Approaches for Organizations and Businesses

These problems (stated inside form of questions) are as follows:

1. What varieties of structure did AOL Time Warner and IBM use, and how do those people structures compare of the conceptual framework?

2. What are the justification for the techniques utilized by AOL Time Warner and IBM, and are the methods compatible on the conceptual framework?

3. How could AOL Time Warner and IBM improve their strategies and organizational structures?

4. How closely does the conceptual framework fit the operational environments of AOL Time Warner and IBM?

The matrix for Porter's Competitive Techniques includes dimensions for Competitive Advantage and Competitive Scope. The classifications of Competitive Advantage are Low-Cost and Uniqueness, while the classifications for Competitive Scope are Broad and Narrow. Thus, the four quadrants reflecting competitive strategies are (1) Low-Cost Leadership (Low-Cost and Broad Scope), (2) Differentiation (Uniqueness and Broad Scope), (3) Focused differentiation (Uniqueness and Narrow Scope), and (4) Focused Low-Cost Leadership (Low-Cost and Narrow Scope.

The strategic technique followed by AOL Time Warner is Low-Cost Leadership. The company pursues a Broad Scope strategy in each of its profit-center operations, although simultaneously pursing a strategy of price leadership in each of its profit-center operations.

 

AOL Time Warner justifies its strategic method in relation towards the must be sensitive in serving various cultural markets. IBM justifies its strategic procedure in relation towards differing requirements of its target markets, the definitions of which don't vary by global region.

When Netscape was an independent entity, the business formulated language-based versions of its Net browser. During the company's offer incarnation as being a wholly owned subsidiary of AOL Time Warner, the Netscape continues this practice.

The conceptual framework of Functional, Divisional, and Geographic Designs are right for each AOL Time Warner and IBM. In every instance, however, the use of multiple means to organizational model is necessary.

When Netscape was an independent entity, the business pursued a Global Solution Division Structure wherein numerous divisions modified the straightforward Netscape solution for a variety of global language areas. During the company's provide incarnation like a wholly owned subsidiary of AOL Time Warner, Netscape follows the exact same process to globalization.

The conceptual framework of cultural sensitivity is proper for each AOL Time Warner and IBM. Each businesses perform well in this context.

AOL Time Warner justifies its strategic approach of Low-Cost Leadership because of industry trends in all of its profit-center operations that emphasize client growth rather than growth inside narrower sub-markets. IBM justifies its strategic approach because of the require in pc and info markets to provide differentiated items in order to assure profit growth.

 

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