Team Chester- WK6 COLLAPSE After examining the chosen competitor’s segments, sta

Team Chester- WK6
COLLAPSE
After examining the chosen competitor’s segments, state if the group is cost leading or differentiating. Provide rationale for your decision.
The cost leadership strategy focuses on competing based on price- this does not mean the goal of the company is to charge the lowest prices in the industry. A more accurate definition is charging the low prices compared to competitors within a specific target market (Short et al., 2014). The differentiation model is based on offering unique features that appeal to the specific needs of the target population- an example of applied differentiation is focusing efforts towards a single sales channel like the internet or targeting a specific demographic group like couples without children (Short et al., 2014). In relation to this project team Chester will be compared to Team Digby. After analysis of team Digbys strategy, it can be concluded this group is following a differentiation model as mentioned in previous discussions. Team Digby has based their strategy on the differentiation model since the beginning of the project competition.
Determine and define the chosen competitor’s overall strategy. Provide rationale for your decision.
Strategy creation is the analysis and planning or initiation of a design that any given company chooses to follow in order to become profitable (Harvard business review, 2005). Digby’s strategy is based on the ability to become faster, smaller, and consumer based. The strategy is consumer based and driven on consumer reports of productivity and satisfaction. Digby reports that the differentiation strategy will offer products that are unique compared to those offered by competitors in a comparable marketplace. The specifics of this strategy supports the team’s competitive advantage and increased market presence.
What are the strengths and weaknesses of the chosen competitor’s strategy and decisions?
Team Digby has been successful in their research and development and product modifications. This creates a competitive advantage for the team. This team reports higher sales revenue and stock price than the majority of other teams within the competition. On the other hand, this strategy has led to an increase of employee turnover which surpasses that of other teams in the competition. “You shall eat the fruit of the labor of your hands; you shall be blessed, and it shall be well with you.” Psalm 128:2 (Smith, 2021). Pursuing business guided by ethical values, will contribute to the team’s success if their energy is focused on the aspects of business that need improvement rather than always focusing on those departments that already report high performance.
If you were to become CEO of the chosen competitor group, what are the first three strategic initiatives you would implement? Why?
“The soul of the sluggard craves and gets nothing, while the soul of the diligent is richly supplied.” Proverbs 13:4 (Smith, 2021). This scriipture reminds me of the importance of rewarding those who deserve praise. The company needs to decrease turnover rates so it would be wise to invest more in employee training and creating a program that focuses on employee satisfaction. Many companies now provide services to increase morale. For example, free lunches, onsite fitness and daycare centers, or meditation rooms are provided by the company to express care for their employees (Carucci, 2019).
Decreased complement in efforts to save money on staffing needs. It seems the company would probably operate more efficiently and save more funds by reassessing the staffing needs.
A higher asset turnover rate indicates a more efficiently run operation. In this case, Digby’s asset turnover is low in comparison to that of team Chester. In efforts to improve asset turnover rates a CEO should fine tune operation processes to become more efficient by training, firings, or new hires. This is dependent upon a factor of business aspects- specifically it would be most effective to focus on increasing production rates by creating new innovative products which require less work and maintain the same functional results.
References
Carucci , R. (2019, November 1). Balancing the company’s needs and employee satisfaction.
Harvard Business Review. Retrieved December 2, 2021, from
https://hbr.org/2019/11/balancing-the-companys-needs-and-employee-satisfaction
Harvard Business Essentials: Strategy: Create and Implement the Best Strategy for Your
Business. Harvard Business School Press, 2005.
Short, J., Try, D., & Edwards, J. (2014, September 12). Focused cost leadership and focused
differentiation. Mastering Strategic Management 1st Canadian Edition. Retrieved
December 2, 2021, from
https://opentextbc.ca/strategicmanagement/chapter/focused-cost-leadership-and-focused-differentiation/
Smith, S. (2021, November). Open Bible info. What Does the Bible Say About Employees?
Retrieved December 3, 2021, from
https://www.openbible.info/topics/employees