Strategic Management

Task 1

1. What makes a strategy successful or unsuccessful?
   1. Overall Strategy – The overall strategy of an organization is best when incorporating  the organization’s Vision, Mission, and Value Statements
      1. Vision – this is the organization’s aspirations for the future (where are we going)
      2. Mission – this is the organization’s purpose and its present business.
         1. Who we are
         2. What we do
         3. Why we are here
      3. Value Statements – These are the beliefs, traits and behavioral norms that company personnel are expected to exhibit in the process of pursuing the company’s business as it pertains to the strategic vision and mission.
   2.  Leadership Buy-in

 In order for the organization to effectively implement its strategy, management must show leadership. Management needs to have “buy-in” or accept its role and lead others by example. Buy-ins will provide the organization with improved efficiency and productivity. This is because buy-ins allow sharing of ideas and workload, which helps to reduce the amount of pressure on individuals. Working with people who share in the mission and vision of the company also promotes energy at the workplace. It allows stakeholders to feel a significant sense of accomplishment and makes them collectively responsible for the results obtained in an organization..

c. Situational analysis-Analytical tools

The situational analysis involves the analysis of the internal and external structure of the market and other observations in deciding on one’s business. That will help in structuring ones strategic marketing plans and help determine the objectives, thus allowing changes in the plan when the expected results are not achieved. That is, for market research, it involves research on customers, evaluating the projection growth, assessing competitors, and making it to the realistic assessment of one’s business. In this, there is the internal and external analysis of the business. SWOT use is a standard tool in internal situational analysis with comparative advantage analyzing unit after unit of the product.

SWOT

SWOT analysis is the internal business analysis of what they have as the strengths and weaknesses and with the inclusion of opportunities and threats the company has in the market. Strengths and weaknesses are through reviewing the company’s image and culture, leadership structure, brand awareness, efficiency, capacity, staff, and financial resources. Conversely, opportunities, and strengths on the business are externally affecting the internal operation of the business but can be controlled internally. Those factors include; trends in the market, customer flow, economic upturns and downturns, competition, technology change, and partner change. Opportunities are the positives while threats are the negatives.

Comparative advantage

Comparative advantage will involve the analysis through comparison and contrast of two units or situation. In the end, the realization of common ground will help in achieving the goal and proving productivity of choice. The company will thus go for the market structure in which they have an advantage or better than the other.

d. Importance of having alignment between strategy, people and culture

Organizational cultures identify with a particular organization. Societies distinguish organizations by their people who differ from others with specific boundaries. That is the habitual way of achieving one’s objectives by adapting while being adapted by the society and other people in the organization. That is, as the personal opinion may be biased, organizational culture deals with the issues that can be irrational, frustrating, and untraceable (Suda, 2008). Thus, it makes evident importance in creating an appropriate system that is of the essence in helping teamwork in the organization. 

Organizational members interpret everyone’s behavior and language based on their cultural alignments. Everyone has a set of beliefs, values, and assumptions become the questionable reality seeing behavior inconsistent with their beliefs as irrational or even monovalent (Suda, 2008). Alignment between strategy people and culture will work on an employment strategy that attracts a particular group of people aligned to specific work culture.  That is, it perceives that the organizational relationship between the organization and its environment has a significant effect on the organizations typical assumption.

The realization that human behavior can quickly develop into a crisis if inadequately dealt with, project managers should determine the most critical issues.  That in organization culture will solve the issue on the human side of the organizational life, finding significance and learn in even most mundane aspects (Suda, 2008). That as a result, requires members to know how the organizational culture is affected by the behaviors.

d. 1) The role the alignment plays in determining success or failure of the business strategy

The overall adaptation of the organizational culture helps in the sense that once the organization has defined its mission, vision, and objective statement, the management buys in. The next step is to adjust the environment to fit the overall strategy.

2. SWOT Analysis   

Strengths

i)         ndustry leader-Topgolf is among the biggest firms in the golfing. As an industry leader, the company enjoys premium price due to the leader status, lower sales cost, and shorter sales cycle. They result from market awareness, economies of scale which help them sell at a lower cost, and improved customer loyalty resulting from customers’ self-interest.

ii)                  Captures a large segment of non-traditional golfers – Topgolf has a large number of traditional golfers since it is among the oldest sporting facilities in the region. Many people also enjoy playing at Topgolf since it famous for hosting legends and thus non-traditional golfers come to the place to meet legendary players.

iii)                Broad attraction to non-golfers-Topgolf hosts several golfing tournaments which attracts many viewers to celebrate their best. The company benefits from the foods and drinks sold to the non-golfers in addition to the gate entry fee.

Weaknesses

i)                   Expensive- All individuals who wish to participate in a tournament must pay $100 for locker room fee. The entry fee for individuals competing in pre-tournament qualifiers is $550 apiece, while Nationwide tour players pay $100. The high prices discourage ordinary players who find it challenging to pay the money.

ii)                  Only in the metro areas-the facility is only found in metro areas. Thus it is not accessible by people living in rural areas. People living away from major cities are disadvantaged.

iii)                Long waiting lines if no reservations- During tournaments, huge crowds attend the facility both as golfers or non-golfers. The queues for security are usually too long and may last for hours. Apart from individuals who make reservations, most people usually find the game already started.

Opportunities

i)                   More cities- Today, Topgolf operates only in major cities and towns despite the number of interested golfers continuing to grow annually. Topgolf has room for expansion in other cities since they not only do they have the financial resources but also the presence of cities with no golfing clubs or with facilities but which do not match the demand.

ii)                  International-Topgolf can also expand its services to other regions in the neighboring countries. During tournaments, everyday players include Australians, Russians, Americans, and the UK among players from other countries. It is, therefore, possible that countries would also welcome the business in their countries positively.

iii)                More games—Topgolf should consider venturing into other games other than golf. The business owners have huge parcels of land and have resources to purchase more land and build stadia for more games, including football, basketball, hockey, other ball games, and even athletics.

Threats

Drive Shack Inc- the New-York based business is expanding in both locally and internationally and provides games and entertainment facilities. The business now operates in several other countries across Europe, and it poses a stiff competition for Topgolf.

Technology- the technology advancements in golf equipment is not only denying the game its originality but also making the cost of playing golf more expensive. High prices for golf equipment will lead to high golfing charges and is likely to discourage people from attending the game.

3. How the SWOT Analysis Impacts Topgolf’s Strategic Decisions

A SWOT analysis would impact positively on Topgolf company as it would help address individual issues. For instance, Topgolf has adequate resources. The company has the potential to expand its services both locally and internationally. The business also hosts a significant portion of non-traditional golfers and can use its resources to influence the golfers to invite more golfers to the facility. The Topgolf management should consider investing in recreational activities which would attract more non-golfers for leisure activities even when there are no major tournaments. On the other hand, since the company enjoys economies of scale, the management should reduce their entry rates to attract more golfers. They should also set more entry points into the golf course and sell advance tickets to avoid long waiting lines.Topgolf management should also venture into more ball games and athletics to attract more athletes into the facility. Employing these strategies would help Topgolf to compete effectively with big companies like Drive Shack Inc. 

Reference

Suda, L. V. (2008). Aligning strategy, leadership, and culture for project success. Paper presented at PMI® Global Congress 2008—EMEA, St. Julian’s, Malta. Newtown Square, PA: Project Management Institute