Strategic Management of Stream

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StrategicManagement of Stream

3.Strategic course of action description and analyses, andrecommendation.

Describethe opportunities and threats facing the organization from theconclusion of your last term report (SWOT).

Opportunities:

1.The company has identified a new opportunity in the provision of taxservices

2.Most of their current clients require tax work on yearly basis

3.They specialize in analysis based services that have enabled them toacquire new customers from their primary competitor – Cambridge.For instance, they offer CFO for hire, which is a plan that targetsto help other businesses expand

4.Stream Can Afford to Charge its Clients Lower Fees than the BigCompanies they are Competing within the Industry

Threats:

1.The organization has no access to loan facilities since it is a smallcompany

2.They incur huge labor costs that account for about 90% of theiroperation costs

3.They undercharge clients to retain their loyalty but they need tooffer higher salaries than their rivals to reduce the staff turnover

4.Clients that use Stream Company services grow drastically andestablish their accounting departments hence, the organization islosing valuable clients

Writethe Possible Strategic Courses of Action Through Which theOrganization May Capitalize on these Opportunities or Overcome theThreats.

Theorganization can successfully tap into the benefits of itsopportunities through:

a).Purchasing the latest tax calculation software so that it can delivercompetitive service that will surpass its primary competitors

b).Outsource some of their tax calculation problems to lower the cost ofoperations

c).Establish a policy that would prevent staff members from carrying thefiles of their clients home. The regulation will attract morecustomers as they will be assured that their confidential informationis safe

d).The company should develop a standard pricing policy for theirservices to avoid undercharging customers

Developand Describe a Set of Criteria Through Which to Analyze, Measure, andCompare the Courses of Action.

  • The Stream Company can analyze the significance of its actions through determining the number of clients that are interested in its service.

  • The actions taken can be measured through establishing their cost of implementation and the efficiency of organizing production. If an organization can accomplish a given task, the decision is then suitable for the business.

  • The enterprise can also compare the suitability of its course of actions through monitoring its capability to attain value creation and the satisfaction of clients. When the customers express contentment, it implies that they are taking the right course.

Howdo these Criteria Support the Organization’s Resources and CoreCompetencies or What is the Feasibility of Future Acquisition?

Thesestandards support the resources of the organization through helpingit to maintain a competitive advantage since it can delivercomparable or even better service to the clients at a lower cost, thebusiness will soon need to expand. Acquisition of its competitorswould be one of the most potential means of development.

DecideUpon, Recommend, and Justify a Course of Action.

TheStream Company can beat its competitors through focusing on its corecompetencies. The approach involves the provision of unique servicesthat its primary rivals lack. For instance, the taxation sector hasfew competitors hence, the company will easily market its servicesto both current and new customers. This course of action is feasiblesince the team can provide tax services at a lower cost than itsrivals.

Services

Benefits

Disadvantages

Taxation

Numerous clients require it

Customers are reluctant to change the service providers

Funding

The investors have financed the company from their individual resources

The organization lacks access to loan facilities due to it small size

Core competencies

Workers have unique skills needed for the development of the business

The enterprise overpays members of the staff to reduce employees’ turnover.

4.Analysis of organization design and strategic alignment:Evaluatethe organizational culture and strategic leadership

Streamuses adhocracy organizational culture as can be proven by its valuefor innovation, dynamism, and risk-taking. Its strategic leadershipinvolves hiring individuals with unique skills to run particularchores. For example, Twip was hired to run the social mediapromotion.

Rewards

1.What Types of Rewards Does the Organization Use?

a.The quality of its services is higher or comparable to itscompetitors but comes at a lower cost

b.Gives their employees better remuneration than their rivals

2.Howdoes the Organization measure performance?

Organizationsmeasure their performance through evaluating whether the setobjectives have been obtained. For example, the manager can know thatthe staff accomplished their goals if they attained the targetreturns on investment.

3.Consider the Incentive Scheme in Relation to Decision-Making andControl Rights

Teammembers can be motivated by allowing them the freedom to makedecisions independently. An individual feels ownership of thebusiness because they make decisions that play a crucial role in theoverall performance of the enterprise.

4.Consider both Intrinsic and Extrinsic Rewards

Streamoffers intrinsic rewards as it promises to give promotions to thebest performing employees. Similarly, it provides extrinsicmotivation to potential clients to hire its services throughdelivering high-quality services at a lower cost than its rivals.