Strategy in Action
What agenda items did we consider most appropriate to implementing our ‘plan’ and why?
The WRSX Global advertising is planning to increase their market share by going global. This would be a fundamental step in increasing the wealth of the shareholders and maximize on the profits and returns. In the implementation of the proposed strategy, it is important for WRSX Global to consider a number of factors before undertaking the move in order to increase the market share of its groups and achieve realistic results within the time frame set in the plan. It is important for the firm to understand the macro and micro economic factors since these factors affects the economic and industrial performance. Economic analysis is one important factor that affects the plan for expansion. Under the economic analysis, the firm must understand the surrounding economic factors such as the rate of inflation, economic growth, and the prevailing market interest rates (May, 2010). This is because these economic factors directly and indirectly affect the performance of the organization by influencing the rate of returns expected from the additional investments.
Expansion process also needs the company to take into account the political and social factors within the environment of operation. WRSX must consider the changes in the political and industrial factors since the political forces are fundamental to the growth and development of the firm through goodwill and conducive environment creation. Similarly, it is important for the firm to consider the impact of legal frameworks on the performance of a firm. This is because the operations of the firm within its new environment of operation are regulated by the legal policies. In terms of social environmental factors, it is paramount for the firm to develop a deeper understanding and pay close attention to corporate social responsibility as a way of improving or strengthening the relationship between the firm and the public. Technology is another factor that must be considered in the process of conducting globalization and expansion strategy of the firm. Technological integration especially in the 21st century is very important because it is a cost-reducing factor that results into increased productivity and industrial capacity to produce high quality products (Hall, 2004).
In exploring a new market, it is important for the firm to study the market. Studying the market involves carrying a research on the marketing mix and particularly knowing the strategies used by the competitors operating in the same industry. This includes having a deeper understanding of the pricing and production policies of the competitor. It is through study the competitor that the firm would be able to identify the next course of action with respect to the pricing and production techniques. Some aspects of the competitor that are important to a new firm like WRSX include the potential customer target of the competitor and the nature of the products manufactured by the competitor in terms of quality and measurement standards. Since WRSX is an advertising firm, the company must be very familiar with its competitors and the competitive strategies in the industry (Wittmann, & Reuter, 2008).
Besides, WRSX must conduct a SWOT analysis. This entails the identification of the company’s strengths and opportunities that need to be exploited and explored. Carrying a SWOT analysis would be an essential step in the identification of the firm’s points of weaknesses that call for immediate response in order to make the company relevant in the industry (Reading, 2004). The SWOT analysis is also important for the firm as it allow the firm to identify threat factors to the success of the WRSX. Through such moves, the firm would be in a position to identify all the potential grounds for growth or failure.
What results did we achieve through the decisions made at this meeting?
WRSX was determined to have the whole exercise of going global succeed. The exercise registered success as the expansion and multinational plan. The success of the plan is founded on the fact that after WRSX had considered its expansion plan, the immediate outcome was a significant rise in the share prices of the firm. The share price of WRSX went up by about 63% over the first few months after the expansion plan was undertaken. This expansion plan has the potential of increasing the employment opportunities created and increasing the quality of the services delivered to the customer. Globalization of WRSX is an essential step aimed at increasing the competitiveness of the industry and as a result of stiff and fair competition; the whole economy reaps the benefits of globalization and expansion. Through such expansion plan, WRSX will record high returns coupled with a rise in the volume of sales made and the rising profitability index. In addition, WRSX reported a growth in its customer base especially after going global and exploring Asian markets with a great potential and capacity of potential consumers. It is through these policies and increased market share that the company has been successful over the years especially after a massive resource investment in economic expansion and growth.
What amendments to our plan did we make, if any?
The plan itself is a very realistic and achievable. From the figures and the outcome of the plan, it is worth noting the plan proposed by WRSX is sustainable in the long-run. However, it is important for the management of the advertising firm to consider other short-term alternatives that would be beneficial and realistic in the short-run as the organization plans a long-term goal. One of the short-term strategies that are essential for the success of the firm in the multi-national level is technological integration and labor force specialization.