Answer Delta

Answer:
Introduction:
This paper will look to focus on strategies implemented to better the situation of Delta Signal
Corp through the process of simulation. The company is facing problem, as is case with many of
the companies across the globe. Certain strategies are not working and the new CEO wants to
implement a strategy that would put things on track. There are a lot of strategies that a
management can implement to make things right, but a perfect strategy can overturn the crisis
into a situational benefit for the organization. Delta Signal was in dire need of one as its stock
pricews dropped, market situation was worsening and competitors were edging past it, grabbing
important market share.
Selected Strategy And Justification
The strategy that has been selected in the simulation is the strategy targeting the segment of
luxury, which is ‘customer integration’. The way forward for Delta Signal Corporation is through
creating trust and confidence that is possible at all levels. Customers do need to be confident
and have belief on the organization from which they are purchasing the product. Moreover, under
similar circumstances, the employees too need to show a bit of trust and have confidence in their
managers and their actions. Close integration of processes is required starting from the research
and development section through to manufacturing, shipping and sales (Verbeke, 2013). The
‘Blue Ocean’ strategy simulation (BOSS) can be effective in this scenario, which can allow the
organization to test out new methods in accordance to respecting marketing realities. This
business strategy takes into consideration participants working in teams to manage goods having
fixed prices over a period of six years. The simulation structure permits them in creating a blue
ocean of new market freedom for their company and stay away or break free from competition.
The blue ocean strategy stands on six principles which can be effective for Delta Signal Corp
which includes, reaching beyond the existing demand, focusing on the bigger picture that lies
ahead and not merely on numbers, getting the strategic sequence right, overcoming the hurdles
of organizations, reconstructing boundaries of market and building executions in accordance with
strategies.
The luxury segment generally sees a few, but key customers who are always ready to pay the
premium price for the company’s superior or best service. These key customers are seen as the
mode of profitability for the organization, helping the organization to stay in shape in times of
fluctuating demand. Businesses that are involved in customer integration work and communicate
with a customer-centric mindset. It is letting the customers know how important and valuable a
part they are to the organization and the organization makes all the decisions and strategies
keeping their interests in mind (Edvardsson et al., 2012). It creates goodwill for the company at
the marketplace, thus maintaining a positive image.
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Brian Nelson, the new CEO stated that despite the company investing heavily on things like
product performance and quality, the company is not a market leader in any of the segments
which is a matter of concern. According to him the company lacked a clear value proposition that
might attract a lot of traffic to the company. It’s letting the consumers know how the company’s
product solve customer’s problem or develops or enhances their situation. Even the managers in
the company did not have clear goals to work on, a demotivational factor that does not go well
with the organization’s work process.
Further research and development is required for Delta Signal Corporation, and the company
cannot compromise on the quality while it may look on other integration factors like low lifetime
cost. The company has taken into consideration in improving the internal factors like investing in
new machineries, providing training to the employees and reducing cost where it is necessary
(Chavez et al., 2015). The company’s product image is inconsistent enough for it to lose out on
important market share to its competitors. The economic factors have been growing dramatically
in some developing countries which have increased the cost of raw materials and suppliers are in
constant pressure to cut down the price and increase profitability.
Evaluation Of Seleted Strategy:
This strategy of customer integration has worked quite well with the organization. The quality of
the products has increased which in turn has increased the satisfaction level of the customers.
There is high chance that the existing customers are satisfied at that level where they can
recommend Delta Signal’s products to other people who can be the company’s prospective
buyers. This recommendation can work as a word-of-mouth advertisement, where these
consumers advertise the company’s products without the company incurring any expenses.
Effectiveness Of Strategy Implementation:
No matter what strategy company implies on, budget plays a huge factor in deciding which path
to be taken in order to achieve the desired results. While preparing budgets it has often been
found out that companies do not take much into consideration, whereas the balance scorecard
simulation does measure a company’s performance based on three key areas which are:
-The internal process
-Customer’s relationship with company
-Growth and learning activities
The internal process should need to function in a proper way; otherwise an organization should
not be able to perform in a market where there is high level of competition. The stocks of the
Delta Signal were downward inclining, with it losing important market share to its customers. The
company has to implement things in a new way, a way which should provide them with a better
chance to be the market leader and attract a lot of customers. The company is planning to hit the
luxury segment of the market, where it states that the company will have opportunities much
better than the other segments. It has recently expanded in the Asian market where it will face
tough competition from other companies who are implementing the same strategy of targeting
the economic segment car makers (Van Dongen, Dijkman & Mendling, 2013).. The best strategy
thus is focusing its whole attention into the luxury segment that is less competitive as the others
are busy in grabbing the Asian Market share. Moreover, the company’s traditional expertise is in
the Research and Development, so the company can quickly act and react to the market
conditions, making the necessary changes that can firm its position in the market.
Suggested Improvements:
The cost leadership strategy should be put in use where optimal efficiency and spreading the
cost across the company in whole. The cost leadership strategy avoids the risk of productivity
slowdown and the operational cost to grow substantially. Cost leadership helps in weathering
unexpected sales and maintaining a good level of cash flow where the extra money can be used
for development of product, advertising purposes and selecting the best employees in the sector
to have the best results. Expansion does not come easy; it has its own complexities. The growth
of a company should be controlled one, because uncontrolled growth often lands the
management in problem (Mahr, Lievens & Blazevic, 2014). Cost projections can go out of the
window, if the growth is not controlled (Gabrielsson, Gabrielsson & Seppälä, 2012).
Workers should be kept motivated, because if the company loses out on workers who have the
required skill to perform, then productivity drops and company incurs more cost to select and
train the new workers. If productivity is less then there is high chance of company losing out on it
valuable customers. Moreover, it is trying to focus on the luxury segment, which has relatively
less buyers than the economy segment, so every consumer becomes important. Losing out on
even one can be a huge loss for the company. Moreover, their goodwill may be hampered. So
the company cannot take risk in this kind of situations.
The value chain can also be modified as per the business needs. Internet can play a big factor
too, like the company can shift to e-business technology which is much for faster and reliable
than the traditional processes (Fearne, Garcia Martinez & Dent, 2012).. Moreover, direct
marketing can be implemented which reduces the cost of channels. Moreover, the designs which
are produced in a simplified manner can reduce the cost by shortening the value chain. Value
Innovation is effective as it puts same kind of emphasis on innovation as well as value. It helps in
execution of strategies and resulting in creation of blue ocean strategy which reduces the driving
costs effectively whie increasing the driving value of buyers by raising and creating new
elements.
The implementation of the Blue Ocean Strategy will be beneficial for the company.
Recommendations For Post-Simulation Strategy:
The strategies that would be recommended for the Delta Signal Corporation going forward are
based on four segments which are financial, customer, internal process and learning and growth.
Recommended Strategy:
Financial: the main focus will be on financial activities with the strategy being maintaining a high
quality of the products so as to attract more customers and have the lion’s share in the market.
However, reducing the cost of the company is also a factor which needs to be focused on. The
company needs to manage a good relationship with the customers and should invest in things
where necessary to gain control of the market and gain customer’s attraction (Gerth, 2013).. The
company should take the necessary steps in maintain a good internal and external environment.
However, the main focus of the company should be to reduce cost in order to gain the
competitive advantage in the market. The organization needs to give the shareholders and the
stakeholders their due importance in order to survive in the market (Grönroos, & Voima, 2013).
Customers: Delta Signal Corporation’s strategy has been based on customer integration which
means their primary focus should be on the consumer. The company should focus on doing
promotional activities and put a spotlight on protection activities of the customers. The prices of
the products should be competitive in nature, so that the customers keep attracted to its products
(Moeller et al.2013) . As the company has been spending heavily in maintaining the quality of the
product, it should not be compromised at any cost. A proper trust and belief should exist among
the customers and the company should not do anything that might break the trust of consumers.
The simple reason the word-of-mouth advertisement or the recommendation of customers that
they do to other people about the company’s product works like magic. Customer satisfaction
should be an on-going process.
Internal process: the company has invested heavily in implementing the most updated
technologies for maintaining the best quality products. The company should maintain a low
administrative cost and can look for outsourcing if maintaining an in-house admin becomes
expensive for it. Investment in driving costs should be kept down too at least for the next two to
three years. Productivity should be the primary objective of the company, because in case of low
productivity the company profit will also be low, and might end up in losing valuable customers to
its competitors (He et al., 2014). The defect rate of the products should be kept at bare minimum,
which keeps a continuous flow of goods to the markets for the customers to have it as and when
required. A good productivity has its own advantages with enhancement in quality of products.
Customers will have nothing to complain about and sales return will drop dramatically and with it
will decline the repair and service calls (Sharma, Garg & Mittal, 2016). Such scenario will give
rise to a situation where accounts receivable will diminish as customers are satisfied and are
likely to pay off their due bills, costs are going to decrease too and the management is going to
have enough capital for the maintenance of equipment in a proper way.
The focus should be on the strategy in hand, where every member of the organization should be
made clear about the goals which was lacking in Delta Signal Corporation as stated in the case
study (Hollensen, 2015). Until and unless the organizational goals are clearly mentioned people
do not find the motivation to work.
Learning and Growth: the company should not be stagnant in case of keeping people who are
not performing. Company should invest in recruiting new people and provide them with adequate
training, so that they become competent enough and perform according to the desires of the
company in achieving the desired results (Bentley, Omer & Sharp, 2013). Moreover, the existing
employees should be also provided training in order to upgrade their present knowledge and
skill. Last time, the company had to put off these training sessions due to cut down in budget
which affected heavily the organization’s people, which cannot be repeated again. Investments
should be done in research and development of the products and market so as to stay ahead of
the competition (Pitani, 2012).
Justification:
As stated earlier too, the focus of Delta Corp should be on the bigger things lying ahead and not
on the numbers.
Awakening: Comparison should be done with competitors based on the ‘As Is’ strategy and focus
should be on where the strategy needs to change.
Exploration: Observing the advantages of working with alternative products and services is
important. Delta wants to hit the luxury segment, it is important for the company to take into
consideration the products it is going to make available for that segment. It is about considering
the factors that need to be changed and eliminated.
Strategy Fair: Getting feedback on alternative strategies is important from various customers,
competitors and other non customers. The feedback should be used to build the ‘to be’ best
strategy.
Communication: only those projects and operational moves are to be supported which allows
Delta Signal Corp to close in the gaps in actualizing the new strategy.
These are few of the recommendations that should hold good for the company.
Reference:
Bentley, K. A., Omer, T. C., & Sharp, N. Y. (2013). Business strategy, financial reporting
irregularities, and audit effort. Contemporary Accounting Research, 30(2), 780-817.
Chavez, R., Yu, W., Gimenez, C., Fynes, B., & Wiengarten, F. (2015). Customer integration and
operational performance: The mediating role of information quality. Decision Support
Systems, 80, 83-95.
Edvardsson, B., Kristensson, P., Magnusson, P., & Sundström, E. (2012). Customer integration
within service development—A review of methods and an analysis of insitu and exsitu
contributions. Technovation, 32(7), 419-429.
Fearne, A., Garcia Martinez, M., & Dent, B. (2012). Dimensions of sustainable value chains:
implications for value chain analysis. Supply Chain Management: An International Journal, 17(6),
575-581.
Gabrielsson, P., Gabrielsson, M., & Seppälä, T. (2012). Marketing strategies for foreign
expansion of companies originating in small and open economies: the consequences of strategic
fit and performance. Journal of International Marketing, 20(2), 25-48.
Gerth, C. (2013). Introduction. In Business Process Models. Change Management (pp. 1-12).
Springer Berlin Heidelberg.
Grönroos, C., & Voima, P. (2013). Critical service logic: making sense of value creation and co-
creation. Journal of the Academy of Marketing Science, 41(2), 133-150.
He, Y., Lai, K. K., Sun, H., & Chen, Y. (2014). The impact of supplier integration on customer
integration and new product performance: the mediating role of manufacturing flexibility under
trust theory. International Journal of Production Economics, 147, 260-270.
Hollensen, S. (2015). Marketing management: A relationship approach. Pearson Education.
Mahr, D., Lievens, A., & Blazevic, V. (2014). The value of customer cocreated knowledge during
the innovation process. Journal of Product Innovation Management, 31(3), 599-615.
Moeller, S., Ciuchita, R., Mahr, D., Odekerken-Schröder, G., & Fassnacht, M. (2013). Uncovering
collaborative value creation patterns and establishing corresponding customer roles. Journal of
Service Research, 16(4), 471-487.
Pitani, M. (2012). Training Virtual Employees.
Savino, M. M., Manzini, R., & Mazza, A. (2015). Environmental and economic assessment of
fresh fruit supply chain through value chain analysis. A case study in chestnuts
industry. Production Planning & Control,26(1), 1-18.
Sharma, S., Garg, S., & Mittal, S. K. (2016). Importance, Role and Impact of E-Training on
Employees in Workplace. SGBED wishes to recognize the following sponsors, 474.
Van Dongen, B., Dijkman, R., & Mendling, J. (2013). Measuring similarity between business
process models. In Seminal Contributions to Information Systems Engineering (pp. 405-419).
Springer Berlin Heidelberg
Verbeke, A. (2013). International business strategy. Cambridge University Press.
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Selected Strategy And Justification

Evaluation Of Seleted Strategy:

Effectiveness Of Strategy Implementation:

-The internal process

-Customer’s relationship with company

Recommendations For Post-Simulation Strategy:

Pitani, M. (2012). Training Virtual Employees.

Verbeke, A. (2013). International business strategy. Cambridge University Press.

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