Type of document Essay Number of pages/words 6 Pages Double Spaced
Subject area Communication Strategies Academic Level Master
Style APA Number of sources/references 5
Order description:
Assignment 1: Compelling Professional Presentation (5-6 Pages)
-Use direct Quotation.
- Must Need Abstract and Introduction and Conclusion.
- Must list each question separately and put your responses under each headline. This will ensure that you are answering the questions thoroughly.
Page-5
Answer
Compelling Professional
Presentation
A1. Improving
the Organization’s Bottom Line through Diversification
Abstract
In this paper, the company has been analyzed
extensively covering its strengths, weaknesses, opportunities and threats. The
paper offers an insight on the need for diversification so as to improve the
company financial performance, eliminate stagnation, and enhance employee
retention and increased competitive advantage. Recognizing the immense growth
of the soft drinks industry, company rivalry and changing consumer tastes and
preferences, this paper offers recommendations to the management that would
help in turn around the company fortunes. Health care awareness among consumers
has been noted as a significant factor that has affected the company products.
Remarkably, there is a growing concern on the safety of various soft drinks
products. More consumers have sought to use products that have less sugar content,
high nutritional value and great brand image. Meeting consumer needs is an
essential factor in enhancing company financial status. It enhances company’s
capacity to increase its market share and revenue. A summary of the company
challenges and recommendations is provided in the conclusion to offer an insight
of the company way forward to financial performance.
Introduction
Soft drinks industry has faced tremendous
transformation as a result of inevitable dynamics in the world of business. The
business environment has become more competitive as rival companies employ
diverse innovation and creative strategies to enhance their competitive
advantage in the industry. There has been an impressive growth in the industry
driven by the ever changing customer tastes and preferences (Siera Services
Inc. & SCMC, 2012). Demand for soft drinks has been on a steady rise as the
market population increases and the need for nutrient addition expands.
However, the industry has been facing challenges as consumers become more aware
of their needs, components in various products’ and their health concerns. Thus
various companies have been affected by the market changes leading to massive
impact on their operations. Consequently, pressure is mounting on various
industry players to seek new ways of meeting the changing needs of the target market.
Following an extensive analysis of
the organization’s operations for the last two years, it is clear that, its
performance has stagnated. From the analysis, some reasons have been noted as
the major causes of such stagnation. Remarkably, stiff competition from highly
innovative and creative rival companies, as well as sticking to the same
products for long, are some of the key causes for the poor company performance.
These effects have not only affected the company financial status but also employee
retention and company reputation. Competitors have ventured into new products
and services as such threatening the future of this company in the industry.
This paper will undertake SWOT analysis of the company and recommend on the
best alternatives to enhance the company’s competitive advantage.
SWOT
Analysis
Strengths
Robust and Wide Distribution Network
The company boasts of an elaborate and vigorous
distribution channel that allows it to penetrate the greater soft drinks
market. This aspect gives the company a great channel to saturate the market
with its products. In addition, the significant network fosters the company’s
enhanced quality control and higher level of safety check for its products.
Furthermore, the steady distribution platform has offered the company a great
opening for expansion and reach customers in remote regions. Remarkably, the
network has aided the company in creating market presence, product
introductions and deliveries at crucial moments.
Weaknesses
High Burden of External Debt
The company faces widening external debt coupled
with deteriorating financial management. For the last two years, the company
has recorded a combined long-term debt if 170 million dollars. This extensive
debt has deprived the company of much needed funds for investment. The high
debt has also affected the current credit ratings of the company which has
impacted on the company reputation in the financial sector and probable
lenders.
High Employee Turnover
The company has been experiencing high employee
turnover for the past two years. This trend has affected productivity and
overall employee performance due to deteriorating morale levels among those
already working for the company. In addition, the company bears high
recruitment and training costs that have affected its financial health.
Opportunities
Extended Reach
The population in our country continues to increase
at a steady state. Thus demand for various soft drinks products has risen
creating an enormous market for the company merchandise. This aspect provides
the company with a great chance to establish strategies that would enhance its
market share in the drinks industry.
Rising Demand for Clean and Fresh Water.
There is a growing demand for fresh and clean water
as the population continues to increase against the back drop of limited water
resources. In addition, people have become more concerned with their health as
such creating more demand for water products. Global warming has been on the
rise causing high temperatures in the atmosphere that have led to extensive
dehydration among the masses. In turn, people need more clean drinking water to
rehydrate their bodies. Thus, the company has a broad market for water products
to tap and enhance its operational and financial operations.
Rapidly-Growing Beverage Categories
The company has the opportunity to diversify and
venture into the wide variety of beverage categories. The market for different
designs, packaging types and improved quality products has outgrown the supply
for the products. The company should harness this opportunity of broad beverage
niche to launch new products and rebrand the existing to meet the changing
customer tastes and preferences.
Threats
Consumer Health Concerns
There is an increasing concern over the health of
various soft drinks being supplied in the market. Consumers have become more
worried over the safety of the products as such creating a decline in the
demand for many several company products. Many consumers have embraced a
cultural shift towards organic and natural products opting for nutritional
waters and different kinds of healthy beverage. As a result, core drinks with
high sugar content, diet items, as well as artificial sweeteners have lost
demand in the soft drinks market.
Increased Competition
Over the past two years, rivalry in the soft drinks
market has more than doubled as companies strive to edge each other in the
competitive market. Various companies have invested in diversification of their
products providing customized options that carry higher nutritional benefits to
the consumers. In addition, these companies have used innovation and creativity
to create various products for segmented customer market. As such, they have
been able to offer beverages t reduced prices increasing their brand loyalty
and customer base considerably.
Benefits
of Diversification
Adding new services and products will foster the
company ability to grow rapidly. Diversification ensures quality and
appropriate products are manufactured to meet the rapidly changing consumer
needs. It offers the company an opportunity to redeem its lost brand reputation
by creating the right products for the target market segment (Tianjiao, 2014).
Remarkably, diversification enhances the company’s survival chances by
increasing its market share and financial status. Serving a small niche of the
market is a constraint to company resource because running costs outweigh the
probable revenue (Zahavi & Lavie, 2013). It will leverage the company
competitive advantage and eliminate stagnation. According to Tianjiao (2014)
diversification promotes year round regulation of the company cash flow. The
company will be able to offer various products that conform to different periods
in the financial cycle. Thus diversification into new and quality product lines
is essential for the company’s long-term viability.
Recommendations
The company should diversify its drinks products to
incorporate water as part of the company key merchandise. The company has stuck
with the same product branding for long leading to lost reputation and market
niche. As such, the current products should be redesigned and their packaging
changed considerably. Thus, to meet the changing consumer preferences drinks
should be provided in small quantity bottles to tap on the growing middle and
lower class customers. Reliably, the company should engage in extensive social
media marketing to redeem the lost company image through creating awareness to
the massive market within the social media platform. Imperatively, employee
retention is an essential factor in enhancing company productivity and overall
performance. Therefore, it should be the ultimate goal for the management to
establish strategies to retain employees in the company. Reliably, continued
training and a reward scheme that would ensure employee promotion and
appreciation should be established.
Conclusion
Soft drinks industry covers a wide niche in the
consumer market. Steady rise in demand has led to massive expansion within the
industry. Inevitable dynamics in the world of business have affected the soft
drinks industry. Unforeseen challenges have hit the industry as consumers
become more informed on their needs and health concerns. As such competition
has risen increasingly as companies seek to retain and amplify their market
share. Innovation and creativity has been the main forces driving the
competitive advantage of the highly performing companies in the soft drinks
industry. Remarkably, the companies have been able to diversify their products
and enhance their brand recognition. Moreover, employee retention has been high
in the productive companies as training, reward and promotions have been
possible due to their better financial performance. Therefore, it is highly
advisable to invest in product diversification, add water in the company key
products and redesign and repackage the existing company products to enhance
brand reputation, financial performance and employee retention.
A2: Leadership
Communication Analysis
Demonstration of Candor
Meg Whitman demonstrates candor in her communication.
She is frank in her communication as she undeniably acknowledges the eminent
restructuring of the company work force. She told the CNBC that “It’s
remarkable what’s happening to our services business. As new technologies come
in, we’ve got to restructure that labor force to low-cost locations, to much
more automation than we have today,” (CNBC.com, Sept., 2015). Although she
understands the damage it could cause to the existing employees she admits some
workers should be laid off. She is quick to point out that “These cuts are
never easy, but it’s the right thing to do because we have to get to the next
phase of the HP journey,” (CNBC.com, Sept., 2015).
Communication Consistency and Alignment to
Organizational Goals
Whitman communication was consistent and in
alignment with the organizational goals of the HP. She notes that splitting the
company into two would enhance the company cost structure and competitive
advantage. It is the goal of HP to reduce its costs and foster its competitive
edge. Accordingly, she says that “Our markets are moving at lightning speed.
Both the enterprise market as well as the printing and PC market…we need to be
nimble…have a cost structure that is appropriate for the competitors that we
face in both those businesses…..and it’s going to be easier to capture them as
two separate, really focused companies,”(CNBC.com, May, 2015 ).
Effective Communication of Key Messages
Meg Whitman illustrated effective communication of
the key messages. While admitting on the layoff of employees she expressed the
right information on the company plans to enhance its restructuring strategies.
In addition, offering information on her stance about the splitting of the
company displayed the key message on the company direction to manage costs and
compete effectively.
Different Approach
On the issue of job cuts, Meg Whitman could have
explained first on the restructuring procedure to be followed. She ought to
have expounded further on employee compensation for the loss of jobs. This
aspect would have resonated well with human nature to sympathize with the
dedicated employees.
Good Performance
Meg Whitman explanation on the need for the HP split
was well communicated. She offered an insight on the reasons such as being
nimble and cost effective to be behind the split. Remarkably she offered that
“we need to be nimble…have a cost structure that is appropriate for the
competitors that we face in both those businesses…..and it’s going to be easier
to capture them as two separate, really focused companies,”(CNBC.com, May, 2015
).
References
CNBC.com (May, 2015) Two HPs better than one: Meg Whitman retrieved from http://video.cnbc.com/gallery/?video=3000382233
CNBC.com (Sept., 2015) HP'S Meg Whitman on job cuts Retrieved from http://video.cnbc.com/gallery/?video=3000421250
Tianjiao,
Q. (2014). Product Diversification and Market Value of Large International
Firms: A Macro-environmental Perspective. Journal of International Marketing,
22(4), 86-107.
Siera
Services Inc. & SCMC (2012) Breaking Down the Chain: A Guide to the Soft
Drink Industry Retrieved from
http://www.changelabsolutions.org/sites/default/files/ChangeLab-Beverage_Industry_Report-FINAL_%28CLS-20120530%29_201109.pdf
Zahavi,
T., & Lavie, D. (2013). Intra-industry Diversification and Firm Performance.
Strategic Management Journal, 34(8), 978-998.
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