AgFirst Farm Credit Bank is a company headquartered in South Carolina. 15 eastern states are provided with services by it, along with Puerto Rico. It focuses on the diversification from various perspectives, as customer, commodity, geographic and economic. In the recent years of economic downturn, it helped the company to stay the course (Rooted in diversity, 2013).
To increase the level of value-creating diversification, the company should not only distinguish its customers, but also pay more attention to their particular needs and expectations. According to the research, skillful manipulation of this knowledge helps to attract more clients, consequently, to earn more and gain success. The strategic management process is the thing to be used (Hitt, Ireland, & Hoskisson, 2013).
The company can extend abroad while it is able to manage all operations. This will make it popular among different customers and will increase the earnings. The top management team may be diverse, so it will be easier to concentrate on particular aspects and to follow the international strategy.
The business-level strategy of Victory Motorcycles is based on the diversification. Its usage made the company well-known and prosperous. The diversification of products helps it to become more competitive and attracts customers. Thus, they produce different vehicles as motorcycles, watercrafts and snowmobiles. The company adheres to the geographic diversification and extends abroad. Except for the US, it is also located in Australia, China, Brazil and Russia. They are going to draw in buyers by offering them innovative designs and high quality products (Motorcycle USA Staff, 2008).
I believe that Victory Motorcycles should not extend to other countries right now. They should improve the things they have, as there are a lot of various companies that are occupied in the same sphere and occur to be more successful. Victory Motorcycles have good technology and are able to produce more efficient motorbikes. Thus, they need to create new strategic plans for innovative design.
I think that the relation between the size of a company and its top-level managers’ compensation really exists. It is because they are commonly compensated taking into account such things as their education, achievement, risk and hard work. Managers’ work is often accompanied by stress as they should always remember that their actions have a great influence on the company. The top-level managers should take an inevitable risk as they are to make important decisions that can lead the company to its success or collapse. As a rule, managers spend a lot of time working. Their working day continues at home, as they are directed to the advancement of their company.
A big company needs to be run by qualified people, so top-level managers spend 6 years studying at the university. They are also expected to lay down an aim for the company and control its achievement. For this, managers plan the work and provide the company with strategies for improvement. Thus, the complexity of the work differs depending on the size of a company and it should have an impact on the compensation (Brenner & Schwalbach, 2003).
It would be great if executives were encouraged to make decisions. In this way shareholders will be provided with incentives for achieving the aims of performance. It is very significant for them to be connected to management and the facts about the employee performance, as well as its compensation.
“Dr. Pepper has six strategies that are focused on marketing, as the company wants to achieve Pepsi’s success and to improve product development and marketing. To get this, they should build and enhance leading brands. This strategy is not a new one and it was already used. It is claimed that the leading brands participate in it and gain success (Harrison, 2011).
They can also apply themselves to the extension of the company. They can build new plants in the cities with ports (to streamline the delivery of their product to other locations) or even in some other country. In this way they will increase the number of the customers and reinforce economic stability.
Some firms do not want to expand abroad as they understand that the adjustment will be a hard work and there is a chance they will not be able to cope with it. If the organization is small it will be too expensive for it, and geographical diversification might lead to the complete failure. They might be afraid of some political and economic changes that can happen abroad and influence the whole company. They also might be non-competitive when get into the new market.
The companies may be tempted to locate where the business regulation laws are lax as it is possible to get into the low cost market there. This means that they will have an opportunity to reduce spending and increase their competitive ability. However, they will not be protected from low quality materials and illegal cavils from the competitors.
The company is obliged to tell the purpose and scope of the alliance. In this way everyone will know what to do and expect, but important competitive facts will be protected. It is better not to tell some information than to lie, as the decisions made upon it will influence both companies in a positive or negative way and lead to success or failure.
The primary type of cooperative strategy would be of advantage for the companies. Strategic Alliance allows them to co-develop, sell and service. Nonequity Alliance gives an opportunity to work together without creating a new company enter new markets and enhance competitive abilities. The goods and services from one company can be provided in another one and the commission will be paid (McGovern, 2015).
References
Brenner, S., & Schwalbach, J. (2003). Management quality, firm size, and managerial compensation. Schmalenbach Business Review, 55(1), 280-293.
Harrison, J. (2011). Dr Pepper Snapple Group: Fighting to prosper in a highly competitive market. Web.
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2013). Strategic management: Concepts and cases: Competiveness and globalization (10th ed.). Mason, OH: South-Western Cengage Learning.
McGovern, B. (2015). Joint ventures, strategic alliances and co-marketing. Web.
Motorcycle USA Staff. (2008). Victory Motorcycle History. Web.
Rooted in diversity. (2013). Web.