The study by Kavussanu Maria, Boardley Ian, Jutkiewicz, Natalia, Vincent Samantha and Ring Christopher addressed coaching efficiency and usefulness, and also examined the predictors and a comparison between the information on the trainers and the athletes. In the report, they addressed the concern on the increased research on the conceptual model of coaching effectiveness. Their findings on coaching effectiveness are worth critique.
First, the research evaluated the effectiveness of coaching through analyzing the predictors. Secondly, it assessed the predictors of coaches efficiency as alleged by their athletes. Finally, it also examined the contrasts relating to the reports obtained from the athletes, and the coaches founded on the coaching effectiveness field. The supposition of the study was that sex predicted athletes insights of the coaching efficacy which was not supported by the research conclusions.
The study adopted 26 coaches (19 males and seven females), 291 athletes, eight individual teams, and seven sports teams based in Universities within Britain. The adopted data-gathering tools were demographic feedback forms for the athletes and Coaching Efficacy Scale (CES) for the coaches and the adopted account of the CES for the athletes.
The coaches were approved by the Ethics Committee of the University of Birmingham after which questionnaires were provided prior to the training session. The period of study was three to four months in the 2004-2005 seasons. To measure the dimension of coaching effectiveness, the 24-items CES measure was used to gauge the perceived coaching efficacy. The CES modified version was also adopted.
The data was analyzed using various statistical tools. One-way ANOVA was used to analyze the mean team scores in comparison to coaching effectiveness that was presented by the coach of every team. The ratings of the athletes and those of their respective coaches were analyzed using the One-way ANOVA. MANOVA was also done to examine the potential interaction between the sport and sex, and how it influenced coaching effectiveness. The structures of the attributes were scrutinized by the Confirmatory Factor Analysis (CFA) so as to define if the features had been retained.
The study established that the age of the coaches determined their coaching effectiveness. Coaches who had longer years of experience had high coaching expertise. Gender was ascertained to influence the coaching effectiveness as male coaches had better strategies for games. The experiences of the coaches determined the understanding and effectiveness of the athletes sporting. Also, the disparity between the coaches and athletes feminism or masculinity had a negative impact on the expected trainees motivation. A higher significance difference was observed between coaches and athletes ratings. In this regard, the coaches rated the coaching effectiveness in an elevated value as compared to that of the athletes.
Various procedures were applied where eight individual teams and seven sports players based at the University groups were used in a competition. Concurrently, this is an indication of obtaining biased results because of the coaches working conditions and the athletes training circumstances. Individual team coaches would perform lowly when compared to the coaches from the university. The athletes were also subjected in reporting differently on the coaching effectiveness as their environment could dictate.
In regard to how the authors discussed their findings regarding the predictors of coaching effectiveness, they compared the male and female coaches effectiveness. It is not justified that being a male is a guarantee to develop skills towards leading the team compared to female counterparts. It is true that the experience in years of coaching can be a predictor in the technique effectiveness as the authors suggested. According to the findings on the predictors of perceived coaching, effectiveness is not absolutely true that sex compatibility would be a predictor in this case. The motivation and value efficiency of the athletes are not correlated to the gender of the coaches.
Future research should consider using coaches of teams working on the same environmental condition. Research should be undertaken to determine if the connection between a male coach and a female athlete improved the performance of the coach in any competition outside their training fields.
Reference
Kavussanu, M., Boardley, D., Natalia, J., Samantha, V., & Ring, C. (2008). Coaching efficacy and coaching effectiveness: Examining their predictors and comparing coaches. The Sport Psychologist, 22(1), 383-404.
The use of techniques aimed to assist an organization in dealing with a sudden and severe unfavorable occurrence is known as crisis management. A crisis might happen as a result of an unforeseen incident or as an unanticipated repercussion of an event that was previously deemed a possible concern. The method of managing and releasing information from a person or an organization to the general public to influence their general impression is defined as public relations. Regarding the crisis in Dominos Pizza, the executives utilized the apology strategy in the field of social networks to communicate with the stakeholders and society.
Discussion
Dominos Pizza, Inc., brand Dominos, is an international pizza quick service restaurant company based in the United States of America that was founded in 1960 and is directed by CEO Richard Allison. The firm is based in Ann Arbor, Michigan, and has its headquarters at Dominos Farms Office Park. The present Dominos menu in the United States of America contains a mix of Italian-American major and side dishes, which vary by area. Pizza is the biggest feature, with basic, specialized, and personalized pizzas in a range of crust types and toppings offered. In addition to America, Dominos Pizza has stores in 83 additional countries, encompassing overseas regions, for instance, the Cayman Islands, and nations with limited authority, for example, Kosovo and Northern Cyprus.
Describing the roots of the crisis, when several suspicious employees released footage of adulterated food on YouTube in April 2009, Dominos Pizza became entangled in a global scandal. Two workers from the city of Conover, North Carolina, posted a video on YouTube of themselves doing terrible things to a burger before it was delivered. The apologetic method was used to manage Dominos issue, according to the reports (Oliveira et al., 2021). Tim McIntyre, Vice General Manager of Communications, was an essential part of the core group that used social networks to implement the companys crisis media strategy. The social networking component of both the problem and the crisis management technique is what makes the incident intriguing.
Tim McIntyre assessed the issue and concluded that the recordings were not fake. He then attempted to integrate with relevant individuals both inside and outside, namely social media personnel, the security crew, and the senior leadership team. It is feasible to evaluate Dominos approach to using the same media that started the issue in its crisis management measures. With the Internet service, which is permanently available, the manner firms interact with stakeholders throughout a problem is rapidly changing.
Even though Dominos did not have a social network profile, its loyal customers quickly alerted them to the situation. Even though Dominos acted swiftly to address the matter, they made the error of doing it without making public statements. The corporation failed to inform the shocked public of the important steps it was undertaking to correct the mistakes it had done. The misunderstanding prompted more public outcry and assaults from distraught clients, who blamed Dominoes for neglecting the incident in the expectation that it would completely disappear on its own. Introducing public statements or offering a thorough explanation would have mitigated any extra and unneeded harm caused by individuals who were unsure of the immediate steps to be taken. Concerning an essential lesson that can be learned from the case, it is possible to emphasize a social networking issue will not disappear by itself. In general, in terms of communications in crisis management, it will continue to gain velocity, rising to a stage where it is uncontrollable.
Dominos eventually established a social media strategy and created a Twitter account after understanding the situations negative reputation was growing substantially and enhancing its viral presence. The corporation selected this precise measure to respond and ensure clients and stakeholders that this was an isolated occurrence and that they were actively elaborating on techniques for correcting it. Before the moment the official statement of Dominos was made, the organization swiftly uploaded an explanation and apology to its webpage after establishing a Twitter profile. The companys management requested their Twitter followers to repost the link to assist them in sharing the news. This successfully served to keep the situation under control in society until the firms executives and public relations specialists were prepared to make an authorized public statement. Perhaps, to some extent, this answer for the public was belated. However, it should be emphasized that this method of solving communication problems is mandatory and cannot be disregarded.
Dominos issued a digital official comment on the problem, which is the reason the organization was capable to take control of the situation in a short period. The Dominos brand image suffered certain ramifications, but not as severe as they could have potentially been. Within the video, the firms executives were able to concentrate on beneficial and practical concepts that assisted them in explaining the incident and creating a separate public statement. The corporation replied to the situation on the same media channel where it had first erupted and elaborated on conditions for the video to appear alongside the problematic clip. Furthermore, the organization demonstrated genuine sincerity by humanizing the brand and the concern, as well as explaining the steps being taken to rectify the regrettable circumstance. The executives detailed the measures they were taking to ensure that this heinous incident would never occur again. In addition, they demonstrated by action how thoroughly they were addressing the issue by following through on their promises.
Concerning the best practices for communicating during a crisis and the lessons that should be learned, it is feasible to highlight several notions. Firstly, organizations and their official representatives should provide critical information in a timely, transparent, and unambiguous manner. In addition, companies should make it obvious where individuals may turn for help and protection and should communicate widely, frequently, and in a variety of ways. Furthermore, when applicable and necessary, executives should strictly clarify and respond before customer queries, concerns, and questions are raised. Finally, the main lesson is related to the organizations need to possess fully-qualified specialists in social media communications since prompt and specialized response in the media space leads to decreased probability of scandals. The widespread utilization of electronic communication systems and technologies in the modern world allows individuals to connect and their organizations or institutions (Oliveira et al., 2021). Thus, it can be underlined that companies have to pay significant attention to the processes that emerge in the field of social media to ensure effective communication.
Conclusion
To summarize, according to the sources, Dominos issue was handled using the apologetic approach. Dominos published a digital official remark on the matter, which is the reason the corporation was competent to take control of the situation in a short period. In reality, the Dominos brand experienced some negative consequences, although not as severe as they may have been. The company responded to the matter on the same media outlet where it had initially erupted, outlining the terms under which the film would be shown alongside the problematic footage. Furthermore, the company showed true sincerity by humanizing the brand and the issue, as well as describing the efforts being done to correct the unpleasant event.
Reference
Oliveira, L., Tajariol, F., & Gonçalves, L. B. (2021). Digital Services in Crisis, Disaster, and Emergency Situations. IGI Global.
Hurricane Katrina and Rita Churning which knocked the Gulf of Mexico destroying oil rigs caused a substantial rise in oil prices (Zikmund and Babin 150). As a result, analysts anticipated a significant fall in the demand for gas guzzlers and high-performance vehicles such as SUVs. Nonetheless, the sale of SUVs was already on the decline prior to the hurricanes (Zikmund and Babin 150). Therefore, observers anticipated a further decline due to the high price of fuel. They had assumed that the high cost of fuel would discourage consumers from purchasing gas guzzlers.
Introduction
In the automobile industry, fuel prices are not the main procurement considerations. Buyers seeking to purchase a vehicle consider a number of factors before making a conclusive decision. The factors that are predominantly vital include its price, its make, its model, and its performance. According to research conducted by the National Automobile Dealers Association, fuel prices are the last considerations in the list of factors that influence consumers choice when purchasing an automobile. This case study seeks to analyze the demand for Gas Guzzlers putting into considerations changes in fuel prices.
Objectives
This study seeks to:
Analyze the effects of increasing fuel prices in the demand for gas guzzlers
Examine the factors that influence consumers demand for gas guzzlers
Investigate the extent of demand for gas guzzlers
Analysis
This case clearly shows that the demand for gas guzzlers is still on the rise despite the fluctuating fuel prices. Most observers anticipated a fall in the demand for fuel guzzlers. This notion was influenced by the declining supply of fuel from the gulf. However, soon after the hurricanes, the demand for gas guzzlers stabilized (Allcott and Wozny 27). According to the NADA report, fuel prices were ranked the least among the factors that influence demand for gas guzzlers (Zikmund and Babin 150).
Most of the people seeking to purchase a car are generally concerned with its cost, its model and its performance (Zikmund and Babin 150). Fuel consumption does not have a significant impact on buyers decision to buy a car. The statics provided in this case show that fuel economy does not significantly affect the demand for gas guzzlers. Only 3% of the consumers thought that fuel prices are the most important factor compared with 11% who felt it was the least cause of worry (Zikmund and Babin 150).
Conclusion
This paper has analyzed the impacts of fuel prices on the demand for gas guzzlers. The paper has outlined some of its projected objectives in analyzing this particular case study. In this study, it has been established that despite the rising cost of fuel, the demand for gas guzzlers remained relatively high. The paper also gives a critical analysis of the case in a clear and concise manner.
Recommendation
The demand for gas guzzlers does not depend on the cost of their maintenance. To reach a consensus between the manufacturers and the consumers, production of high-performance vehicles that have a low fuel consumption engine is necessary. This will reduce consumers fuel budget without plummeting the performance of the car. On the other hand, it will increase sales and financial reimbursement for automobile manufacturing companies. SUVs are high-performance vehicles and gas guzzlers. Nonetheless, their demand is unlikely to fall even with the fluctuating cost of fuel.
Works Cited
Allcott, Hunt, and Nathan Wozny. Gasoline prices, fuel economy, and the energy paradox. Review of Economics and Statistics 1.1 (2012): 24-34.
Zikmund, William and Barry Babin. Essentials of Marketing Research, Boston, MA: Cengage Learning, 2012. Print.
To begin with, the Swatch Group manufactures and distributes watches. They are the largest manufacturer in the world and have 156 production facilities around the globe (Deshpande et al., 2012). They did not limit themselves to producing and assembling watches for brand retailer companies. The company also provides different pieces and components to the entire global watch manufacturing sector. In addition to watches, Swatch Group introduced several new goods onto the market; one of them was jewelry for consumers (Deshpande et al., 2012). It boosted market share and revenue while improving the companys reputation in the marketplace. They targeted international markets, such as those in China, the United States, Japan, India, Switzerland, and Brazil. Because the CEO firmly believed in innovation and creative problem-solving, he was always enthusiastic about using technology effects in product strategy to allow customers to enjoy high-end technologically based products.
SWOT analysis
Strengths
In order to increase demand for the genuine mechanical watch components produced by SMHs subsidiary, Swatch Group introduced the earliest non-quartz mechanical watch. In addition to having 160 manufacturing facilities in Switzerland, Swatch Group was also placed on the Swiss stock market (Deshpande et al., 2012). They were acknowledged as the best and largest sales locations for the Swatch Group in 2010 after achieving the most significant sales in Europe and Great China (Deshpande et al., 2012). The Swatch Groups 2010 revenue totaled a billion, all of which came from China. Facilities for research and development were up to par and significantly contributed to the Swatch Groups efficient and successful expansion. The management claims that the manufacturing and electronic systems divisions demonstrated the companys assets.
Weaknesses
In order to increase demand for the genuine mechanical watch components produced by SMHs subsidiary, Swatch Group introduced the earliest non-quartz mechanical watch. In addition to having 160 manufacturing facilities in Switzerland, Swatch Group was also placed on the Swiss stock market (Deshpande et al., 2012). They were acknowledged as the best and largest sales locations for the Swatch Group in 2010 after achieving the largest sales in Europe and Great China. The Swatch Groups 2010 revenue totaled a billion, all of which came from China. Facilities for research and development were up to par and made significant contributions to the Swatch Groups efficient and successful expansion. The management claims that the manufacturing and electronic systems divisions demonstrated the companys assets.
Opportunities
Omega had the chance to expand its distribution network to between 30% and 40% with the rising sales in the niche market and take as much market share as possible to establish a competitive edge there (Deshpande et al., 2012). The Swatch Group had a solid and favorable relationship with its retail partners and had its multi-brand chain.
Threats
Switching to cheaper brands can be caused by the high manufacturing costs associated with Swiss brands. Fierce rivalry in a crowded market from other watch companies that present themselves as trendy and young. Teenagers prefer digital watches over Swatch watches, which are primarily dialogues in design. The market for luxury timepieces has seen an increase in high-end wearables and smartwatches.
VRIO analysis
Valuable
Swatch Groups financial resources are precious since they enable investment in newly presented prospects outside the company. These aid Swatch Group in fending off challenges from without. Employees at Swatch Group are a vital asset to the company. A sizable fraction of the personnel has received advanced training, which boosts the organizations output productivity. Additionally, the workforce is devoted, and the company enjoys strong employee retention rates. For the Swatch Groups final customers, all this becomes better value. The distribution network of Swatch Group is an important asset. This enables it to connect with an increasing number of clients. This guarantees increased sales for Swatch Group. Additionally, because the products are readily available, it ensures that promotional efforts result in sales.
Rare
Swatch Groups financial resources are precious since they enable investment in newly presented prospects outside the company. These aid Swatch Group in fending off challenges from without. Employees at Swatch Group are a vital asset to the company. A sizable fraction of the personnel has received advanced training, which boosts the organizations output productivity. Additionally, the workforce is devoted, and the company enjoys strong employee retention rates. For the Swatch Groups final customers, all this becomes better value. The distribution network of Swatch Group is an important asset. This enables it to connect with an increasing number of clients. This guarantees increased sales for Swatch Group. Additionally, because the products are readily available, it ensures that promotional efforts result in sales.
Imitable
Since other businesses can teach their staff to become more skilled, the Swatch Groups personnel are also not prohibitively expensive to copy. These businesses can attract workers from the Swatch Group by providing them with greater pay, perks, and employment prospects. As a result, Swatch Group personnel become a resource that offers a short-term competitive advantage. Since it is illegal to copy a protected product, the Swatch Groups patents are exceedingly challenging to replicate. Creating comparable resources and obtaining copyright for them is similarly expensive. The Swatch Groups distribution network has been established gradually over the years, making it incredibly expensive for competitors to copy. If competitors want to copy a comparable distribution method, they must invest much money.
Organization
The Swatch Groups financial resources are managed strategically to invest where opportunities exist, take advantage of threats, and capture value. The Swatch Groups patents are not organized efficiently, so the company is not making the most of them. Swatch Groups organized distribution network is utilized to connect with customers by ensuring that goods are offered at all of its retail locations.
Recommendation
Swatch operates in an industry where other watch firms enjoy lower manufacturing costs. This makes it more challenging for Swatch to compete in the same price ranges as its rivals. Watches are also tiny in size, making international shipping relatively inexpensive. Given the preceding, Swatch should implement the first option, which calls for shifting the value-added chains activities to nations with low production costs. Swatch needs to work with the companies which produce in the same market category and are searching for a responsible partner, to minimize the expenses of such action and maximize the possibility of success.
Action Plan
The main tasks in the Action Plan would include maintaining targeting benefit advantage, matching competitors prices in the low-cost and midrange category, and assessing a premium for watches that are considered to be of higher quality. In order to get a first-mover advantage over rivals that have just begun component manufacture, practical strategies for SG include entering the wristwatch market, building brand equity, reiterating its presence in the US, and investing in additional product and manufacturing improvements.
Reference
Deshpande, R., Misztal, K., & Beyersdorfer, D. (2012). The Swatch Group. SSRN.
In our ever-changing world, innovation is one of the most important processes to exist. Nowadays, people seek changes that would bring the largest amount of value to individuals, organizations, and the environment. It is crucial for one to take into consideration the business practices of todays companies. In his paper on sustainability, the executive of Unilever, Patrick Cescau, explains the core goals a progressive company can and should achieve with their work. Before reading this piece, I did not consider that such business practices could bring company prosperity and success if the proper balance was achieved in their implementation. I considered them to be only performed for public benefit at the expense of profit. In this essay, I will attempt to summarize Cescaus work and its general messages, while also noting the impact of the work on my experiences and thoughts.
At the beginning of the paper, Cescau identifies the changes in the business landscape and proposes that for a company to be successful it should strive to innovate and develop. Major companies, he states, are held accountable by the public, and business strategies are often judged based on their community benefits (Cescau, n.d.). This arrangement forces the corporations to put more thought into their approaches and try to better their areas of influence in varying ways. Cescau, n.d. proposes that corporations should promote economic and social development, sustainability to meet the demands of their management and the public. He states that big social and environmental challenges of our age, once seen as obstacles & have become opportunities for innovation and business development (Cescau, n.d.). The ideas proposed are beneficial to communal and corporate development at the same time.
Further examining the ways of innovation requires an example. After explaining the reasoning behind his ideas, Cescau further elaborates on how his affiliated company, Unilever, manages to succeed with these goals (Cescau, n.d.). The development of the economy helps to create more jobs, reduce poverty, and to promote the circulation of money in the local areas (Cescau, n.d.). Innovations come in the form of introducing new ways of self-fulfillment and self-realization, as well as promoting various programs to an existing community at all levels of influence. The sustainability aspect covers the social, ecological, and economic considerations of the business, allowing it to thrive and prosper for a prolonged amount of time while taking into account its impact on the afflicted areas. The combination of these three general concerns is what allows corporations to take responsibility for their actions and promote business growth. The text makes it clear for me that the policies Unilever enforces strike a general balance between making a profit for the company and creating opportunities for others.
In conclusion, Patrick Cescaus work is a great demonstration of sustainable business practices implemented into corporate action with a clear application in mind. By examining and summarizing this work, I have gained a better understanding of the values and goals of big progressive corporations. Moving forward, I now have the ability to critically think about the impact large corporate entities have on their areas of influence and determine whether I find it acceptable to support them in any way. I had insight into how their influence can effectively be used to promote sustainable practices, and what aspects of corporate management should always be accounted for. Knowing how many big corporations totally disregard similar concerns is alarming to me, and I think that more attention should be brought to companies that blindly use the environment for their financial gain.
Reference
Cescau, P. Beyond Corporate Responsibility: Social Innovation and Sustainable Development as Drivers of Business Growth[PDF document].
The executive team that works in the organization can contribute to the development and implementation of training programs significantly. It is important to note that the leaders knowledge and experience can be used actively when it is necessary to design or improve training programs in a company (Lee-Kelley & Blackman, 2012).
Therefore, much attention should be paid to identifying specific roles that executives can perform while collaborating with training directors and developing a new program. The leaders participation in the process of executing training programs can have significant benefits for the organization. From this point, it is important to distinguish possible roles that the executive team can take while participating in planning, implementing, and assessing training programs and formulate recommendations regarding the effective involvement of executives in the training process.
Potential Roles for Executive Team
Executives can play important roles in influencing the process of implementing training programs because these leaders determine goals for the companys progress and employees development. They allocate required resources and control the realization of tasks with the focus on outcomes (Harnett & Powell, 2015). From this perspective, it is possible to concentrate on the discussion of following roles that are determined for leaders in an organization: goals and expectations setting, decision-making, sponsorship, support, control, and evaluation.
The process of planning and developing training programs is based on goals and expectations that are set by executives. Organizational leaders evaluate the employees performance and the overall outcomes, and they compare the results with the goals related to the performance improvement. Thus, they can indicate changes in the working process that are made in order to achieve higher results (Jackson, 2012). The program to train employees and improve their work should be developed according to the executives expectations and formulated goals. At this stage, executives are also responsible for making decisions regarding the implementation of this or that program.
In order to execute the program, leaders need to provide the financial resources and required materials. Training directors are responsible for planning the budget for the program, but the leaders task is to provide the necessary sponsorship. The effectiveness of the training program can depend on the number of resources that the leader is ready to propose for the programs implementation, and this step should be regarded as the investment in the talents development (Bartos & Shetty, 2013).
Executives also provide the material support during the implementation of the training program in order to guarantee its success. Finally, the other important roles of the executive team in training employees are the control and evaluation of training results. The primary control is realized by the training director, but executives monitor and evaluate the training program with reference to reports and analysis of outcomes. The conclusion regarding the programs effectiveness is made by the executive.
Recommendations regarding Executive Teams Involvement in Training
While focusing on potential roles of executives in the development and implementation of training programs, it is also possible to identify additional areas where leaders can apply their knowledge and contribute to the improvement of training initiatives in an organization. When executives plan to be actively involved in the procedure of organizing training in a company, their roles can be broadened, and the degree of the leaders control over training also increases. It is possible to recommend taking the following steps:
The executive team should complete the complex assessment in order to identify the areas for improvement in the employees performance and operations, as well as possible gaps (Dewhurst, Harris, Foster-Bohm, & Odell, 2015).
The executive team should divide employees who need training into categories, including human resource managers, unit managers, IT specialists, and department employees among others. The number of categories depends on the number of departments and roles that employees perform.
In order to guarantee the high level of retention and the high-quality performance, the executive team should determine specific goals for each group of employees or for separate units according to the assessment of their needs and successes.
It is important to assign each member of the executive team to become a coordinator of the training program development, execution, and evaluation for separate training groups. In this case, the planning, control, and evaluation of the training process will be a well-organized process, and executives will be able to monitor changes effectively (Rogers, 2013a).
The CEO can collaborate with the training director while allocating resources and evaluating the financial reports that demonstrate the effectiveness of training.
The development of these steps is supported by the prediction of the realistic contribution that the executive team can make to the implementation of training programs. It is possible to expect that leaders are interested in setting goals for the training in order to guarantee the achievement of the targets for the performance and work efficiency (Phillips & Phillips, 2016).
It is also possible to expect that the executives can spend much time in order to control the use of resources and evaluate the programs outcomes. The reason is that leaders analyze how many resources are spent on training and what results are observed (Rogers, 2013b). In addition, the executive team is interested in receiving the detailed reports related to the training evaluation.
Conclusion
The members of the executive team should not only be informed regarding the development and implementation of training programs in their organizations, but they should be involved in the process. The importance of training for the organization is high, and training directors should collaborate with the CEO and other executives in order to guarantee the efficient use of sources, the reduction in costs, and the increase in positive outcomes.
Potential roles of executives include goals setting, sponsorship, and evaluation of results among others. The expected roles of leaders can include the participation in planning programs, the coordination of programs, and the control over the program implementation with reference to the further evaluation of observed changes.
References
Bartos, N., & Shetty, D. (2013). The importance of planning training into projects. Training & Development, 40(4), 12-16.
Dewhurst, D., Harris, M., Foster-Bohm, G., & Odell, G. (2015). Applying the Kirkpatrick model to a coaching program. Training & Development, 42(1), 14-22.
Harnett, D., & Powell, A. (2015). When evaluation precedes assessment. Training & Development, 42(1), 18-26.
Jackson, J. (2012). Training evolution. Training & Development, 39(2), 34-36.
Lee-Kelley, L., & Blackman, D. (2012). Project training evaluation: Reshaping boundary objects and assumptions. International Journal of Project Management, 30(1), 73-82.
Phillips, J. J., & Phillips, P. P. (2016). Handbook of training evaluation and measurement methods. New York, NY: Routledge.
Rogers, S. S. (2013a). Change management: Your roadmap to training success. Training & Development, 40(3), 4-10.
Rogers, S. S. (2013b). Great expectations: Making ROI successfully work for you. Training & Development, 40(1), 8-19.
The development of technologies can lead to the era of technological unemployment. Today, automation plays a key role in managing operations and supply chains, and these concepts are associated with the future of work (Berger & Frey 2016; Brotchie et al. 2017). The purpose of this report is to demonstrate the potential of automation for affecting operations in UK industries, to review the recent literature on the problem, and to apply research and evidence to evaluating the impact of technological unemployment on the company in the UK insurance industry.
Description of the Chosen Company
Aviva is one of the leading multinational insurance companies, which is headquartered in the United Kingdom. The organisation is categorised as a public limited company that operates in the insurance and financial services market. Aviva was founded in 2000, after a merger of two British insurance companies (Aviva 2018a). It employs about 30,000 employees who work in different countries. Aviva offers insurance plans of different types for individuals and businesses. The company provides health and life insurances, as well as pensions and investment plans. As a result of providing a wide range of insurance services, the company serves more than 30 million customers in more than 15 countries all over the globe (Aviva 2017b; Aviva 2018b). These customers include individuals and businesses of a different size. The company actively works in the commercial insurance sector.
Literature Search
Technological unemployment is a phenomenon associated with advancing the use of technologies in businesses and reducing jobs. Thus, it is defined as a situation in the economy and management when more tasks became performed by machines or with the help of certain technologies while decreasing the demand for human labour to complete some operations and causing increases in unemployment rates (Barry & Aho 2016; Danaher 2017; Kim, Kim & Lee 2017). The first discussions of technological unemployment are related to the British Industrial Revolution when workers faced the threat of being substituted by machines.
Luddite riots in the 1810s demonstrated the publics negative attitude to mechanisation. However, companies focused on advancing their manufacturing processes, and in the late part of the nineteenth century and the early part of the twentieth century, Ford Motor Company became one of the large corporations to use changed assembly lines that had replaced the work of several persons (Fiorelli 2018; Frey & Osborne 2017; Leitão, Colombo & Karnouskos 2016). Productivity increased significantly, but low-skilled workers were negatively affected by the process. The beginning of the twentieth century was associated with electrification, the active use of engines, and the transport revolution (Faria 2015; Gervais et al. 2015). Still, the later part of the twentieth century was characterised by the shift to information processing (Loi 2015; Wajcman 2017). The spread of computer technologies contributed to creating many jobs for IT professionals despite opponents fears (McDougall 2014; Vicini 2016). Nevertheless, routine tasks and rule-based manufacturing were significantly changed by computers, and decreases in employment became observed in the 1970s-1980s.
In the1990s-2000s, the situation regarding technological unemployment became controversial. On the one hand, more specialists in the sphere of IT became demanded. Still, the number of such jobs was not appropriate and reflected unemployment trends (Nica 2016; Peters 2017; Slack, Brandon-Jones & Johnston 2011). On the other hand, the demand for low-skilled workers who could perform manual tasks increased. Consequently, researchers began to discuss risks of technological unemployment that became viewed in the twenty-first century as the trend for the future (Kumar 2016; Pedersen et al. 2016; Smith 2016). The current use of big data and algorithms allows for automating as many tasks and operations as possible (Nolan, Carter & Dalal 2016). Different types of algorithms, including Googles algorithms, are used in many organisations, decreasing the demand for human resources.
The current understanding of technological unemployment is associated with threats of using robots and computers to replace people in a range of operations and processes. The use of machines is supported in hazardous environments and settings where physical tasks are performed (McAfee & Brynjolfsson 2016; Ng 2016). This situation decreases the demand for peoples work. Thus, industries and areas where the use of computers will be promoted include financial services, banking, accounting, and engineering among others (Brynjolfsson & McAfee 2014; Cortes, Jaimovich & Siu 2017). Researchers emphasise risks that robots will replace people in many positions in the nearest future, and the United Kingdom and the United States will face significant unemployment rates because more than 30% of their jobs can be automated, as it is presented in Figure 1 (Campa 2017; Frey & Osborne 2015).
Figure 1: The share of job positions at a high risk of automation (Statista 2018).
However, there is also an opposite view according to which robots and computerisation are discussed as beneficial for people who can save their resources to focus on creative tasks. Not all researchers agree that the development of artificial intelligence leads to technological unemployment because automation of processes is important to decrease costs, increase productivity, and improve services without affecting the quality of work of employees (Cockshott & Renaud 2016; David 2017; Dunlap & Lacity 2017; Makridakis 2017; McClure 2017). Therefore, the existing literature on technological unemployment provides many opposite views regarding this phenomenon and its impacts on firms and economy (Murren & Block 2017; Pantea, Sabadash & Biagi 2017).
Scenario Development
In their study, Frey and Osborne (2017) presented a list of occupations that are at the highest risk of being affected by automation. Thus, for insurance sales agents, the probability of automating their tasks is 0.92; for insurance appraisers and insurance claims processing clerks, it is 0.98; for insurance underwriters, the probability is 0.99 (Frey & Osborne 2017). According to these findings, companies from the insurance industry are characterised by high susceptibility to automation causing technological unemployment for insurance clerks and agents because tasks performed by these employees are routine, they are based on using computers, software, algorithms, and big data (DeCanio 2016; UiPath 2017; Wollschlaeger, Sauter & Jasperneite 2017). Consequently, advanced technologies can lead to further computerisation of these employees duties (LaGrandeur & Hughes 2017; Strawn 2016; ZBotowski, Yogeeswaran & Bartneck 2017).
Entrepreneurs are interested in using computers for performing repetitive and routine tasks, and the company selected for the analysis is Aviva. Despite risks of replacing insurance sales agents, insurance appraisers, and insurance claims processing clerks working with computer programs and software, it is possible to discuss this scenario as low-impact (Berriman & Hawksworth 2017). It is possible to predict that, by 2020, the number of insurance agents in Aviva will decrease by 25%, and by 2030, the minimal number of insurance clerks will work for the company (decreased by 50-60%) (Aviva 2017a; Donnellan 2017; Strawn 2017). However, Aviva is aware of both opportunities and risks of computerisation.
Benefits of automation in the insurance industry include possibilities for saving resources for receiving and processing documents and claims. The required time will be reduced, and the quality of operations will increase (Lamberton, Brigo & Hoy 2017; Mokyr, Vickers & Ziebarth 2015). It will be possible to conduct uninterrupted operations and data analysis during 24 hours a day (Groskopf 2017; Myers & Fox 2017). The work with mixed data will be automated with the help of using computer programs and software that allow for analysing various files and electronic formats (Decker, Fischer & Ott 2017; Fuei 2017). The analysis will be conducted automatically with reference to applying different regulations, standards, and laws. The company has applied more than 40 applications to enhance processing information and claims (Harris 2017; Kehoe et al. 2015; Kone
ný 2016). The risk of errors in filling in documents, conducting appraisals, and analysing data will decrease by 90%.
Aviva accepts the importance of transforming into a digital leader in the industry with the focus on automation as it is necessary to develop new sales channels and customer-oriented relationships. Thus, artificial intelligence and robotic automation are likely to increasingly transform the efficiency of insurance operations such as underwriting and claims (Aviva 2017a, p. 71). Despite the necessity of decreasing the number of insurance clerks because of implementing computer programs and applications and developing telemarketing, Aviva will provide employees with training to develop their skills as financial advisers and multi-agents, as well as professionals in telemarketing (Moodie 2017; Morgan 2017; Qureshi & Syed 2014). This approach will provide the company with resources to address technological unemployment and preserve jobs for more than 15,000 employees. Consequently, if operations performed by insurance clerks and agents are changed in Aviva with computers and robots, the company will provide employees with positions related to telemarketing and using IT.
Conclusion
This report has demonstrated impacts of automation on operations in the insurance industry with reference to the experience of Aviva. The review of the recent literature on the problem has presented the development of the concept of technological unemployment. Furthermore, the discussed research and evidence have been applied to evaluating the impact of technologies on companies in the United Kingdom with reference to Avivas scenario.
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To begin with, it is essential to analyze the organizational purpose of the Georges Hotel at first in order to determine its current position. Evidently, the mission, vision, and values of the business are closely interconnected, and one of their most critical elements is the concept of family. All executives and most employees are related to varying degrees, and it significantly influences the way they perceive the organization and its future in general. Jeff, Chad, and Cindy decided to equally emphasize the guests of the hotel and its employees in the mission statement. In addition, both Jeff and Cindy note that they have to preserve the value of family while building the new hotel. Therefore, it may be concluded that the mission, vision, and values of the Georges Hotel revolve around the intimate relationships of its executives and employees. However, they also focus on the idea of providing exemplary service and pleasant experiences for their guests. The organizations CEO, Jeff, fully realizes that such an approach is vital in the hospitality business and practices it on his own with maximum enjoyment.
Furthermore, a SWOT analysis is a useful framework for analyzing the strengths, weaknesses, opportunities, and threats of the Georges Hotel. First, the organization has its strengths and weaknesses, which should be clearly outlined. On the one hand, it provides excellent service and has a solid reputation, and these strengths attract loyal clients, as well as new guests. The brothers, who had been familiar with the hospitality business since their early childhood, established the hotel using their profound experience. Due to these reasons, it has always been profitable and never suffered any financial problems. Besides, the organizations employees keep good relationships, as they are either relatives or friends. On the other hand, the Georges Hotel has serious weaknesses, including employees and executives incompetence, absence of formal structure, and numerous managerial issues, ranging from decreased performance levels to the lack of feedback. Unfortunately, Cindy, the Director of Human Resources, did not have any management or HR experience before starting her work at the hotel. However, she and Jeff lead the organization now, and the inadequacy of her knowledge prevents her from effectively solving managerial issues.
Second, the Georges Hotel currently faces various opportunities and threats. For instance, it can become a multiunit organization by building a new hotel near the riverfront section of Chicago and expanding across major cities across the United States. It can also improve guests experience by implementing different innovative ideas and attracting more clients by building an online presence. In contrast, family conflicts within the organization and new competitors gained through the potential expansion are possible threats. Moreover, the executives may fail to build the new hotel successfully because of multiple managerial issues. The organization may suffer financial losses and waste its identity in the process instead. It may lead to adverse consequences, including closing the business.
The Issues
The most serious issue the Georges Hotel must deal with now is undoubtedly the politics of nepotism, the question concerning the next CEO, and managerial problems. The practice of hiring by referral relatives and friends may have its benefits, though it evidently causes a multitude of challenges. Cindy clearly understands that the organization cannot successfully extend if it will continue to practice this approach solely. She notes that some employees are convinced that they have a job at the hotel for life, as they belong to executives social networks. Hence, the issues of decreased performance, attendance problems, and absence of discipline arise. Moreover, according to Burhan et al. (2020), perceptions of nepotism at an organization can have detrimental consequences for that organizations ability to attract qualified and motivated personnel (p. 46). It is extremely relevant to the organization, taking into account the fact that its executives plan to extend soon. In general, nepotism, causing different managerial problems and scaring potential competent employees, is among the most burning concerns of the Georges Hotel.
Furthermore, there is one more issue, which may lead to catastrophic consequences if handled improperly. Jeff wants his daughter Julie to become the next CEO after he retires, while Chad and his wife Cindy are convinced that their son Michel is the most suitable candidate for the position. The current CEO believes that his daughter is better prepared and is surprised to hear about Cindys plans regarding her child. In fact, both Julie and Michel have enough knowledge for the post, as they studied for MBA. However, the former continues her program, while the latter has already started to work at the Georges Hotel. Undoubtedly, the executives need to approach the issue carefully as soon as possible. If they ignore it, serious family conflicts may occur later. As long as the Georges Hotel is a family business, the problem can considerably affect it, leading to the slit or even closure of the organization.
Using Data to Improve Performance and Decision-Making
The Georges Hotel is entering a period of significant transformation. Such skills as applying data to improve performance and decision-making, project management, and negations would definitely contribute to the organizations success. They are useful for not only strategic planning but also for dealing with different managerial issues. As long as the hotel currently faces many problems due to poor administration, the management skills would certainly make a powerful positive impact. They would guide the organization throughout the process of change and help to solve managerial issues. It is evident that some leaders lack the competence to successfully incorporate the skills; thus, they need to obtain enough knowledge to expertly handle all the challenges. Alternatively, they can hire new employees or consultants who are more qualified to use data, manage various projects, and negotiate. Unless the executives gain enough experience or engage useful help, they risk poorly navigating the transition process.
Managers must produce data-driven decisions in order to make their organizations more prosperous. Evidently, data helps to identify trends and determine strengths and weaknesses. Small businesses may avoid applying it, as they fear that costs are too high. However, fortunately, there are a number of various tools available now, which can boost the data analysis process with minimal costs, technical skills, and time and effort investments. According to Mikalef et al., data analytics should not be perceived as a solely technical challenge, but rather, an organizational one which requires fusion with the firms business strategy (p. 72). It is essential to recognize that using data is a particularly complex approach, which requires much attention. Leaders need to consider different technical and organizational issues in order to get as many benefits as possible. For example, data analytics encourages managers to make reasonable decisions leading to positive outcomes. Increased employees performance, reduced costs, attracted potential clients, improved quality of goods and services, and obtained competitive advantages are only several results of incorporating data.
Moreover, data analytics would definitely significantly influence the management of the Georges Hotel. On the one hand, the executives may be reluctant to adopt it because of technical and organizational challenges. However, taking the first step by starting to track employees performance or guests experiences is likely to make a positive impact. The Georges Hotel has numerous managerial issues, which may be effectively handled by manipulating data. For example, Cindy may analyze workers attendance and achievements, making certain conclusions. They will help her provide relevant feedback and adopt new policies to increase productivity and service quality. Besides, Jeff and Cindy plan to build the new hotel, and this process will definitely involve enormous expenses. Hence, reducing overall costs and improving profitability using data analytics are essential steps to go through the transition without major financial issues. It is evident that the Georges Hotel must start to use data to improve decision-making and performance now, as it should be ready to become a multiunit organization processing much more information in the future.
Project Management
Project management skills include a wide variety of hard and soft skills, which require much knowledge and practice at the same time. Leaders must acquire them in order to adequately handle various projects and rule organizations in general. Project management skills involve budgeting, planning, scheduling, leadership, and communication. Most managers are better in one area of project management than another, and they need to determine their strengths and weaknesses to employ help if needed. According to Barlow et al. (2016), the increased effectiveness of an organizations project management approach will help increase the likelihood of achieving desired results within a set timeframe and budget (p. 132). It is vital for all firms despite their area, as both processes of developing products and entering new markets require particular knowledge, experience, and abilities. Unfortunately, some poor leaders cannot manage budgets or deadlines appropriately, and they always lead their organizations to failures, such as financial losses and damaged reputations. Executives need to be good at project management to achieve the most favorable results.
Project management skills are extremely relevant to the Georges Hotel, as it enters a period of considerable transition. Building the new hotel is an incredibly large project, which requires much time, effort, and dedication. Jeff and Cindy need to demonstrate effective leadership and guide their employees. Even though the organization faces some managerial issues, strong project management skills will help it deal with the challenge. Jeff should endeavor to concentrate on the project without getting disturbed by secondary problems, as he, along with Cindy, will manage the building process on their own. Undoubtedly, the executives lack consultants and competent employees to successfully administer tasks, costs, timelines, and teamwork. Additionally, the project offers numerous opportunities and threats at the same time. Strong management skills will push the leaders to make the most of the former, while poor ones can lead to the latter. Therefore, the skills would largely contribute to the organization by facilitating the process of building the new hotel and seizing all the excellent opportunities.
Negotiation Skills
In business, negotiations occur every day, both formally and informally, with employees, as well as partners. Undoubtedly, negotiation skills are among the most important management skills in the modern world. Every leader should possess them in order to effectively deal with daily interactions and formal meetings. Turner and Endres (2017) emphasize that strong negotiation skills are an important personal quality of business executives, contributing to sustainability and growth. The reason for it is that they have to negotiate various issues with their colleagues, ranging from promotions and salary increases to obtaining new properties and beginning cooperation with other firms. Leaders can positively affect their organizations by knowing how to communicate successfully, reach an agreement, and get equal benefits for each party involved. Strong negotiation skills help to build better relationships, resolve conflicts, and determine the best solutions. Therefore, managers working in various industries must pay more attention to the skills and work diligently to develop them.
Jeff and Cindy will certainly need strong negotiation skills to navigate throughout the transition process and deal with serious managerial issues prevailing in the Georges Hotel. First, they will need to negotiate with numerous individuals, such as employees, suppliers, and partners, while building the new hotel. The skills will help them to make the most of each interaction with minimal costs and maximum advantages. Building a good relationship is also crucial for every organization, which is going to become multi-unit. Second, the questing for the next CEO has to be carefully negotiated by Jeff and Cindy, along with Chad, to equally satisfy each side. The issue is extremely complex and requires both parties ability to reach an agreement considering each others interests, desires, and concerns. Third, Cindy notes that the hotels informal structure should undergo some changes; thus, she and other executives have to negotiate their motives, approaches, and potential outcomes of the process with the employees to avoid resistance.
References
Barlow, A., Barlow, C. G., Boddam-Whetham, L., & Robinson, B. (2016). A rapid assessment of the current status of project management skills in the conservation sector. Journal for Nature Conservation, 34, 126-132. Web.
Burhan, O. K., Leeuwen, E., & Scheepers, D. (2020). On the hiring of kin in organizations: Perceived nepotism and its implications for fairness perceptions and the willingness to join an organization. Organizational Behavior and Human Decision Processes, 161, 34-48. Web.
Ever since the theory of global warming has made its way into the general publics minds, environmental concerns became some of the most pressing issues for large-scale production companies. Car manufacturing companies all over the world are fighting to get a competitive advantage by implementing sustainable production practices and developing their vehicles to be more environmentally friendly by cutting down emissions and developing alternative types of fuel. However, some producers remain ignorant of environmental concerns. For Volkswagen, the emission scandal that broke out in 2016, resulted in a civil settlement of about $15 billion, which makes it one of the most expensive settlements in the history of the car industry (The Stars Editors, 2016).
The Scandal and Its Effects
The scandal arose when it was discovered that Volkswagen attempted to avoid environmental laws by installing defeat devices on millions of its diesel cars sold worldwide (The Stars Editors, 2016). The devices controlled the work of pollution control systems, only permitting to turn them on when the cars were tested; as soon as the cars got on the road, pollution controls were disabled (The Stars Editors, 2016). In this way, the company could still provide an official report, which shows that the vehicles are environmentally stable, when in reality the emissions of nitrogen oxide during use reached over 40 times the federal limit (The Stars Editors, 2016). The information was leaked back in 2014; however, the scandal is still on-going: in January 2017, the companys executive Oliver Schmidt was arrested and charged with conspiracy in the effort to mislead the U.S. regulators (Colvin, 2017). According to Colvin (2017), the debacle may drag on for years more, and the main reason for the difficulties in its settlement is the turmoil caused by the situation and the Volkswagens handling of the scandal.
There were three key ethical issues in this case. First, the company went against the regulations that are designed to protect the planet from the harmful impact of cars. These regulations have been in place for several years and are applied to the production processes in other companies. By going against them, Volkswagen showed that the company has no regard for the environment and the laws in place to protect it. Secondly, the scandal proved the absence of a healthy corporate culture. Clearly, the installation of devices was not a mistake or one engineers decision, but an approved companys plan to cheat on the environmental sustainability tests: VW must have had a chain of management command that approved fitting cheating devices to its engines (Hotten, 2015, para. 5).
Moreover, instead of admitting its failures and promising to change its ways, the company denied most of the accusations until substantial evidence was presented: When regulators later accused VW of installing the so-called defeat devices in more vehicles than originally thought, the company flatly denied doing so until authorities produced the evidence (Colvin, 2017, para. 4). Finally, another ethical issue is that the company has betrayed the customers trust. One of the companys goals was to make environmentally sound vehicles (Jurevicius, 2013, para. 3), and the customers perceived their vehicles as such. The scandal proved that the company has deceived not only the government but also its loyal customers. Therefore, the scandal involved an entire range of stakeholders: the customers, Volkswagens management and engineering teams, the government officials, and other car companies.
The customers were affected by having their vehicles recalled and being forced to wait for new vehicles, as well as by having their trust in the company betrayed. Government officials, on the other hand, were also part of the conflict as they needed to investigate the scandal; moreover, they could decide to impose additional environmental controls on car companies and other large manufacturers. Volkswagens managers and engineers were involved in the scandal, even if they were not part of the test cheating plan; moreover, the managers that did not participate in the plan now have to devise a strategy for restoring the companys image and winning the customers trust back. Finally, other car companies could be affected by a rising distrust in the manufacturer-buyer relationship, as the customers negative experience with Volkswagen could also affect their perception of other brands. Increased environmental control as a result of the incident would also cost other companies a lot of money and effort.
Reasons for the Scandal: Poor Vision and Mission Statements
Some of the primary reasons for the emission scandal, according to Argenti (2015) are the companys unrealistic business objectives and expectations of its employees. In his article, Argenti (2015) explores several large companies that were subject to great scandals because of selling faulty or expired products. The author argues that even though the employees are not told explicitly by the company to sell those products, there is usually no need to: if the business objectives and employees individual targets are too high, the workers will try to achieve them by any means (Argenti, 2015). An international survey of Business Ethics showed that 70% of employees felt that pressure to meet unrealistic business objectives was likely to cause them to compromise their ethical standards (Argenti, 2015).
In this case, the blame lies equally with the employees who decided to go against the regulations and with the company that had failed to set clear and achievable goals. Argenti (2015) points out that Volkswagens example is similar to other cases of employees ethical misconduct, and the reasons for the scandal are also similar. Indeed, the companys vision as of 2013 was product-centered and ambitious: The Groups goal is to offer attractive, safe and environmentally sound vehicles which can compete in an increasingly tough market and set world standards in their respective class (Jurevicius, 2013, para. 3). The companys vision or strategy, on the other hand, was not outlined at all. A combination of the two factors created increased pressure on the employees to set world standards but at the same time gave them no realistic vision to work by, which might have been the main reason for the scandal.
Conclusion
Today, Volkswagen is in the midst of a significant change process. One of the major improvements is that the companys vision is now clearly outlined on its website and features a particular emphasis on sustainability: the current goal of the company is to become a globally leading provider of sustainable mobility launching more electric cars and expanding battery technology and autonomous driving (Volkswagen AG, 2016). A clearer, more focused vision is one of the factors that could contribute to the restoration of the companys image after the scandal and its return to the sustainable mobility market. However, more changes will be required to promote a better corporate culture and business ethics to prevent similar incidents in the future.
Over the past few decades, the most popular theories of strategic management were the positioning approach and the resource-based view (RBV) of strategy. Its purpose is to help companies with developing and execute their business plans in the most efficient way. However, strategic objectives can not wholly avoid taking external risks, making it essential for firms to closely examine each theory prior to putting it into practice (Gellweiler, 2018, p. 4). This essay aims to describe and analyze the differences between the two primary schools of strategic management and discuss how they are implemented in practice. The strategies will be applied to an existing company that operates in the car insurance market in the United Kingdom.
Comparison of Theories
To describe the difference, it is vital to understand the basis of each theory. The positioning approach relies on the organic placement of a company among its competitors, thus, it focuses on the external factors (Porter, 1989, p. 133). Witcher (2020, p. 16) defines the five forces as the primary influences affecting the choice of industry and competitive positioning, which affect an organizations competitive advantage and profitability. At the same time, RBV is oriented towards the internal factors of a firm (Witcher, 2020, p. 30). Witcher (2020, p. 29) states that, according to the resource-based view of strategy, competitive advantage and superior performance are based on the internal management of strategic resources. The resources of a firm, which range from the raw materials to the strengths of each employee, are put at the top priority when a company follows RBV to gain an advantage (Barney, 1991, p. 206). Therefore, these approaches take a diametrically opposite look at a company when defining its potential.
The conditions for gaining a competitive advantage also differ significantly between the theories. Regarding a positioning approach, Porter (1989, p. 133) states that the weaker the forces collectively, however, the greater the opportunity for superior performance. At the same time, the primary condition for success, according to RBV, is proper identification and efficient exploitation of strategically relevant resources of the organization (Barney, 1991, p. 206).
For a company to create an adequate business plan, it is essential to examine all factors that affect its performance. Gellweiler (2018, p. 2) states that these two fundamental theories still lack connectivity, as they neglect either internal or external factors. The choice of the strategic position of a company depends not only on the competitive environment but also on its available resources and employees skills (Gellweiler, 2018, p. 4). Thus, the necessity to include strengths and weaknesses, as well as opportunities and threats, calls for a hybrid approach (Barney, 1991, p. 204). In practice, a company that chooses to utilize both strategies has a higher chance of succeeding.
Example
To demonstrate the importance of applying a combination of the two theories to practice, I would like to analyze the car insurance company Admiral Group PLC, which operates in the UK market. With almost 11,000 employees and a revenue of $1.4 billion, it is one of the largest companies on the market ( Admiral group PLC, n.d.). Due to being highly competitive and heavily influenced by the general environment, the car insurance industry requires a constant assessment of the internal factors along with the state of competition (Ralph, 2020). The forces on the market have been weakened by the pandemics, which creates an opportunity for a company to gain a competitive advantage (Burgess, 2020). However, the usage of a positioning approach alone does not reveal all the factors.
Despite the favorable situation in the market, Admiral Group PLC needs to take into account several internal factors that have undergone significant changes in recent times. The trends in the car insurance industry show that companies that operate in this market face rising operational costs (Ralph, 2020). Experiencing relief from the pressure from the external factors, Admiral began transferring the benefits it acquired from optimizing its internal operations onto its customers, thus gaining market share and avoiding customer loss (Ralph, 2020). This example shows how a proper assessment of both internal and external factors allows a company to make the best decision and gain a competitive advantage in practice.
Conclusion
In conclusion, the significant differences between the two fundamental theories of strategic management lead companies to the necessity to use them both in order to take into account all factors. Witcher (2020, p. 32) defines this mix of strategies as a companys ability to adjust strategic capabilities to meet the needs of a changing environment. The SWOT analysis provides such an opportunity, making it one of the essential tools for analyzing the organization (Witcher, 2020, p. 43). In practice, companies that do not pay sufficient attention to either set of factors will inevitably lose their potential (Gellweiler, 2018, p. 10). The internal capabilities of a company have a direct effect on its positing among competitors (Witcher, 2020, p. 46). Therefore, the two fundamental theories of strategic management can provide meaningful results only when applied together.
