Tesla is a pioneering company that was founded in 2003 by a group of innovative and driven engineers. For years electric cars had a stigma for being worse than traditional gas-powered vehicles. The general public believed that a high-quality electric car could not exist. This is where Tesla stepped in, the firm quickly went to work crafting a high-end electric car and released the revolutionary Roadster sports car. The Roadster was considered a major feat because it could travel very far on a single charge unlike many other electric cars. The Roadster was a very physically attractive car that helped make the idea of riding around in an electric sports car seem like a sleek and cool thing. The Roadster served as Tesla’s coming out party and launched the company to major fame as people began to take notice. Tesla’s next mission was creating the Model S. The Model S Continue reading
Corporate Strategies
Mergers and Amalgamations
The terms merger and amalgamation are used interchangeably as a form of business organization to seek external growth of business. A merger is a combination of two or more firms in which only one firm would survive and the other would cease to exist, its asset/ liabilities being taken over by surviving firm. Amalgamation is an arrangement in which the asset/liability of to or more firm to form a new entity or absorption of one/more firm with another. The out come of this arrangement is that the amalgamating firm is dissolved/wound-up and losses it identity and its shareholders become shareholders of the amalgeted firm. Although the merger/amalgamation of firm in India is governed by he provision of the companies act, 1956, it does not defined this term. The income tax act , 1961, stipulates to pre-requisite for amalgamation through which the amalgeted company seeks to avail the benefit of set Continue reading
Case Study of Apple: Strategic Enablers and Barriers to Innovation
Apple generates ideas, manage innovation and then effectively diffuse the innovation. They generate ideas or search for opportunities by carrying out effective research and development, Apple has an innovation factory which carries out all experiments using the talented pool of people they have. It follows competition and tries to stay one step ahead of them. Effective linkages and networking is very important as valid information can be gained from them, so relations should be maintained with suppliers, dealers and other partners. Apple believes in learning and working in teams. Apple’s innovation is driven by external uncertainty and competition. Apple is also very effective in finding new market opportunities and reorganizing areas which were inefficient. It fills the gaps existing in the markets for example the gap of a product which was needed to fill the gap between a computer and a phone, so Apple came up with Ipad. Authority is Continue reading
Five Reasons Why Organizations Change Constantly
As an organization becomes larger the need for strategy and structure change becomes apparent. Strategic change involves altering employees’ construction of meanings by using a discourse that sets a new direction for a firm. All organizations need to make changes in their strategies, structures, management processes and administrative procedures. Many organizations go about this change using a dual core approach, which is a balance between the technical side and the management side of an organization. The technical side refers to the employees who actually produce the product or service that the company offers while the management side ensures that the day to day operations of the company are being fulfilled and the performance objectives are being met. While the two sides may have very different ideas of what changes need to take place, it is imperative that both sides be on the same page and working toward the same goal. Continue reading
ADL Matrix – The Arthur D Little Strategic Condition Matrix
The ADL Matrix or Arthur D Little Strategic Condition Matrix is a Portfolio Management technique that is based on the Product Life Cycle (PLC). It is developed in the 1980’s by Arthur D. Little, Inc. (ADL), one of the best-known consulting firms, intended to help a company manage its collection of product businesses as a portfolio. Like other portfolio planning matrices, the ADL matrix represents a company’s various businesses in a 2-dimensional matrix. It is a structured methodology for consideration of strategies which are dependent on the life cycle of the industry. The ADL approach uses the dimensions of environment assessment and business – strength assessment ie. Competitive Position and Industry Maturity. The environment assessment is an identification of the industry’s life cycle and the business strength assessment is a categorization of the company’s SBU’s into one of five competitive positions, these five competitive positions by four life cycle stages. Continue reading
Case Study: Google’s Acquisition of Motorola Mobility
Motorola mobility, which was previously known as the mobile devices division of Motorola, until January 2011 when it was separated. The company produces smart phones, set top boxes, end to end video solutions and cable modems. As soon as automobiles were becoming popular, Motorola helped with entertaining the passengers, as it introduced the world’s first commercial portable cell phone. On the other Hand, Google a privately held company, founded by Larry page and Sergey Brin, two Phd students at the university of Stanford, it has been focused on technology innovations to help its users find the information with unprecedented levels of ease, accuracy and relevancy. Google primarily concentrated on the areas of search, advertising, operating systems and platforms, enterprise and hardware products. These programs include AdWords, AdSense, Google Display and Google Mobile, with Android and Google Chrome serve as its operating system and platforms. Google generate revenues primarily through delivering Continue reading