Strategy and Change in Global Environment

Question: Describe about the strategy and change in global environment. Answer: Introduction: In any business organization, the business strategy of the organization plays a major role, as without an effective strategy a business organization may face Strategic Drift. The importance of a nosiness strategy cannot be overstated. It first of all helps an organization, in understanding, as to where does it intend to reach in the next few years, and how to achieve its immediate goals. Secondly, it shall help the organization communicate its plans to its stakeholders, by creating Mission and Vision statements. Finally, it helps the organization to communicate its plans to the investors (Verbeke, 2013). Keeping this into consideration, an organization, like Ademco(Far East) Pte. Ltd also needs to chalk out a business strategy and re-evaluate the effectiveness of the business plans adopted by the company in the recent past. Ademco, since its inception in the year of 1977, has been offering security solutions through its innovative products, to both private as well as government organizations (Rausch et al., 2013). Discussion: The external environment of any organization plays an important role in determining the profit making capacity of the organization. While some of these factors can be taken care of by introducing effective promotion and advertisement strategies, others will require the firm to adjust itself with (Hueske et al., 2015). The consumers play an integral role in ensuring success of an organization. Ademco is a company that deals with products offering security solutions to different organizations. Security is a very important issue in todays business world, and as there are many emerging companies, in Singapore, there is an increasing need for the security systems in the organizations. Further, since countries like Singapore, is the destination for many people, coming from diverse regions of the world, the question of public safety becomes a vital matter, and hence more and more government organizations will tend to opt for the security products sold by Ademco, in the coming years. However, Ademco, despite enjoying an advantageous position, because of the product it sells, the company is likely to face some major competition from rival companies, such as CBM Pve Ltd. , G4s Secure Solutions, etc (Sennewald and Bailili, 2015) . Some of these, such as G4s has been doing the business since a long time, and by now has already assumed a leading position worldwide, while Ademco has been in the business for a comparatively shorter period, and has extended its business to only five countries. Keeping this in view, the future prospect of the organization should be evaluated. Since, the organization, is not free from rival companies, which are commercial giants in the true sense, the organization pays much attention to its marketing, selling and distribution strategy (Cummings and Worley, 2013). The company, for this reason, has adopted segmentation and targeting strategy whereby the company has divided the consumer market into various sub-groups, and adopts a different business approach for each of the consumer needs. Ademco should divide the client organizations, into three parts- those with high inventory value, those with low inventory value and those companies with medium inventory value. Now, out of this whole thing, Ademco should choose a different business strategy, in terms of its p ricing and advertisement methods, for the three different client organizations. The organization with high inventory value, will automatically prioritize its security system over the price issue, and hence the more innovative, expensive products of the company should be sold to these companies. On the other hand, those companies which have medium inventory value, they prefer to rely more on the word-of mouth publicity. Hence, Ademco must exploit the use of social media tools, as well as its PR strategies, to develop its brand recognition in the market (Wedel and Kamakura, 2012). Porters Five Forces is an important business strategy tool, that can help Ademco understand the current position of the organization in an extremely competitive market, and how far can it flourish in the near future. The whole idea of Porters Five Forces can be briefly summarized as follow: Figure 1: Porters Five Forces (Source: Dobbs , 2014) As it can be seen from the above diagram, there are altogether five factors which will play a crucial role, in determining the success of the organization. Since, Singapore is one of the very few countries that has a strong industrial base, and potential for industrial development, a large number of industries are developing swiftly in Singapore. Keeping this in mind, the questions of security and surveillance are becoming matter of great interest. Hence, the bargaining power of the consumers for the companies such as Ademco is low, and as such these organizations enjoy a greater consumer market. Further, as Singapore enjoys a rapid growth of population, as many as almost 5.5 million people, living in the city, there is a greater demand for security in the newly established supermarkets, schools, offices, etc (Riley et al., 2012). Usually an industry can sell a product to one or at most two industries, but the biggest advantage for companies like Ademco, is that it can create a varie ty of products, and can sell them to a variety of industries. However, in any organization, the bargaining power of the suppliers plays an important role. The bargaining power of the suppliers of Ademco will be very limited and not high at all. This is mainly because, much of its suppliers will be from the IT filed and as there are many of the IT companies ready to supply the raw materials to Ademco, the company will enjoy the flexibility, while choosing its supplier. However, the threat of new entrants or the threat of substitutes is quite high (Wilkinson et al., 2013). Within a very short period, there have been a variety of security products selling industries, that have cropped up, in Singapore and in countries like India, Thailand, where Ademco has expanded its market. Tyco, GE, Bosch Security Solution Industries are some of the companies, which have earned enough recognition in the market of security products and services. Consequently, the rivalry among the existing companies is also quite high , as the aforementioned companies have also won much reputation in recent years, as a result of which the consumer expectations are growing very high. This rivalry is also having a direct effect on the pricing system of Ademco (Riley et al., 2015). Reference List: Andrade, M. S. (2016). Effective Organizational Structures and Processes: Addressing Issues of Change.New Directions for Higher Education,2016(173), 31-42. Andrade, M. S. (2016). Effective Organizational Structures and Processes: Addressing Issues of Change.New Directions for Higher Education,2016(173), 31-42. Appelbaum, S. H., Habashy, S., Malo, J. L., Shafiq, H. (2012). Ayub, A., Razzaq, A., Aslam, M. S., Iftekhar, H. (2013). 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