Strategic Misalignment

The global financial crisis of the past year still has its lingering effects. Many companies could not function well during such times resulting into them succumbing under pressure, resulting into closure for them. Others however resulted into bankruptcy and various mergers and takeovers could be seen. During the current financial crisis, the corporate and financial world saw a very turbulent period whereby managing a company or bank or business became immensely challenging.

One could, by the gradual end of such a time, or its gradual fading away, see differences in functioning and many changes occurring not only into the financial models and systems at those companies, rather in the overall strategic goals and vision of such companies. Therefore, it is very important that strategic management is discussed in detail so that a better more modern framework can be formulated and implemented in companies after customizing it to their needs, characteristics and systems.

When companies that could not function well at all during times of financial difficulty and instability, the question of consideration of other reasons than the global financial crisis comes in. This part of the paper talks about internal and external factors for a company to consider when dealing with strategic misalignment. There can be both internal and external reasons for a company losing control over its business models.

Internal reasons could include: de-motivated staff and executives, remuneration issues with the above, lack of control, lack of leadership skills and qualities, no efficiency in handling tasks, more importance given to everyday own personal needs, lack of funds, absence of the kind of framework needed to implement that kind of project at hand. The latter could include issues ranging from technological lacking, to physical infrastructure problems involving a poorly controlled environment and even lack of space.

External reasons could range from a disrupted political and social environment miss-alignment company and cultural goals of the environment or location the company is in; taxation and other legal rules and regulations; absence of the technological framework needed; and even very low economic essentials and facilities for the company at hand. These factors could hamper the progression in terms of following a business model even if it’s duly efficient and of a good formulation standard.

All businesses’ main goal is to create value through corporate governance, value based management, profitability, aligning strategic goals with managerial goals, planning, operating effectively and developing market niche. This is all there to gain an even greater market share and maximise shareholder worth. For this purpose, many companies create business models that they then follow to meet their short term and long term goals and objectives. A business model hence is the framework that companies adopt to deal with social, psychological, technological, political, economic, and cultural factors to amalgamate their own vision well.

This is all there to create competitive advantage which is the gaining an edge over one’s competitors. Global management often times deals with sourcing of operations to external parties that develop, formulate and help in the implementation of guidelines, and strategies. The very many dynamics of the business model a company’s using which could range from being customised to hybrid, etc. (Chng, W. , Yam, A. , and Chan, M. , 2004) Licensing proprietary technology to foreign competitors is the best way to give up a company’s competitive advantage.

Licensing of proprietary technology could range from alliances and mergers and acquisitions in the international market to setting up one’s own whole subsidiary in such a market. Competitors can range from being present in the local arena to being there in the international market. In any case it can be said that yes, licensing technology to such players can definitely harm one’s own business or the long-term standing of a company who is giving this license to these companies. A licensing agreement means any agreement or contract that transfers the right to intangible property and assets of a company that buys that license.

This could be for a long term or even for a specified shot-term period depending on the type of industry the ‘two companies’ are operating in. Competitive advantage is achieved if and when a company or a business sets itself part from its competitors and other companies in same domain of work or industry, that it helps establish customer base based on that edge that the company offers to everyone. When a company like this in return to a licensing fee gives off proprietary technology, then the other company can definitely be sad to be at a winning end.

This is because it is certain that the receiver company might just exploit this opportunity area and then develop on the’ edge’ to an extent that it goes a step even ahead of the ‘sender’ company. In exchange of rights, hence forth a fee more famously called ‘royalty’ is paid to the giver. The risk is yes immense however cross licensing agreements could be signed here too so that valuable technical expertise in terms of knowledge is shared by the receiver company in addition to a royalty payment by it for the licensing agreement. McGraw-Hill and Irwin, n. d. )

It needs to be made sure that whatever happens in the business world, the employees and management always need to ensure stability in their functioning. There are hence also many lessons in businesses and companies that need to be learnt well so that certain procedures can be followed in future in face of similar circumstances. Firstly, a proper set of causes need to be highlighted and defined to list what was the background of the problem.

Often, the cause could range from poor management to even mergers and acquisitions that fail to deliver to the kind of expectations that were outlined when the deal was formulated and signed. (Thompson, J. , n. d. ) Secondly, financial control issues could be the reason resulting into again difficulties in a company’s functioning. When financial control and its previous handling and organization is adequately defined and explained, then only can the fact about ‘failure’ be found, so as to avoid similar circumstances in future.

Also of importance here is the fact that handling and managerial experience gained in situations like these is very essential since it helps in the company’s management attaining adequate crisis management tools and techniques. Thirdly, another lesson that can come out of this is that of perseverance, since it helps in ensuring that employees and management alike do not feel insecure when things get harsh around them in their corporate capacities. Dealing with setbacks hence requires that amount patience and perseverance so as to develop a thicker layer upon oneself and prepare oneself and the company for similar misfortunes.

The most important lesson however is of the feel of the overall experience in setbacks and failures in companies, which grow a strong bond between the employees, because of which they feel more close to each other when refining systems and curing the disease stricken company. Employees or the human asset is the most important resource in any company, and therefore it should be understood well how essential working together, in a team is for the entire entity.

This helps in ensuring empowerment, effective communication (if any), brainstorming of ideas and effective execution, directional work, delegation and heightened creativity since there are many minds at work meeting the same end goal. Licensing proprietary technology to foreign competitors is the best way to give up a company’s competitive advantage, in the case of a medium sized manufacturing company.

Licensing of proprietary technology could range from alliances and mergers and acquisitions in the international market to setting up one’s own whole subsidiary in such a market. Competitors can range from being present in the local arena to being there in the international market. In any case it can be said that yes, licensing technology to such players can definitely harm one’s own business or the long-term standing of a company who is giving this license to these companies. A licensing agreement means any agreement or contract that transfers the right to intangible property and assets of a company that buys that license.

This could be for a long term or even for a specified shot-term period depending on the type of industry the ‘two companies’ are operating in. (Chng, W. , Yam, A. , and Chan, M. , 2004) Building and maintaining cooperative relationships are two very important things, just how they are important to humans in a social setting when a medium sized manufacturing company is being talked about. Therefore, it is always made sure that whatever is done in such a company with respect to external as well as internal dealings that relationships get fosters and encourages.

They should be cherished and made to strive so as to result into long term relationships fruitful for the company’s long term prosperity. When a company has a trustworthy relationship with its suppliers it ensures the effective and efficient delivery of raw material and supplier goods to the company, a steady and continual followed plan of production and operations etc. , and proper allocation of variable and fixed costs with respect to minimal financial resource wastage even.

They are fruitful to the supplier also since they help in making the supplier feel secure that it has a set of contracts and orders ready and booked in the future by a company. This gives it a feeling of comfort since there is no need to loiter around and look for other orders. Often times, discounts and allowances are also the result of these mutually beneficial relationships. A medium sized manufacturing company can achieve this type of a relationship standing through the efficient use of funds, of technical expertise, of human resource.

It needs to formulate a list to start off with reliable suppliers and other partners to carry one’s dealings in the long term with. It also includes following up with such partners and then establishing them as one’s own trusted ‘partners’. Other steps include the granting of discounts, free days, and flexibility in terms of price, time and quantity to the partner to show them that the company cares etc. (Stumpf, S. and Longman, R. , 2000) Research has shown that yes there is a link between productivity and motivated employees in a medium sized manufacturing company.

A survey comprising of a few thousand workers as a sample, concluded that the top three things in order that motivate employees according to a manager or employer are, high wages, job security and promotion. The same question was when asked from an employee, the top three factors of motivation were concluded to be, full appreciation of one’s work, feeling of control and empowerment, and guidance in terms of resolution of personal issues, mentoring programs etc. (Urichuck, B. , n. d. ) Employee motivation is in other words positive reinforcement that an employee receives.

It helps in the employee gaining self-esteem and makes him feel important and in control. Yes, then it can be said that if a person is motivated, he or she is happy since he or she feels important and accepted in one’s own eyes. Also the feeling of being accepted and liked by others takes its place. When these things are combined it results into motivation, thereby an increase in productivity since the person feels appreciation for his or her own work and wants to do it willingly, properly and on time. (Urichuck, B. , n. d. )

Productivity is an extremely important factor when trying to comprehend and deal with crises in business or company functioning. Each employee at the workplace has his or her own reason to work and do so productively. The driving force behind this is of course being motivated and staying motivated. The main question that managers in a company like the one under consideration, might ask themselves is whether or not this really is the right thing to do or not or the main question is what is the exact process of keeping one’s employees motivated. How to stay motivated hence forms a prominent part of the human resource manager’s top tasks.

The different reasons that people might give to themselves may range from personal/individual to collective. But, the gist of it all is that whenever work is being properly done and on time etc. , then there definitely is some driving force behind it, which wants the person to gain from that work. When this work gets done, the person is hence extracting something out of it for himself too. This something that the person extracts implicitly might range from a pat on the back to higher pay, from a boost in morale to greater sense of security and quality of life to motivation inside the employee generally because of it.

One thing, one major thing that managers in a medium sized manufacturing company need to do is make sure that they treat employees with respect. Everyone wants to feel important and want to contribute to things and places that they are part of. Hence, by making employees feel that they are an essential ingredient to the organization and they matter a lot, their motivation increases in the case of a medium sized manufacturing company. (Heathfield, S. n. d. )

Specifically, the many different ways how this can be done and thereby the motivation level of employees can be raised are as follows; Managers need to understand what employees want from work; they should show respect for employees at work to them; managers should give comments in the form of constructive criticism and provide feedback that the employees can make use of positively; managers need to show employees that their work is liked when it is.

Praise in the form of open regard, open usage of positive adjectives for the employee and his or her work, and even a pat on the back can result in a feeling of motivation inside the employee (Heathfield, S. , n. d. ) Kaiser is a company in Germany that keeps its employees first. (Moriseiki, 2003); managers and the company can set out proper criteria for performance, which can be then used as a basis of judging and analysing an employee’s work.

Since, it forms a consistent standard and allows for transparency in praising standard, and then we can surely say that employee work’s recognition will look and will in actuality be relevant and truthful to the employee. (Heathfield, S. , n. d. ) This will again raise the motivation level inside the employee; developing and retaining a good trustworthy environment and a relationship based on trust between the manager and his or her employee, can result in motivation again.

This can be established in a medium sized manufacturing company, if and only if effective communication is being done, and employees have a say in the matters of the business; recognizing each employee for what he’s contribution to the work that he is responsible for and to the company or organization that he is in is another way to make him feel motivated and to retain that feeling inside him; delegating tasks to employees and empowering them is another step whereby employees feel good since they feel they are in charge; equal opportunity for all employees needs to be set explicitly. Also, a culture of mentoring one’s followers or subordinates is a good way to motivating them since by guiding them they feel like someone cares for them in a medium sized manufacturing company.