It is evident that business executives within managerial positions in organizations lack ethics and the ability to adhere to provided standards of practice. This results to financial crises. The author provides that organizations such as General Motors, which have evolved for more than 100 years, assumed dominant positions within the business world resulting in dominant management styles, as well. Hence, from such a perspective it is possible to understand authoritarian conduct by management within large organizations such as General Motors and others as well in the United States (Birkinshaw 7).

Apple Inc. according to the article Apple Inc.’s Ethical Success and Challenges, had a share value of just over US $3.30 in the year 1997; however, by the end of the year 2011, the share price of the entity had risen to an overwhelming US $339.87 (Daniels Fund Ethics Initiative 11). Such impressive financial performance resulted in the declaration of Apple Inc. as one of the most successful entities in the modern business world. This is primarily attributed to the shift from computer to consumer electronics entity that was unprecedented by the company.

The corporate culture at Apple Inc has also been marked by challenges towards adequate ethical practice. Apple has a corporate belief that its employees engage in conduct that is ethical given that the entity is driven by the need for “creating innovative, high-quality products and services and on demonstrating integrity in every business interaction” (Daniels Fund Ethics Initiative 12). It is evident that, after the production of one of its anticipated products, the iPhone 4, consumers had complaints about issues with reception. Other issues included the protection of the privacy of consumers using the range of mobile phones developed by the entity. Invasion of privacy was resultant after some features on the range of mobile phones provided for location of a consumer without his consent. Ensuring ethical conduct of business is paramount for an entity such as Apple; this is because of the resulting negative effects on the reputation of the entity due to unethical practices.

Sony Corporation has also been experiencing problems within management of its strategic approaches towards ensuring a high shareholder value. The loss in shareholder value of the entity, according to a recent study by the Griffin Consultancy Group, states that Sony Corporation had conservative management approach despite the presence of volatility and high competition in its market of operation. This has resulted in weak financials recorded year after year by the entity. Additionally, it has resulted in a lack of focus by the entity.

A lack of focus is attributable to the “empire building strategy” that has resulted in a slowdown in terms of innovation, in the variety of production fields or lines of the organization (Tang, Misra and Ellie 13). This is also based on a notion that the entity has achieved maximum growth and a monopolistic status. However, such a notion and perspective is inadequate and inappropriate for an entity operating in the 21st century. This is the primary reason that the entity is slowly losing out to new entities seeking a share of the various entertainment fields that Sony Corporation operates (Tang, Misra and Ellie 16).

Conclusively, it is evident that the three entities, Sony, Apple, and General Motors are affected primarily by their respective corporate and organizational cultures. Furthermore, the management strategies assumed by the organizations identified are also due to the organizational culture founded on the firm belief that such approaches are relevant for the organizations and enhance the competitiveness, efficacy and effectiveness of an organization in its respective field of operations.

Work Cited

Birkinshaw, Julian. “Reinventing Management: shifting the trajectory of civilization” Oxford Leadership Journal. Volume 1, Issue 3 (June 2010):1-10. Print.

Tang, Hao, Misra, Rahul and Ellie Shanholt. “Sony Corporation” Grififn Consulting Group. April 2012. Web. February 22, 2013. Accessed from http://economics-files.pomona.edu/jlikens/SeniorSeminars/Likens2012/reports/Sony.pdf

Daniels Fund Ethics Initiative. “Apple Inc.’s Ethical Success and Challenges” University of New Mexico. March 2012. Web. February 23 2013. Accessed from http://danielsethics.mgt.unm.edu/pdf/Apple%20Case.pdf

 

 

 

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