CUSTOMERS, MARKETS AND TECHNOLOGY MODS 1-8

HYS8

December 15, 2020

Customer, Markets, and Technology-MOD 8

Amid widespread technology layoffs, organizations are still hiring in a flicked labor market. This concept is what has transpired to the technology retrenchment in some organizations across the globe. As companies adopt technology and embarking on merging and other acquisitions, various reasons have been prompted. One of the underlying reasons is based on the value creation based on the advancement of technology and its application in businesses. Nowadays, companies are required to be smart, and when merging, two or more companies are driven by value creation to increase the wealth of the shareholders (Moskovicz, 2018).

Additionally, this is an advantage as it creates revenue and cost synergies. Similarly, companies in the modern technological arena have embarked on mergers and acquisitions to increase their capabilities in different perspectives and gaining a competitive advantage in the larger market. Companies that are merging and taking advantage of technological advancement are better placed than their competitors.

Based on the turnaround strategy, this is a retrenchment strategy adopted by an organization when there is a feeling that decisions made earlier were long and the need to be reversed to avoid adverse effects to the company. Concerning the timing for adopting this strategy, this is mostly when there is a continuous loss, high attrition rate of employees, declining market share, among other reasons. Based on my understanding of the turnaround strategy, the reasons given are reasonable enough to lead to its success. The rationale behind this is that the strategy is geared towards achieving a sustainable competitive advantage. Katuse and Ayiecha (2014) argue that turnaround strategy involves action that a company can take to realize one or more goals, hence superior performance. In terms of what would missing, especially when implementing turnaround strategy, is a failure to have a culture of innovation and positive change ensure that employees at all levels of the organization are compatible with new ways of doing things.

Strategic business unity (SBU) is a concept that is based on a profit center, which puts focus on product offering and market segmentations. Examples of companies with SBU include LG company, Proctor, and Gamble. Such companies have different categories under one roof. Taking consideration of LG company, it produces consumers durables, which include washing machines, TVs, refrigerators, air conditioners, among others.

The small LG company units are formed as separate strategic business units, making it easier to track costs and revenues for the company independently. With this concept, upon considering a unit as SBU, its status changes, and can make their own decisions, budget, investments, etc. The LG company's strategies seek innovation and technology enhancement both internally and externally as the company continues paying close attention to assess feedback on technological innovations from internal/ external experts to manage its risk factors and monitor its progress. Classifying SBUs is for the organization to develop appropriate strategies that will maximize the company's revenue by assigning appropriate resources.

In identifying the knowledge system design process used by a company, it is essential to understand that this approach is geared towards three components, which include modeling the business process, identification of the knowledge-intensive process in the business, and identifying the knowledge requirements to be mapped by the identified system design process.

Notably, knowledge management systems have been employed in different organizations with the goal of managing information and knowledge efficiently and effectively to gain a sustainable competitive advantage (Noonpakdee & Phothichai, 2015). The goal of this kind of system is to support strategic decisions relating to knowledge as a resource. Based on the problems associated with the knowledge system design process, one of them is complexity or the design requirements. Another problem is that the design approach assumes that the organization's memory will not possess all the knowledge required to solve such problems. The fundamental goal and benefits of developing a knowledge system are to increase organizational, operational efficiency, and staff productivity. Another key benefit that the company will realize better strategies and improved profitability. With LG company implementing a knowledge system, this helped the organization utilize and better manage its assets and other resources by providing an appropriate environment for knowledge accumulation, hence improving overall employee productivity.

Understandably, the concept of knowledge management, knowledge systems, and knowledge learning is essential for the organization's success. One of the websites that provides a discussion regarding the process of managing organizational learning and knowledge systems is https://www.uky.edu/~gmswan3/575/KM_and_OL.pdf. This Website provides discussions on the basics of knowledge management and organizational learning, which includes management processes and goals, knowledge management systems, and knowledge management process and cycle (King, 2009). Whether the process seems doable, yes, it is because the company seeks to acquire potentially expedient knowledge and increase its effectiveness in terms of its utilization (Spender, 2008). The organization struggles with developing knowledge systems and knowledge management because of the complexity of organization requirements. Such changes keep on changing due to discovering different aspects and areas of knowledge that need to be integrated.

References

Katuse, P., & Ayiecha, F. O. (2014). Implementing turnaround strategy: effect of change management and management competence factors.

King, W. R. (2009). Knowledge management and organizational learning. Knowledge management and organizational learning (pp. 3-13). Springer, Boston, MA.

Moskovicz, A. (2018). Mergers and Acquisitions: A Complete and Updated Overview. International Journal of Economics and Management Sciences, 7(4).

Noonpakdee, W., & Phothichai, A. (2015, May). Designing Knowledge Management System in a Social Enterprise. In Managing Intellectual Capital and Innovation for Sustainable and Inclusive Society: Managing Intellectual Capital and Innovation; Proceedings of the MakeLearn and TIIM Joint International Conference 2015 (pp. 509-514). ToKnowPress.

Spender, J. C. (2008). Organizational learning and knowledge management: whence and whither?. Management Learning, 39(2), 159-176.