Strategy Development | Assignment Help
Technology is changing day by day; those companies who do not change with the changing environment lose their competitive advantage. In the past Pearson has educated everyone and provided right material that is needed for effective learning process, however it has continuously focused on one strategy. It has focused on developing internal capabilities whereas technology has been changing and hence we propose that they must start adapt to the changing environment by developing advancement in technology.
Pearson can adopt different effective strategies in order to cope up with advancement in technology. It provides products and services worldwide and being present in more than 65 countries it may face some issues in implementing these strategies as huge diversity is present which may hinder implementation. Presence in various countries does create few challenges in effective implementation of a strategy.
Moreover the organization has maintained same strategy and did not develop with the changing technology. Hence Pearson must change its strategy in order to identify changes in the external environment. “Swot analysis” indicated its strengths, weaknesses, opportunities and threats; it order to remain competitive in the dynamic world, Pearson must match its strengths and weaknesses with opportunities and threats. Most important component f it is to advance with the advancement in technology.
Pearson does not have any issues in terms of resources, being market leader it has highest resources and to maintain same position it needs to advance with the technology. Additionally it does adopt with changes in the market which is again a positive thing and will also help in strategy implementation. Their mission or goal has remained same from past one hundred and fifty years. Although company was able to meet the goals and it is the time to develop new goals for which new strategy will also be required. The goals that must be placed now should be SMART i.e. specific, measurable, accurate, relevant and timely. Hence the strategy must be changed and developed according to changes in external environment i.e. technological advancement.
According to Daniel Punch “where the organization focuses on how they are structured to support market segments and products developed for that market, and how we sell it”, strategy relates solely to how their positioned and how there are “orientated internally to deliver on that position”, stated by Daniel Punch. Pearson’s current strategy enables them to venture out and operates in markets in which they believe they will be able to capture. Once this target market segment has been deemed as an opportunity, Pearson will begin to operate and produce in this economy. They make sure there is a high level of support and are only positioned in the respective economy due to their market research and analysis. Pearson Australia implements their own strategies; however Pearson UK must approve them, due to their allegiance overriding strategy as mentioned above. Each market needs to have its own strategies set according to their respective market needs. Pearson Australia’s main focus is set on how they are positioned and structured to support this stance in their market segments. However they need to satisfy the target market by developing internal capabilities relevant to external environment.
Pearson needs to focus on their customers before revising their plan. They need to make sure that advancing in technology does support their customers. It should increase convenience for customers and hence must start with segmentation followed by targeting and finally reposition them in the consumer mind.
We must identify the firm’s potential key resources, and then evaluate whether these resources fulfill the following criteria. Looking at Pearson through the valuable criteria, the source must be of greater value, in terms of costs and benefits than similar resources in competing firms. Pearson possesses the greater value in terms of resources. It is clear by the continual growth and expansion, that there resources are the most significant and efficient in terms of quality, technology, diversity and accessibility, different languages and modes to accommodate hearing, learning and seeing impaired. In doing so it is clear that Pearson’s resources are the most competitive in the industry and thus are greater than similar competitors. As the leading organization in the industry Pearson’s resources are extremely valuable and hold the greatest competitiveness.
Miles, et al. (1978) defined three different types of strategic approaches associated with a successful organization, which include ‘Defender’, ‘Prospector’ and ‘Analyzer’. The defender strategy typology is effective where an organization has sound structure, an affirmed source of decision making from the top and advanced technical skills (Miles & Snow, 1986). The second type of typology is the ‘Prospector’, organizations that utilize this method are said to be more adjustable in their structure, consist of self directed groups that are responsible for whole divisions of the company (Miles & Snow, 1986). Third type is ‘Analyzer’ which is based largely on ‘Imitation’ and utilizing the innovation of a ‘Prospector’ (Miles & Snow, 1986). Of the three methods described analyzers are the least dependent on a sound structure, self-innovation and resources. Pearson has some authority and hence is able to maintain its identity. It is an analyzer organization.
Importance of stakeholders in any organization cannot be decreased, and they are very important for success of any business and help in achieving the overall mission of the organization. Person’s stakeholders include suppliers, labor unions, governmental regulatory agencies, governmental legislative bodies, government tax-collecting agencies, industry trade groups, professional associations, NGOs, employees, customers, related communities, public at large, as well as the media (Boivie et al 2011). All of these stakeholders must be carefully managed. Currently the mission of the organization does not focus on these stakeholders who are important and hence must be given attention.
Since the population of Australia is increasing it will benefit Pearson in making more sales and being profitable. The increased population will create a larger target market for Pearson Australia. In addition, due to the fact that most people have realized the importance of learning and education, gender and age differences will not influence the market scale of Pearson Australia (Eden 2011). Moreover despite the negative influence of the global financial crisis, the GDP of Australia has increased by 2.6% in 2013, comparing to 2012 hence it will be able to achieve the goals ultimately and will be able to achieve the strategy.
While forming the strategy opportunities must be utilized to gain the most advantage and threats must be reduced or eliminated. Pearson’s opportunities like increased population, enhanced education system, political stability, increased GDP and average income, awareness of the importance of education, innovation of new products and new distribution channels and protection from IP laws are some of those factors that will further contribute in achieving the above mentioned strategy.
