ZISCo’s Challenges and Management
The following are considered to be the challenges while introducing the new strategic management policies in ZISCo.
The mission of creating a new-market-oriented culture while conserving its customary values.
A market culture may be defined as a results-oriented, competitive setting in which the ZISCo is getting the job done and being productive. The main aim is to win against competition and sometimes by any means necessary. The success of the organization refers to the size of market share and level of penetration. The ability to compete and market leadership are significant values. Thus, Zhang’s market-back stride has a major effect on the degree of market orientation in a business, whereas, the traditional approach has no effect. Thus, Zhang should play a key role in making a business turn be more market-oriented.
Recognition of strategically significant areas for value creation was still needed to further enhance organizational performance.
For instance, the IKEA store has redefined what the value-creation process is meant. IKEA is a renowned furniture store offering quality and affordable furniture to improve the ambiance of one’s home. It has more than 96 million loyal customers worldwide and each showroom is about 20,000 square-meter carpet area housing a variety of furniture for the customer to choose from. The main aim of IKEA is to create a business that reinvents value and a business system that delivers quality through an entire case of economic factors.
IKEA is capable of maintaining both prices and costs down due to the fact that is found means to redefine the functions and relationships of every participant in the value-added chain. The outcome is a stratagem that spotlights quality at every turn. Customers of IKEA by aggregating and shipping their own furniture become a partaker in the value-creation methods rather than consumers of value. Management of IKEA visualizes its part as helping in this value-creation process, not only by according “the clients” a new role but also by facilitating the customer to assume a role. The outcome is that IKEA customer receives a level of quality that is unavailable elsewhere, let alone at IKEA’s price. Zhang should follow the IKEA style so that value creation can be achieved on an enduring basis in ZISCo also.
Following the footprints of ZISCo, many competitors have introduced competitive advantages in their organizations, and how ZISCo is going to face the increased competition from these players in the near future is a paradox that is to be addressed.
A business can gain a competitive advantage through having “advanced resources.” Advanced resources are those that have value in the market and are owned by only a small number of businesses and are difficult to substitute. If a specific resource is also costly or not possible to imitate, then competitive advantage may be sustainable. It is to be noted that a sustainable competitive advantage may pave to higher-than-average performance over a long period. Marriott is the best illustration of a hotel that has fruitfully capitalized on its resources to gain a competitive advantage over other hotels. ZISCo should also develop such kind of sustainable competitive advantage to outperform its competitors.
How ZISCo has learned and developed organizational capability through strategic management which could be systematically mapped out and enhanced so as to strategically build the business’s capability of learning and managing strategically is to be addressed.
By implementing strategic management as its core business mission, Zhaujang should endeavor to enforce the following on a sustainable basis to attain overall growth for ZISCo towards the millennium.
- To make ZISCo the “customers choice”.
- To have “Inspired employees”.
- To have “vibrant profitability.”
- To be “really global.”
- To be “Global and Caring.”
- To develop world-class and country-wide assets.
- To secure access to swiftly growing markets.
- To sustain the present leadership of ZISCo in production technologies.
- To maintain first-rate quality relationships with customers, joint venture partners, communities, suppliers, and government.
- To encourage and motivate employees to make their paramount involvement to the business and to exchange their know-how within ZISCo.