Strategic Financial Management

Strategic Financial Management
Strategic Financial Management

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Strategic Financial Management

Learning Outcomes

  1. Assess and evaluate the theoretical basis of financial strategic decision making

2. Analyse and interpret data, and by the integration of theory and practice, investigate and apply relevant tools to the assessment of a variety of business problems

3. Evaluate and synthesise the problem solving mechanisms from strategic financial decision making and assess the value to enhanced decision making of the application of relevant tools & techniques.

Assessment Task

Company A has the following budgeted income and expenditure for two potential  projects : Alpha and Beta

Year 1Year 2Year 3Year 4
Project Alpha
Expenditure – plant and equipment (purchase)1,500,000   
Other expenses1,000,0001,100,0001,250,0001,500,000
Year 1Year 2Year 3Year 4
Project Beta
Expenditure – plant and equipment hire375,000375,000375,000375,000
Other expenses900,000990,0001,000,0001,100,000

Strategic Financial Management

Additional information:

If the additional information does not indicate that it is project specific you are to assume that it is relevant to both potential projects;

  • Taxation is charged at 20% a year in arrears;
  • Extracts from the company financial statements are as follows: – Benchmarked gearing of 0.40:1; – Cash position:  cash at bank of £1 million;
  • The company are wishing to reduce their carbon footprint in line with their core strategic values of sustainable production.  They have determined that renting the equipment for Project Beta  would reduce their carbon emissions by 70% but Project Alpha’s would have a nil effect on their carbon footprint.
  • Project Alpha would require other projects to be put back by one year due to the initial capital investment required in Year 1.  It would not prevent these other projects from going ahead, but would delay their completion by one year – there is no quantitative financial data available for these other projects.
  • Usual margin that the company achieves on its products is between 15-25% on a cost plus basis.
  • The product that they are looking to introduce in both cases (A or B) is a product that already has an established market with both well established brand competitors and some substitutes.
  • The market is reasonable mature having been in existence for about 5 years, there are no patents or other protection rights for the existing competitors but competition is fierce.
  • This is a new product for Company A and would be entry into a new market of which they have no experience or established reputation.  However, they do sell a complementary product for which they are the brand leader both on cost and perceived quality.
  • They usually price on a cost plus basis but this is based upon the appropriateness of the method for the product being priced.
  • PROJECT ALPHA ONLY– the plant and equipment has no scrap value.


(a) Calculate the CASH net present value of the two projects (including the taxation charge)  The discount factor is 10% and you should round your answer to the nearest full pound (not pence) . (10 marks)

(b) Critically evaluate the usefulness of net present value and two other methods as  project appraisal tools using academic references to support your answer. ( 15 marks – 600 WORDS)

(c) Having decided to use a traditional absorption costing method, the directors now need to decide on a pricing methodology.  You are required to evaluate the different ways in which a company can determine an appropriate price for its product and advise the directors, based upon the information within this assignment what pricing method would seem most appropriate for the company. (15 MARKS – 600 WORDS)            


Strategic Financial Management

Key Resources/Reading

  • Arnold, G. Corporate Financial Management (2012)  5th edition chaps 14/15
  • Collier, P.M. Accounting for Managers 4th edition (2012) Wiley chaps 1/2/3/4/6/7
  • Grundy, T. Exploring Strategic Financial Management  (1998) FT Prentice Hall Chap 2 and 4
  • Johnson, G & Scholes, K. Exploring Corporate Strategy 9th edition (2010) 
  • Mills, R & Robertson, J Fundamentals of managerial accounting and finance (1999) chap 11
  • Proctor, R (2006) Managerial Accounting  for decision making  FT Prentice Hall Chaps 3-4

Below is a partial answer to the above homework questions by one of our writers. If you are interested in a custom non plagiarized top quality answer, click order now to place your order.

Strategic Financial Management

  1. Net Present Values of project Alpha and Beta
 Project AlphaYear 1Year 2Year 3Year 4Year 5
Other expenses(1,000,000)(1,100,000)(1,250,000)(1,500,000) 
Net Profit1,250,0001,400,0001,750,0001,750,000 
Taxation (20%) (250,000)(280,000)(350,000)(350,000)
Expenditure – plant and equipment (purchase)(1,500,000)    
Net cash flow(250,000)1,150,0001,470,0001,400,000(350,000)
Discount factor (10%)0.909  0.826  0.751  0.683  0,621
Net cash flow(227,250)949,9001,103,970956,200(217,350)

NPV = (-227,250) +949,900+1,103,970+956,200+ (-217,350)


Project BetaYear 1Year 2Year 3Year 4Year 5
Expenditure – plant and equipment hire(375,000)(375,000)(375,000)(375,000) 
Other expenses(900,000)(990,000)(1,000,000)(1,100,000) 
Net Profit925,000835,000825,000725,000 
Taxation (20%) (185,000)(167,000)(165,000)(145,000)
Net cash flow925,000650,000658,000560,000(145,000)
Discount factor (10%)0.909  0.826  0.751  0.683  0,621
Net cash flow840,825536,900494,158382,480(90,045)

NPV =840,825+536,900+494,158+382,480+ (-90,045)


Strategic Financial Management

  • Usefulness of net present value and two other methods as  project appraisal tools

Net Present Value

The net present value is considered one of the most valuable project appraisal tools due to its ability to determine the net cash flow at any particular present time (Collier, 2015). However, there are other useful factors in the application of net present value as discussed below.

The net present value is useful as a project appraisal tool because it helps investors to determine the viability of projects before they can invest in them (Collier, 2015). Through calculating the net present value of a project’s future cash flows, a company can determine whether the project is worth investing in. A negative net present value would indicate that the project is not viable while a positive net present value is an indication that the investor can go ahead to invest in the project (Arnold, 2013).

The net present value is useful because it recognizes the differences in money value and is hence useful in ensuring accurate projection of cash flow. In this relation, every period’s cash flows are discounted in order to provide for the fact that the future value of currency is worth less in terms of the present value (Erickson, 2013). This ensures that any income and expenditure is accurately measured to determine the present value of the project.

The net present value allows companies to make investment decisions regarding long-term projects whose cash flow projection is less certain than short-term projects. This is because the net present value recognizes the inherent uncertainty of long-term projects. To achieve this, net present value ensures that cash flows projected further into the project period have less impact on the present value than those which happen earlier in the project (Arnold, 2013). Through the use of net present value, firms put the cost of capital and inherent risk into consideration when making future predictions…..

Strategic Financial Management

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Benchmark – Strategic Planning: Action Plan

Benchmark - Strategic Planning: Action Plan
Benchmark – Strategic Planning: Action Plan

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Benchmark – Strategic Planning: Action Plan 

Order Instructions:

Use your completed strategy map to formulate functional-level strategy for the primary business functions included in your plan. Functional-level strategies are the action plans used by departments within organizations to support the execution of business-level strategy at the managerial level.

Create a 500-750 word action plan that addresses the following:

1.Identify which management tactics and strategies you will implement to meet your strategic goals for each of the stakeholders, departments, or business functions impacted by your plan: MBO, MBM, single-use or standing plans, competitive advantage, contingency planning, building scenarios, crisis planning, and innovation.

2.Provide an explanation of how you will apply managerial decision-making methods throughout your action plan.

Benchmark – Strategic Planning: Action Plan

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3.Which business functions will be impacted by your action plan? What tactics will you use to manage implementation across business functions? What can you do to enhance collaboration/cross-functionality to ensure the success of your plan?

4.Identify leadership strategies you plan to implement throughout the execution of your action plan. In particular, explain which strategies you would implement to foster team collaboration among the multiple stakeholders who must collaborate to successfully implement the plan. Why do you think these will be successful?

Benchmark – Strategic Planning: Action Plan

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While APA format is not required for the body of this assignment, solid academic writing is expected, and documentation of sources should be presented using APA formatting guidelines, which can be found in the APA Style Guide, located in the Student Success Center.

This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion.Use your completed strategy map to formulate functional-level strategy for the primary business functions included in your plan. Functional-level strategies are the action plans used by departments within organizations to support the execution of business-level strategy at the managerial level.

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ABC Corporation Case Study

ABC Corporation Case Study
ABC Corporation Case Study

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ABC Corporation Case Study

Complete a case study of ABC Corporation (your instructor will assign the specific company for the case study at the beginning of Module/Week 3) in the case section of the text (e.g., Case Number 1).

A formal, in-depth case study analysis requires you to utilize the entire strategic management process. Assume your group is a consulting team asked by the ABC Corporation to analyze its external/internal environment and make strategic recommendations. You must include exhibits to support your analysis and recommendations.

The case study must include these components:

  • A total of 10–12 pages of text plus the exhibits
  • Cover page (must include the company name, your group name, a list of the active team members, the date of submission, and a references page; the document must follow current APA guidelines.)
  • Matrices, which must be exhibits/attachments in the appendix and not part of the body of the analysis (The Strategy Club has excellent templates/examples for exhibits and matrices:

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Case study deliverables (text must follow this order with current APA-level headings for each component):

  1. Executive Summary
  2. Existing mission, objectives, and strategies
  3. A new mission statement (include the number of the component in parenthesis before addressing that component)
    Great mission statements address these 9 components:
  4. Customers: Who are the firm’s customers?
  5. Products or services: What are the firm’s major products or services?
  6. Markets: Geographically, where does the firm compete?
  7. Technology: Is the firm technologically current?
  8. Concern for survival, growth, and profitability: Is the firm committed to growth and financial soundness?
  9. Philosophy: What are the basic beliefs, values, aspirations, and ethical priorities of the firm?
  10. Self-concept: What is the firm’s distinctive competence or major competitive advantage?
  11. Concern for public image: Is the firm responsive to social, community, and environmental concerns?
  12. Concern for employees: Are employees a valuable asset of the firm?
  13. Analysis of the firm’s existing business model

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  • SWOT Analysis (comes from researching the firm, industry, and competitors)
    It is important to know the difference between causes and effects in the SWOT analysis. Causes are important, not effects. Once the SWOT Analysis is created, each group needs to construct the SWOT Bivariate Strategy Matrix.
    Deliverables for this section include:
    • SWOT Analysis
    • Internal Factor Evaluation (IFE) Matrix
    • External Factor Evaluation (EFE) Matrix
    • SWOT Bivariate Strategy Matrix
  • BCG Matrix (follow the Strategy Club’s template, not the textbook’s format)
  • Competitive forces, Competitive Profile Matrix (CPM), and competitor’s ratios
    Deliverables for this section include:
    • CPM and analysis
    • Competitor’s ratios and analyis
  • Current and historical Financial Statements (Income Statement (I/S), Balance Sheet (B/S) and Statement of Cash Flows) from the 3 most current years for the firm
    The financial statements must include changes (deltas) between years.

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  • Ratios from the most current and available 3 years with deltas and analysis
  • Alternative strategies (giving advantages and alternatives for each)
  • Pro-Forma Financial Statements (I/S, B/S and Statement of Cash Flows) with deltas out 3 years and analysis
    Each year must have 2 columns: 1 with your strategy and 1 without your strategy.
    • Include Pro-Forma ratios for the first year out with deltas contrasting from the most current year’s ratios.
  • Net Present Value analysis of proposed strategy’s new cash flow and EPS/EBIT analysis
    NOTE: To construct the first cash flow (cf1) at the very minimum, the new revenue from your strategy(s) must be discounted back to the present value by calculating EBIT and that figure will be your cfn for each year. cf0 (initial cost of your strategy), cf1 (discounted cash flow first year), r (opportunity cost of capital, the rate of the next best alternative use of cash/debt/equity resources).
  • Specific recommended strategy and long term objectives
    Explain why you chose the strategy, and discuss how much the strategy will cost to implement and how much new revenue your strategy will create. Include your action timetable agenda for accomplishing your strategy.
  • Proposed new business model

Have your group leader place the results of the case study analysis in a single document and post it to the Group Case Study 1 forum on your Group Discussion Board Forum.

Submit this assignment by 11:59 pm (ET) on Friday of Module/Week 4.

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Strategic Plan Literature Review

Strategic Plan Literature Review
Strategic Plan Literature Review

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Strategic Plan Literature Review

A fundamental technique applied by management accountants in managing an organization is strategic planning. Strategic planning a comprehensive method that consists the determination of what an organization should become and how it can achieve its goals and objectives Griffin (2013). In strategic planning mission and vision for the business are laid out. It does not necessarily involve describing how to achieve the goals of the business but to describe where the business is going.

Though strategic planning is a paramount need for an organization’s growth through recharging, an organization is mostly tired of coming up with new ways due to the scarcity of resources (Byron 2011). This paper is intended to analyze strategic planning as a management accounting function by going through literature reviews to ascertain the applicability, characteristics, and assumptions underlying the technique.

Literature review

Bain (2015) researched on strategic planning and its applicability in organizations. According to the author, strategic planning exploits the full potential of a business and acts as a link between the objectives of the business and the resources required to achieve the objectives. According to Bain (2015), a clear strategic plan should address the following issues.

1.    A full insight into an organization’s mission, goals, and objectives.

2.    Explore all the potential business gaps and markets for emerging opportunities and threats.

3.    Provide an understanding of the future market segments and priorities.

4.    An analysis of the company’s weaknesses and strengths and its competitors together with processes in the value chain that need to be changed or adopted.

5.    Identification, assessment, and evaluation of strategies and creation of a business model that can differentiate the business with competitors.

6.    Preparation of programs and policies for proper implementation of the strategies.

7.    Allocation of resources, responds to environmental changes and monitoring of performance.

Strategic Plan Literature Review

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Strategic planning is used by management accountants to change the performance of a business, promote discussions that provide facts that are politically sensitive, the creation of a model that integrates all the functions of the organization, and have proper context for making budgeting decisions (Amy 2012). Through strategic plans, managers get more insightful information for decision making and business appraisal.

The assumption made in developing strategic plans is that resources are readily available, and the organization is underperforming. Also, it is assumed that the external factors and internal factors provide all the required information for making strategic plans. However, it’s hard to get complete strategies since competitors do not give information that is relevant for benchmarking and the process is also implicated b social and political factors (Byron 2013).

Another scholar, Paul (2013) made a comprehensive research on the essential requirements for strategic planning. The author also assumes that the organization making strategic plans is financially struggling. According to the author, strategic planning is a functional process that provides the difference between a struggling organization and an innovative-driven organization.

The reason behind strategic planning is to create a cultural environment that believes in planning not just for the company to strive out of its low performance but long after regaining form (John 2012). Successful strategic planning incorporates ideas, inspiration, hard work, and determination. Most strategic plans are currently static and should evolve to being more adaptive and directive.

Strategic Plan Literature Review

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Paul (2013) noted that the essential elements of a successful strategic plan involve:

1.    Beginning at the top.

For a unified mission and vision, top management should take priority in implementing the strategic plans. The plan does not only involve management accounting but all other senior departmental managers including the CEOs. The senior managers should drive the strategies and give reasons behind each plan for effective accomplishment of organization goals. A strategic plan involves all the processes of an organization, and it is through coordination of the different functions and processes that a cohesive strategic plan is formulated. Management should be leaders in their job to ensure the strategies fall in place.

2.    Inclusion of strategic plan at all levels

Management accountants should involve all the levels of employees while designing a strategic plan. As proven by the lean approach, each has different ideas, and if given the right conditions, the ideas can be put to work (Khan and Join 2010). The sales team, financial accountants, casual workers, and even customers should be involved in strategic planning. Involving all levels of the organization in strategic planning ensures that passion for the internal community is strong for all the people working at the organization. Employees get motivated to work even extra hard when they feel they are considered a part of the organization.

3.    Concentrate more on skill than vision

Though a strategic plan is guided by the vision of the organization, skills and expertise required is key to the achievement of the firm’s goals. Different skill sets should be applied while crafting the strategic plan (Bain 2014).

4.    Have a guidebook for making decisions

The strategic plan should be used by all the functions of the organization to make decisions. Mission, vision, and decisions should be the core of the strategic plan and should provide advance decisions for the firm. The strategic plan should be the first thing to be viewed and applied daily as it is a representative of the organization.

5.    Flexibility

Though the strategic plan is used as a guidebook, the market keeps on changing, and it should be designed in a way that it can be changed. Priorities and economic conditions shift making the tasks laid out for accomplishment to change and evolve.

A well-documented strategic plan uses the past to forecast the future and creates a specialized culture for the organization. Strategic plans impact the organization socially by integrating the different functions and departments (Erica 2012). It is ethical in its form since all the stakeholders are involved hence ensuring that the needs of each are looked into before it is implemented.

Strategic Plan Literature Review

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Dennis (2013) talked about an organization looking beyond strategic plan. There are so many challenges faced by organizations that they wonder whether they will survive, let alone succeed. One of the main ways of re-starting an organization is through strategic planning. At the beginning of strategic planning, organizations are always excited yet mostly they end up failing in their mission. Failure by organizations results from strategic plans lacking some primary components such as:

1.    A detailed assessment of the organizational structure.

2.    A vision that is clear with uptight measures.

3.    A clear and comprehensive funding structure to acquire all the necessary resources.

4.    A plan that is detailed for implementation by both the staff and the management.

After the process of making the strategic plan, management accountants involved in the process always say that the process gave them insights into fulfilling the goals of the organization, that the functions were fully engaged and so on. The managers involved in the process should have greater confidence in the improvement of the organization and also the know how to accomplish the goals (James 2012). All the staff and board of directors should also be excited because they know where they are as an organization and where they are going.

According to Dennis (2013), effective process of strategic planning begins by first establishing the current position of the organization and the internal obstacles that it’s facing and all the hindrances to its achievement. Establishing obstacles is done by having a comprehensive face to face interviews with all the involved stakeholders both internal and external.

Before the interviews are done, it is crucial to collect and review information about the organization. Information management needs to have include budgets and financial statements, table of organization used by management, board minutes, marketing and public relations schedules and a better understanding of all the components. It’s only after there is a detailed list of information that a strategic plan can be prepared.

Strategic Plan Literature Review

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The vision presented by the strategic plan should create enthusiasm, commitment and should be well understood. After a clear identification of where the organization intends to go, review of all services and programs is done to determine processes that need to be changed or improved. Few goals should be set to enhance attainability. Also, during strategic planning, it is an appropriate time to outsource activities or involve other organizations so as to achieve the goals of the organization (Graham 2014).

After a comprehensive assessment of the organization is done, inspirational mission and vision for the organization is established as the foundation for the strategic planning. It is only by going beyond the traditional methods of strategic planning that the employees can be re-energized to impart new life to the whole organization.

According to Bill (2014), Strategic planning is no longer creating vibrancy and energy in organizations. The inability of the managers to forecast the future was the major contributing factor to the decline in the use of strategic planning. Instead of directing resources to opportunities that were productive, strategic managers accepted any project that was brought forward.

Also, strategic plans were not interrelated to the main action plans, and if action plans were described, they were so vague such that managers continued to do their operations in the usual way. A lot of time would be spent in drafting an attractive mission statement that wasn’t practiced. 

Strategic Plan Literature Review

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All the above scholars identify strategic planning as a core function of management. It is through having a strategic plan that the direction of an organization is established. However, a plan is incomplete without the involvement of both the internal and external stakeholders. According to Ronald (2013) the plan should be at par with the regulations of the market as well as company’s policies. It should create a correlation between the social aspects of the organization as well as the political aspects.

Leaders should be incorporated and should be first in coming up with effective strategies. It is through proper leadership that common goals and team work is established (James 2011). An organization that does not incorporate teamwork as a core social aspect does not succeed. It is, therefore, necessary to involve all the stakeholders in the designing of the strategic plan.

Before commencing to write a strategic plan, the management should have clear information on all the organization functions. The sales people, accountants, human resources, budgetary committee, financial managers and all internal, as well as external stakeholders, should be involved. When all stakeholders are involved, it’s easy to get a clear picture as to what is ailing the organization.

The obstacles undermining the performance of the organization should be established (Steven 2013). Involvement of all the functions and stakeholders ensures that all ideas are incorporated and weighed against each other to get a common goal. A strategic plan is not necessarily designed to show how goals are to be achieved but where the future of the organization lies.

The reason so many strategic plans are set but do not work is because resources are not directed where they can be mostly profitable. Managers become so blinded with setting up mission and vision for the organization that they do not plan for specific issues that will lead to profitability in an organization.

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Historical data on cost allocation strategies, budgeting, financial statements, and performance is used to generate a strategic plan. The strategic plan also incorporates forecasting and cost analysis since the plan should lie within the available resources (Mark 2013). The more information and stakeholders are involved, the best the outcome. A strategic plan should not be just a documented plan, but it should provide a clear mission and vision for the organization and should be a guide to employees and all staff. The plan should create a culture of team work and leadership. When all the stakeholders are involved, the employees feel part and parcel of the organization and get motivate to put their best feet forward.


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John Bryson, 2011. Strategic planning for public and non-profit organizations

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Ken Favaro, 2013. One company, two identities, one strategy. Available from

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Max Mckwoen, 2012. The strategy book.

Nicomachean Ethics, 2014. Available from

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William Pirraglia, 2010. Why is strategic planning important to business? Available from

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Balanced Scorecard

Balanced Scorecard
Balanced Scorecard

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Balanced Scorecard


The balanced scorecard is the component that is utilized for execution estimation to drive the general execution of the association. The usage of adjusted scorecard inside of an undertaking has been a vital advancement in a few nations around the globe. The utilization of adjusted scorecard picked up acknowledgment in the UK in light of the always showing signs of change business scene. An adjusted scorecard is the component that is utilized for execution estimation to drive the general execution of the association.

The idea of execution estimation was initially utilized by David Norton and Robert Kaplan. The utilization of adjusted scorecard picked up acknowledgment in the UK because of the regularly changing business scene (Wu, 2012). This paper explains the adequacy of executing the balanced scorecard inside of an association and how it can be utilized to produce new systems as apparent in administration accuracy.

The utilization of balanced scorecard bolsters the era of new systems for the firm by supporting the budgetary and operational components of the organization. Every one of the suppositions connected with bookkeeping, learning and practice and additionally moral practices of the UK organizations is likewise broke down.

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Ethical operations

A cutting edge environment requests that an association ought to put more accentuation on the long haul additions to upgrade their manageability to ensure that they move with the moving technological world. In this way, the business needs to concentrate on components that will promise higher money related execution of the business in the long haul premise. For long haul money related execution of any association, measures of value, efficiency, piece of the overall industry, worker fulfillment, and consumer loyalty should be exceptionally considered.

This structures the premise why Norton and Kaplan thought of the idea of adjusted scorecard to investigate the business execution in the viewpoint of money related, clients, inside procedure to ensure that all the best is attained. Once ethics program is employed for use in most of the UK companies operations will be highly improved and attaining of best performances will no longer been issue again. All activities will be run to the benefit of the poor and the rich in the society.  

Following of the right corporate governance will guarantee ethic to be portrayed among many leader and the firm performance will drastically be improved accordingly. Employing the use of the right social responsibilities will ensure that balanced scorecard has been well implemented in the companies and financial matters will be dealt with accordingly. An association can be driven towards its unmistakably set objective through the utilization of BSC whereby; this should most ideal be through some different BSC parts, which include: estimation framework, vital administration framework, and the specialized instrument.

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BSC is utilized for imparting the required methodology all through the entire association from the pioneers to the laborers. Additionally, BSC is likewise appropriate in adjusting the individual objectives of the representatives with general business technique. Additionally, BSC is utilized as a part of adjusting and recognizing key activities that are required for use by the association with its main goal towards accomplishing its objective (Cox, 2014). There exist diverse systems in BSC that are connected regarding execution and methodology.

These systems incorporate learning and development, which help any person’s interest in learning more about the operation is taking place to grasp the concept very fast. The client viewpoint can be adjusted by guaranteeing that the representatives are prepared in the best way to serve clients for them to be fulfilled by the association’s administrations. Then again, learning and development viewpoint can be taken care of by guaranteeing that there is a lessening of holding up time in the crisis room is looked upon (Baker, 2010).

Enhancing use administrations can be taken care of by the inner procedure point of view while money related viewpoint can be taken care of by guaranteeing that all funds of the association are very much controlled. Especially, the usage of adjusted scorecard has been utilized as an administration apparatus as a part of the created nations than creating nations. In such manner, the creating nations have likewise proceeded with acknowledge the utilization of adjusted scorecard as their business administration device with the point of understanding its advantages (Tuan, 2010).

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Preparation appraisal is one of the numerous standards of BSC that guarantees that the association’s authority is conferred as far as contribution, serving, and imparting where vital and seeing all that is required of them (Phillips, 2010) On the off chance that every one of these duties must be well implemented in making sure that all counting and operation are run well in then companies present in the UK.

The vital arrangement of any association is normally very much characterized under the use of balanced scorecard to actualize what is the goal, mission and all the vision set aside for the company to achieve (Brookes and Grint, 2015).

Leadership is essential in the execution and the general accomplishment of BSC. An association needs to pick up duty of initiative for them to proceed with the usage of BSC. The leaders of the considerable number of associations need to well take part in ensuring that they run their thoughts and exercises as required in their associations (Rohm et al , 2013). There is need of investigation of how then BSC operations are being transacted in ten companies to make operations work out as required. Leaders are mandated with the duty of ensuring that the right codes of ethics are incorporated in the company operations to yield to better results in the near future (Wu, 2012).

Leaders should be much concerned of how operations are taking place to cater for the needs of all in then society. Every one of the pioneers needs to plainly comprehend BSC; since, they have the command of teaching others on what should be finished with respect to BSC idea (Brookes and Grint, 2015). This will be exceptionally valuable for them in accomplishing every one of the association’s particular exhibitions, measures and increase all the backing and duty that they require to accomplish every one of their objectives.

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Most leaders concur that BSC offers associations to manufacture some assistance with long term maintainability. Associations need to manufacture long haul maintainability that requires enough time, responsibility, and enough assets that will bolster future exercises in the association (Brookes and Grint, 2015). The procedure of executing BSC is including, sets aside time to be an expert; henceforth, a considerable measure of tolerance is required particularly from the pioneers.

Availability appraisal is the first BSC model that involves the ID of the association’s necessities, affirming authority’s duty and all assets that are accessible (Niven, 2014). Arranging guarantees that pioneers who take an interest in the BSC group allot methodologies to BSC and complete the audit of mission that the associations need to accomplish is effective (Brookes and Grint, 2015).

Then again, specialized execution guarantees that every one of the methodologies goes into the association’s framework through programming, trainings, information solidification standards, and even through building scorecards. Association’s execution guarantees that the BSC procedure is all around actualized and correspondence is very much encouraged in the associations. What’s more, operations executed in the association guarantees that there is a high information overhaul, examination and consistent reporting of data where essential for the right changes to be finished concerning the BSC model (Pearson, 2013).

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Challenges of BSC implementation

There are many challenges that are currently associated with the balanced scorecard operations over the years. Usage of BSC is confronted with different difficulties like the few measures that are placed set up per every point of view (Bigliardi & Bottani, 2010). For a BSC being effective, it needs to incorporate a blend of results and execution drivers. On the off chance that there are few measures for each point of view in the middle of money related and non-monetary markers, the association is liable to fall flat in BSC execution (Weng, 2011).

Whenever an organisation receives high measure of resource usage, there might be a big problem associated with how bets the operations will be transacted. The people who initiated the use of balanced scorecard if not present in its implementation the company there tend to be a very big challenge (Diamantopoulos et al, 2014). It is due to the fact that the ones in the company are not well informed onh0w to use the balanced scorecard and guidance is needed in such a situation.

The environment under which the balanced scorecard is operated is a major challenge that ought to be well coordinated to avoid problems from occurring (Hoque, 2014). With a specific end goal to understand the adequacy of BSC, all the association in the UK needs to execute an exhaustive examination of how BSC will be actualized and utilized for their prosperity as a part of the association. This procedure is entirely includes, and individuals expected to complete the examination are not very many in China, along these lines turning into a major test to BSC execution (Gazzard, Hill & Anceau, 2011).

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Methodological assumptions for implementing accounting knowledge and practice

The philosophy embraced in this paper is the contextual analysis in view of the UK organizations. Throughout the years, the contextual analysis, examination has been utilized by the greater part of the scientists to give an inside and out examination that contains; oral, archival, and auxiliary based artifact of specific marvels on bookkeeping matters (Husain & Farooq, 2013). The data got from the contextual investigation involves the observational and individual information accumulation instruments of the bookkeeping learning and practice.

The contextual analysis, exploration gives a precise method for watching occasions, information accumulation and data investigation of all bookkeeping practice and learning (Karpagam & Suganthi, 2012). There are three sorts of contextual analyses that can be led with each having its own determination. To start with, there is the informative contextual analysis that is significantly utilized as a part of leading easygoing examinations of bookkeeping research and practice.

The relative budgetary position of most UK organizations before the execution of BSC is generally low (Kootanaee, Kootanaee, Hoseinian & Talari, 2013). For the second quarter after BSC execution, the money related state of most UK organizations enhanced massively. This development is still obvious in the second from last quarter and a short time later as can be seen from the incomes and the benefits. Such development can be occurring; subsequent to, the new technique utilized of BSC is effectively running. A ton of financial specialists is getting the chance to expand the estimation of their riches (Maxwell & José Dionísio, 2011).

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UK organization’s operations

Prior to the usage of adjusted scorecard in the UK, organizations were having issues with different venture choices that appear not to shoulder natural products. The issue could be going on because of incorrect venture choices that utilized by the organization throughout the years. This may have prompted the miscount of the normal proficiency of their operations, prompting the disappointment of their methodologies (Narayanamma & Sukanya, 2013). The operations of the board individuals are not successful, prompting pointless activities among the representatives of the organization.

Inside of the beginning quarter of the operations of most UK organizations did not yield much natural product, prompting a few missed procedures. In any case, things changed with time when the adjusted scorecard was actualized by the organizations (Northcott & Tuivaiti, 2012).

The missed systems by most organizations, enormously meddled with the operation and in addition the general capacity of the organization to understand its destinations. Then again, the representative vicinity in many organizations was not that noteworthy and this demonstrated there was the need to utilize balanced score card (Price et al, 2013).

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For the long haul budgetary execution of any association, measures of value, efficiency, piece of the pie, worker fulfillment, and consumer loyalty should be exceedingly considered. The balanced scorecard is the system that is utilized for execution estimation to drive the general execution of the association. The usage of adjusted scorecard inside of the association is extremely critical as it accomplishes money related and operational results inside of the association. The utilization of balanced scorecard can be utilized to create new techniques for the firm by supporting the money related and operational instruments of the organization.


Baker, R. 2010. Implementing Value Pricing: A Radical Business Model for Professional Firms 1st Edition. Wiley; 1 edition

Bigliardi, B., & Bottani, E. 2010. Performance measurement in the food supply chain: A balanced scorecard approach. Facilities, 28(5), 249-260

Brookes, S., & Grint, K. (2015). The New Public Leadership Challenge. licensed to University of Sussex – PalgraveConnect Macmillan

Cox, S. 2014. Managing Information in Organizations: A Practical Guide to Implementing an Information Management Strategy. Palgrave Macmillan

Diamantopoulos, A., Finckh, A., Huizinga, T., Sungher, D.K., Sawyer, L., Neto, D. & Dejonckheere, F. 2014, “Tocilizumab in the Treatment of Rheumatoid Arthritis: A Cost-Effectiveness Analysis in the UK”, PharmacoEconomics, vol. 32, no. 8, pp. 775-87.

Gazzard, B., Hill, A. & Anceau, A. 2011, “Cost-Efficacy Analysis of the Monet Trial Using UK Antiretroviral Drug Prices”, Applied Health Economics and Health Policy, vol. 9, no. 4, pp. 217-23.

Hoque, Z. 2014. 20 years of studies on the balanced scorecard: Trends, accomplishments, gaps and opportunities for future research. The British Accounting Review 46: 33–59

Husain, Z. & Farooq, A. 2013, “Instrument Development to Measure Organisational Change and Balanced Scorecard”, The Academy of Business and Retail Management (ABRM), London, 01, pp. 1.

Karpagam, U.P.L. & Suganthi, L. 2012, “A Strategy Map of Balanced Scorecard in Academic Institutions for Performance Improvement”, IUP Journal of Business Strategy, vol. 9, no. 3, pp. 7-16.

Kootanaee, H.J., Kootanaee, A.J., Hoseinian, H. & Talari, H.F. 2013, “The Balanced Scorecard, Alphabet of the Modern Management: From Concept to Implement”, Advances in Management and Applied Economics, vol. 3, no. 1, pp. 47-59.

Maxwell dos, S.C. & José Dionísio Gomes, d.S. 2011, “O Balanced Scorecard Como Framework Para A Acaoestrategica”, Revista Ibero – Americana de Estratégia, vol. 10, no. 3, pp. n/a.

Narayanamma, P.L. & Sukanya, M. 2013, “Traditional Balanced Scorecard V/S Modern Balanced Scorecard: A Conceptual Framework”, International Journal of Organizational Behaviour & Management Perspectives, vol. 2, no. 4, pp. 649-656.

Niven, P. 2014. Balanced Scorecard Evolution: A Dynamic Approach to Strategy Execution (Wiley Corporate F&A). Wiley

Northcott, D., & Tuivaiti Ma’amora Taulapapa. 2012. Using the balanced scorecard to manage performance in public sector organizations. The International Journal of Public Sector Management, 25(3), 166-191

Pearson, R. 2013. Balanced Scorecards and Operational Dashboards with Microsoft Excel 2nd Edition. Wiley

Phillips, J. 2010. PMP Project Management Professional Lab Manual. McGraw-Hill Education; 1 edition

Price, D., Asukai, Y., Ananthapavan, J., Malcolm, B., Radwan, A. & Keyzor, I. 2013, “A UK-Based Cost-Utility Analysis of Indacaterol, A Once-Daily Maintenance Bronchodilator for Patients with COPD, Using Real World Evidence on Resource Use”, Applied Health Economics and Health Policy, vol. 11, no. 3, pp. 259-74.

Rohm, H., Wilsey, D., Perry, G., & Montgomery, D. 2013. The Institute Way: Simplify Strategic Planning and Management with the Balanced Scorecard. The Institute Press; 1st edition

Tuan, L. 2010. ‘Balanced scorecard implementation at Rang Dong Plastic Joint Company (RDP)’ Management Science and Engineering 4(2), 92-98

Weng, M. 2011, “The Appplication of Balanced Scorecard to Performance  Evaluation for Engineringing Eductaional Syatems”, International Journal of Organizational Innovation (Online), vol. 4, no. 2, pp. 64-76.

Wu, M. 2012, “The Effects of Balanced Scorecard Implementation on the Intellectual Capital Accumulation of Taiwan-listed IT Companies: Using Corporate Innovation Activities as the Moderator”, Journal of Global Business Management, vol. 8, no. 2, pp. 82-93)

Ying, J. 2010. ‘The application of BSC in China’s E-government performance evaluation’. Korea University

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Operational Strategy for a Cabinet Company

Operational Strategy for a Cabinet Company
Operational Strategy for a Cabinet Company

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Operational Strategy for a Cabinet Company

Good management strategies are pillars to successful organization operations. All the top performing organizations and business firms enjoy the effectiveness of affirmative plans bestowed to them by their professional management teams. Therefore, the fact that good team work fetches good results cannot be ignored in any business platform. It is worth mentioning that coming up with a business organization is a difficult task to accomplish.

The competition for natural resources and market for the processed goods offer a big challenge to all entrepreneurs holding analogous ideas and objectives. Consequently, the magnitude of success depends on the strategies embraced by respective business co-operations through their quest to beat all the market odds. People in the society tend to emulate business ideas and plans that turn out thriving from their founders.

Nonetheless, it is never a grantee that a person will succeed immediately after bootlegging a business idea from a successful friend. The purpose of this research paper is to highlight an operational strategy plan that can boost the foundation of a cabinet company. Furthermore, it exposes the foundation and operational objectives that would propel it through a series of successful events.

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Operational Strategy for a Cabinet Company

Corporate Objectives

            The existence of set objectives and goals within organizations expose the difference between those organizations that prosper and those that fail. Firms ought to have operational directions in whatever they do to achieve great things in any business platform. Economists around the globe believe in theories that embrace future initiatives (Mumford, 2013).

Just to mention, a group of people with set goals and desires can achieve extensive success as compared to those business groups without a common strategy. Therefore, corporate objectives should reflect the cultural foundations of organizations. Through them, both the employees and the employers get to correlate peacefully on unified commercial and growth forces.

            The main objective of the Cabinet Company is to connect with the consumers through a series of renewed developments in cabinet production. The company strives to innovate improved cabinet designs to allow the society depict a good infrastructural gesture which merges with the current generation. Additionally, it aims at eradicating corporate norms that have been neglected but still hold hefty operation penalties. For instance, the company ensures the existence of transparency amongst all the staff members despite their diverse posts and job tasks.

            The company aims at achieving intense profits from its maneuvers with a close collaboration with other companies on the same field. With this in mind, the management will ensure the wellbeing of all resource providers.  Basing on the fact that a cabinet company requires several tools and materials from other organizations, it is essential to set positive relationships from all corners. Failure to cooperate with other key bodies involved in the business can results to problems within the management of the entire organization (Goldstein, 2012).

An organization that neglects the pleas of other minor parties is bound to fail due to factors had to be avoided. It is clear that when a cabinet company collaborates closely with timber providers their operations will be at a positive level. Moreover, conflicts due to lack of transparency within the management department scan spearhead a series of mayhems.

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Operational Strategy for a Cabinet Company

Infrastructure and Possession Goals

            The growth of any business enterprise relies on the efforts put into place by the people connected to it. There exist crucial historical events in almost every institution that can be tracked basing on the growth efforts that their respective team members put into them. Consequently, the infrastructure used at the beginning of the business is expected to be altered positively after some noticeable period of operation. The goal and desire to grow and expand will ensure that the company achieves intense growth in line to infrastructural aspects and general possessions of the company.

Marketing Strategies

            The competition on the market sets a platform whereby the organizations and business groups that have unique marketing plans emerge powerful. As mentioned, the rush to acquire quick money from good businesses has created an oligopoly situation in many business cases. Business people get into businesses that are proven to succeed in certain geographical locations. The location of the Cabinet Company will determine the magnitude of the competition expected.

            Forming a brand name for the goods manufactured is vital. This strategy can be unique from others because most wooden furniture are not labeled with the name of their manufactures. Labeling of the goods will not only advertise them to many people in the location but also reflect the impacts of the hard work and commitment from the workers. Earning the trust from customers is a top objective of many companies. Thus, exposing the brand name can mobilize people to cause a drastic swing on the market and as a result improve business transactions of the company (Goldstein, 2012).

            Advertisement of the products should be on the top of the priority list. Programs must be put in place to facilitate smooth advertisement procedures within the market location and its environs. Through advertisements, people on the market are updated on the advantages of purchasing products from the company in comparison with products and goods from other similar organizations.

Additionally, advertisements reveal the quality of the materials used in production of the cabinets. The exceptional designs of the products from the company are expected to fetch desirable attention from many in the society. Nonetheless, it should be noted that people steal designs that are attractive. The firm will be reliable to set insurance policies to safeguard all its designs and ensure the protection of all products that are manufactured within its boundaries.

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Operational Strategy for a Cabinet Company

Operation design choices

Operational choices of the management are important because they set the background foundation of almost every issue. The management department should be ready to work hand in hand with other minor departments of the company. All workers should be given equal chances and working opportunities that they deserve. For instance, the employment procedure must cling to the organizational culture that supports fairness and employment of well qualified employees.

Employed workers must undergo a series of tests to evaluate their efficiency. Performance tests to determine the legibility of the workers put them on their toes to perform as expected by the management (Melé, 2011).These tests pinpoint on areas that need further improvements with a better view of perfection.

Changes within the company should be introduced gradually through the right processes. Over the years, organizational changes have been vital in stirring up working conflicts that rescind the peace required to achieve the set goals. Therefore, all the staff members must be alerted on time before any changes are made. It is worth mentioning that some changes require training for them to be successful.

Programs that offer professional training put the workers at per with the new things and tasks they will be facing at work. The nature of humankind is interesting whereby people can be affected directly or indirectly if changes are introduced forcefully in any company.

Effective training allows the growth of a close relationship between the supervisors and the employees (Mumford, 2013). It is evident that the programs will first be introduced to the senior staff members who are expected to train their minor counterparts. Through a deeper evaluation, any person will admit that when workers are in good terms with their managers and supervisors their work efficiency shots to greater levels fetching good outcomes at the end.

However, the workers should respect the decisions made by the management board which carry hefty but affirmative results. On the other hand, the management ought to guarantee the employees of their support through measures that empower them in almost every aspect.

In summary, the cabinet company will only prosper if all the forces are put in check. Factors that can terminate the set objectives and goals must be avoided at all cost. The culture of the company stands as a firm reference that reflects the desires of both parties within the organization. Just to mention, hard work from the management department and workers will channel good and productive financial results to the company.

The difference of operation in divergent companies determines the level of output achieved. Therefore, the cabinet company is expected to grow and develop intensively if all the staff members are ready to comply with the proposed objectives and operational goals.


Melé, D. (2011). Management Ethics: Placing Ethics at the Core of Good Management. Chicago: Palgrave Macmilla

Goldstein, I. L. (2012). Training in organizations: Needs assessment, development, and evaluation. London: Thomson Brooks/Cole Publishing Co.

Mumford, A. (2013)Gower Handbook of Leadership and Management Development. London: Gower Publishing.

Operational Strategy for a Cabinet Company

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Culture and Strategy Research Paper

Culture and Strategy

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Culture and Strategy


The relationship of organizational culture and progression has been subject of different examinations over the span of the latest years. The colossal number of social variables under investigation has incited an isolated thought of society for development.

Further, managerial practice requires a concealed structure remembering the final objective to pick what society should be completed in order to improve and to study if a specific culture is a convincing and powerful coordination instruments. The motivation behind this paper is to inspect the idea of the hierarchical culture and give a brief discourse on the methodologies utilized for overseeing it in culture and strategy of organizations.

  1. Introduction

Hierarchical culture emphatically influences organization and administration, which ascend out of its slant and its substance. Hierarchical society is described as a course of action of assumptions, qualities, norms, and perspectives, appeared through pictures which the people from an organization have made and gotten through basic experience and which offer them some help with deciding the essentialness of their general surroundings and how to absorb it. (Janićijević, 2011).

Presumptions, qualities and gages which the general population from a firm shares completely shape their interpretative game plans. Through interpretative courses of action, the general populations from an association assign repercussions to events inside and outside the association and comprehend reality that incorporates them (Janićijević, 2011). The conduct, activities and trades of the general population from an association rise out of the inducing that reality of that association has for them.

Various leveled society is a sort of aggregate interpretative course of action shared by the general population from an association, because of which they dole out proposals to events, individuals, and occasions inside and outside of the association correspondingly and treat them moreover (Janićijević, 2011). In this way, the lifestyle of an organization surmises that each one of the people from the organization likewise appreciate the organization.

The character of different parts of management and organization, for instance, methodology, structure, activity style, Organizational taking in, a game plan of prizes, and motivation, rises totally from the way in which delegates and administration understand authoritative reality and carry on in it (Janićijević, 2011). Thusly, Organizational society, through its effect on the interpretative plans and direct of the people from an organization, shares in framing distinctive portions of organization and administration.

Subordinate upon the qualities and measures contained by the Organizational society, top organization picks the technique and courses of action progressive structure, boss shape their drive style, delegates depict their behavior of intuition and needs, and the human asset executive plots the pay framework in an affiliation. A solid sort of the effect of Organizational society on an association and organization is found in the way that parts of an association and organization vary in various sorts or sorts of legitimate society. By the day’s end, specific sorts of society in association’s propose different techniques, legitimate structure models, pay frameworks, organization styles, and so forth  (Janićijević, 2011).

One of the key parts of organization that are impacted by definitive society is the organization of progressive society. Definitive society impacts the choice of satisfactory Organizational culture organization correspondingly it impacts every single another bit of organization. Social suppositions and qualities shared by the general population from an association pick the path in which workers and executives will value the association itself, and thusly the satisfactory approach to manage transform it (Janićijević, 2011).

Culture and Strategy

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What will be resolved as a suitable, effective, or steady methodology for changing the association will rely on upon an exceptionally fundamental level on the common suppositions and estimations of operators and managers worked in their interpretative game plans. Whether the developments are incremental or radical, complete or deficient, encouraged starting from the top or from the base up, concentrated on the culture of the “hard” or of the “touchy” some segment of association, will all, metaphorically talking, rely on upon how the pioneer and the general population from the association see its working and a suitable, strong, or down to earth method for taking off improvements (Aguiree, Post, and Alpern, 2013).

This is the motivation driving why the strategy of legitimate culture organization will be all around assorted in various Organizational social requests. For instance, if various leveled society is told by the estimation of adaptability, this recommends the general population from the association will consider cultures to something unprecedented and obliging for the association and themselves.

For this situation, cultures are slanted to be reliable, and thusly additionally incremental in nature, in light of the way that there will be no need for radical cultures adequately by virtue of the way that they are consistent (Janićijević, 2011). Additionally, cultures will be driven with less resistance yet rather more eagerness by the agents. Then again, if Organizational society contains the estimations of predictable quality and conservatism, then the general population from the association will consider cultures as dangerous, both for themselves and the association.

Cultures will be phenomenal, yet when they do happen they will be radical and wide. They will be composed to a wonderful level of resistance from and an all around insignificant level of sponsorship by the general population from the association, who will be for the most part sit out of gear powers of progression (Janićijević, 2011).The degree of this paper is to appreciate and examine the legitimate society and organization philosophies to manage the troubles stood up to by the various affiliations.

Culture and Strategy

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  • Review of Strategies for Organizational Culture

In the extent of various leveled culture association, the considered scholastic specialists and honing boss has been basically focused on three central solicitation: what cultures, why it cultures, and when it cultures. Along these lines, the three key subjects in various leveled culture research have been causes or variables of legitimate culture, definitive culture content, and the character of the progressive culture process.

The conclusion came to has been that authoritative cultures are begun as a result of either internal or external causes. From this time forward, two sorts of hierarchical culture have been isolated by the measure of cause: authoritative headway and alteration (Aguiree, Post, and Alpern, 2013).

Concerning culture content, the survey of forming demonstrates that progressive cultures are segregated in two imperative courses: cultures of definitive statics (structure and framework) and cultures of legitimate segments (process), besides cultures of work structure (assignments) and cultures of social structure (relations)). At long last, research has displayed that, as showed by the character of the strategy, various leveled cultures can be tireless or sporadic.

Tenacious cultures are incremental (first request cultures), divided, and transformative while sporadic cultures are radical (second request cultures), complete, and dynamic. The part of the pioneer in the midst of the time spent culture has moreover been a fundamental issue in definitive culture research (McGuire, 2003; Madu, 2005).

Not at all like the issues of cause, substance, have process, and authoritative culture organization, hierarchical culture methods been less present in investigation. Authoritative culture framework joins the system, strategy, or route in which cultures are realized in an affiliation. This definition proposes that movements are continually orchestrated and that, at whatever point we examine culture execution method, we truly discuss masterminded hierarchical cultures (McGuire, 2003; Madu, 2005).

The way that the primary course of action of authoritative culture strategy oversees organized culture system in like manner adds to this impression. In any case, this does not for the most part should be the circumstance. Cultures can similarly be unconstrained or unconstrained, and their anticipated approach, strategy, or the best approach to constitute a culture framework. They can be a strategy for recognizing authoritative culture, regardless of the way that the movements are off the cuff (McGuire, 2003; Madu, 2005).

Culture and Strategy

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While most specialists while examining business or corporate approach truly mean adjusted, formalized, organized decisions, distinctive scientists point out that strategy, can rather be fathomed as a bona fide security partner particular business decisions and giving them consistency, which is new and just thusly legitimized as a framework, rather than a normal, orchestrated decision arranged early (McGuire, 2003).

Likewise, in the field of hierarchical culture, culture framework may be fathomed as a masterminded decision of the administrators of advancement, furthermore as a creating case of development through which cultures are recognized and which grabs its shape entirely when the movements have been made sense of it. Starting now and into the foreseeable future, the discernment of legitimate society structure in this paper is to some degree more wide than the one in the much grasped work by Chin and Benne, who were the first to accumulate progressive society frameworks (McGuire, 2003).

The judicious observational system is developed on the suspicion of the common sense of Organizations and the comprehensive group who constitute them (Sami, 2012). Affiliations are seen as a shrewd means for completing the common focuses of their kin through aggregate activity. Individuals are overseen as regular creatures lead with no other individual’s data interest.

Along these lines, societies are executed by demonstrating the general population from an association that they are reasonable, i.e., reinforced and critical from the viewpoint of accomplishing progressive objectives, furthermore obliging to the self-vitality of the general population from the alliance (Sami, 2012). The supposition is that the general population from the relationship in which the developments are performed will, as normal creatures, carry on as exhibited by their reasonable given side hobbies.

Therefore, in the event that they are given watch that a society is to their most essential purpose of inclination, they will remember it.Cultures are driven through the typical system of information party and utilization of learning in dealing with the issues that the affiliation faces. Essentially, cultures are driven through the methodology of utilization and testing of specific theories, which give off an impression of being adequate in a given setting (Long, 1997).

Culture and Strategy

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Authoritative cultures are driven in five stages: issue conspicuous verification, information get-together and examination, the time of alternative diagrams, determination of the perfect procedure, and execution of the game plan. In the adjusted framework, the key driver of societies is accurately the data with respect to the issue which should be taken care of and the conceivable fundamental reasoning strategies.

On the off chance that the data is instigating and clear, and on the off chance that it is decisively in all actuality, the general population from an association will, as shrewd creatures, perceive the execution of societies (Luthans, and Doh 2008; McGuire 2003). It is thusly vital that data gathering is driven purposefully and in a methodologically noteworthy way, ideally by an authority (it is as regularly as could reasonably be expected the case that advice are contracted in this way).

The strategy of granting information concerning the issue and with respect to the movements which will deal with the issue is uneven and beginning from the top. Correspondence includes top organization, or authorities picked by top organization, showing the “truths” of the bona fide condition, the theoretical model which enables the offered situation to be understood ‘legitimately’, and also the proposition for culture which really ascend out of this perception (Luthans, and Doh 2008; McGuire 2003).

No dialog or talk is joined into which the people from the affiliation would be allowed to test, address, or rename the “truths” or theoretical models showed to them (Luthans, and Doh 2008; McGuire 2003).

Culture and Strategy

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It is clear that the executives of headway in this system are the top association, and that the heading of progression is starting from the top. The part of the general population from the connection is sit without moving and is obliged to enduring the data and acting in like way. The level of support of the alliance individuals is low, and the response to this course of action of the people in the developments is, most perfect circumstance, assertion. As a last resort, the imperviousness to culture is high (Luthans, and Doh 2008; McGuire 2003).

  • Leadership/Management and Organizational Culture

Organizations are not any more liable to accomplish business objectives without a key business process that are associations liable to accomplish new social abilities without a key authority process. Whenever consolidated, the business methodology and authority system can work all the while to grow new center capacities essential for the association’s future.

We present the defense that it is administration, as a deliberate gathering of similarly invested individuals, which can exhibit and take part in the better approaches for doing and being that advances the way of life and empowers diverse business results (Dilobe &Haccoun, 2010; House, Javidan, Hanges, & Dorfman, 2002; Eromafuru 2013; Woszczyna , 2011; Salamzadeh, , Ahmadi & Akbari, 2012; Eromafuru, 2013).

Culture and Strategy

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 It is an initiative that imagines future course, adjusts assets, and rouses the dedication of individuals toward this normal reason. A Leadership Strategy can control that basic procedure of the association’s advancement through initiative toward a typical reason for building the couple of, new capacities inside of the heart of the association – its way of life. Adjusting to culture recommends that associations need go to new center capabilities. The movement from an item prompted administrations drove IBM required that the way of life of this once ambling behemoth turn into a group based, the client engaged, elegant organization (McGuire, 2003).

Figure: Leadership Strategy McGuire (2003).
Figure: Leadership Strategy McGuire (2003).

Figure: Leadership Strategy McGuire (2003).

According to Haccoun, (2010);  Dorfman, (2002); Eromafuru (2013); Woszczyna , (2011); Akbari et. al, (2012); Eromafuru, (2013), the key mechanical assemblies for executing society in perceiving observational procedure are assignments, or work positions, and not the social structure of the affiliation and the relations within it. Consequent to the affiliation is appreciated as a prudent contraption for achieving shared targets, societies in it are recognized fundamentally through changing the formal, masterminded, “hard” parts: endeavors, structures, methods, methodologies, strategies, and the association with its environment.

Simply first demand societies can be instated and coordinated through the sound observational system since the method does not allow renaming of the assumptions of reality; this future a bit of second demand societies. As a rule, societies don’t require all that much time; beside when the information gathering technique is greatly mind boggling (McGuire, 2003).

Culture and Strategy

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A deterministic, as opposed to the voluntary supposition of human activity, underlines this technique. The procedure of progress does exclude the through and through freedom and decision of individuals from the association. The strategy, or of progress, is as of now dictated by the target way of the issue, and it is the undertaking of the individuals who settle on choices in the association simply to apply it to sufficient information and hypothesis (Dorfman, 2002; Eromafuru, 2013).

Power coercive strategy translates that a connection is seen as a political structure in which the general population who have the force likewise have the advantage to deal with the association and along these lines change it. The man is not a run of the mill but rather a political being, who submits to the will of the all the more compelling. Along these lines in force coercive framework force is the key driver and contraption for society (Dorfman, 2002; Eromafuru, 2013).

The general population who have the force;  when in doubt the pioneer or top association, coordinate the developments and, by mauling the force they have, power these developments on interculture individuals from the connection. The general population from the alliance is relied on to obey and execute the developments unquestioningly. This strategy depends on upon the supposition that the advantage to urge the course of aggregate activity in one party in like way climbs up out of force. Along these lines, the sub-par individuals from a social event in like way anticipate that the pervasive individuals will set the course in which the developments will be executed (McGuire, 2003).

The correspondence is one-sided and coordinated starting from the top. It comprises of the pioneer or administration achieving a choice with respect to the tackling of an issue, and after that conveying to their devotees and association individuals how, when, where, and who will execute the progressions which will take care of the issue. The main operators of progress are the pioneer or administration of the association who has the ability to execute the progressions.

Culture and Strategy

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The interest of the individuals from the association in culture is low, and their part is uninvolved and boils down to minor dutifulness. In this methodology, the data stream course is starting from the top, in light of the fact that the specialists of progress just advises the association individuals from what is anticipated from them and does not get input. For the same reason, the culture exercises are one-sided (Dorfman, 2002; Eromafuru, 2013; McGurie, 2005).

The power-coercive methodology can deliver just first request culture since it does exclude changing the suppositions, qualities, or states of mind of the individuals from an association. The pioneer who applies this culture system is not keen on changing the convictions and estimations of the individuals from the association so they acknowledge the progressions; rather, the pioneer, by the utilization of force, just drives them to consistence.

This is the reason the progressions will be conceivable just inside of the current worth structure, which prompts first request cultures. Of the considerable number of systems, force coercive procedure prompts the quickest results and this is its primary leverage and the motivation behind why it is utilized generally regularly. In any case, its inconveniences are exceptionally various; for instance, the decimation of inspiration and dedication, extremely solid imperviousness to cultures, and the absence of comprehension of cultures prompting their wasteful usage (Dorfman, 2002; Eromafuru, 2013; McGurie, 2005).

They all Dorfman, (2002); Eromafuru, (2013); McGurie, 2005) concur this society strategy is centered around relations and social structure, as opposed to on work structure and assignments. Since reliance relations are the establishment of this framework, it commonly relies on upon the relations between the effective overseers of societies and the humble individuals from the association. Therefore, control coercive strategy depends on upon relations and the social, nice, “delicate” segment of relationship as an instrument for society.

Power coercive strategy translates the viewpoint of human activity as unshakable, compelling a perspective of the world in which individuals are free directors who can independently pick their activities. In any case, this totally adaptability infers just to the capable pioneer or chief and not to the straggling remains of the alliance (Dorfman, 2002; Eromafuru, 2013; McGurie, 2005)…

Culture and Strategy

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The developments are driven by first changing the suppositions, qualities, standards, and viewpoints shared by the association individuals, and after that besides changing their activities and correspondences, or relations. Along these lines, it is unequivocally these relations and social segments of the alliance that are the vital instruments of headway in regularizing re-educative framework, and not its “hard” parts, i.e. tries.

In this structure, societies happen at the level of relations between the connection individuals. Standardizing re-educative methodology merges the system of reframing, or changing, the socially-made picture of reality, from which societies of both aggregate suppositions and qualities rise (Dorfman, 2002; Eromafuru, 2013; McGurie, 2005).

By researchers, Dorfman, (2002); Eromafuru, (2013); McGurie, (2005); Akbari et. al, (2012); in this manner societies in this reasoning are created both starting from the top and from the base up, and the data stream is multilateral. In the standardizing re-educative structure, the managers of headway in a connection are both the association and the authorities. The alliance individuals are dynamic people in society with an irregular state of endeavor: from this time forward the solidness to culture is sensibly low.

Societies composed by regularizing re-educative philosophy assemble the dedication of the association individuals to the new picture of reality and new connection and is of a higher quality than the past two strategies which request the alliance individuals’ insistence and detached assent. The regularizing re-educative methodology might start and induce second request society since it determines changing the path in which the general population from an alliance handles their general surroundings. However the execution of this strategy takes longer, as creating suspicions, qualities, gages, and dispositions is not a quick technique.

Culture and Strategy

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  • Conclusion

The paper has demonstrated that there is a theoretical explanation behind the supposition that various leveled society is one of the variables in the determination of authentic society association systems. In a split second it is the key to correctly test this presumption by testing the speculations made in this paper. It is also fundamental to look at it and how the way of life impacts the ability of the way of life framework and its flourishing. From this paper, a supposition additionally develops that there might be a criticism impact of organization society strategy on various leveled society.

Inside and out that truly matters, this paper can be prescribed to affiliation association which is planning progressive societies, to help with picking the association strategy for society that is awesome with the way of life of their affiliation. This will add to the suitability and accomplishment of the way of life procedure. With the target this should be conceivable they should have an OK learning of the way of life of the connection they are changing, besides of the open organization society procedures.

Culture and Strategy

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Eromafuru, E. (2013). Building and Sustaining Organizational Culture through Innovative and Strategic Leadership. International Journal of Humanities and Social Sciences3(11).

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Culture and Strategy

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Strategic Management: Transocean Case Study

Strategic Management
Strategic Management

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1.0 Introduction

The paper will evaluate the strategic position of Transocean, a major player in global offshore drilling services in the oil and gas industry. Strategic management is a process that entails formulating and implementing main objectives as well as initiatives a company takes based on the available resources. It also takes into consideration the evaluation of external and internal environment in which the firm operates.

Founded in 1953, the company is headquartered in Houston Texas. Transocean administrative division has since shifted to Vernier, Switzerland for tax and client servicing reasons. Various models such as STEEPLE, Ansoff and Porter’s Five Forces will be used to paint the company’s strategic position when it comes to, macro-environmental review, competition, diversification strategy, market development, product development and market penetration. To wrap up, the paper will make recommendations regarding the direction the company has to take to remain sustainable.

1.1 Strategic Analysis of Transocean Limited

Transocean is a prominent global provider when it comes to offshore drilling services for energy establishments. The company owns and operates the world’s most multipurpose flotillas that concentrate on deep-sea and extremely harsh environment drilling (, 2016). With a fleet of sixty-one portable offshore drilling components, the company offers powerful rigs for deepsea drilling. Transocean helps clients to establish and develop oil as well as natural gas stockpiles.

The company offers an exceptional drilling performance that is anchored in a solid experience that spans more than a half a century. Transocean shares are listed on the New York Stock Exchange under the acronym RIG and Swiss Stock Market under the acronym RIGN.Transocean operates more than 140 offshore rigs in almost all mainmarine markets. Apart from offering drilling services offshore, the company offersdrill management services globally. Transocean operates not just the largest extreme-deepsea flotilla of drill ships global, but it is also the largest offshore fleet worldwide.

The company hires more than 20,000 employees with the technical expertise that is the envy of their business rivals(, 2016). Moreover, Transocean provides management and accomplishment services for assessment and production firms regarding offshore drilling schedules. The company’s mission is to become a leading offshore drilling organisation that provides rig-based services with a global reach, by incorporating a highly dedicated workforce,state of the art machinery and ultra-modern technology, while concentrating on technically demanding environments (Transocean, 2007b)..

The company is dedicated to values that represent its focus, innovativeness, safety, trust and reliability. The company promises to surpass not just the anticipations of theclient, but employees and shareholders as well (, 2016). Transocean’s strategic goals include getting aligned with its customers when it comes to supporting and ensuring delivery of clients’ business objectives.

The company conducts its operations with distinction which is characterized by safety and efficientoffshore solutions (, 2016). In addition,Transocean keeps on enhancing its corporate culture and processes to optimize returns. Lastly, the company not only attracts but also nurtures and retains the industry’s best employees.

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2.0 Strategic Industry Trends

Drilling oil and gas was previously dependent on backlogs. Contract bores alter their rates based on their rig charges relative to retailing oil and gas prices. Usually, contract bores tend to wait on the day down, and speedily adjust their prices upwards depending on how the markets are performing (Redall, 2012). There has been a widespread pattern of extreme deepsea rig business with strong daily charges.

However, there has been a downward trend in mid-water rig markets. The most lucrative market lies of the Gulf of Mexico and West African coastal line, down to the south of Africa. The demand for deep-sea rigs is anticipated to remain jerky in the short-term(Helman, 2015).As of now, approximately 206 floaters are operating under contract across the industry (, 2016).A large percentage of the total number is idle for completing major contracts.

3.0 Strategic Analysis the different types of strategic options

3.1 Ansoff Matrix:

    Existing Markets    Market Penetration      Product Development  
    New Markets  Market Development      Diversification    

Existing Products

New Products

Transocean is a dominant player in a market that is not highly saturated. However, to remain at an edge over its closest business rivals, the company has adopted different approaches. Based on the Ansoff matrix, Transocean has been using a low pricing model to penetrate the market. When it comes to market development, Transocean has been offering ultra-deepsea drilling and management services in various parts of the world. What makes the company the envy of its business rivals is the fact that Transocean’s product development strategy works magic. Apart from ultra-deepsea boring services, the company offers rig and deepsea drilling consultancy services which is certainly some form of diversification hence competitive edge.

In short, Transocean operates in the same market by adopting a horizontal strategy in terms of expanding the product line. Lastly, Transocean has a predominantly diversified portfolio. To diversify risks, the company has necessitated mergers and acquisitions when it comes to financial management and technical expertise. The company operates in various regions such as the United States, the Gulf of Mexico, the North Sea, West Africa, and Southeast Asia, Middle East and the Arctic.

3.2 Porter’s Five Forces of Strategic analysis

3.2.1 Competition

Transocean threat of competition is moderate to high. For example, following a merge in mid-2007 between Rig and Transocean’s chief rival Global Sante Fe, this attempt reduced competition particularly, in ultra deep-water segments. While Transocean has almost a monopoly in ultra deep-water drilling, It is likely to enjoy less competition in ultra deep-water, especially in harsh climates that require technical personnel.

In fact, this contributed to the need for anti-trust lawsuit following the merger between RIG and GSF. Nonetheless, the firm has exposure to different offshore markets such as jackupsegment that is associated with intense competition in various regions globally as well as pricing (Porter, 2008). By and large, the organisation has less competition in ultra deep-water segments, with a somewhat intense competition in mid-water floater and also jackup segments.

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3.2.2 New entrants

Transocean enjoys a low threat of new entrants. With respect to offshore contract drilling sector, it requires huge investment in fleet and rigs before getting inflows from gas and oil organisations (Porter, 2008). This makes nearly impossible for new firms to enter this sector.

3.2.3 Substitute

The main threat of substitute is the changing the energy source from hydrocarbon to renewable sources across the world, which is not likely in the short-run (Turner, 2007). Therefore, the threat of substitute is low.

3.2.4 Strategic Purchasing power

Transocean’s purchasing power is moderate. Much as exploration and production firms have power when it comes to negotiating, especially in mid-water floaters and jackupsegments, they have sufficient ability and provision of idle rigs. In essence, the buyers are in aposition to negotiate low daily rates in the contracts while ultra deep water segments maintain stringent rates (Schlumberger, 2008).

3.2.5 Suppliers’ power

The supplier power is moderate. Transocean providers have some degree of power. For instance, suppliers like National Oilwell Varco take part in the decision making in constructing Transocean’srigs andother essential parts. Luckily, this is crucial for Transocean since National Oilwell Varco has a few plans of increasing the fleet of drillships. In general, benefits from pricing since they are the main clients to themajority of their specialised providers (Porter, 2008).

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3.3.1 Social

The organisation takes part in various social activities, including charitable contributions to developing environmental initiatives to increase its reputation.

3.3.2 Technological

Technology is necessaryfor drilling sector as such Transocean gets its strength in technological development. While oil drilling and the ecology are related, so is technology and demand. Drilling in deepwater is more and more vital from drilling organisations since they are considered to be more profitable. The firm is positioning itself to capitalize in this segment. For instance, in 2007, Transocean acquired a drillship worth USD 470m to take advantage of deep-water drilling, which allows the firm to drill up to ten thousand feet.

Due to advanced underwater drilling, there has been a decrease in jackup rigs demand (Associated Press, 2007). This presentsTransoceanwith the opportunity to beat their rivals like Noble Corporation in the struggle for innovation. Currently, the firm is leading in deep-water exploration (Katsaros & Christy, 2005).

3.3.3 Economic

Cost is a major challenge for drilling organisations. As oil price rises, the cash flow increases too, which makes organisationsinvest considerably in drilling activities? Furthermore, the new techniques of recovering oil though they are essential in the growth of petroleum production, are leading to an increase in the gasoline price. Implicitly, thehigh price of oilis required to make drilling firms profitable. High global investment drives drilling.

With great interest to drill in foreign regions, global investors are significantly investing, hence leading to expansionof oil and gas sector (Maksoud, 2007).Even though raising oil cost will adversely influence Transocean, in reality, will be beneficial in the long run. Oil cost is inelastic. In other words, afluctuation will insignificantly affect demand. Therefore, increasing oil prices willboost cash flow for Transocean, which means additional business like funding new drilling projects.

3.4.4 Environmental

On environmental protection, Transocean is committed to enhancing its stringent police on Environmentalmanagement system (EMS). Transocean’s EMS visitation is conducting its operations in a standardised manner that fulfills the high levels of stipulated laws to drive continuous enhancements while instilling ownership across its facilities (Transocean, 2007a). The organisation is environmentally sustainable by way of using green products and assessment is utilized as part of routine operations.

The firm also focuses on recycling. Additionally, Transocean has set up a recycling plan, where recyclables are sorted and compressed in rigs. After compression, they are transported to Tech Oil Products and donated to a recycling hub in the ARC of Iberia.

Transocean has collaborated with different oil and gas firms such as Subsea 7, and BP in the SERPENT project. Thisentails necessitating access to the installations, in partnership with their customers to present scientific knowledge to experts in the SERPENT project (Dictionary.Cambridge 2012). In turn, the analysts conduct various projects including assessing biodiversity and effects of drilling on the environment.

The analysts also work on the company’s rigs to study marine species (Transocean, 2007a). By and large, Transocean protects the environment in which it operates to demonstrate that the company recognises the consequences of natural demand shifters.

3.4.5 Political/Legal

Oil presents this organisation with a strong political force. Because oil is the primary source of energy internationally, thus, the supply of oil is related to power regardingpolitics; oil firms leverage authority over regimes (Dictionary.Cambridge 2012). With no oil organisations, United States is likely to lose its dominance in developing nations remarkably. Though oil drilling firms are fundamental in giving regimes the authority, they are still regulated and work as per government laws, such as prohibiting drilling in particular regions like the Gulf of Mexico to protect the environment.

In 2007, the Congress was promoting the closure of a quarter-century ban on the production of offshore energy. This decree banned 85 percent of all drilling in United States’ continental shelf, greatly affecting oil drilling firms including Transocean (Kamalick, 2007). Furthermore, the Congress were supporting the opening of additional shorelines, which was associated with renewable sources of energy, as such they sought for support from environmentalists. While regimes exercise their authority on oil and gas providers, these providers, in turn, have authority over the very regimes.

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3.4.6Ethical Standards

Transocean aspires to ensure financial discipline in their disclosure, honesty and candor in all their engagements with clients, ahigh esteem for employees, customers and suppliers, the safety of employees, property and the ecosystem and technical leadership. Loyalty to these core values demands the company to execute its operations in tandem with thelaw and the utmost standards of business ethics.

In advancing that objective, the company embraces the Code of Business Conduct and Morality, the firm’s environment is also a corrupt free zone and an Anti-Corruption and Business Conduct Policy takes care of that. Again, directors and employees are not allowed to enhance the culture of inside trading. Nonetheless, all employees should adhere to the privacy policy.

4.0 Recommendations

Since oil is directly associated with international authority, oil drilling organisations have authority over regimes, nevertheless, with another alternative, Transocean should continuously go this direction to maintain the lead if the primary source changes

Much as the company has advanced drillship tools, it should take a notch higher by researching new products in comparison to its rivals.When it comes to maintaining competitiveness in oil and gas industry, Transocean should use differentiation strategy that will be vital in developing clients’feedback and service delivery. The differentiation strategy should focus on quality rigs, particularlydeep-water drilling and ability to survive environmental disasters such as hurricanes.

While this threat of substitute islow, in future it may reduce the demand for oil. For that reason, Transocean should create awareness among clients about the benefits of oil in comparison to other energy sources. This can be carried out through advertisements. For instance, the organisation should use ads that demonstrate even with the use of alternative sources such as ethanol, which is considered environmentally sustainable compared to oil. Ethanol requires aconsiderable quantity of biomass. In the even that US, ethanol from corn is employed on a large scale, then it will contribute to increased costs of corn.

The prices of beef will also skyrocket remarkably as cows feed on corn products. On the other hand, if Brazilian corn is used thatis produced from sugar; rainforests in the region will be cut to provide land to grow sugar. Creating awareness through ads will help Transocean increase the demand for oil while increasing the demand for petroleum products from the company.

The company should embrace Ansoff model to diversify its portfolio. Instead of concentrating on drilling and consultancy, the company can take a leap of faith and venture in other business like marine transport, finance, healthcare, real-estate, heavy metal processing among others. Diversification is critical because it will help the company spread risks, when oil business is at its low.

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5.0 Conclusion

The study set out to evaluate Transocean position in the offshore drilling services. The company’s background, values and strategic goals were highlighted at the outset. To understand the company’s product and market development; market penetration and diversification, the Ansoff Matrix was used. The Porter’s Five Forces were employed to establish the intensity of the competition. However, STEEPLE model was used to evaluating the company macro-environment. In the end, the paper touched on the best practices as assured by ethics codes. Recommendations were made regarding the corporation’s future. 

6.0 Bibliography

Associated Press 2007. JP Morgan Securities analyst upgrades GlobalSantaFe, Transocean to “neutral.” Retrieved 17th March. 2016 from Factiva.

Berman, A. 2007. Drilling advances. World Oil, 19. Retrieved March 17, 2016 from Business Source Premier Database

Deep Sea Drilling Project 2015.” The Columbia Encyclopedia, 6th ed.. 2015. 17 Mar. 2016 <>.

Dictionary.Cambridge 2012. PESTLE analysis. [online] Available at: [Accessed: 6th august 2012].

Helman, C, 2015., Retrieved March 17, 2016 from, 2016. accessed on 18th March. 2016 at <>

Katsaros, J.&Christy, P. 2005. Getting It Right the First Time: How Innovative Companies Anticipate Demand. Westport, CT: Praeger

Kamalick, J. 2007. Untitled. Chemical Business Americas, p. 26. Retrieved March 17, 2016

Maksoud, J. 2007. International investment pours into Africa. Pipeline and Gas Journal,pp. 42-44.

Porter, M. 2008. The Five Competitive Forces That Shape Strategy. Harvard Business Review, 15 January 2011.

Redall, B, 2012., Retrieved March 17, 2016 from

Schlumberger 2008. Day rate. Oilfield Glossary. Retrieved March 17, 2016 from

Transocean, Inc. 2007a. Responsibility. Retrieved March 17, 2016 from

Transocean, Inc. 2007b. Our company. Retrieved March 17, 2016 from

Turner, H. (2007). Conversation about Transocean and alternative fuels.

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Corporate Culture and Strategy

Corporate Culture and Strategy
Corporate Culture and Strategy

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Corporate Culture and Strategy

An organization’s mission strategy is a précis of the way in which the firm perceives its role and the beliefs the company employs in attaining its objectives. The culture of an organization signifies the professional values an organization espouses which dictate how the company interacts with its customers, partners, vendors and workers. Since the culture of the organization is a driving force in how the business organization carries out its business, it has a significant impact on developing business strategy (Hofstede, 2014).

This paper delves into the topic of culture and strategy. In this investigation of the topic, the subject of culture and strategy is analyzed exhaustively and critically. In particular, this paper provides an in-depth discussion of the relationship between company culture and strategy, importance of alignment between culture and strategy, and how national culture really influences an organization’s strategy.

Correlation between corporate culture and strategy

There is a strong relationship between corporate culture and strategy. In general, strategy is considered as a product of culture while culture, on the other hand, is considered as a product of strategy (Browaeys & Price, 2009). In spite of how good the company’s strategy is, when it really comes down to it, Schneider (2011) noted that it is the people who usually make the difference. At its core, strategy is logical and rational, simple and clear.

Strategy has to be easy to talk about and to understand. A business organization is lost if it lacks a clear strategy. In essence, strategy is the pattern of activities that a company follows as it pursues its long-term purpose. Put simply, it refers to where the company is at the moment, where the company wants to go, and how the company intends to get there (Akbar et al., 2012).

Strategy comprises a number of factors which include the following: objectives and goals of the company; mission statement and vision; and critical success factors, or the things which the company has to get right for it to succeed in its mission. It also includes core values; reputation/brand, which entails developing and communicating meaningful and powerful differences between the company’s offerings and the offerings of the company’s competitors; and positioning, whereby a company builds a preferred and valued position within the minds of its target audience (Cristian-Liviu, 2013).

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Conversely, culture is understood as the set of beliefs which drive the behaviours of workers. These could be things that everyone within the organization knows and shares, in addition to implicit rules. It is worth mentioning that the range of acceptable behaviours of workers in the company is rooted in these underlying beliefs (Weick, 2014). On the whole, organization culture consists of the shared values, norms as well as ideals in a business organization and it actually sets the basis and groundwork for strategy.

An important starting point of understanding the culture of a company is to understand its founding principles: that is, its legacy, heritage, the clients and markets which it serves, and its points of differentiation. Anderson, Anderson and Lee (2015) pointed out that culture of a company is an aggregation of the beliefs and mindset of the company’s workers. It is the manifestation of the mission, vision and principles which bind employees in the organization together.

In the current business world in which sell-offs, diversifications, acquisitions, expansions and mergers are becoming increasingly common, it is becoming very important to understand corporate culture in strategic decision-making. The consolidation of AOL with Time Warner did not succeed because of culture clash as did the DaimlerChrysler merger. Organization culture is a very powerful factor in an organization’s lasting success.

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For a strategy in a company to develop and be successfully executed, that strategy has to align fully with the corporate culture. As such, goals and initiatives need to be established within the company in order to support and establish a corporate culture which embraces the strategy of the company over time (Su, Yang & Yang, 2012). Corporate culture has a significant impact on strategy execution within the organization.

Characteristics of stability: an organization culture that is stable, a culture that would systematically support implementation of strategy, is one which promotes a culture of cooperation, unity, partnership and teamwork amongst staff members. This kind of organization culture would certainly enhance commitment amongst workers and focus on productivity in the company instead of resistance to regulations and rules or external factors which prohibit success.

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Flexibility and adaptability: according to Fombrun (2012), companies which remain flexible tend to embrace change and establish an environment that is open to both communication and production. This creates a model which welcomes cultural diversity and helps in clarifying implementation of the strategy. In any company, corporate culture could serve a number of different purposes such as unifying employees in the company and helping to establish a set of common rules or norms within the company that members abide by.

Goal unification: corporate cultures that are unified, strong and flexible would approach strategy execution and affect execution positively through aligning goals. In essence, goals could come into alignment when the culture of the business organization is working to focus on productivity and getting the mission of the company achieved. This might include shipping out more product items compared to the company’s main competitors, getting products delivered to the company’s clients on time, or similar objectives.

This would create a domino effect within the company which would ensure that all work carried out by every work group and employee within the organization is really focused on performance and on the company’s strategic importance (Dutch, 2013). This would allow corporate culture of the company to be in alignment with strategy execution at the most basic level. Hanson and Melnyk (2014) noted that for this unification level to work, it is important that goal setting aligns with and is supported by processes, procedures, policies and systems within the company, which would help to attain strategy execution and continuing the organization’s cultural integrity.

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Process implementation: part of strategy implementation and cultural alignment entails process implementation. It is noteworthy that processes include the use of technology in facilitating goal achievement as well as the results which an organization is looking for when it works with clients to satisfy their needs. Although the hard problems and needs of a company are attained most of the time, the corporate culture becomes overlooked during the process. This is where processes actually come into place and execution of the strategy slowly comes into existence to maintain and sustain corporate culture and strategies (Dutch, 2013).

Cultural alignment: when corporate culture is in alignment with implementation of the strategy, a company can operate more efficiently within the international marketplace. Corporate culture allows the senior managers of a company to work both as teams and individually in developing strategic initiatives in the company. These might include re-establishing old partnerships and creating new partnerships to continue to deliver the best services and products to an international marketplace (Slater, Olson & Finnegan, 2011).

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Organizational strategic alignment, in its simplest form, is lining up the strategy of the company with its organization culture. For an organization to experience organizational strategic alignment, then its goals, processes and management should align. In order to create a supportive culture, an organization should clearly define the competence of its resources by assessing whether its processes, employees and equipment could actually handle new changes. If staff members do not have the competence for handling a new strategy, then the organization should offer training to improve the skills of its workers and managers.

If there is no sufficient support and training, the relationships between managers and staff members within the organization would suffer and the company would lack flexibility. To establish a culture of support, the top managers need to be involved in organizational strategic alignment from the beginning and provide the right resources to help in ensuring success of the workers and the organization (Yarbrough, Morgan & Vorhies, 2011). Workers should commit to supporting an organization’s strategic alignment and senior managers could help ensure this success by defining the goals of the organization in a clear manner and giving incentives to help workers accept new strategies.

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When strategy and organization culture are misaligned, the misalignment would short-circuit performance and increase the probability that the company will not attain its goals. An organization culture which all employees within the company subscribes to will help in creating focus amongst the workers.

When workers comply with the values and beliefs of the organization, it will give a unified impression to partners, customers and vendors (Bushardt, Glascoff & Doty, 2011). The organization could then formulate a strategy knowing that every member would uniformly apply the guidelines and improve the likelihood that a strategy would succeed.  

In aligning corporate culture with strategy, the following steps are important: first, the senior managers should define their company’s long-term set of guiding principles – the philosophy and purpose –, which are essentially the organization’s identity. A strategic plan would not succeed if the strategic plan is really not supported by these key principles of the company’s core culture.

Secondly, the senior management should evaluate the weaknesses and strengths of the company as well as the external factors which could impact success (Simoneaux & Stroud, 2014). Thirdly, the executives should create the company’s vision and then set strategic goals that are measurable and specific. Fourthly, the senior management should decide the strategic priorities which are in alignment with those strategic goals. It is worth mentioning that strategic priorities are a part of the organization’s core culture.

They are basically the values and principles which could alter given that their function is to align the corporate culture with the organization’s strategy. A company’s core corporate culture has to drive the company’s strategy and align with it (Mintzberg, 2011). Fifthly, with a clear understanding of the organization’s core corporate culture, strategic goals and vision, the top managers should create an action plan with measures for guiding performance. Finally, the senior executives should turn the strategic goals into measurable outcomes. Processes and employees should be aligned with the company’s core corporate culture and strategy (Simoneaux & Stroud, 2014).  

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National culture and strategy

A country’s national culture greatly influences the strategy adopted by a company. National culture has an impact on organizational strategy and implementation of the strategy, and can ultimately result in business failure or success. In essence, all national cultures have an impact on companies in both negative and positive ways, depending on the particular business, the business cycle, as well as the specific strategies being pursued (Hammerich & Lewis, 2013).

Cultural dynamics could either derail or enable performance depending on these different factors. It is important that a company’s senior management recognize the cultural factors which have a negative impact on performance and the ones which could be harnessed to foster superior performance (Hammerich & Lewis, 2013). To formulate strategy, a company needs to identify and interpret strategic issues.

In this process, the company scans, selects, interprets and validates information and establishes priorities amongst issues. The national culture of any country could actually influence this process given that it affects the nature of the relationship of a company with its environment and the nature of the relationships amongst employees in a company (Schneider, 2011). 

Whether it is big company pursuing international growth strategies or a small start-up firm in its initial phases of the growth curve, culture plays a vital role in making sure that the company does not swerve off the path and that it remains on course. Usually, driving and executing effective strategic change is a medium-term to long-term priority for a company’s management.

Likewise, the corporate culture of a company also develops with time, with a combination of active support by the company’s top leaders and voluntary cohesion and dissemination as the company’s purposes and beliefs pervade through the hierarchy. Owing to the intrinsic patience which the company’s top management requires to drive a strategic change and establish a focused culture, it is really sensible that both of them – strategic change and purposeful culture – work alongside each other and not against (Schein, 2012).

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Companies which are highly successful in driving strategic change and implementing it share 3 fundamental principles by which they embrace corporate culture and utilize it in the process as an enabler. Firstly, such companies are aware of differences in global cultures – this factor might be more pertinent and applicable to multinational corporations although it is equally applicable to small start-up firms that have ambitious aspirations for growth.

For instance, knowing the way that a worker in Malaysia would react to a new strategic initiative in comparison to how a worker in the Netherlands would react is of great importance in executing strategic change at the ground level (Schwartz & Davis, 2011). In essence, it implies that the overarching aspects of the strategy should be modified to fit the with local market-level ways of operation.

The second underlying principle is recognizing what culture means to different peoples – Cristian-Liviu (2013) reported that this second principle is more of a challenge for big companies with scale than to new, start-up firms. Within an organization, culture implies different things for different individuals.

In a brand consultancy company for example, the design/creative department might think that their department is really the best place to work in the organization, but the sales and marketing department whose role is to sell the design solutions, might think that the design/creative group’s capabilities are dull and outmoded. Broader changes within the company would impact employee groups in different ways and the cultural aspect of the change should be carefully measured (Schwartz & Davis, 2011).

The third underlying principle entails aligning strategic change initiatives with corporate culture – the Time Warner-AOL and DaimlerChrysler mergers were both in the same industry but still they did not succeed, they both failed. This evidently illustrates the dangers of overlooking culture as a factor when planning and executing a company’s strategic initiatives (Mühlbacher, Vyslozil & Ritter, 2014).

Although both Chrysler and Daimler produced vehicles, the styles of management and the collaboration processes in each firm were driven very much by their nation of origin; that is, the German and American cultural ethos. These 2 cultural ethoses were never reconciled and adapted in the merged organization and they clashed all the time. In essence, every form of strategic planning should take in corporate culture as a factor that impacts success, as well as manpower, finance and capabilities (Weick, 2014).        

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To sum up, there is a really strong correlation between corporate culture and strategy. Strategy is considered as a product of culture while culture, on the other hand, is considered as a product of strategy. For a strategy in a company to be formulated and executed successfully, this strategy has to align completely with the culture of the organization. Thus, goals and aims need to be established within the firm so as to support and establish a corporate culture which embraces the strategy over time.

When organization culture is in alignment with execution of the strategy, a firm can operate more efficiently within the international market. When strategy and organization culture are not aligned, then this misalignment would short-circuit performance and increase the likelihood that the firm would not accomplish its goals. National culture has a significant impact on organizational strategy and implementation of that strategy, and could eventually result in business failure or success.


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