MGT680 Unit 3 Renewal Strategy

.docx

School

American InterContinental University *

*We aren’t endorsed by this school

Course

680

Subject

Management

Date

Feb 20, 2024

Type

docx

Pages

Uploaded by ChefProtonPanther21

Renewal Strategy Introduction A renewal strategy, often called a turnaround strategy, is used by an organization when there has been a marked decline in the organization’s performance. The organization is literally attempting to do a turnaround from being unsuccessful to being successful. There are many aspects to the renewal strategy that are important, such as timing, division or departmental analysis, problems within the implementation phase, the purpose and vision of an organization, as well as the products or services being offered by the organization. Small businesses, entrepreneurial ventures, and not-for-profit organizations can either complete the analysis internally or hire a turnaround specialist who focuses on the industry. Learning Materials Renewal Strategy The timing of a renewal strategy is of utmost importance. An organization should not wait until the occurrence of negative events, such as being on the verge of bankruptcy or going out of business, to make the determination that a renewal is needed. Instead, a renewal strategy is used when an organization is still profitable and relatively healthy. A company’s purpose and vision can sometimes be lost in the growth process. Taking the steps within a renewal strategy will align the company’s current operations to the original purpose and vision. During the planning phase of a renewal strategy initiative, it may be determined that the organization needs to make major changes in products, services, or target markets. This process can also uncover the need for a merger or acquisition that could result in a growth of product line or the integration of a new product or service. Products or services are subject to a life cycle. When the life cycle for the product or service offered by an organization has run its course, a renewal strategy can involve making a change in the product or service. The

process can also involve completely changing the course of operations and integrating new products or services. The process of completing a renewal strategy is similar to the formulation of the renewal strategy. Regardless of the type of organization, the departmental processes and responsibilities are analyzed—this is the process of determining not only what each department does, but how they do it. The resulting information may lead to the discovery of possible areas of weakness where changes could result in a more efficient operation within the department. The end goals of the strategy may be seen as a form of a wish list: if all aspects of the operation within the department were at the ultimate level of operation, what would it look like? This is how end goals are formulated and determined—by taking into consideration the current operations, capabilities, and resources. The focuses of the analysis are the current operations, as are the capabilities of the department making changes. Resources involve everything from the processes and procedures to the individuals completing the tasks. From this data set, the strategic plan is formulated, implemented, and evaluated. When the determination is made that a change is needed, a detailed analysis must be completed for each aspect of the organization. Whether the organization is small or large, each department or division should be thoroughly analyzed. This division of analysis allows an intricate analysis of the areas that are in need of a change. This change includes not only the processes or products completed within a section of the company, but also the individual job functions, cost analyses, and efficiency in actions of the division in question. The analysis requires an unbiased viewpoint: if the person responsible for the section of the organization in question cannot be analytical, cross- department analysis can be used. This is the most important step, because the data obtained through this analysis will be used to formulate and complete the remaining steps of the renewal strategy. It is important to remember that no process or procedure in the organization is too small to be analyzed. Once the analysis is complete, the data should show all possible areas of weakness where changes or improvements can be made.

Once the analysis of the data obtained is complete, the end goals for change are formulated. This is an important stage in the process where the current operations, capabilities, and resources are aligned with the end goals desired. Whether it is more efficient use of employee work hours, supply chain changes, or even operational practices, the end goal should be the optimal performance desired within each area. The current operations, capabilities, and resources are evaluated and analyzed to determine where efficiencies can be made. Change is a difficult thing for a lot of people to adapt to, so the initial planning of the changes must be communicated effectively. An unfortunate aspect of a renewal strategy may be the result of eliminating positions which means that a downsizing of the organization is warranted. This causes fear in employees who are dependent on the job, and could result in survivor guilt of those who are retained after implementation. In smaller organizations such as small businesses, entrepreneurial ventures, and not-for-profit organizations, change can be even more daunting for the staff. Rumors and speculation are detrimental to the operational effectiveness of an organization and can cause further damage to the efficiency. For this reason, honest communication is necessary throughout the process. Fear will likely still exist, but the purpose of the change will also be known. During the process of implementing a strategic initiative, an organization may discover that the personnel are unable to fulfill the process of implementing the plan. During this pivotal time in an organization’s life cycle, when the strategic plan is necessary for continued success or to attain competitive advantage, it is necessary for a strategic initiative to be implemented effectively. If this is not possible, the organization may need to alter the course of action and modify the renewal strategy. Although this is a major detour in the process, it will allow an adjustment that will incorporate a change to assist in the original plan. Keeping the end goals in mind, the organization should be able to alter the steps needed to attain the ultimate goal. Taking a look at a small example from a small business may make this process more understandable. A very common practice is the purchase of office supplies; this is a universal example, since every company needs

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version