(Tiểu luận) 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

HOA SEN UNIVERSITY FACULTY OF ECONOMICS - BUSINESS

WHY THERE NOT A PERFECT MATCH-UP BETWEEN REALIZED AND INTENDED STRATEGIES

4/2023

Name Studen Number %

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

In the first part, we will approach the topic with a case study about FedEx and thefailure of Zapmail project It took FedEx a ton of money, but didn’t make any profit It wasthe 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) byforcasing, preparing…You will understand how much important of planning and updatingthe information “The more planing clear, the more succcessful rate you get”

Many thank, Team 04

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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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Table of Figures

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 offeringhigh-value logistics, transportation, and related business services through itsfocused operating companies

- 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 businessstrategy by developing a service called Zapmail This service involved sending electronicdocuments 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 failedcompletely 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, Zapmailrelied on satellite signal transmission technology to transfer electronic documents, whichraised the cost of using the service This made the competition of fax-based mail deliverynot advantageous compared to traditional mail delivery

Secondly, Fax the service was complex and difficult to use, particularly forcustomers 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 wereprevalent at that time This made customers wary of using third-party services tosend 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 toits 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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STRATEGY MANAGEMENT TOPIC 4

Figure 3: Intend strategies and realize strategies model

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

Starting with the “Intended Strategy”, this is the stage where the business owner researches 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

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preferences, competitive rivals, and substitute products These factors will fall under the Emergent Strategy part of the model above.

Finally, Realized Strategy is the ultimate result of the combination of the strategic factors mentioned above

In addition, we have an outside factor Unrealized Stratergy This factor is the one manager abadoned or temporary fogotten However, sometimes it will become helpful and gain a lot of revenue for campany

After a quick introduce about the model, we will go to details of each stratergy andanalyze 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 willvary 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 onemdepartmental strategy focuses on the campaigns of individual departments

STRATEGY MANAGEMENT TOPIC 4

Stratergy Formulation:

The Intended Strategy stage is equivalent to the Strategy Formulation stage

in the A Comprehensive Strategy-Management Model Process Therefore, theIntended 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, butthey will have different perspectives on the same issue and different DeliberateStrategies 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 stagewhere businesses gather information and systematize the factors to be used asinput for the models in step 2 Due to the limitations of the topic, we will onlyintroduce the names of the models The three most common models are InternalFactor Evaluation, External Factor Evaluation, and Competitive Profile Analysis

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

External Factor Evaluation (EFE) model is used to evaluate external factors thatmay affect a company's performance This model helps the company to identifyopportunities and threats in the market and assess its ability to respond to them

Competitive Profile Analysis (CPA) model is used to compare a company'sstrengths and weaknesses with those of its competitors This model helps thecompany to identify areas where it has a competitive advantage and areas where itneeds 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 effectiveSWOT matrix, the raw material from stage 1, have to be clear and right

STRENGTH

Factor inside Coparation

WEAKNESSFactor inside Coparation

OPPOTINITIES

Factor outside Coparation

THREADFactor outside Coparation

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

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STRATEGY MANAGEMENT TOPIC 4

departments below will be responsible for strategic management (short-term)

to work towards the long-term objectives set

In this stage, the manager often uses QSPM matrix to decide which stategy is suitable to apply Conduct a study on SWOT matrices and identify alternative strategies that the organization should consider implementing Record these strategies in the top row of the QSPM matrix

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 scorefor each strategy (considering all relevant internal and external factors that mayinfluence 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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STRATEGY MANAGEMENT TOPIC 4

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 tochanging circumstances and new opportunities It's a flexible, adaptable approachthat helps organizations stay agile and respond quickly to changing circumstances

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

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

Another crucial component of an effective emergency response strategy iscooperation and communication Organizations should facilitate opencommunication and collaboration between different departments and teams, thiswill lead to the generation of new ideas and approaches

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

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experimentation, collaboration and communication, organizations can createinnovative new strategies that will help them excel in an increasingly competitive.Market evolution

Market evolution is a key element of emerging strategies as it involvescompanies adapting to rapid and unexpected changes in the competitiveenvironment As markets evolve, so do customer needs, trends, and buyingbehavior, often requiring revisions to corporate strategy

Companies can stay agile and adapt quickly to changes by adopting anemergent approach to market changes For example, it may develop new products

or services to meet changing customer needs or change its market position tobetter differentiate itself from competitors

Companies pursuing emerging strategies also need to pay attention to signals ofchanging 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 ofmarket 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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