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Introduction: Corporate Strategy and Responsibility
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The corporate strategy and responsibility of an organization are based on a set of rules incorporated by the company to analyse and improve its working capabilities and business goals. These strategies aim at setting the objectives of the company. Therefore, the goals of these strategies are to formulate innovative plans for a better outcome for the company in the business market. However, these strategies are set in a way that does not affect the public welfare. Moreover, the planners set the goals mainly focusing on the growth of trade in the company and implementing improved leadership ideas in the business.
Strategic Issue 1:
The market share of an organisation is part of its total sales respecting the market where it operates and this calculates the competitiveness of the organisation. The decrease in market share is a strategic issue and can impact the organisation in the future.
Cost-Effective Disadvantage of Budget Hotels Compared with Economy Hotels
The revenue of an organisation grows at the exact rate alongside the continuation of its market shares as the entire market. The complete industry is growing each year very dramatically, therefore, it can be theorised that the budget hotels of the organisation are facing reducing market share challenges and issues within this industry.
Figure 1: Corporate Strategies
(Source: Font and Lynes, 2018)
The suffering of the hotels because of the decrease in market shares can be described from 3 facets. The first one is that economy hotels seize organisation hotels’ market shares. Normally, three levels of hotels are observed such as budget, economy and luxury hotels (Ashrafi et al. 2018). Consumers with limited budgets prefer mostly economy hotels because the hotels can provide uniform service, room service of food or beverages, elaborate services and many more within a reasonable price. In many research, it is observed that the average economy hotel occupancy rate in Melbourne and Sydney is 84.5% and 74.4%, respectively. On the other hand, the occupancy rate of budget hotels in organisations is just 60%.
The second reason is that a renowned hotel also is grasping the budget hotels of the organisation’s market shares. Among the hospitality peer-to-peer interchange service, a renowned hotel is the largest one and they are focusing on a specific marketplace area where guests and hosts exchange money for housing (Kraus et al. 2020). In many research, it is observed that a renowned hotel gains roughly $450 million in revenue every year to the hotels.
The third issue is that multicultural problems hamper the revenue of the budget hotels of the organisation yield and these blocks the organisation from getting ahead of the sales growth in the industry and this is causing a decrease in market sales of the organisation (Dhar et al. 2022). The budget hotels of the organisation are familiar as one of the biggest chain hotels that are spread internationally; therefore, it is facing cultural challenges. In case the staff of the hotel is not able to handle the differences in a culture very well then it will create an impact on the revenue of the budget hotels of the organisation (Font and Lynes, 2018). The main reason behind the suffering of the revenues of the organisation hotels in the market of Australia is that the people of Australia are not feeling comfortable with some gestures and services.
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Two tools of revenue are proposed for solving the budget hotels of the organisation’s decreasing market share issues.
Implementation of revenue management: The management of revenue is the disciplined analytics application that can predict the behaviour of the customers at the level of micro-market and can optimize the availability of products and the price to the highest growth of revenue. The main purpose of the management of the revenue is selling the correct item to the proper consumers at the correct time for a fair price with the ethical pack (García and García, 2020). There are five stages of tools that are needed such as data collection, segmentation, optimization, and dynamic revaluation and forecasting.
Figure 2: Challenges faced in a business firm
(Source: Yusliza et al. 2019)
The organisation’s budget hotels can embrace these tools for yielding revenues. At first, they require to gather intelligence from market research for looking at what the consumers want during their hotel-choosing procedure. The second one is the group consumers into the exact segment following the previous research (Abbas, 2020). The third one is, the organization is required to conduct prediction that includes the demand of the visitors, analysis of market shares and room availability for seeing the preferences of the consumers. The fourth one is, optimization is situated for organisations to respond to the last prediction. The last one is, the organisation should make a revaluation to their prices in the room and applicable services to the highest revenues. On the other hand, the management of the revenue is not suitable for the organisation and the reason is that this strategy is very long term and its’ success relies on better market segmentation.
Implication of analysis of customer profitability: The profitability of the consumer is the profit the organisation makes through serving a consumer over a particular time. A profitable consumer is a company, household or person that over time revenue yields surpasses the cost of servicing, selling and attracting the consumers of the organisation (Yusliza et al. 2019). The organisation can make segmentation for the consumers and then embrace the analysis of consumer profitability by measuring the cost and revenue of the particular segmented customers. After acknowledging the profitable consumers, they can focus on them and satisfy the customers.
Strategic Issue 2:
Ineffective Corporate Leadership is another issue faced majorly by the companies rising in the modern world. An organization is based on the effective leadership qualities of a leader. However, in some organisations, a lack of communication, direction and coordination in a leader shows ineffective leadership thereby disrupting the reputation of the company.
Organizations face major losses due to ineffective corporate leadership. The foundation of an organisation is based on the leadership qualities of a team leader who guides the team toward a positive outcome for the company. However, there are certain organizations that have faced their decline due to the inefficient leadership qualities practised in their companies. These qualities are:
Lack of communication and coordination:
One of the most vital problems faced by companies is the lack of communication among the members of the company. This happens when the leaders practice a lack of communication with their peers in the company (Kalenda et al. 2018). This miscommunication leads to misunderstandings and lack of coordination among the members and leads to ineffective growth of the company. In addition, this issue affects the reputation of the company in the market as a whole.
Figure 3: Ineffective leadership qualities
(Source: ElAlfy et al. 2020)
Lack of proper guidance
The leaders are expected to understand the goals and objectives of the company more efficiently. Their knowledge will help in guiding the other members in the proper direction. However, in some companies, the leaders show a lack of proper guidance to their peers. In the case of product-based industries, the lack of vision of the leaders misguides the workers (Stachová et al. 2019). This happens because the workers are unable to understand their main goals in producing the required product which leads to the wastage of resources. Moreover, the leaders have the responsibility to understand the requirement of the market and manage the team with proper information.
Lack of appreciation
Leaders are seen as role models in a company. Therefore, their contribution to supporting the team is very essential. The motivating personality of a leader affects the morale of the employees and motivates them to work as a team (Ortiz et al. 2018). However, the lack of appreciation by the leader makes the team members demotivated and deprives them of working for the benefit of the company. This problem is faced by many companies due to arrogant leaders who do not appreciate the work of their employees.
Lack of morality
The lack of morality in the leaders shows an impactful change in the coordination of a team in a company. This happens when they look out for their own benefit and does not pay heed to the challenges faced by the team members (ElAlfy et al. 2020). In addition to this, there are some companies that face their downfall due to this failure of leadership quality. Therefore, it can be said that the workers leave their organizations due to lacking qualities of their leaders which affects the morale of the company as a whole.
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Implication of effective communication strategy: The implementation of an effective communication strategy among the members of the company can benefit the organization (Ataguba and Ataguba, 2020). It can be suggested that improving this communication skill by leaders will make the employees more dedicated towards the company goals and help them to improve their working capabilities.
Implementation of management strategy: There are many companies that face challenges due to the lack of management by the leaders. This disrupts the coordination among the members thereby disrupting the goals of the company as a whole. However, it can be suggested that the implementation of different management strategies can improve the coordination among the team members along with the higher authorities (Gandolfi and Stone, 2018). Moreover, analysis of proper information by the leaders of groups can show an impactful change in the working as well. Therefore, strategic improvement by the leaders and team members can help improve the reputation of the company.
Motivating morale of the leader: the leader’s appreciation plays a major role in the working of the employees in a company. This is because it provides motivation and enhances their dedication level. However, the companies face their downfall mainly because of the aggressive behaviour of the leaders with their peers. Therefore, it can be suggested that the leaders can provide motivating vibes to the employees thereby increasing their working morale towards the company (Gandolfi and Stone, 2018). This can affect the reputation of the company in the long run and make the employees satisfied with their organization.
Generous and approachable behaviour: The leaders of a company often show unapproachable behaviour with subjugates. Therefore, it becomes impossible for the workers to specify their problems to their leaders. This behaviour affects the functioning of the company as a whole. This problem can be eradicated with the implementation of a positive attitude towards the employees of the company (Aning, 2022). Moreover, this strategy will enable the employees to approach their leaders with the problems they are facing. In case the company makes any changes in the rules and goals, then the approachable behaviour of the leaders will be helpful. This is because it will enable the workers to understand the amendments made more clearly by the leaders.
Strategic Issue 3:
Technology is advancing day by day and it is impacting business very well. In case the organisation is not taking the advantage of the advanced technology then it could create a strategic issue in the business in the upcoming future.
Technology has altered the communication procedure between the people in the organisation. The arrival of networking sites, smart phones and many others has created a new level of communication. In case the organisation does not adopt this technology in the communication with their employees or management then it will create issues in the future.
Keeping the business fully organised
Recent technology also helps any business to keep its activity completely organised. Systems such as Project Management Software aids in delegating, creating, assessing and reviewing a task. The manager and employees can supervise the activities of the workplace without any effort and that keeps entire things on track (Lee et al. 2019). The absence of this kind of software in the organisation can reduce the productivity of the organisation and in the future, it can be raised as an issue.
The main goal of every organisation is to increase profitability. The innovation of software in technology helps the organisation to become financially healthy with the improvement of the innovation that is proving to be cost-effective. Each workplace has chore tasks and that require dedicated workers for handling them and which increases the cost. Installation of SaaS tools can decrease the cost. The organisation must adopt this to reduce its cost.
Secure the business
Every level of the workplace in a business requires high-level security to run it safely and here technology has the crucial part of doing this. It gives end-to-end software and hardware-depend data encryption therefore only the authorized organisation can read and retrieve it (Lee et al. 2019). Facial recognition and fingerprint features provide an extra security level to the workplace’s system.
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Proper utilization of technology: the introduction of modern technologies has improved the management of a company. However, there are certain companies that have faced challenges regarding the utilization of software. There are different types of technologies available on online platforms. Therefore, it can be suggested that the companies can use several software to improve their management issues faced by the company (Sayyadi, 2019). Moreover, it will help them to improve their communication skills among the members of the company. As a result of which the workers will be able to coordinate amongst themselves with their work. Improved communication with the higher authorities will motivate the workers more effectively thereby increasing their morale.
Organized records of the company activities: The activities carried out in the company can be recorded effectively with the utilization of proper software. Most companies face challenges due to the ineffective management of their data. Therefore, it can be suggested that the company incorporate software that is used for evaluating and storing their confidential data with high security. This will enhance the company’s security and protect the data from being leaked into the market (Amankwah-Amoah and Adomako, 2019). Moreover, the use of this software will help the companies to manage their accountability, efficiency and responsibility more appropriately thereby protecting the reputation of the company in the market.
Efficient cost management: Companies often face the challenge of cost management. Therefore, it is suggested that companies improve their cost management strategies and technologies used to manage their accounts (Parker, 2020). Moreover, the implementation of modern techniques will help organizations to improve the cost and manage the investments made in the company. This will reduce the wastage of company resources thereby showing a positive impact.
Ensuring the Security of the organization: Companies while commencing in the market face several types of challenges. Therefore, it is suggested to companies for incorporating innovative ideas and strategies to overcome the challenges (Ebert and Duarte, 2018). Moreover, organizations can face all the challenges if they incorporate business management strategies and improve the flourishment of the business in the market. Therefore, it can be said, with the implementation of modern technologies a company can improve its goals and objectives.
CEO Leadership Paper Reflective Briefing Paper
IBIS world is a company that provides research services. It forms in 1971, and this research organization at present take a big place in the market. This organization provides information for strategic planning and research purposes. This company’s Chief Executive Officer is Karen Dobei (ibisworld.com, 2022). The CEO of this company is wanted to launch this organization throughout the world. This company has 400 employees, and six offices over the world (Morgan, 2020). This company will help other companies or universities to take the right decision by providing research papers on strategic planning. Finding the strategic issue of this company will help to describe the leadership quality of a CEO.
In every organization, it is very clear to say that the CEO of the company is leading the company towards success but after discussing the issues, the CEO’s leadership quality becomes very poor to lead the organization. In this economical world, the first wrong strategic planning is declining marketing share. Nowadays every organization give some shares because not to face the problem in future, whereas this company declining its marketing share. IBIS world’s leadership type is providing skilled guidance and expatriates to its clients and employees (Gordon, and Martin, 2019). At present time it is very important to be connected with new technology, but also we have to keep that in mind that to run an organization, the company should provide that much technology which are people used to.
The CEO of the company does not lead the whole team on the right path. It is very important to know that declining the marketing share is a very important decision for an organization, when a company thinks that there is a problem in the share market or having a very big financial problem then the organization can decline the market share but for this company, it is a very unnatural thing to do. That affects the organization more, whereas the company have to take the decision to create new offices in many new places to take the whole research marketing industry (Moldoveanu, and Narayandas, 2019). As the CEO of the company, it is very important to lead the industry in a proper way. The CEO of this company not only disguise the organization but also disguise the employee and the customers.
As per my vision, it would be better for the organization if IBIS world company create some new strategies to promote new services for the customers. In a crisis period, it is very important to do planning for crisis management (Andriole, 2018). Crisis management helps the organization overcome any kind of problematic situation. This company’s leadership process is not so clear, so the company faced Ineffective Corporate Leadership. Leader means who lead a company towards achievements. But this company’s leadership is not so much connected with other employees that also affect the organization. For me, marketing its own company is very important to get a famous in the industry, if the company is not able to market itself then it will be not good in future.
Connection to Strategic Issues
This company is based on providing many kinds of research papers, strategic planning papers, and many more. This company has provided much strategic planning which can be downloaded, and also can be bought (Konadu et al. 2020). It is very important for this company to create new connections in the industry to have a well-known face. For some reason, it is very important to discuss the strategic issues of the company. In this study, the main three issues are selected, one is declining market share, ineffective corporate leadership, and evolving technology. These three issues are faced by this company. These issues are also clear in the thought about the leadership of the company (Bleich, 2019). An organization leader shows organizational ethics, rules, and responsibilities. In a company, there are many leaders to lead every part of the organization but as the CEO of the company, the organization is represented by the CEO, so it is very clear that in one word CEO means the leader of an organization (Lahiri et al. 2020). Only a CEO can take everyone along with, but this company’s CEO only think about all herself and do not take any of the other administrative officers. For this reason, the organization has to face many repercussions. All three strategic issues are completely connected to the CEO of the company because maybe the proposal of the strategic plan is from others but why the CEO of the company does not focus on the repercussions after applying that plan? In taking every decision it is the complete responsibility of the CEO of the company. So the CEO of the company is directly connected to the strategic issue.
PDP is a process in which a person develops themselves for the company and also develops some personal characteristics to achieve the goal. The professional development process and personal development process both are interconnected. The personal development process is to develop self-characteristics to achieve the goal (García?Sánchez, and Martínez?Ferrero, 2019). It is very important to have professional development ability which shows the professional characteristics of any person. In the personal development process, there are many points to collect like good communication, good listening, and capability to handle any situation. These types of characteristics are also applied to the professional development process. Wanted to be the CEO of the company the personal development process and the professional development process both are important. As a professional development process, it includes leadership quality, strategic planning, ready for any circumstances (Vasanthakumari, 2019). Every organizational CEO have this type of quality to handle any kind of situation and also make strategic planning about that situation.
After completing this report it is so much clear that IBIS world why faced the strategic issue that the organization. After knowing the organizational situation at that time it became very important to know about strategic planning and how a good leader could handle the situation. As a CEO of any company, it is very important to take the right decision in any circumstance of the company. The factor of PDP is very important in that to be a CEO the person has to think about all sides of the situation and after attending a meeting with the administrator and employees then the CEO have the right to take any decision. Taking the CEO’s own diction affects the whole organization.
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Ibisworld.com, (2022), Who is IBISWorld?, Retrieved from: https://www.ibisworld.com/company/our-story/ [Retrieved on: 6th December, 2022]