Strategic analysis of: Ericsson

The important and unique character of the strategy concept is the constant attempt to control and planning, so all the functions of an organization works toward a common set of purpose against which their performance can be evaluate. This essay takes into consideration the various concepts of strategic management at Ericsson in respect to leadership, change management, strategic concept, learning organization, etc.Ericsson has been referred to as one of the most successful OEM in the telecommunication equipment and services to fixed and mobile network operators it offers end to end solution for all major mobile services is concentrating its efforts on multimedia aspects Ericsson is playing the key role in this evolution and delivered things very successfully.

Strategic capabilities Perhaps people are the most vital resources in the organisation, for success of strategy of and implication of strategic capability. Ericsson people play an crucial role in the building up of relationship and process of organisation while designing its organisation structure in which Ericsson operates it is crucial for its success to design an organisation in such a way which helps Ericsson to reorganise themselves in response to changing conditions.

It is apparent that because of Ericsson multidivisional structure each division is able to work as its own company which is flexible enough to have joint-venture projects as in the case of Ericsson and the company is also able to make the decision of buying over another company such as the Bertelsmann Music group. It could be seen within the organization i.e. Ericsson, strategic capabilities would play one of the most important roles. With the help of strategic capabilities three vigorous capabilities have been used which would help to accept as well as take up the new challenges within the organization.The process of strategic management includes the orderly assessment of a number of interconnected elements, which results in an open statement of company objectives and how they are to be achieved. Strategies process is made by business to be able to get better outcomes in the industry, but within the multidivisional structure of Ericsson have worked are the formal and informal organisational process. This process can be thought of as controls on the organisation operations and can therefore help or hinder the translation of strategy into action. The strategic process which has been followed within Ericsson helps to define the entire organizational strategy. This refers to the process with which mangers at Ericsson choose different types of strategies within the organization. This would help in the smooth functioning & enhance the productivity of enterprise. Strategic management refers to a continuous process which would take into consideration the appraisal of the business performance. It helps to coordinate amongst the competitors & fix up all the goals of Ericsson. The strategic management process steps which have been applied at Ericsson are described as follows. Firstly, scanning of the entire environment is practiced. Environmental scanning refers to a process of collecting, scrutinizing and providing information for strategic purposes. It helps in analyzing the internal and external factors influencing an organization.

It must be seen that, Strategic Change management at Ericsson could be seen in respect to the number of units placed at the various countries, towns, etc. It has been seen that, the opportunity cost has been decreased & the levels of productivity has also lowered along with the effectiveness & efficiency of the same. With the help of SCM, Ericsson could be regarded as an enterprise with a global market place. SCM has helped Ericsson to have a holistic view which would cover the various dimensions. This would help t maintain clear connections within the various systems allocated within a country.Strategic positioning at Ericsson could be seen with regards to the six principles underlined as follows. Ericsson had a long term goal to maximise its profits with the most effective utilization of the cost. The value proposition of Ericsson could be seen with respect to the various gadgets provided to the customers. With the use of a distinctive value chain, the competitive advantage attained by Ericsson is seen in a much detailed manner. This has helped Ericsson to have a deeper look regarding the various strategies or activities taken up by its rivals. The use of robust strategies has also helped Ericsson to focus upon the various unique strategies. The various elements have been used by Ericsson to attain relationships amongst the value chain applicable within the organization.

 Strategic capability: In regards to the relationship between the organisational units within and outside Ericsson is more important with times because strategic alliance are important in overseas business and outsourcing is also playing important role in these companies that are successful in times of concentration are those who strive to provide added value to their customers through increased concentration that  they do best which is their core competency and also removal of waste full efforts from its process and services. For example In 2009 Ericsson start program worldwide during recession period to reduce its cost and eliminates wastes in the process which are not adding the value to its customer. Under this lean manufacturing program many workshops and other programs are commenced on each level of the firm in Ericsson to change the ways of working and refine the process of manufacturing and services.Managing resources – Resource management at Ericsson shall be practiced. This would help the organization to effectively as well as efficiently utilize the resources within the same. Some of the resources which are normally used within the organization refer to the financial resources, human values & knowledge, stock of goods (in case of manufacturing company), use of IT, etc.

Some of the approaches which have been used at Ericsson have been highlighted as under. They are firstly, levelling of the resources have been done. Resource levelling refers to a tool in management which would help in order to locate the underused people or resources within a company and put them to work. Resource levelling takes into consideration different aspects within resource management.

This tool majorly keeps in mind the various resources, equipment & the personnel which would help in order to decide whether some of the assets are being underused or could be used in a much effective or efficient manner. Secondly, a traditional approach could be taken up which would help to manage the levels of resources. The traditional approach to resource management is a concept that has been around for centuries and has maintained popularity because of its success. The traditional approach in managing the resources has been quite helpful. It takes into consideration five steps which would be the initiation stage, planning stage, production stage, monitoring & controlling and the completion of the entire process. This process is most commonly used when introducing or creating a new product or service, but can also be used to prioritize and help integrate a new resource into a company such as a new computer system. Lastly, in order to manage the resources, use the resource break fown structure has been used within Ericsson. The resource breakdown structure refers to a technique in managing the resources in a much effective & efficient manner.  In this technique, the supervisor or the team member would make a detailed list of all the resources in the level of its abundance along with its uses.

To maintain Resources and capabilities:

It can be developed inside a company or acquired from outside a company never on an open market as; in this case, those resources would cease to be unique and valuable by means of association with other companies.

For a bigger company like Ericsson it is important to manage the finance like resource for the value of its shareholders etc and ensure the best use of the money the way which the finance and funds are used it is important issues for all the managers to keep the closed eyed on the investment decisions of the finance. In other words it means that managing for value is concerned with optimising the long term cash generating capability of an organisation. Other important concept for changing in competitive situation is technology.Ideas and innovations about the future are very useful and necessary European companies like Ericsson used their low labour costs to gain entry to various industries. As the wages are high the technology aspects become more important, the European move start first to scale-based strategies and then to concentrate on factories to achieve competitive advantage.

Managing change is the difficult task in the bigger organisation due to its size and complex management nature during start of recession 2008 when organisation like Ericsson also feels its business getting down in terms of sales and revenue then the management under the leadership of former president carl-henric svanberg start an program globally with its board team member to reduce the cost by 12% in its network which is success fully implemented and company gets the good response from the every corner of the business he operating and changes in organisation structure have also help in making a good strategy implementation all around the company during the period of low sales. Strategic change development is incremental in nature is most beneficial for Ericsson in this period by which all employee of the company are involved and they have come up with ideas to bring down the cost in there day to day operations. some contextual features of strategic change programmes are ,time power, scope, readiness, capacity, capability , diversity etc these features are equally focus by management of Ericsson to successfully implement the change management.

Role of change agent in Ericsson–

The role of change agent at Ericsson has been seen as one of the major which would depend upon the organizations ability and skills to take new capability delivered by technology and turn it into business benefits delivering business outcomes.

Every organizational change, whether large or small, requires one or more change agents. A change agent is anyone who has the skill and power to stimulate, facilitate, and coordinate the change effort. A change agent in case of Ericsson refers to a person who would try to facilitate various types of changes within the organization. The role of change management in Ericsson could be seen with respect to the vision with which Ericsson wants to expand its business in a different segment i.e. television. The change management at Ericsson would help to maximise & launch different types of products which would include hardware and software. The change management at Ericsson would help to deliver different solutions & provide a unique experience to its customers.The role of change management at Ericsson would help to maximize the content which would help the owners to distribute captures as well as process all the assets of the organization. The second advantage which would be seen from the role of change management within the organization is to maintain efficient networks (Johnson & Scholes, 2008). This would help to share and deliver the highest levels of quality amongst the newly launched television. The change management would be quite helpful to maximise the value provided to its customers. The main goal for Ericsson is to be quite competitive & formulate various strategies to maximise the competitiveness amongst the various other brands.

Answer-2

Strategy development process is the process of determine and perceptive insights and should not be puzzled with process of planning, which is about turning insights into action. besides this managers develop most of their insights while actually doing the real work of running a business, it is important for companies not to separate strategy development from implementation. More in particular, it is to understand accurately how thoughts contributes to strategy development and to underline the variables that make easy or bound the good  and bad effects of human information processing on strategy development processes and finally organizational performance.

Intended strategy is an appearance of a required strategy as deliberately formulation or planned by managers, the deliberated intention of that leader who owns the business or on the top position (Fahey & Narayanan, 1986). It is the position of intentional acts that is consider and planned to accomplish a goal. For example based on assumption Ericsson CRM strategy from a can be analysed from business perspective or frame work from which  CRM strategy can be developed or analysed from a business perspective. The framework highlights the linkages between specific CRM proposal and required outcomes. It shows, at a high level, how CRM can contribute to increased overall revenues, decreased costs, and ultimately to increased profits (Fahey & Narayanan, 1986).

The Emergent Strategy Model follows a pattern of evolution from an “Intended Strategy” to a “Realized Strategy.”  The company begins with an “Intended Strategy.”  Decisions are made in response to conditions, some of which are irregular.  The pattern of these decisions forms an “Emergent Strategy.” Example for this concept of emergent strategy is Ericsson can also be used to evaluate Customer Costing.  When the company sold a same solution to Vodafone it is profitable and when sold to telecom it might be non profitable.  The requirements of the “unprofitable customer,” such as placing many small orders or requiring special customise solution and installation in remote area needs more cost, may make them unprofitable. Before Ericsson technique was broadly used, companies could capture departmental costs but had not idea of the cost of the activities that they performed, the “drivers” of cost.  For example every time an order received there are several no of necessary activities to be performed. The customer who places order in smaller quantities are hence forth consuming uneven resources.  Frequency of orders is a cost driver.

Justification of improvements – The Balanced Scorecard Approach

This approach is widely accepted in organisation to measure the strategic and operational performance management system and clarify the organisational vision and strategy into real action. This tool has been used in Ericsson to practice effective communications within the organization. This tool has been described by the organization as one of the techniques which would help to achieve the goals of the organization.The study of organizational learning is an effort to engage ideas with some complex and difficult issues linked with organizing. As a result of all this, organizational learning is an attractive approach which would help to provide outcomes within the organization.

Peter Anderson, Vice-President Learning at Ericsson, sums up: “Learning should facilitate change responding to market needs. One example of this is in the area of mobile broadband where building competence enables Ericsson to remain a leader not only in technology and services but also in helping operators and other stakeholders to develop new business models to better meet the demands of consumers.”

Organisational Learning needs to be available all times whiles operation; it’s about having people being engaged in continuous dialogue, jointly exploring reality and perspectives. Ideally, learning needs to be surrounded in the strategic business process, and not limited to a department of experts working in isolation. Organizations’ learning and competence development function should build the right capability portfolio to ensure sustained competitive success (Ericsson, 2011). Strategic planning determines where an organization is going over the next several years how it’s going to get there and how it’ll know if it got there or not. The plan includes specific products that will direct the County’s prevention activities with Organization learning and Competence Management, Ericsson can: Benchmark the learning organization using independent and unbiased critical analysis against similar leading global companies and global industry leading practice Design and develop new Organizational Structures to best-fit your organization’s path to sustainable competitive advantage improved business performance by improving staff competence and performance Establish an effective learning organization based on best practice (Johnson & Scholes, 2008).

Strategic planning 

Strategy development helps Ericsson choose the best action for a certain case. Continuously develop its strategies Ericsson makes use of experiences, studies environmental analysis, and organizational learning. By this company can learn and adapt the changes in the environment’s as changes occur new learning and developments desired by company to prepare for the possible effect of these changes in business sometimes these changes in environment gives the benefits sometime it create a problem in business (Ericsson, 2011). Organizational learning can help the company prepare for the problems created by changes in the environment. For example increase of used of internet media for every age person these learning of organisation in Ericsson estimates to connect the 50 billion devices to be sold in this world till 2025 for communication and household appliances.For Ericsson, the core vision is the learning, which supports ongoing transformation process. Ericsson’s goal is the creation of environment, which are easy for employees to learn what they need when they require them, when they require them and the application of this knowledge understanding as well as the expiries for their own benefit as well as that of Ericsson.

Some of the links which could be drawn with respect to the learning strategies & outcomes have lead to high levels of learning outcomes for Ericsson. Some of the learning outcomes for Ericsson have been highlighted in this part of the report. They are as under:

Þ    Investment in strategic learning initiatives which has the highest impact on the business results which are measured by business results as well as personal outcomes

Þ    The intellectual capital of Ericsson employees is to be leveraged through the collaboration for growing the knowledge base (Ericsson, 2011).

Þ    Advance learning design for providing effective as well as robust learning experience, which enhance the knowledge transfer of the employees, the partners as well as the clients for solving their business problems faster.

Þ    The business of the future requires “Just in time learning”.

Þ    While the traditional reaching avenues give value for the team, individual, as well as organizational learning, and the market place as well.

Hence, the organizations need to quickly address to the changing needs of the clients and the organizations need a different approach

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