MANAGEMENT 2
Running head: MANAGEMENT 2
Aligning Operational Needs with Business Strategies
Matthew Basselini-Truisi
University of Phoenix
Aligning Operational Needs with Business Strategies
Business strategies are applied in making decisions and in the execution of business operations toward achieving the set strategic goals. For the success of the business operations, there is a need to align the strategies with the needs of the business. In analyzing the position of Office Depot Inc. based on its competitiveness in the global supply industry, various analysis methods can be applied. The analysis is geared toward coming up with an understanding of how effectively the company aligns its strategies to meet its operational needs.
Porter’s Five Forces Model
Porter’s five forces model is reliable in carrying out the company’s analysis concerning its competitiveness in the industry. Michael Porter developed various forces that can be applied in analyzing the industry environment and in determining the competitiveness of a business (Chen, & Cheng, 2019). The five forces that shape the competitiveness of a business include new entrants, potential substitutes, bargaining power of the suppliers, purchasing power, and the number of competitive rivals in the industry (Bruijl, & Gerard, 2018). Through the application of the five forces by Office Depot Inc., its business operations can be aligned to developing a competitive edge where the company will achieve more strengths and reduce its weaknesses to compete in the industry.
Potential entrants into the market form part of the competition basis. With the prevailing weaknesses in the industry, there is the likelihood of new entrants taking the advantage of the existing market gaps such as improving quality services. Office Depot Inc. should thus seize the opportunity to reduce market gaps that may allow new entrants into the market. Another force that the company should major in is dealing with potential substitutes. In an industry where customers have different options for the products and services offered, the competitiveness of the business may be at risk. Office Depot should focus on making unique products and delivering quality products to reduce the possibility of having substitutes pose competition to them.
In analyzing the competitiveness of the Office Depot company, the supplier bargaining power is also factored in. to reduce the cost and maximize the profitability of the company, there ought to be numerous suppliers to choose from. Having many suppliers lowers their bargaining power and increases the profitability of the operating businesses in the industry. In addition, there is the consideration of the purchasing power in the industry. The number and significance of customers determine the company’s ability to make profits. The competitiveness of the company is lowered when the customers can lower the product prices as a result of their bargaining power.
Several competitors in the industry form an integral part of determining the company’s competitiveness. An increased number of rival companies poses a threat of increasing competition levels. Carrying out this analysis helps Office Depot Inc. make informed decisions in enhancing its competitiveness by determining the five forces. The company needs to use every competitive force to enhance its performance and profitability.
Leadership Model
Office Depot Inc. is using environmentalism and a negative feedback leadership model (Office Depot global., 2017). The leadership style is tailored towards correcting the employees and stakeholders on where they go wrong. The leadership style has little emphasis on the positive acts of the employees but focuses on the negatives. There is little motivation rather than chasing perfection by the management. The greatest focus in the leadership style applied by Office Depot Inc. is to achieve effectiveness in the running of the business operations. The leadership method has the impact of enhancing increased performance and quality of the output. However, there are various weaknesses identifiable in the environmentalism and negative feedback leadership model. For instance, employees miss out the growth opportunities. There is little motivation as the leadership overlooks the good performance and acts of the employees. Although the leadership style applied by Office Depot Inc. has contributed to enhanced performance and development, there is a need for adopting an alternative leadership style.
Transformative leadership would impact the company by granting the employees opportunities to take part in the running of the organization. The transformative leadership style plays an integral role in recognizing the role of employees and motivating them to become leaders (Gandolfi, & Stone, 2018). Adopting this leadership style could help the company solve long-term challenges where employee turnover is minimized. The level of performance is increased through empowering and motivating employees.
In determining effective leadership, short-term and long-term impacts are considered. Effective leadership is tailored towards enhancing the smooth running of the organization while taking care of the employee’s interests. An effective leader motivates and recognizes individual employees for their contribution to achieving team goals. An effective leader can gain power and influence through the trust and respect gained from their followers. In contrast, ineffective leaders take credit for the efforts of the employees and are not concerned with the needs of the employees.
Recommendations
In pursuit of attaining positive leadership model changes, the business has to consider and prioritize its needs. Leadership is a priority in the needs and challenges affecting Office Depot Inc. Office Depot needs to attain a competitive edge and increase its profitability. Therefore, the leadership model should be tailored towards creating a conducive internal environment for employees and other stakeholders to feel motivated to work. One of the leadership models that the company should adopt is servant leadership. In bringing change to the company, leaders will have to be role models in guiding the employees. Another action the company needs is to apply the competitive forces in enhancing the performance and profitability of the business.
References
Bruijl, D., & Gerard, H. T. (2018). The relevance of Porter’s five forces in today’s innovative and changing business environment. Available at SSRN 3192207.
Chen, Y. G., & Cheng, J. N. (2019). A study investigating teachers’competitiveness-Michael porter’s five forces model as a theoretical basis. Academy of Educational Leadership Journal, 23(2), 1-18.
Gandolfi, F., & Stone, S. (2018). Leadership, leadership styles, and servant leadership. Journal of Management Research, 18(4), 261-269.
Office depot global. (2017, January 5). Office Depot Viking by Raja Group. Retrieved November 14, 2022, from https://officedepot-career.ro/office-depot-global/