Why there not a perfect match up between realized and intended strategies

In the seccond part, we would discuss about the Strategy model, and go to details for each factor: Intended strategy, Deliberate stratergy, Realize strategy, Emerging strategy and Unreal

MINISTRY OF EDUCATION & TRAINING

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After the presentations of teams before Now, my team will go to details the gap between Intended Stratergy and Realized Stratergy We will modelize them and analysis each factor, which affect to the Stratergy

In the first part, we will approach the topic with a case study about FedEx and the failure

of Zapmail project It took FedEx a ton of money, but didn’t make any profit It was the results of not followed the Intended Strategy and was affected by Emerging Stratergy

In the seccond part, we would discuss about the Strategy model, and go to details for each factor: Intended strategy, Deliberate stratergy, Realize strategy, Emerging strategy and Unrealized stragtergy The gap between Intended Stratergy and Realized Stratergy often come from the Emerging strategy So, we will analysis the components of Emerging strategy, it may be the customer, supplier, products, internal coporation, exnternal coporation…

At the end we will discuss about how to reduce this gap (Emerging strategy) by forcasing, preparing…You will understand how much important of planning and updating the information

“The more planing clear, the more succcessful rate you get”

Many thank, Team 04

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INTRODUCTION ii

I FEDERAL EXPRESS AND THE FAILURE OF ZAPMAIL 1

II MODELIZING INTENTED STRATERGY AND REALIZED STRATERGY 3

a INTENTED STRATERGY 4

b EMERGENT STRATERGY 9

c REALIZED STRATERGY 12

d UNREALIZED STRATERGY 14

III REDUE DIFERENCE BETWEEN INTENTED AND REALIZED STRATERGY 15

REFFERENCE 19

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Figure 1: FedEx Express Vehicles (source: stratergyhub.com) 1

Figure 2: FedEx Express Logo (source: fedex.com) 2

Figure 3: Intend strategies and realize strategies model 3

Figure 4: Levels of stratergies 4

Figure 5: Stages of Intended stratergy (source: Stratergy Management, page 255) 5

Figure 6: QSPM Matrix 8

Figure 7: Stratergy Managent in short 8

Figure 8: Internal Factors 11

Figure 9: New Oppotinities Factos 12

Figure 10: Amazon Logo 14

Figure 11: Deliberate, Emerging, Realized factors of the Amazon Example 14

Figure 12: Walmart logo 15

Figure 13: 5 Forces Models 16

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I FEDERAL EXPRESS AND THE FAILURE OF ZAPMAIL

FedEx is a US-based transportation company founded in 1965 by CEO Frederick W Smith with a mission & vison:

- Mision is to produce superior financial returns for its shareholders by offering value logistics, transportation, and related business services through its focused operating companies

high Vision is being a dynamic and progressive courier services firm that leverages of technology and impact the lives of all people

Figure 1: FedEx Express Vehicles (source: stratergyhub.com)

However, in 1984, FedEx expanded beyond its original transportation business strategy

by developing a service called Zapmail This service involved sending electronic documents between cities via fax machines, which could shorten the time to send

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documents from 24 hours to just a few hours However, the service failed completely due

to market-related factors

Figure 2: FedEx Express Logo (source: fedex.com)

Firstly, FedEx did not anticipate the increase in availability of cheap fax machines, which led businesses to equip themselves with their own machines In addition, Zapmail relied on satellite signal transmission technology to transfer electronic documents, which raised the cost of using the service This made the competition of fax-based mail delivery not advantageous compared to traditional mail delivery

Secondly, Fax the service was complex and difficult to use, particularly for customers who were not familiar with electronic messaging and document formats So that made FedEx difficult to reach the potental market

Finally, customer concerns about the security of important documents were prevalent

at that time This made customers wary of using third-party services to send their documents, which in turn hindered the adoption of the Zapmail service So, it was leading

to a lack of trust in the technology

The result, in 1986, they decied to stop this service and shifted its focus back to its core package delivery and logistics business

This case is one of the most examples about “There not a perfect match-up between realized and intended strategies”, which we will discuss more in the next part of the report

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II MODELIZING INTENTED STRATERGY AND REALIZED

STRATERGY

Figure 3: Intend strategies and realize strategies model

Above is a brief model describing the stages and types of challenges that a business strategy will encounter from the stage of being just an idea on the business plan

to its implementation in reality

Starting with the “Intended rategy”, this is the stage where the business owner Stresearches and studies market factors, as well as the vision and mission of the company also SWOT, in order to choose a direction for the company's business strategy

After that, the planner will implement (Deliberate Strategy) the functions of management: Planning, Organizing, Leading, and Controlling

During the execution of the strategy, there will be external factors that were not anticipated or prepared by the manager These factors may include suppliers, customer

After a quick introduce about the model, we will go to details of each stratergy and analyze them by the combination of academic perspective and reality case

a INTENTED STRATERGY

Level of Coporation Stratergy:

Depending on the level of the business strategy, the type of Intended Strategy will vary Typically, there are 3 levels of strategy (figture 3 Firstly, corporate strategy, focuses )

on the long-term goals of the company Senccondly, business strategy, focuses on smaller business tactics to achieve the company's long-term goals Last onem departmental strategy focuses on the campaigns of individual departments

Figure 4: Levels of stratergies

Coporation Stratergy

Functions Stratergy

Operational Stratergy

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Stratergy Formulation:

The Intended Strategy stage is equivalent to the Strategy Formulation stage in the A Comprehensive Strategy-Management Model Process Therefore, the Intended Strategy stage will be divided into 3 practical steps:

1 The input stages

2 The matching stages

3 The decision stages

Each step has models for analysis Businesses may have the same tools, but they will have different perspectives on the same issue and different Deliberate Strategies These are factors that create success or failure in the market

Figure 5: Stages of Intended stratergy (source: Stratergy Management, page 255)

The Input Stage

Identifying internal and external factors, as well as competitors, is the stage where businesses gather information and systematize the factors to be used as input for the models

in step 2 Due to the limitations of the topic, we will only introduce the names of the models The three most common models are Internal Factor Evaluation, External Factor Evaluation, and Competitive Profile Analysis

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Internal Factor Evaluation (IFE) model is used to evaluate a company's internal strengths and weaknesses This model helps the company to identify areas where it has a competitive advantage and areas where it needs improvement

External Factor Evaluation (EFE) model is used to evaluate external factors that may affect a company's performance This model helps the company to identify opportunities and threats in the market and assess its ability to respond to them Competitive Profile Analysis (CPA) model is used to compare a company's strengths and weaknesses with those of its competitors This model helps the company to identify areas where it has a competitive advantage and areas where it needs improvement in order

to compete effectively in the market

The Matching Stage

SWOT is an extremely popular model used to evaluate internal and external factors

of a business, including Strengths, Weaknesses, Opportunities, and Threats Then, it creates

a combination of factors, including SO (Strengths-Opportunities), ST (Strengths-Threats),

WO (Weaknesses-Opportunities), and WT (Weaknesses-Threats) To have an effective SWOT matrix, the raw material from stage 1, have to be clear and right

The Decision Stage

Choosing appropriate objectives based on the strengths and weaknesses identified

in the previous stages This will lead to decision making on the long term strategy and goals of the business, and then provide guidance for the entire organization The

Group the strategies into separate categories (if applicable) Determine

attractiveness scores: Very unattractive = 1, Unattractive = 2, Attractive = 3, Quite attractive = 3, Very attractive = 4

These values represent the relative attractiveness of each strategy compared to other strategies within the same group of alternative strategies

Calculate the total attractiveness score for each strategy separately for each important success factor listed in column (1) by multiplying the classification number with the attractiveness score in each row

Cumulate the attractiveness scores to obtain the total attractiveness score for each strategy (considering all relevant internal and external factors that may influence strategic decisions)

The higher the total score, the more suitable and worthy the strategy is to be selected for implementation

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Figure 6: QSPM Matrix

By the large, the intended tratergy is used for determning the long-term golas of the coparations The first step is known what is you purposes the mission and vision Seccindly, analysis the SWOT matrix or mix with the other matrix to evalutae the strength, weakness, oportinities, thread of coparation Thirdly, gather the information needed In the results, set

up the long-term goals, long-term stratergies and technical stratergies

Figure 7: Stratergy Managent in short

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The Problem of Stratergy Formulation

The entire plan still being on paper does not ensure that the plan can be implemented

or bring value to the business if it only exists on paper Therefore, to achieve the ultimate goal, the business must execute the strategies with the stated objectives, and continuously evaluate feedback from the market, customers, competitors, and internal factors to always make the most suitable changes This leads to the topic of the report "Why there not a perfect match-up between realized and intended strategies" So, the question is what factors affect the business's strategy, and how to minimize them?

b EMERGENT STRATERGY

An emergent strategy is one that emerges as an organization responds to changing circumstances and new opportunities It's a flexible, adaptable approach that helps organizations stay agile and respond quickly to changing circumstances

A good emerging strategy is based on a solid understanding of the strengths and weaknesses of the organization and its external environment It should be flexible and adaptable to allow the organization to respond quickly to changing circumstances

A key element of a good contingency strategy is constant learning and experimentation This means that organizations should be open to new ideas and willing to try new things, even if they don't always work Through trial and learning from mistakes, organizations can better understand what works and what doesn't and adjust their strategy accordingly

Another crucial component of an effective emergency response strategy is cooperation and communication Organizations should facilitate open communication and collaboration between different departments and teams, this will lead to the generation of new ideas and approaches

Ultimately, an effective emerging strategy is one that meets the goals of the organization while remaining malleable and adaptable Through ongoing study,

Companies can stay agile and adapt quickly to changes by adopting an emergent approach to market changes For example, it may develop new products or services to meet changing customer needs or change its market position to better differentiate itself from competitors

Companies pursuing emerging strategies also need to pay attention to signals of changing markets This includes monitoring market trends, gathering customer feedback, observing competition, and monitoring changes in technology and industry standards Ultimately, companies that take a contingency approach can take advantage of market changes to seize new opportunities, remain competitive, and continue to grow

Internal changes

Internal changes are another important element of new strategies, as they may require adapting corporate strategy to new internal conditions Internal changes can include changes in the company's strategic direction, changes in organizational structure, cost reductions, supply chain disruptions, personnel changes, etc A new strategy can help organizations quickly adapt to these internal changes by identifying opportunities and developing action plans to address challenges For example, if a company needs to cut costs,

it can adopt a new strategy to explore new business models, find ways to streamline existing processes, or identify new revenue streams Internal changes can also lead to new opportunities for the company Improving operational efficiency or freeing up resources

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for new projects A new strategy can help companies capitalize on these opportunities by expanding into new markets or developing new products or services

Figure 8: Internal Factors

Ultimately, companies that adopt a contingency approach can more easily adapt to internal changes, seize opportunities, and respond to challenges while maintaining market position and meeting customer needs

New opportunities

New opportunities in emerging strategies may come from different areas such as: New technologies: Rapidly evolving technologies can provide companies with new opportunities to develop new products or services, improve the efficiency of internal processes, or enter new markets

Economic changes: Economic fluctuations can present opportunities for companies

to offer products or services at competitive prices or to position themselves in new markets Regulatory changes: Changes in regulations and laws can create opportunities for companies to enter new markets or develop new products or services

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Changes in consumer behavior: Changes in consumer habits and preferences can create new opportunities for companies to address unmet needs or provide innovative products or services

Partnerships and Collaboration: Partnerships with other companies or organizations can provide companies with new opportunities to develop new products or services

Figure 9: New Oppotinities Factos

We must constantly keep an eye on the market and the competitive environment, and constantly assess our strengths and weaknesses to allow for the discovery of new opportunities within new strategies We must be ready to adapt and change our strategy to take advantage of these opportunities and remain competitive in this market

c REALIZED STRATERGY

The realized strategy is the final outcome of the organization's strategic making process, which is the result of the interplay between the intended strategy and the deliberate strategy The realized strategy is the strategy that the organization ultimately implements to achieve its goals and objectives

decision-To realize a strategy in this model, an organization should take the following steps: