Competitive Strategy Management Control System

Question: Discuss about the Competitive Strategy for Management Control System. Answer: Key ideas of strategy The video of strategy describes basic differences between strategy and goals. Companies while accomplishing the goals set by organizations formulate a plan. A good strategy must include some relevant topics such as the area of competition, the unique value of the product, utilization of resource capabilities, and sustaining individual values. The first item includes competitors, product markets, geographic markets, industries, etc. The second criteria include reason of choosing the product of the company over other businesses. Unique values can be cost and differentiation regarding reliability, styling, customization, image, etc. The third aspect of resource capabilities includes exceptional human capital, superior technology, unique reputation, and unmatched reputation (Lozano 2012). Resources can be tangible or intangible. Capabilities refer to the ability to use the things that are present within an organization. Sustainability means factors that allow continuing the strategies to sustain the company in the marketplace. The strategy is a most important aspect that every company should follow in accomplishing goals. The strategic aims of the organization are aligned to the strategy of each department. However, one must not confuse with the concept of objective and strategy. Both these two things are different but are complementary to one another. An organization should be unique in formulating strategies so that they can acquire a substantial market share in the sector (Arjalis and Mundy 2013). Plans for each department of organizations should fulfill the requirement of the established goals of the company. More focus is required whenever senior management of businesses formulates strategies for the development of the enterprise. Implementation of the key ideas IGA (Independent Grocers of Australia) is a supermarket chain in Australia that focuses on targeting the general customers of Australia. As it is a supermarket chain, hence the company sells daily use products in their store. The strategy followed by IGA in the Australian market is cost leadership. Low price is the key area of attracting more customers while maintaining a decent quality of the products sold by the company. There are many other supermarkets present in Australia. However, IGA continues its reputation in the market by its product quality and cost of their products. IGA focus on their private label products with unique features (Pollard et al. 2014). Some product differentiation is included in these categories of products. However, the company is very much focused on optimum utilization of its resources present within the enterprise. The resources of the company include large suppliers, good relations with the vendors, and the financial aspects. On the other hand, the ca pability of IGA refers to its developed human capital. The employers of the company are trained in a way so that they can provide excellent customer service to the customers (Richards et al. 2013). IGA in Australia is famous for its unique strategies of promotion in the market. By its promotional strategies, the company is capable of increasing the customer base on a yearly basis. Apart from that, retention of existing customers is a vital aspect that can be done by excellent promotional strategies of IGA. The unique thing about IGA is that it follows both cost leadership and differentiation in different aspects. Week 4 Business Model Innovation Key ideas of business innovation Innovation is a key factor that is recognized as the most important element in attaining sustainability in the firm. A company can reach its zenith of success only when it follows the path of innovation in the market. However, the companies who are busy in serving present customers and are not focused on developing new products they will not be able to sustain for a long term in the market. However, the word innovation has many misconceptions among entrepreneurs of the world (Jimenz-Jimenz et al. 2014). According to many executives, innovation requires enormous resources, advanced technology and developing a product in the blue ocean. These connotations are wrong. Instead of it, innovation is focused on the integration of ideas that leads to a new product altogether. To initiate innovation, a company must focus on its business model. Business models should be changed with the pace of change in the marketplace. Innovation cannot be supported by the old style of the business model of a company. However, a business model must include certain features such as target customers, the product serving the customers, the value of the product and the way of providing value to its clients. In this business model, innovation can be included in the factors of value addition and product types (Gaziulusoy et al. 2014). Innovation can be four steps such as initiation, ideation, integration and implementation. However, companies must do extensive research while applying any idea in the business model. Apart from having positive aspects, innovation also possesses negative aspects if companies do not implement it correctly. Application of the idea There are instances of businesses that follow innovation in their business model. They are now enjoying the position of market leader in that particular sector of industries. On the contrary, some other companies are not able to sustain in the market due to their old business models and lack of new product development. The organization chosen for describing the innovation in practice is Apple, Inc. Apple is a company known for the innovation. In this category, Apple ranks first. Innovation is the core success factor of Apple in the market. The products of Apple usually serve a niche market. The target customers of Apple are high-end customers. Apple mainly concentrates on providing value to the expectations of the customers. The products of Apple possess unique features along with sleek, innovative design (Jun and Sung Park 2013). The research and development department of Apple consistently focus on the development of strategies that are not matching with products provided by other companies. Products of Apple usually create the need in the market that is a huge factor in the success of the enterprise. However, the business model of Apple focuses on providing value to their premium customers that make the company standing apart in the marketplace. Due to the innovation, Apple charges premium price for their products and clients are willing to pay for the innovation (Yin et al. 2014). Therefore, it can be concluded that innovation is the most important factor of business extension as well as adding more customer base in the firm. The primary strategy of Apple in developing a new product is adding some creative features in their gadgets or modifies some features that are not previously highlighted by any company. It is a form of innovation of Apple. References Arjalis, D.L. and Mundy, J., 2013. The use of management control systems to manage CSR strategy: A levers of control perspective.Management Accounting Research,24(4), pp.284-300. Gaziulusoy, A.ÄÂ °., Boyle, C. and McDowall, R., 2013. System innovation for sustainability: a systemic double-flow scenario method for companies. Journal of Cleaner Production,45, pp.104-116. Jimenz-Jimenz, D., Martnez-Costa, M. and Sanz-Valle, R., 2014. 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