Strategic Management In An Arts Business Commerce

Essay add: 28-10-2015, 14:44   /   Views: 153

In the arts case study organisation wanted to launch water oxidation product .they have already launched two times but failed all the time so now they are trying and doing research to get success .in the company all people have skill and spent too much money to launch this big product. Vyas was general manager of the company and he was talented. he recognised that his time did hard work for this product .After failure Vyas appointed new vice president for this water management because she knew everything about this product. Arts had 60 business unit and the revenue was $11bn in 2006 the company success was built on its entrepreneurial and on innovative culture with a decentralized viewpoint. Knowledge sharing and dissemination was another key part of business philosophy in spite of the high level of decentralization. Objective of the top management was each unit would deliver 10%growth, pretax margin 15%and return on capital investment of that time CEO of the company was David hall. He introduce new project fast track pipe line that focus on maximum right of way projects by provided that the extra resources and management awareness. Vyas decided that his three ITC technologist would work for business-related design of water oxidation.

2 Strategic Management:-Strategic management is worried with largely path of an system of government and as it is very important management activity. Strategy management is far too significant and difficult to be left solely in the hands of board of director. Strategic management is about taking responsibility for overall direction of the civil service. (Marcic and Daft, 2008)

2.1 Strategic Position:-Position of the company is good in the market.

Innovation:-success in innovation depends on two key things resources and capability to manage them.

4 ps of innovation

1. Product Innovation:-changes in things which organisation offer. In the company ARTS innovation and entrepreneurship is key factor they always do new innovation as in the water oxidation product they launched two time but they failed so again company changed all things to do new things.

2. Process Innovation:-changes in the ways in which things are delivered and created. As in the case study company changed the process because they failed so then they started again all process to get success in this product. Company opened the R&d group to make this successful.

3. Position innovation:-changes in the situation in which product are introduce.

4. Paradigm Innovation:-changes in the underlying mental models

Knowledge sharing and dissemination:-It was also key thing of the company before They do any product all the division think deeply and share knowledge each division and get ideas and then they decide they have to launch or not. Tinker time was also there in the culture.

2.2 Strategic implementation:-

When the company was in U.S. and doing their project beta batch and testing two different water oxidation products in 2003 to 2006. They failed just because of design and lack of interest in market palace.2nd time the product failed just because of consuming too much power. Company had no problem with resources they have no lack of funding and everything was fine just the problem was in team they were not disciplined and when team was working with ITC there was misunderstanding. Vyas learned that mistake was they had no expert to sell the product in market.

3 Porter, five forces:-


New Entrants



Industry competitors and extent of rivalry






Threat of new entrant:-In the case study just one competitors was china in 1990.So Company had no big problem of competitors.

Substitutes:-Company failed two times so they want to develop new product cheaper and with better technology. Therefore company was trying to change their technology to produce good product.

Supplier: - In the case study, art had no problem with supplier because they were making their own product.

Buyer:-Company had no buyer because they did not launch any product. If company do this product then their buyer restaurants, grocery shops, military farms and uniform factory.

4 Pestle analyses:-

1 When there prevails elevated level of uncertainty suitable to complexity otherwise quick

Change, it become complicated to forecast the outer environmental that strength affects the firm's strategy. Therefore situation analysis is done to estimate the likely alternate views to forecast the organizations outlook business environment (Hejiden, 2006).In order to reach this end PESTEL analysis is done to recognize the key drivers of change that can be used to predict the scenarios for the future. PESTEL stands for political, economical, social, technological, environmental and legal and forms a tool for analysis of the macro-environment of the organization (Thomas, 2007)

Political factors: - : Political factors highlight the probable government laws and regulations, security measures and restrictions that can apply to the industry as a whole. in the case study of arts company had no problem with government . All the things were in favour. In the U.S the condition was very bad because there was low rain fall .government was looking for this type of product. Government imposed ban on where the water used in land scape irrigation in residential area.

Economic factor: - Economic factor tell to the replace rates, economic growth worldwide and the business situation current in the industry. Total sales of water division were$560million and filtration unit were $38 million. The total cooperate revenue was $11bn in 2006 and company was losing $6million a year.

Social factors: - Social factors comprise the changes in cultures and demographics globally apart from change in the buying pattern and capacity of the consumer. As in the case study the research shows the just 2.5% water is clean in the world .lack of the clean water 80% diseases borne .In the 2002, 3.1 million people died in the all world. India and china were using more clean water than other countries and polluting more water because of industry.

Technology factor:-ARTS was emerging giant in the market. The problem was company had failed two times in this water oxidation product. Company was trying very well in this field to the improve the technology.

Environmental factors: -Environmental factors were in the favour of the company. In the U.S. the condition was not good regarding water low rainfall, drought, high wind and growth population was great challenge for U.S. Therefore the company could think about it and the condition was in their good turn.

Legal factors: - There was no legal factor.

5 Key drivers of changes are:-

From the PESTEL analysis and the five force analysis, the key drivers of change are:

Strategic drift:- Strategic drift mean when you are going to achieve a goal and company fail to get that target just because of that changes however may be problem with culture and historical factors. In the case of the arts company we could say that there was strategic drift therefore company failed two times in that time.

Resources: Each association or a firm require and own firm resources and competences necessary to go through and increase internationally. In other words every firm has its own strategic capability to carry on against all odds (Johnson, Stoles and Whittington, 2008)

Tangible resources underline the physical assets like plant, people and finance of the organization

Intangible resources underline non-physical property like information, reputation and knowledge (Johnson, Scholars and Whittington, 2008)


PHYSICAL RESOURCE:-In the company there was no problem of resources company had better and skilled employees. All the manager were experienced and know the situation of the company .company was working for water purification so company had sources like good technology and water was main resources .

FINANCIAL RESOURCE:- The financial condition of the ARTS was good because company had some other division which were generating a lot of money .Great funding was also available .U.S. companies were doubling the funding for this project. Company had no lack of money.

6 Swot Analyses of ARTS:-

STRENGTH:-The strength the company was their culture and also decentralization management .in the company how many employee were all had great experience and turnover was $ had great financial situation. Company had no lack of funding.

WEACKNESS:-The weakness point of the company was lack of discipline and technology .company launched this product two time and they failed just because of technology.

OPPURTUNITY:-When the member of vyas was working that they thought this is great opportunity for them because no competitor was in market. The arts was one of famous name in the world technology .Vyas knew all the thing in the whole world just 2.5% water is clean so he was trying his best to get this product.

THREAT:- The threat for the company was growing turn over and low morale in team member .If company fail again in this product then all the member of the team would lose their credibility. Company will lose too much money in this project.


The key success factors of the company were innovation and entrepreneurship. One another key factor was knowledge sharing and dissemination.CEO of the company was good in his management in every week all the division gave their views for the product and share their knowledge.


In the conclusion we can say that ART is large company they are working in many field. In the case study company was doing product water oxidation and company failed two times .company had enough funding to do this project. All the things were with their side. Company had skilled manager and employees .Just little problem was in team discipline and some misunderstanding when the team was working with ITC.

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