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1、-商务文化与策略HND-第 7 页Business Culture and Strategy Prepared by Student Number : Date: Content1.0 IntroductionThis report based on case study of Alphabet Games, mainly include business strategies, the main differences and working relationship between strategies and strategic choice, potential benefits, a
2、nd analyze the role of management, the possible impact, as well as suggestions for resistance minimize within Alphabet Games. 2.0 Main body2.1 Porters generic strategicCost leadership strategy focuses on efficiency and lowest cost, in order to fight rivals to obtain competitive advantage(cost-leader
3、ship, 2015). It aims gain the initiative of the price and take low cost as market entry barriers, thus making the company become the leader in the industry. So the applicable business environment of this strategy is that the market competition is fierce, and the industry products or services are sta
4、ndard with lots of substitutes in the market, but there are few ways to achieve differentiation. Because the market has large buyers and significant bargaining power, company can use amount change price. When this strategy can be implemented successfully, the low cost will be used as the barriers to
5、 prevent others to entry, as times passes, the company will become the leader in this market.Differentiation involves creating a product that is perceived as unique. Differentiated goods and services satisfy the needs of customers through a sustainable competitive advantage. So this strategy suits t
6、he environment that there are many methods to distinguish the products or service, most consumers in the market are not switching low cost with diversified needs, and they can recognize and value this kind of uniqueness. And the firm should have strong research and development skills, strong product
7、 engineering skills, strong creativity skills and strong marketing skills. Because differentiation lead to a comparatively higher price, if consumers pursuit the low price and can not accept the price and this kind of differentiation, they may not willing to buy your product. And once the strategy b
8、e implemented successfully, it can bring company customer loyalty and brand loyalty.Cost focus refers to provide products and services to a few customers at the lowest prices. This strategy adapt to a narrow, niche market, used by smaller firms. In this business environment, consumers switching on l
9、ow cost. Because this strategy focuses on a few consumers, so the organization can afford neither a wide scope cost leadership nor a wide scope differentiation strategy, in order to provide better products or services for consumers with low cost, cost focus strategy is most suitable for this kind of
10、 environment.Differentiation focus refers to one can provide products and services to a small number of customers better than rivals by differentiation. This kind of strategy is suitable for a narrow, niche market to smaller firms, and in the market, consumers have different demands. Because this st
11、rategy focuses on a few consumers, and with differentiation focus strategy, the company can meet various different demands of consumers, providing better products and services. 2.2 Business strategies and strategic choiceBusiness strategy is the long-term plan and decision used to guide a company, i
12、n order to achieve greater profitability and success. Strategic choice is a matching process of environment, advantages and disadvantages inside and outside(TANG Dongfang 2011, p15). It is concerned about an organizations future and many pressures and influences form its external and internal enviro
13、nments.A business strategy is a plan, a concrete program, while a strategic choice is a process to decide the better one, and pick up the appropriate choice for the company among many different designated strategies. The connection between the two is that only through the a matching process of strat
14、egic choice, can the company draw the most appropriate business strategy which contribute to the companys development.At the start-up stage, Alphabet Games resources and funding is limited, it is impossible for Alphabet Games to expand the scale of production to reduce production costs. And the game
15、 market is flourishing, profits back is quick, the competitors are also very few. So according to companys present situation and the external environment such as competition within the industry, Alphabet Games choose differentiation strategy which is the most suitable for the present stage of the co
16、mpanys development.2.3 Two different business strategies within Alphabet GamesIn the case, the game market has fierce competitiveness, so according to the analysis of business environment of strategic choice, Alphabet Games apply the differentiation strategy that providing bespoke software solutions
17、 to clients around the world, in order to meet market challenges and individual needs. Then, with the change of business environment that a recent growth in demand for flash game, so Alphabet Games apply the cost leadership that using data capture to provide key messages to Comprehensive consumer ma
18、rket with comparative lower costs for survival in market.On the one hand, different strategies may lead to the same behavior. Because Alphabet Games always pursuit the innovation, quality and excellence, and emphasize the passion in the work, so no matter how the strategy change, the employees value
19、 would not be changed that they still insist the philosophy of the innovation, quality and excellence.On the other hand, in the initial differentiation strategy that corporate s profits is come from the special core which different form others, but the employees in Alphabet Games may have different
20、understand on the value and the differentiation strategy, thus leading to the different behavior.2.4 Forces for changesStrategy management includes strategy formulation and the planning and monitoring of strategy implementation, in order to achieve company goals(Strategy management, 2015). While str
21、ategy updating is that because of the change of external environment, enterprises have to take advantage of new knowledge and innovative behavior to change the product or market(Strategy updating, 2015). One of forces for changes Alphabet Games must considered when managing its business strategy is
22、establishing a key differentiator. Only adopt a model that is hard to imitate can organization maintain the success. And the differentiation of Alphabet Games reflects in its pursuit of innovation, quality and excellence, which enabled Alphabet Games to develop successfully. And Alphabet Games also
23、provide bespoke software solutions which is different to others, in order to meet market challenges and individual needs.Another one can be offering consumers a unique value, perceived or real. Only the consumers can receive and acknowledge companys product or service, can organization achieve its s
24、trategic goals. So in order to meet market challenges and individuals needs, and gain recognition and acceptance from consumers, Alphabet Games consider on offering consumers a unique value that providing the bespoke software solutions.The forces for change Alphabet Games must considered when updati
25、ng its business strategy can be the inflation. Because inflation would result in higher game production cost, which is an important factors in deciding the success or failure of the Alphabet Games strategy updating. For example, in the case, the game development cost 50000 in1980 while now it cost 5
26、 million, because of the inflation, the costs associated with development and marketing have seen a significant rise, so in order to cope with this situation, Alphabet Games tend to consider the strategy updating.And the demand for higher quality, new generations, developed technology also need to b
27、e consider by Alphabet Games. Consumers tend to pursuit the concept that game worlds must also react in a realistic manner, so this change of market demand also led to strategy updating in Alphabet Games.2.5 Potential benefitsThe first benefit is the increased scale. Because of the effective strateg
28、y, Alphabet Games scale also be expanded. The rented office that housed three students has been replaced by a custom built facility that houses research, development and production which ranks alongside any of its comparable competitors. And its expansion and subsequent development has led to the re
29、cruitment of 25staff ranging from software and games programmers to a new breed of marketing professionals and business managers .Stable consumers is also one of the benefits. Because of the effective business strategy, Alphabet Games has developed a world renowned reputation for excellence, quality
30、 and innovation, so customers can rely on the Alphabet Games products, thus forming the stable customer base.The other benefit is the loyalty from staff to Alphabet Games. Due to the effective strategy, Alphabet Games developed rapidly, providing many job opportunities and the chance of promotion to
31、 employees. Employees think the job is promising, and salary and benefits can be ensured in the company, their enthusiasm on work and loyalty of Alphabet Games will also be improved.The effective strategy also bring Alphabet Games the increased profits. In the case, Alphabet Games no only expand its
32、 scale, but also develop more life-like video game, which means it profits has also improved.2.6 The role of managementThe management in Alphabet Games play a role of effective decision makers. In the case, when Alphabet Games face with the fierce competition and the products would become unprofitab
33、le in the market, the management quickly decide to quit the current game market, changing the product, developing the new market, and focus in the data capture that providing key messages to consumers and employees. Because of the effective and efficient decision by management, company can transform
34、 successfully.In addition, the management in Alphabet Games also play a role of proactive forecasters. When Alphabet Games face with the pressure from the game market, the management in Alphabet Games has seen a recent growth in demand for flash game, and think these can be used as marketing or educ
35、ational tools, thus according to these reliable industry trend prediction Alphabet Games can develop the data capture business successfully.2.7 Possible impact of competing influences For stakeholders, Alphabet Games began as three friend pursuing a passion for software, therefore, as the shareholde
36、rs of Alphabet Games, their initial goal is that making the enterprise stronger and stronger. So when external environment become competitive and the company could not find the profits in the game market, the shareholders tend to updating the strategy and change the management mode to promote the re
37、form of Alphabet Games, in order to develop the company unceasingly.In the external environment, as the competitors of Alphabet Games, Sony and Microsoft hope that the fewer competitors in game market the better, so they invest and budget for huge amounts to make even bigger profits, making small an
38、d medium enterprises could not survive in this market, which virtually impel the transformation of the Alphabet Games.However, as the employees in Alphabet Games, they are expert in game making, and due to the unknown risks, the uncertainty of the position change and salary, they may not willing to
39、change the current situation, which to a certain extent can hinder the Alphabet Games reform.For business goal, the Alphabet Games founder is designed to make the company bigger and stronger, and insist the passion for software, and pursuit the innovation, quality and excellence. When external envir
40、onment is change and Alphabet Games could not gain the profits from the game market, in order to achieve the goal, Alphabet Games transfer the market to data collection. Therefore, the business goal of Alphabet Games also promote the reform.2.8 Three-step change model Lewin introduced the three-step
41、 change model in 1951. The model involve three stages including unfreezng the present, moving to the new level and refreezing the new level(Three-step-change-theory, 2015), which help managers understand what activities must take place in order to carry out successful organizational change.The first
42、 stage focus on recognizing the need for change and improvement. In the case, driving forces for change are as following:The market competition, as the loading of costs provides the big firms like Microsoft and Sony a huge advantage over the smaller game producers as Alphabet Games, they invest and
43、budget for huge amounts to make even bigger profits, while many small companies as tight profit margins are driving many to the wall, this drive Alphabet Games to making change to expansion, in order to increase profitability of the company.The booming market for prated copies and imitations of game
44、 is also an significant factor, its low cost has led to the loss of sales. So small and medium enterprises, such as Alphabet Games, could not invest heavily and have to transfer the market.In addition, the inflation lead to the small profits with huge investment in game development that the research
45、 and development costs now is nearly one hundred times over which in the eighties. Alphabet Games could not afford the huge cost, so be promoted to change.While restraining forces against change are as follow:Partnerships with other companies. Alphabet Games has established partnership with many fil
46、m production companies, and have worked exceptionally hard to enter into working agreements with film and TV production companies and magazine, comic and book publishers. Alphabet Games has spend lots of money and time on this, but reform means quitting up these, so it may restrain the company to ch
47、ange.The employees resistance. Due to the unknown risks, the uncertainty of the position change and salary, the employees in Alphabet Games may not willing to change the current situation, which to a certain extent can hinder the Alphabet Games reform.Only when the driving forces are much more than
48、restraining forces, can the present be unfrozen. The second stage is moving to the new level which focus on encouraging staff to adopt new behavior and attitudes. In this stage, Alphabet Games first should make a specific call for change and announce re-structuring within organization. Then Alphabet
49、 Games gather the views on possible solution such as appoint the new senior manager. In the process of reform, the employees in Alphabet Games may not approve the change, so Alphabet Games should make the whole staff to participate in considering possible solution, in order to change employee awareness of reforms, improve the identification of change and solve the resistanc