Group Case Report
Cervus Equipment Corp: Harvesting a Future
04-75-498 Section 30
Dr. Jonathan Lee
Due: March 10, 2014
1) Implementing an innovative growth strategy that can achieve expected growth, while maintaining a value based employee model.
2) Cervus’ future approach in the execution of a diversification growth strategy, in the construction and industrial equipment markets.
3) Evaluating growth potential in international markets and the vehicles present.
4) Responding to IT environmental complexities alongside available partnerships which to work …show more content…
Traditionally, independent dealerships utilize a far more centralized approach to customer-level decision-making. These ‘mom-and-pop’ dealerships acquired by Cervus were successfully converted from a ‘command-and-control’ style of management.
Inimitability and Substitutability
Cervus’ decentralized decision-making model could be easily imitated. At first glance the model’s imitability appears to be a major barrier that is preventing a sustainable competitive advantage. However, decentralization is not a new concept and was certainly not developed by Cervus. The true value lies in Cervus’ ability to implement and execute the concept, which involves far more than simply imitating a model or a process. Would-be imitators must also invest the time necessary to develop the experience and capability to implement the model effectively. Thus, Cervus’ decentralization capabilities are actually quite difficult to imitate as they require a significant time investment.
The organization of power within a corporation is a rigid dichotomy between centralization and decentralization. Substitute strategies can exist anywhere along the spectrum whether they are completely centralized, completely decentralized or somewhere in between. Though Cervus’ methods are substitutable, centralized policies have not proven to be nearly as successful in maintaining
The proposed structure’s strengths encourages most large American corporations in the 1980s employ this structure as the dominent form. Unorthodoxly, the basic structure is insuffiecient to be an effective solution for enterprise as large and complex as Dynacorp.The change would mean a few years of organisational shift that would profit the company or bring loss to it. By meticulously comprehending the companies workflow and the humans, who are part of the machine, can the company benefit from the big
One of the themes in Thomas McCraw’s book American Business Since 1920: How It Worked is mastering centralized control through decentralized management. As the business world rapidly expanded competition for market share between the larger companies increased. More task management was necessary in order to delegate within the businesses as they expanded. The market was also changing and as an answer to that some companies implemented a revised version of traditional management; decentralized management (McCraw, 2009).
The distinctive seven staircases of growth strategies have been adopted by many successful companies, such as Walt Disney, Gillette, Johnson & Johnson, Home Depot, and many more. While one single strategy may not yield a significant growth effect, implementing them concurrently and consecutively can provide a powerful roadmap for near-term and long-term growth (Baghai, Coley, & White, 1996). Below is an analysis of Raytheon’s seven staircases to continuous growth.
The learning and growth perspective uses the organization’s resources to adapt to the changing wants and needs of customers. The organizations must ask itself whether it can continue to improve and create value for its customers (Kinney and Raiborn 2013, 11). An organization’s ability to innovate and improve their products or services directly affects its value. An organization can create economic growth by developing new products and services, improving existing products and services, and developing more efficient operations (Kaplan and Norton January/February 1992, 75).
As exciting as growth is, be aware of the pitfalls it presents. Moreover, evaluate the entire organization's efficiency to improve cash flow where available. It is imperative they implement processes and protect their cash flow where possible before
“That focus on growth includes a number of strategies CEOs are using in an effort to improve their companies” which are:- 1) Formal innovation processes. 2) Mergers & Acquisition. 3) Risk management. 4) Transforming operating models. 5) Increasing focus on customers.
“The next era of growth evolves from the successful application of a decentralized organization structure. It exhibits these primary characteristics: 1. Much greater responsibility is given to the managers of plants and market territories. 2. Management often concentrates on making new acquisitions which can be lined up beside other decentralized units. 3. Communication from the top is infrequent, usually by correspondence, telephone, or brief visits to field locations” (Greiner, 1998).
A strong emphasis is placed on the company's roots, as they are a family owned business dedicated to providing buyers with friendly, courteous service. All customers are treated with dignity and respect, and staff members work to foster long-lasting relationships with every individual. The dealership strives to surpass the expectations of consumers to ensure they are completely satisfied at every point of service. This commitment extends far beyond the initial sale or
New employees are encourage to become growth orientated learners, competitive winners, and humble servants. By understanding and following these values one can truly grow.
Stepping into the growth stage of the business life cycle, Calyx and Corolla was looking for organizational and financial implications to support a more aggressive long term growth strategies. This report suggests both short term and long term strategies that align with Calyx and Corolla’s long term goals.
Interrelated variables account for the decisions of per capita purchases for adults in considering automobile acquisitions. Most mainstream automotive manufacturers offer different models to fit each market segment based primarily on the customer’s age, purchasing power, and lifestyle. Depending on the market segment that an individual can enter into based upon their budget restrictions, a myriad of options are available based on one 's lifestyle and automotive requirements. Today, automobile manufacturers offer compacts, intermediates, large, and premium size vehicles with correlating body styles such as coupe, sedan, sport utility, pickup trucks, and even crossovers. Utilizing a popular automobile manufacturer for an example of this observation, Toyota is currently considered to be the world’s largest automobile company (Holt, 2015). As of late, Toyota has also been the most successful automotive company. Recently plagued with accelerator, braking, and steering issues with their popular hybrid models, as well as supply chain disruptions in Japan’s recent tsunami disasters, Toyota has succumbed in its success to Volkswagen with a recent posting of 5.04 million vehicles sold worldwide in the second quarter of 2015 to Toyota’s posting of 5.02 million vehicles sold worldwide (Tuttle, 2015). The loss of market share by Toyota was due, in part, to lack of contingency plans for supply chain disruptions, which is liken to the biblical principle: “where there is no vision,
Today, many organizations struggle with implementing realistic strategies for growth. More than ever leaders are faced with developing and implementing strategic plans that promote organizational effectiveness while addressing potential threats. Through research I have discovered that there are several approaches or perspectives that leaders can take when developing organizational strategies for growth. According to Porter, (1996) in regard to strategy organizations “Must be flexible to respond rapidly to competitive
Firstly, at the beginning of the establishment of the organization, it is Robin and his three lieutenants that take control of the whole organization, which can be seen as using the centralized model. However, as the increasing size of the organization, the centralized model is not fit