External and Internal Factors Affecting Organization
Corporate level diversification and grand strategies are effective steps adopted by Du to promote the company’s vision of friendly sustainable growth. At company’s business-level operation, competition in the industry is limited due to the adaptive strategies and generic positioning with the objective to improve the entrepreneurial orientation of innovativeness. At the functional level, general performance appraisal on the pillars of the company and continued product research and designing enhance the company’s market competitiveness and growth. At the operational level, manufacturing, marketing, and sales activities are the key operation strategies enhanced through staff training on product development and customer-centric service.
Du’s team of experienced senior staff and expert team of employees provide technical decision-making, staff support, and product development across the company departments. In individual level, top staff communicates brand and operational values to individual staff to promote effective adoption of best business practice and compliance of ethical standards. Cooperative level joint venture and strategic alliances by Du promotes accessibility of high-value services and best practices for general and business environment sustainability. International strategy on potential new markets and geocentric approach are appropriate strategies that enhance the sustainability and growth goal of the organization.
Assessment of Each Level of Strategy
Consistency
Du has a consistent corporate strategy enhanced by well-established and communicated brand values. The corporate level designs and communicates ethical and best business practices at all the functional areas targeting the Emirati people, stakeholders, environment, customers, and business sustainability (Du 2015). According to Mahesh (2014), the top management analyzes company environment, formulates strategies, and ensures implementation across departments. At the business level, the company utilizes defender strategy as the adaptive tool to limit competition from new global market players.
At the functional level, Du has achieved improved product quality through the adoption of improved technology, as a response of research and development department to maintain the ethical requirements of the organization. In the operational level, network merging with Etisalat has facilitated attained provision of improved services to customers including mobile plan and internet services while observing customer privacy policy.
On groups and teams, Du has adopted centralized governance that enhances communication across different functional areas. Tehrani and Rahmani (2014) argue that technology enables companies to research and design different products to achieve customer needs. At the individual level, the company conducts continued staff training and global staff recruitment practices that promote the high level of expertise to enhance innovative designs of products and service delivery.
At cooperative level, tactical joint venture and strategic alliances with small-scale businesses to provide tailored customer services and honest procurement services to suppliers have promoted Du’s vision of robust brand value among customers and the community. On international strategies, the geocentric recruitment approach by the company promotes future expansion and sustainability of the company as a global market competitor.
Synergies
The corporate level provides strategic decisions regarding each department. The company has an effective collaboration with the main business partners to achieve long-term objectives. In the business level, product innovation due to the adoption of improved technology promotes product brand and enhances competitive advantage. Dragnic (2014) explains that an improved training promotes innovation and enhances business competitiveness and sustainability.
At the functional level, sponsorship programs to the community through community participation in football champions help promote brand recognition as a marketing and promotion campaign while creating health awareness among the people. Thus, continuous staff training in collaboration with institutions, such as Harvard University, has boosted technology advancement, product innovation, competitiveness, and growth.
Moreover, at the operational level, the company provides work based projects in its functional departments to enhance youth development and social responsibility through the partnership with Zayed University. In groups and team level, Du collaborates with education institutions that include Harvard University and Governance Institute to enrich the staff with leadership skills and product development and sales knowledge.
In individual level, Du has diversified its operation to open an independent educational institution, Du University, to offer continuous training of staff in different business skills (Du 2015). On cooperative strategies, procurement services enhance interaction through the cooperative joint venture that promotes the company’s brand values and customer loyalty while cutting production cost. On international strategies, through geocentric culture, Du has global scholarship endowment programs with American University and environment practices that include wellness campaign and music competition.
Effectiveness
The company’s current strategies are effective in achieving the organization goals. In the corporate level, Du has achieved high local market penetration and brand recognition through merger agreements with Etisalat, the local market main player. The merger has promoted the diversification of product offering to customers. At the business level, the grand strategy has enhanced the company’s horizontal integration to engage with suppliers in green activities that include the use of solar energy and reduced waste disposal.
In the functional level, Du has incorporation of advanced technology in production has led to product diversity to meet the consumer needs. The technology enabled the company successfully partner with Dubai Silicon to provide less energy consuming streetlights (Du 2015). At the operational level, the success of adaptive strategy with generic positioning has enhanced market share monopoly of Du in providing tailor made products to clients depending on their varied needs.
In the level of individual and groups and team, research and development promoted by continued staff training, team, and group mentorship programs have led to the vertical integration of Du to provide affordable products to meet different customer needs. Staff and company performance appraisal has positively transformed the company’s group and team level to compete in innovative programs within the organization.
The appraisal process has further enhanced achievement of supporting new young entrepreneurs and sponsoring education. At cooperative level, business joint venture and alliances with other firms in the production and procurement of materials have enhanced the development of affordable smartphones. Khan and Khalique (2014) state that customer-service oriented market approach promotes brand loyalty and expansion of market share. Thus, in international strategy, sponsorship of young entrepreneurs promotes brand and product loyalty among the global citizens.
Efficiency
The company’s corporate level offers competent decisions that have efficiently transformed the company’s market penetration. The business level defender and generic positioning strategy have adequately cut off competition from global market competitors. The functional level of product research and development has greatly enhanced product diversity to meet the varied and dynamic customer needs. According to Kraja and Osmani (2015), differentiation customizes products to meet varied customer demands enhances market competitiveness and sustainable growth of business. Thus, the operational level strategy of the entrepreneurial orientation of autonomy and innovativeness has efficiency promoted growth sustainability through diversification.
At the individual level, the performance appraisal of the company, employees, stakeholders and procurement procedures have made the company achieve the great objectives of maintaining best business practices and brand values. In the level of group and team, recruitment of young employees from the local education institutions for training and mentorship programs through work-based projects provides the best functional teamwork.
Du has also established Du Education Institution offering various business courses, which has enhanced staff retention and career growth. The cooperative level appraisal of joint venture companies and alliances has boosted the operational strategy to cut on cost and improve the company income revenue. Geocentric approach enhances great cultural and product diversification to involve the global market and is appropriate for global market expansion and sustainability.
Reference List
Dragnic, D 2014, ‘Impact of internal and external factors on the performance of fast-growing small and medium businesses’, Management, vol.9, no. 1, pp. 119-159.
Du 2015, Sustainability report 2015. Web.
Khan, M & Khalique, M 2014, ‘Strategic planning and reality of external environment of organizations in contemporary business environment’, Business Management and Strategy, vol. 5, no. 2, pp. 165-175.
Kraja, Y & Osmani, E. (2015). Importance of external and internal environment in creation of competitive advantage to SMEs: Case of SMEs, in the Northern region of Albania. European Scientific Journal, vol. 11, no. 13, pp. 120-128.
Mahesh, S 2014, ‘The industrial environment analysis’, International Journal of Pharmaceutical Sciences and Business Management, vol. 2, no. 5, pp. 1-6.
Tehrani, M & Rahmani, F 2014, ‘Evaluation strategy Michael Porter’s five forces model of the competitive environment on the dairy industry (case study: Amoll Haraz Dvshh dairy company’, American Journal of Engineering Research, vol. 3, no. 5, pp. 80-85.