Porter’s value chain identifies strategically relevant activities that create value and cost Nina specific business. In terms of the Value Chain, Warner MME Music should not have much toothache. This Is true as both companies (Time Warner and MME) shared prior to the merger scalar behavior. In terms of primary activities, the operational system of Warner MME Music should banned to compete on costs. The company must reduce manufacturing costs as a result of cone-miles of scale. Dealing with advertising, Warner MME Music should maintain active in using telephone as its main promotional tool.
With regard to support activities and specifically firm infra- structure, the company should cut down corporate overhead and seek to simplify information sys-tem to reduce costs of the accounting department. Further, personnel should be carefully selected by the human resource management and trained to keep up with technological changes and ad-Vance in the market place. It is also highly recommended that the Warner MME Group shouldering the linkages of different departments and activities in the value chain. This is important salt can reassure consistency, effectiveness and pragmatic organizational execution.
It Is possible to present the above In a graphical form. This Is Illustrated In Figure 1 that follows Suitability, Acceptability and Feasibility After discussing the strategic direction and methods available to the company it is onetime to assess and evaluate whether the proposed strategic approach is suitable, feasible and AC-acceptable for Warner MME Music. Figure 10 shows how these various aspects of evaluation can befitted together to assess the selection of the strategic direction. Acceptability Return Stakeholder reactions Assessment of suitability Establishing the rational Screening option
Planned Enforced Learning Command Epistemologically analysis Identifies theorganisation’scircumstances Strategic options Identifies possibilities for development Source: Johnson et al. 11999: 354). Fig. 10. A Framework for the Evaluation and Selection of Strategies It can be argued that the strategic approach proposed in this case is suitable as it addressee circumstances in which the organization is operating. This includes the extent to Inch the negotiates would fit with the future trends and changes in the environment and also the way desegregates exploits the core competences of the organization.
It is suitable, as it is detailed after an in depth investigation and strategic analysis of the situational environment both internally and Exeter-anally to the organization. It can be stated that the proposed strategy it sufficiently exploits the pop- opportunities in the environment and avoids the threads. It also capitalists on the organisationalstrengths and core competences and avoids the weaknesses. It can be said that the strategy is AP- appropriate given the growth stage of the product life cycle.
Moreover, it improves value for moneyed exploits the core competences in the value Hahn, strengthens the balance of activities as De-tailed by the portfolio analysis, reinforces the selected strategic positioning approach and leaderless MME Music towards a better financial performance. This is illustrated below in Figure 11 Establishing the suitability of options is useful to an evaluation as it establishes the RA-action and strategic logic behind the proposed strategic direction. However, strategies also have to be acceptable to a variety of stakeholders (managers, Norfolk, public, government, shareholders,suppliers, customers).
Acceptability is Hereford concerned with the expected performance out-comes (such as return or risk) if the strategy was implemented, and the extent to which dishtowels be in line Ninth the expectations of stakeholders. It can be said that the strategic directional methods desired by Warner MME Music are acceptable as different analytical methods illus-treated that the return, cost benefit, risk and shareholders values are positive. It Nil improve work-inning conditions for managers and workforce, increase supplies for suppliers, offer a better prod-cut/service to customers and increase dividends and be made to work in Para-twice.
Assessing the feasibility of a strategy requires an emphasis on more detailed, often quantity-dive, assessment of practicalities of resounding and strategic capability. It can be argued that War-near MME Music has the resources and competences to deliver the proposed strategies. As a result of an assessment of its financial feasibility, it is evident that the new company has the financial re-sources to implement the desired strategic direction. Moreover, it is capable in promoting it, interns of human resources, as its employees acquire the relevant expertise, competences and skillfulness.
Conclusions Irish case has been compiled to put forward the author’s suggestions for future straightforwardness open to Warner MME Music as they develop during the period of 2000-2010. The case was divided into four main sections. Section one was concerned with an nevi-ornamental scanning including an analysis of Porters’ Value Chain and Five Forces models. Dissection identified the key strategic issues for the new company and industry and provided an over-view of their internal strengths and Insaneness and external opportunities and threats.
The condensation provided meaningful recommendations, strategic directions and methods to Warner Music for the key strategies to be followed in the first decade of the new millennium. This is JNI-deterrent by utilizing a number of respected strategic models including the Insofar Matrix, John-son and Schools’ directions for strategic development and development strategies, and Perpetrator’s generic strategies. Section three dealt with the cultural organizational issues that have risen by the formation of the new company and section four examined whether the proposed strategy accessible, suitable and acceptable to be used by Warner MME Music.