The Concepts And Principles Of A Well-Designed Strategy Process
Mobily is a company which involves itself with providing fixed line, mobile telephony and also providing the best internet services to its customers. The company is obliged to provide services in Saudi Arabia where also is its headquarters location. Regarding industry, Mobily is grouped as telecommunication since it involves itself in the transmission of signals to the customers. The company was founded in 2004 after it won the bid for Saudi Arabia second GSM license. Mobily is a company in the private sector since it does not receive any funds from the government.
Despite being a private sector, its activities are regulated by the government to make sure that they are of the best standards. Concerning its revenue size, the company has a SAR of 6.7 billion as identified in the year 2016. Having been requested by the senior management to find recommendations to help the executive better understand the concepts of a well-designed strategy process. The company needs the strategies to give directions and purpose towards the line of business it ventures in (Grant & Jordan, 2015). The above assists the organization by enabling it not to lose focus on the objectives it has set to achieve at a given time. The strategy also aids the company to be able to deploy resources in the most effective manner thus ensuring total utilization of resources. Implementing reduces wastage of resources since accounting for them is already made in the areas of use. Having a well-stipulated strategy also helps the executive and the company members to coordinate the process of decisions making for the better of the company. It assists in specifying choices which are in line with the manifesto and objectives set by the company. The strategic decisions identification is essential since they involve a significant commitment of resources to realize the growth and stability of the company. The decisions must be accurate since once established they are not reversible (Grant & Jordan, 2015).
Discussed below are strategy concepts, theories, and principles that the Mobily company senior executive leadership team can easily understand to come up with better and improved ways to help in the provision of better services to its loyal customers.
Strategy concepts, theories, and principles to better Mobily company
Cost leadership strategy. One of the ways the company can better its services is by offering attractive pricing for the services it provides to its customers. The prices should be better than those of its competitors as it highlighted by Jeff Bezos and Amazon (Grant & Jordan, 2015). Through the provision of low prices to customers assists the company to acquire more since many other joins to enjoy the better services at prices affordable to them. The company should allocate bonuses upon attainment of specific usage point thus enhancing its attractiveness to its customers. The allocation, in turn, helps the company have a healthy competitive advantage with that of its competitors. The competitive advantage, in turn, helps the company achieve a higher profit margin thus enabling it to run its processes smoothly.
Innovative strategy. For Mobily Company to withstand the forces that are there in performing a business, it should be able to come up with unique ways of doing things and which are not owned by the companies they compete within the market. The withstanding is achievable through the designing of new services which are efficient, and that will attract customers. Coming up with the services will be of benefit to both the customers and also to the company itself by making huge profits which will make them end up being the recommended service provider in Saudi Arabia. The recommendation will make the company dominant in the market since its competitors cannot reach its limit (Derntl & Motschnig-Pitrik, 2004).
Information strategy. Mobily Telecommunications Company should engage itself in collecting information and data of the state of the market. They should also engage their customers through interviewing them so that they can know what they desire the company to provide to them. The engagement offers ideas to the company which they implement that satisfying the needs of customers. By engaging the customers, they are made aware of the challenges that they go through using their services that devising ways to make the usage of its services simpler and high quality. The engagement of the company to its customers benefits them since there is the creation of trust amongst each other.
Adaptability competitive strategy. The ability of Mobily Company to be able to adapt to the continuous changes in the market structures and the unpredictable economy can have a distinct advantage compared to that of its competitors (Derntl & Motschnig-Pitrik, 2004). The adaptability can be achieved by the executive team being open to change thus improving the company’s services. The change should entail training of new members with new and current skills thus bringing them to the table. The difference can also be achieved by assigning women higher roles rather than assuming that they are unable to perform since there are believes that they are only programmed to take care of children (Naseem &Dhruva, 2017).
Strategy theories. Some of the approaches that the Mobily company utilizes to provide efficient services to its customers so that it can be able to sustain in the competitive market include the ones discussed below.
Organizational theories. Through the utilization of these theories, the company can discern that the structures and strategies are dependent variables and that none can work without involving the other. This assists in promoting competitive advantage amongst the competitors who challenge them while they go about with the provision of services to their esteemed customers.
Importance of the organizational theory
The theory assists the top level managers to be able to distinguish the people who are qualified and who can help them in fulfilling the goals set to provide adequate services (Seth & Thomas, 2014). The fulfillment involves the shedding of people whom there is that they are not fit in the goal fulfillment and putting in place those who are of benefit to the company. This shedding and installing of qualified workers help save time and resources to the company thus reducing wastage (Seth & Thomas, 2014).
Resource-based view. The named theory will assist the company by providing the superior value in the services they offer across the markets which are full of competitors and also across the many esteemed customers who use the services the company provides (Seth & Thomas, 2014). In this case, the company’s internal resources are the best source of competitive advantage over the other competing firms providing similar services in the market.
Importance of the resource- based view theory
The resource-based approach will help Mobily company in determining the resources that are available within the company and be able to relate them with the capabilities of the firm to produce reliable services to the customers in an efficient manner (Grant & Jordan, 2015). The theory will also help the company in delivering the competitive advantage since it can utilize its resources in a unique and valuable manner compared to the utilization of its competitors in the provision of services (Grant & Jordan, 2015). Mobily company will also be able to evaluate the potential resources which will assist in providing more benefits to the firm thus promoting the company’s success in the competitive markets.
The competitive advantage which is attached to the company’s resources is evaluated to enable the firm to distinguish the resources which are unique and those that are unavailable to its competitors in the provision of services to the customers (Grant & Jordan, 2015).
Positional view. The theory mostly focuses on seeking an advantageous position in the market then taking the necessary firm steps to ensure that it dominates in the area it has established. The theory argues that competitive advantage is entailing the attractiveness of a company to its customers through the numerous services that the company has agreed to offer (Grant & Jordan, 2015).
For the above strategy theories and concepts to be firm to the company while producing its services, there must be principles which should be put in place to make sure the plan goes as expected (Klein, 2012). Some of the policies worth utilizing in the company include the ones discussed below.
Aiming high. Mobily company can achieve success by creating high ambitions which they are to use to execute their strategy. The above can be obtained by making the lives of your customers better through the services you offer to them and your continued presence (Seth & Thomas, 2014). Aiming high will require the company to persevere from the forces which are posed to them by the other competitors in the market.
Building your strengths. Having identified the advantages that suits the company’s success, through determining the services that you provide best to customers and which no other competitor can produce, you can concentrate on the bettering of the service more to ensure total satisfaction of the customers (Hodges, 2017). The more the information that the company has based on its strengths, the more the opportunities will emerge to build the forces (Klein, 2012).
Aligning structures to strategy. Mobily company can realize this by identifying whether the compositions of the company support the strategy set and if not the company should consider removing them. The reason behind the removal is because the structures will only get in the way of the companies executing the services to its customers (Klein, 2012).
Contradicting opinions from strategy experts
While coming up with recommendations, conflicting opinions arose which were focusing on the ability of women taking higher leadership roles (Hodges, 2017). The pointing out that women cannot be able to earn more top responsibilities was noted since they lack experience, and their inability to work for long hours since they have to balance family responsibilities (Naseem & Dhruva, 2017). The argument is unacceptable since there are women who are experienced and can adapt to any working conditions even in the higher ranking roles.
Strategic planning activities
Benefits and value of each activity
One of the events to achieve strategic planning is involving in meetings and communications. Mobily company executive leaders and other members should meet to develop a common understanding which regards the competitive market while providing services and how to come up with strategies to deal with the issue.
Benefits of making meetings and communications
By doing that they should be able to raise and answer questions like defining what the interest of the companies while offering services. It should also be able to make decisions on the services that it is going to include and those to exclude when providing services (Klein, 2012).
The ability to make decisions helps to reduce unnecessary costs incurred in the provision services and through the introduction of other services it helps in the maximization of profits to the company (Klein, 2012). The company leaders should define what differentiates them from their competitors concerning service provision in the eyes of the customers and other stakeholders. Finally, through meeting and communications, the leaders should be able to come up with skills and resources which will be worth implementing in the organization to better service provision.
Scenario planning. When Mobily company leaders engage in scenario planning, they can develop many flexible long-term plans which will guide them when doing business. (Klein, 2012).
Benefits of scenario planning
It helps the top executive answer critical questions such as who is accountable for a specific target to be achieved. Also helps to know why different results were produced compared to the results which it’s meeting in the end during the formulation of the plan (Klein, 2012).
Scenario planning also helps the leaders to have a vision on how to maximize the value of the business. The maximization is achievable through the setting of targets which they wish to accomplish at a specific period. They also can discover business opportunities and the areas where they are to concentrate their effort and resources (Klein, 2012).
Use of balanced scorecard. The purpose of the scorecard by the company will assist tremendously in ensuring that goals set meeting is consistent in an effectively and efficiently manner (Grant & Jordan, 2015).
It will also help in keeping track of the way the execution of activities assigned to the staff thus receiving feedback from the monitoring.
Benefits of using the score card
The use of scorecard will assist the company to better focus on the strategic agenda thereby reducing the chances of the organization losing track while executing its activities. Having a scorecard also helps in knowing where one should focus his attention on monitoring to acquire the desired outcome.
The SWOT analysis application. The analysis is to help the Mobily company identify areas where they are strong and also realize the areas where their weakness arises.
Benefits of using the analysis
The report also assists in discovering opportunities which will help the company and also depict the threats that are caused by the competitors (Klein, 2012). By identifying the SWOTs helps the managers inform steps which are to be used to promote the companies advantage. Through the results acquired from the analysis, the company decision-makers will be able to know whether the objective set is achievable and if not devise methods to ensure its achievement.
Mobily company having followed the above strategy concepts, theories, and principles as described, it can be able to achieve better results through the guidelines it will have put in place to ensure better service provision to their customers thus promoting competitive advantage. The developing of competitive advantage can, in turn, help the company realize high-profit margins as compared to those of their competitors since the company has been able to establish itself in the provision of better and reliable services to its customers in Saudi Arabia. The company is also able to identify spaces in the market where it can better its services through innovation and continuous improvement of the services it has created thus making sure that the customer is content and that all his needs are satisfied in the best way possible. The above recommendations also help the company to be able to identify the strengths and weaknesses it possesses and work towards the bettering of the advantages and devising a way to deal with the failings to completely venture into the market. The decisions also can allow women work in the higher leadership roles thus giving them a chance to prove that they too are capable of handling the positions which its assumption is that only men can manage them.