Posted: July 16th, 2022

Business Practices for Sustaining Successful Organizations

Topic: Business Practices for Sustaining Successful Organizations

Details:

Kim and Mauborgne, (in the book “Blue Ocean Strategy” Harvard Business Review Press, expanded edition, 2015, by W. Chan Kim and Renee Mauborgne), the reading assert that current business practices cannot sustain the success of organizations whereas Blue Ocean business practices will create and sustain successful organizations. Drawing upon your reading, current literature, and personal knowledge, you will write a paper that supports these assertions.

General Requirements:

Use the following information to ensure successful completion of the assignment:

• use APA style for their writing assignments.

•This assignment requires that at least two additional scholarly research sources related to this topic, and at least one in-text citation from each source be included.

Directions:

Write a paper of 3 pages discussing how Blue Ocean practices will close gaps or replace ineffective business practices to produce successful, sustainable organizations. In your discussion, include the following:

1.A discussion of why current business practices cannot sustain the success of organizations.

2.A description of which business practices are applicable in a Blue Ocean strategy.

3. A discussion of how the Blue Ocean practices mitigate current business practices in order to produce successful, sustainable organizations1

Topic: Business Practices for Sustaining Successful Organizations

Details:

Kim and Mauborgne, (in the book “Blue Ocean Strategy” Harvard Business Review Press, expanded edition, 2015, by W. Chan Kim and Renee Mauborgne), the reading assert that current business practices cannot sustain the success of organizations whereas Blue Ocean business practices will create and sustain successful organizations. Drawing upon your reading, current literature, and personal knowledge, you will write a paper that supports these assertions.

General Requirements:

Use the following information to ensure successful completion of the assignment:

• use APA style for their writing assignments.

•This assignment requires that at least two additional scholarly research sources related to this topic, and at least one in-text citation from each source be included.

Directions:

Write a paper of 1,600-1,750 words discussing how Blue Ocean practices will close gaps or replace ineffective business practices to produce successful, sustainable organizations. In your discussion, include the following:

1.A discussion of why current business practices cannot sustain the success of organizations.

2.A description of which business practices are applicable in a Blue Ocean strategy.

3. A discussion of how the Blue Ocean practices mitigate current business practices in order to produce successful, sustainable organizations

According to the “Blue Ocean Strategy”, 2015, organizations should find a way of working in a market place that is free of competition. Which is better referred to as an “uncontested market space”. Most business are known to work in “red ocean” conditions where businesses viciously fight against each other for a share of the marketplace. According to the blue ocean strategy, companies should look for other strategies that enables them operate in a market place free of competitors.
In the book Blue Ocean Strategy, the author studies 150 strategic moves that have been observed for more than 100 years and in 30 different industries. In this case such companies succeed not by engaging in competitive processes in the market but by systematically creating systems that create uncontested market spaces that enable growth of businesses. This system seeks to pursue high product differentiation and low cost of products thus making the need of competition irrelevant. The author goes on to say that this strategy has been successful because it attracts a large number of customers and at the same time raising the cost of competition.
So as to efficiently use this strategy, businesses and entrepreneurs should consider a “Four Actions Framework”. According to authors this would reconstruct buyer value elements in crafting a new value curve. The four actions are based on what factors should be raised well above the industry’s standard, what factors has the company competed on and the ways through which they should be eliminated, what factors should be reduced that are below industry standard and also what factors should the business create that it has never created before. These methods enable re-engineering of its products and push market leaders to practice differentiation and low cost in order to break off from value-cost trade-off.
According to the Ivey Business Journal article on the reasons why businesses are not sustainable (2011), one of the reasons why current business practices cannot sustain the success of organizations is government policies. Certain policies such as those on taxes and regulations, are usually ineffective. These make it hard for a company to easily sustain its pre-set objectives. The companies also have a difficulty discriminating between the most important opportunities and the threats. Companies are usually exposed to many different threats such as financial crises, climate changes especially if the business is affected by the climatic conditions of the zone in which it operates, health pandemics especially if it operates in the food industry and local land issues. The problem exists on which problem to focus on at first since some issues more urgent are compared to others.
Employees are also not willing to work for companies that are not sustainable. They are also not ready to be part of the process of achieving sustainability, through initiatives geared at achieving this. The companies themselves also face a challenge in making their employees to undertake sustainability initiatives. Another sustainability issue is that in the case of sourcing decisions. Therefore companies should think of a way of coming up with sustainable suppliers. This has posed to be difficult in most organisations. This is in term of industrial specific knowledge and practices or data on this may be even missing.
Business practices that can be employed in the blue ocean strategy are many. Colman and Buckley (2005), the blue ocean strategy enables companies to develop innovation in its operations and Kim and Mauborgne (2005) continue to affirm this by saying that it enables a company to bring new products to markets. This brings a competitive advantage of such a company Moyer (2006). This strategy also enables market identification. This is according to Madden (2009) who says that, this strategy enables to define clearly the market since this method considers consumer demand impacts. The strategy can also be used when identifying consumer preferences. Sheehan and Vaidyanathan (2009) this strategy enables managers to capture unique requirements of customers and to capture the value of these customers to the company. This enables these customers to effectively satisfy their customers, Kim and Baik (2008).
The Blue Ocean Strategy has mitigated current business trends by creating a unique business avenue that is undisputed. Meaning it is free of competition. In such a market, companies can fix all the rules of engagement, criteria and factors that can affect the market in one way or the other. This strategy introduces innovation which serves to add value to a product produced and thus do away with the need of competition in the market space. The strategy enables people to understand the company’s strategic position in the market. This enables various stakeholders to know what the business is dealing with. Also these stakeholders after understanding this position need to share it and own it so that they form part of the bigger plan of making the business successful. This also enables them to share the same vision and focus on main issues affecting the business.
This strategy, also enables employees to share their skill, talents and ideas. With the sole goal of making the business more successful. In this case, the employees collaborate on the basis of their different talents. This variety of knowledge and skills ensure efficient operation in the company. Thus enabling certain factors such as innovation whose main is to drive the company success chances high and in the process increase the company’s profits. This also enables employees to share ideas of ways in which they can increase opportunities of the business in the market. The system also increases communication systems between various business units in the company. This can only mean increased efficiency in the business since various department are able to communicate in time and response is in real time. For example the supply department, is able to communicate with the sales department efficiently so the two departments are able to communicate on the nature of the market and the two departments are able to take quick action.
REFERENCES
– The evolution of strategic thinking and practices : Blue ocean strategy- Linnaeus University – Gallaume Nicholas
– The Ethics of Sustainability- Charles J. Kibert, Leslie Thiele, Anna Peterson.
– Blue Ocean Strategy- How to Create Uncontested Market Space and Make the Competition Irrelevant.- W Chan Kim, Renee Mauborgne

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