Strategic Management
Name
Institutional Affiliation
Question 1
Luck companies has got different strategic business units that they operate, and every unit is clearly differs from the other naturally and so does the management which is done by brand identities which are totally different. The largest luck companies unit and has up to 15 stone plants is the Luck stone. Luck stone gathers up to roughly 80% of the company’s net sales and hence no other unit is above it in te contribution of total net sales.
Both the luck stone center and the luck stone divisions use differential strategy for international stone distribution and for new product introduction which is achieved through product innovation. The luck development partners had a lot in common with the luck stone and this led to the luck development partners to set their operational centers in the same region where the luck stone operated, that is in the mid-Atlantic region. Unlike the other divisions the HAR-TRU division used boththe differential strategy and the dominant-business diversification strategy.
Question 2
To increase processing of information, control complexities and the togetherness in a firm, product diversification is used, this is because it helps in new business lines entry. Where there is support to put to work the different single business units from the organizational structure and makes it possible for leaders to operate various divisions, there is effective management. There are different form of ways that a multidivisional structure for corporate-level strategies can be made up;
Competitive form; this form is against the strengths of common corporate division, but side with operations that are independent and which compete for resources and capital distribution from the corporate.
Single business form; this form is more effective and efficient in cases where the links between one uunit and the other are few.
Cooperative form; aims at developing economies of scope and facilitation of sharing competencies by single business units and interdivisional cooperation. This takes place using horizontal integration.
After understanding the concept of the following the different structure, the best structure to use in luck companies therefore, is single business form of multidivisional structure.
Question 3
Strategic leadership helps in anticipation, maintenance of flexibility and encourage others to make strategic new plans where needed. Important leadership copes with change, takes care of internal innovation and attracts human capital. The following are duties and responsibilities of effective strategic leadership; being in charge of the resources portfolio of the firm, maintaining an organizational culture that if effective, sticking and putting emphasis in ethical practices, making a balanced organizational controls, creating both human and social capital and determination of strategic direction.
It is evident from the study that Charles Luck performed excellently and was strong in all of the mentioned categories. Luck’s start of being a leader was by first acquiring experience and education in all business levels and strengthened his managerial skills and also made crucial friendship with people he engaged with. Luck’s guidance saw the firm set new profit margins and new volumes for almost a decade.
Question 4
The current five-years strategic goals aims at getting healthy financial performance, business progression and making a sale of upto 450 million dollars by the year 2020. The company has several strengths that will help it progress and achieve its aggressive goals. These strengths include; the company’s culture to perform and have fruitful outcomes, supportive and engaging workforce that goes together with the organisation’s need and values, the compmy’s support of expansion for excess capacity and the company’s strength in terms of its financial position to fund all of its projects.
The company’s biggest challenge is to come up with the 450 million dollars by 2020. For this to happen it means that there must be dramatic increase in the sake aggregate which is a very difficult thing to achieve. To access if the company’s objectives of five-year growth is practically possible it is necessary to use hypothetical numbers because not all statistics are provided by the case. a