Essay On Strategic Capabilities Of Infosys And ABC Co Ltd.

Significance of Strategic Capabilities to Infosys

Infosys was established in the 198o’s and later listed as an international NYSE company offering IT and consulting services. The company has a massive number of employees totaling to over 200,000. The company has also outgrown its initial US$ 250 capital to become a US$ 10.2 billion corporation as produced in its FY17 revenues status. Its market capitalization alone exceeds US$ 36.3 billion. Infosys understands that competition with other global companies for market shares, customers, revenue, and other growth factors is inevitable. It is a process of hardship and determination that Infosys also recognizes that businesses tend to employ various tactics with regards to deliberate strategies. The company’s managers are required to ensure that the strategies are shaped and put into action. On the contrary, businesses have different advantages with regards to the development and employment of such strategies and so does Infosys. By definition, therefore, strategic capability explains the ability of a business organization to successfully employ strategies that would ensure effective competition with other businesses allowing them to survive such competitions and increase their value with time. A business’ strategic capability takes into account the assets of the organization, its resources, and market position. The strategic capability of a business project is the manner in which the future strategies would be employed.

Proper strategy capabilities have enabled Infosys to stride through great technological achievements for over 35 years of its existence in the global IT and consultancy market. The secret has been associated with being able to catalyze major changes in the industry, making India emerge as one of the cherished software service destination. The company boasts of being the first Indian IT company to get listed in on NASDAQ after pioneering the Global Delivery Model in the industry. Also, the company’s stock options program for employees led to the creation of the first salaried millionaires in India. The secret behind the long success is also due to the fact that Infosys’ strategic capability remains one of the core components that ensure that its operations remain financially viable. Through proper strategic capabilities, the company has also guaranteed its growth regardless of the availability of competitors within the IT market. Since strategic capabilities are a major component of a business’ growth and survival, Infosys has tried to track and measure its strategic capability. Investors also regard investing in the company it has a greater growth and success rate compared to its competitors. The company has no issues with retaining its employees because its strong strategic capability makes it stable. By tracking the strategic capability of the company and those of their competitors, the managers of the company understanding the market better. Just to portray how important strategic capability has been to Infosys, both government regulatory agencies and financial analysts within India have also shown interest in the operations of the company and as a result increased the rating of the company.

There are several elements that have contributed to the strategic capability of Infosys. These elements include assets like cash, patents, and property which are all responsible for the ability of the company to formulate strategies and employ them. The other available elements include the structure of the organization and its human resources. Human resources is a vital element because the skills of employees and leadership mechanisms are all factors that contribute to the level of competitiveness within the business. Another part of strategic capability that is of significance is pricing. Since Infosys understands the way in which it can manipulate its prices, it stands a better chance of profits maximization and likelihood to enjoy advantages of strategic capability over other businesses with trouble resolving issues to do with analyzing profitable prices.

Infosys’ Elements of Strategic Capability

To what extent and why might the capabilities be the basis of the company’s sustained competitive advantage?

First, the assessment of strategic capability is a hectic process. The tedious nature is due to the numerous factors that it has to address. Such a process that is used to evaluating the strategic capability of a business is called strategic value analysis. This kind of analysis depends on data obtained from annual reports, market trends, and public surveys to evaluate the businesses within a particular industry that have strategic capabilities that aren’t available in others. By undergoing growth and operational changes, companies would acquire more resources, and thus analysts need to perform analyses of strategic value relentlessly. On the contrary, Infosys uses a liaison model as an effective technique for creating and maintaining its business projects. There are however many unproven assumptions justify this model’s viability within Infosys’ system. The main assumptions are that the subject specialist analyst is entitled to making proper project analysis and that the liaison must learn about the project spectrum and research in the subject area. The analysts must also have well established and suited personalities required for building relationships with the company’s departments. The relationship made should lead to a better way of strategy formulation. The model is, therefore, model entitled to creating a rapport through the establishment of strategy capability to increase support for the company especially when times are hard (MSG Management, 2017).

Since Infosys is required to have characteristics that ensure its capability of sustaining competition with other organizations, the company has developed features that would ensure its competitive competencies. Just like any business organization would wish to survive in a particular industry, Infosys has to develop its competencies also to survive. On the contrary, skills cannot help businesses in case they stand alone. It is thus by the corporation and working together that Infosys has developed the better strategic capability to ensure its competitive advantage in the market (MSG Management, 2017).

By definition, unique capabilities are resources possessed by an organization and of which are important in imparting competitive advantage. In case the capacity of an organization results from attributes that are not possessed by other firms and are thus named unique capabilities. Apart from having such distinct form of characteristics different capabilities also need to be appropriable and sustainable. In case a unique ability has to continue with its functions it needs to be sustainable.

ABC Co. Ltd understands that strategic management is all about being able to define strategies of an organization. It also entails stating the choice made by managers in setting strategies straight for their organizations. Such policies are geared towards enabling ABC Co Ltd to realize better performance. Also, strategic management in accordance with the company’s description is continuous and has the capability of appraising the business’ trade activities (Pirtea, Nicolescu, & Botoc, 2009). ABC Co Ltd strategic capability is managed in four main steps:

Environmental scanning is all about collecting and scrutinizing the pieces of information that are used in the strategic purposes. This stage is crucial in analyzing both the internal and the external organizational factors of influence within ABC Co. Ltd (Pirtea, Nicolescu, & Botoc, 2009). Once execution of the process of analysis is done, evaluation by the management should, therefore, commence.

ABC Co Ltd’s Distinctive Capabilities

Policy formulation entails deciding what course of action is suitable for achieving objectives of an organization. The step is, therefore, necessary for achieving purposes of an organization (Pirtea, Nicolescu, & Botoc, 2009).

Policy implementation entails the process of making plans or ensuring that an organization's policies are put into action. The stage includes structural design of the organization, resource distribution, decision making process development, and human resources management (Pirtea, Nicolescu, & Botoc, 2009).

Policy evaluation happens to be the final stage of strategic management (Kader, 2017). In this stage, the core assessment activities include:

1. Internal and external factors appraisal
2. Measuring performance

• Taking remedial and corrective actions.

Evaluation ensures that the strategies of ABC Co. Ltd and the process of implementation hit the requirements and objectives of the organization (Kader, 2017). All the steps highlighted above are performed in a sequential manner.

Internal analysis entails processes that identify and evaluate the organization's resources and core competencies. Under this process, issues about the organization's mission, strategic objectives, and strategies are discussed. Internal analyses are geared towards identifying an organization’s strengths and weaknesses. To ensure a proper internal analysis of ABC Co. Ltd, the analyzers need to gather and analysis relevant data concerning the organization. The data should include ABC Co. Ltd’s environment, its staff, and its operations. With the obtained pieces of information, conclusions regarding the environment of the enterprise need to be formulated. Also, feasible alternatives need to be determined and appraised (MSG Management, 2017). The next step is to weigh risks and then perform the selection of the most viable alternative. Last, implementation of the appropriate option is done. The results are then monitored. External Analysis, on the contrary, involves studies performed on the threats and opportunities within the environment of ABC Co. Ltd. One of the essential tasks in this process is to differentiate strengths and weaknesses from opportunities and threats. Opportunities in external analysis happen to be conditions that favor the environment of the organization. Such an environment can produce good rewards if properly leveraged. Threats should, therefore, be eliminated since they are barriers which prevent organizations from achieving their desired objectives (MSG Management, 2017).

Strategic management is used as the organization’s planning platform. ABC Co Ltd. may also use the opportunities presented by strategic management to offers support and resources.  Strategic management is also a platform that enables decision-making and priority setting. This management process also helps in:

1. Focusing energy
2. Availing resources

• Encouraging staff members

1. Helps the organizations in establishing objectives

Such duties make strategic management an essential element in any society. The process enables sustainability and maintenance of business smooth (Kader, 2017).

To what extent and why might the capabilities be the basis of the company’s sustained competitive advantage?

ABC Co Ltd’s Need for Strategic Management Planning

ABC Co. Ltd has attained competitive advantage because it has initiated particular services and programs that ensure secure communication and effective leadership in all its departments. Another important aspect of corporate governance within the corporation is setting up mechanism of control. Such will allow ABC Co. Ltd to be able to ensure that changes are made whenever necessary and also permit the monitoring of progress (Management, 2017).

Core Components of Management Strategies

Strategic management is very vital in ensuring that ABC Co. Ltd. identifies its core competence and be able to capitalize on it. There are, however, many factors of core competency (Management, 2017).  One of the factors is that it ensures that the firm has an array of products that benefit customers. In some instances, core competency might be recognized as the production cost.

Strategic management happens to be crucial for both small scale and large businesses. On the contrary, strategic management happens to be tough to achieve if there are no set goals for the organization. Understanding what core competencies mean there is a proper standpoint in which organizational strengths and weaknesses are recognized. Such is also important in ensuring that areas that require improvement are identified. The identification is to make sure that set goals and objectives are strategically placed to tackle the organization’s weaknesses (Management, 2017).

ABC Co. Ltd. is able to solve issues pertaining to diversities within its workforce. By so doing, the corporation alleviates the chances of suffering from economic and social repercussions. The moment at which strategies formulated marginalize workers, (by the managers or other employees due to either cultural differences or other factors) there is the likelihood that the enterprise would realize productivity loss; something ABC Co. Ltd avoids at all costs. Another issue that is likely to cause opportunity losses for the business is avoiding the formulation of strategies needed to reduce issues of discrimination and harassment of employees. The company has therefore formulated such strategies to reduce the risk of dealing with issues concerning employees. If a company formulates a proper strategy towards ensuring operational diversity, the enterprise will have the upper hand on issues concerning retention of workers and productivity of the organization. By having an all-inclusive workplace, ABC Co. Ltd has ensured its success within the market. However, by losing a single worker due to improper management practices, the enterprise will face detrimental consequences (Hartman, 2017).

Diversity and strategy management for business success include activities beyond mere management of differences between individuals and issues concerning policies development. It, therefore, accounts for methods of globalization that businesses perform to ensure that they attain breakthrough in the global economy. Other issues that pertain to diversity and strategy management for business success include characteristics of national demographic diversity (Hartman, 2017). Through the recognitions of such strategic approaches in diversity and strategy management, businesses are able to achieve the competitive advantage they wish for in the market. Diversity management within the workforce entails recognizing and possessing the capability of solving issues to do with employee age difference, the difference in gender, religion, culture, and personality (Hartman, 2017).

Conclusion

The strategic capability of business remains one of the core components that ensures that the business organization remains financially viable. It also ensures the growth of the company regardless of the availability of competitors within the free market. Since strategic capabilities are a major component of business growth and survival, several parties have tried to track or measure strategic capability (Hartman, 2017). Strategic management is all about being able to define strategies of an organization. It also entails stating the choice made by managers in setting strategies straight for their organizations. Strategic management has four main steps:

1. Environmental Scanning
2. Policy Formulation

• Policy Implementation

Strategic management is also a platform that enables decision-making and priority setting (Kader, 2017). This management process also helps in:

1. Focusing energy
2. Availing resources

• Encouraging staff members
• Helps organizations in establishing objectives

Proper management is also determined through the allocation of appropriate freedom and space to workers by the managers. In a situation whereby the business has a hierarchical type of system, workers becoming reluctant to executing orders should not be taken as a big deal. The best solution in such a case is to identify the personalities of the workers as a way of ensuring that the managers win the trust of the employees. By so doing, the management stands a chance of altering the way in which they operate within the premises of the business. Achieving such a state is an aspect of strategy management (Hartman, 2017).  

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