Word Count: 1053

January 1

Assignment 2

2015

Working individually and with reference to the module content, engage critically with
the management literature, case study materials and any appropriate contemporary
business examples to reflect on the major strategic management theories and
concepts discussed in Lectures and Seminars that you feel are important.
Substantiate why you feel these have shaped your strategic decision-taking abilities.
Evaluate and critically reflect on notes you made in your learning diary/log, and use
these to discuss how your thinking and learning has developed throughout the
module. Consider your part in group activities and how you may have influenced the
decisions taken and how your opinions may have been shaped by others too.
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In this essay I will be looking at the content and theories that have influenced my decision making abilities during this semesters
group simulations.
Our aim during this activity was to raise WRSXs share price. WRSX is an advertising agency whose mission is to make clients
successful through differentiating and strengthening their brands by creating advertising and using a range of marketing related
activities (WRSX Company Report: 6).

Our first board meeting was probably the most basic of board meeting decisions in my opinion as the options were far more
transparent.
As a group we immediately identified WRSXs organisational structure and focused on their financial and non-financial performance
indicators. I spotted issues regarding their size and suggested that WRSX begin to evaluate ways in which they can cut down on
inefficiencies and begin to improve their financial and non-financial repertoire. In order to do this I looked into WRSXs structure,
they operated with a divisional structure. Divisional structure is built up of separate divisions on the basis of product, services or

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geographical areas (G. Johnson, R. Whittington, K. Scholes, D. Angwin, P. Regnr: 438). This is evidenced by the fact that WRSX
operate through offices situated in different geographics. They have four head offices, New York, London, Paris and Singapore
(WRSX Company Report: 16), each office has a portfolio of subsidiaries that offer different services.
Due to this I decided to look at what services the four head offices had in common, I managed to separate the performing and nonperforming subsidiaries in each division, this allowed me to make my judgement and bring this forth to my group. Providing us the
knowledge required to draw up a list of what would effectively be surplus to requirements. Our decision immediately was to
eradicate their non-performing subsidiaries and keep talent to improve WRSXs core capabilities. I felt this necessary as after
reading WRSXs company report, I realised their attempts to diversify via the use of mergers and acquisition had clearly had an
adverse effect on their performance (WRSX Company Report: 7).

Our third board meeting presented us with more complex challenges. We needed to think beyond our strategies in order to make
logical decisions that could benefit our objectives. We decided it best to look deeper into different parts of our strategies in
reference to WRSX and how we were going to improve operating costs/revenue by cutting inefficiencies; this would allow us to
bring different views to our meeting and present different ideologies in order to encourage debate.

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Prior to this point I was focused on centralising WRSX, but, it was suggested by my colleague that I should look into matrix
organisational structures. A centralised organisation is one where an organisational function services all divisions or business units
(L. G. Hrebiniak: 131). I thought this was a more logical idea strategy to adopt. However I took on board my colleagues suggestion
and the matrix organisational structure provided theory to a suggestion I had made in an earlier group meeting.
My suggestion was to create cross functional teams; this would allow WRSX to work efficiently to produce a high quality service
with their most talented employees who are retained through an assertion of more responsibility within the organisation. The matrix
structure enables both divisional and functional structure to be combined; enabling teams to be created that operate across
functions supporting the different product, process or project and can radically improve the horizontal coordination and information
sharing (Schermerhorn, 2011: 188; Mukherjee, 2005: 101).This is what had led to the decision of implementing the matrix
organisational structure in board meeting three; as it combines different structural dimensions simultaneously [for example]
product divisions and geographical territories or product divisions and functional specialisms (Johnson et al, 2014: 438). When
looking back to this decision I now see how we adopted the matrix structure within our own group. Doing this allowed us to develop
a personal experience that helped myself better understand the benefits of the structure.
Inherently, this strategy led us tackle the threat strategic drift was causing through an insubstantial code of corporate governance
and evident lack of leadership. We determined that this was likely to be influenced by the power subsidiaries possess through local
autonomy, which is defined as a self-governing community (Dictionary.com [Online]), in reference to WRSX, this meant that they
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acquired subsidiaries but left them to their own devices. This is a weakness that had left them vulnerable to individual offices
tarnishing their image and these vulnerabilities were exploited by incidents such as the allegations of bribery at their Paris office.
Which evidently had an extremely negative influence on their reputational score (WRSX Company Report:15).
The opportunity to establish a code of corporate governance globally for WRSX was presented in board meeting four. Id been
evaluating the importance of corporate governance through business reports, Looking at Building a healthy corporation found on
the learning network. This established to me that it was a trustworthy academic article. What I learned from the article was the
strengthening of a companys position when corporate governance is practised effectively.
Corporate governance relates primarily to the selection and conduct of the senior officers of the organisation and their
relationships (Lynch, 2003: 377), suggesting to me that strong corporate governance represented strong leadership. I brought this
forward to the group and as I was the one delegated to look deeper into this aspect my expertise were apparent as our share price
increased as a result of our decisions.

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Throughout the simulation process, I have experienced a thinking pattern that has allowed me to take a more direct approach in the
most efficient way. I am currently in the process of setting up my own business and the studied theory and organisational structures
have given me a way of developing an effective business plan and model. Being able to critique particular theories on
organisational structure has also helped me determine the type of leader I am and what type of organisation I can successfully
direct. Its a firm belief that the type of business I am trying to establish will benefit from the dynamism of the matrix structure but
also through strong leadership which is something I will continue to develop. This is evident by how mature and structured we were
in developing our points in order to sway the group into considering a choice and making a decision. Ultimately, this resulted in the
final share price rising to 7.35.

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Malick kane
Strategy in Action

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Appendices
Week No:

Board Meeting 1 + 2
Weeks Topic:
Establishing our structures

Personal notes
What
theories/models
have been
discussed / or I
have read about
this week?

Based on the strategies of downsizing and matrix structure, the board meetings agendas was selected to get
rid of the inefficient subsidiaries within the portfolio of WRSX, and to become flexible through an adapted
organizational structure.
In our first board meeting we decided to prioritise our strategic choices and base any decision made on changing
organizational structure and also focus on ways in which we could downsize WRSX in order for it to be cost efficient
and dynamic.
After reading through WRSXs report I realsied immediately what had to change and board meeting 1 presented us with
the opportunity to do so. As seen in the image above, we were presented with the opportunity to downsize WRSX by
selling a non-performing subsidiary and raising capital to invest into WRSXs core capabilities.

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What else do I
Downsizing is the practice of reducing the size of the business (Hatten, 2010: 9).
think, or know,
about this topic?
What new
insights,
understanding,
feelings have
arisen for me?

I personally thought this was the most logical way to start as I felt we ought to play it safe and stick to what we
know in order to evaluate whether our decisions were to have an immediate impact on WRSXs financial and
non-finacial performers

However, considering their staff cost ratio and their inorganic differentiation strategy that has enabled them to
differentiate their products to their clients through acquisition (Aswathappa, 2010: 343). It may be suggested
that WRSX has gave too much autonomy and control to these acquired organizations. Downsizing is the
practice of reducing the size of the business (Hatten, 2010: 9).
How does this
It has helped me think reasonably about how to establish a foundation when looking to restructure an
topic affect my
organization. We played it safe but we did it with a measure of confidence that we were going to get results.
(personal and
Through that we have also adapted the ability to take precise risks for the good of the company by firstly
professional) life? weighing up the efficiencies and inefficiencies within a particular theory or structure.
Why do I feel this
way?

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Week No:

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Board Meeting 3 + 4
Weeks Topic:
Implementing New Structure and Strengthening Leadership via Corporate Governance

Personal notes Here Is my point of focus and the basis for my reflective essay as these were this was the structure and a
strategy developed from the implementation of this structure that presented the group with the opportunity to
eradicate the inefficiencies we aimed to cease.
What
theories/models
have been
discussed / or I The matrix structure combines the divisional and functional sectors of an organisation in order to create
have read about dynamic teams whilst also remaining efficient and retaining talent. This is what had led to the decision of
implementing the matrix organisational structure in board meeting three; as it combines different structural
this week?
dimensions simultaneously [for example] product divisions and geographical territories or product divisions
and functional specialisms (Johnson et al, 2014: 438).

Corporate governance is concerned with the structures and systems of control by which managers are held
accountable. (Johnson et al, 2014: 113).

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What else do I
This structure has advantages that can significantly benefit WRSX as they eradicate problems with
think, or know,
about this topic? communication, which inherently strengthens management; due to coordination and co-alignment being the
major function of management (Cushman & King, 1995: 36).
The matrix structure enables both divisional and functional structure to be combined; enabling teams to be
created that operate across functions supporting the different product, process or project and can radically
improve the horizontal coordination and information sharing (Schermerhorn, 2011: 188; Mukherjee, 2005:
101).
What new
insights,
understanding,
feelings have
arisen for me?

When looking back to this decision I now see how we adopted the matrix structure within our own group. Doing
this allowed us to develop a personal experience that helped myself better understand the benefits of the
structure.

How does this

This encourages my ability to collaborate and create efficient ways to run a business, I can now establish what
topic affect my
organizational structure an organization follows with confidence and I can also make an analysis and question
(personal and
particular strategies in the knowledge that I can help develop further to increase its chances of successful
professional) life? implementation
Why do I feel this I feel this way because throughout this process I have challenged frequently and this has forced me to look
way?
deeper into theories in order to draw my own conclusion. It has heightened my ability to think with logic and
reason, thus allowing me to be more direct with decisions I make.

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Malick kane
Strategy in Action

Week No:

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Board Meeting 6

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Weeks Topic:
Our Final Product

Personal notes This a our end product. Youll find here quotes relevant to my conclusion and in the text.
What
theories/models
have been
discussed / or I
have read about
this week?

In board meeting six, the agendas were chosen by taking a long term decision making approach. Due to the
strategy of downsizing correlating strongly with acquisitions, especially when excessive premiums are paid
(Hitt, Ireland & Hoskisson, 2008: 200), we found that it would be highly beneficial for WRSX to eradicate the
Cine FX subsidiary due to the conflicting interests that clients have been experiencing when the Cine FX
subsidiary is used for marketing purposes

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What else do I This board meeting holds great importance for WRSX as they have managed to eradicate a lot of inefficiencies
think, or know, within their organization, restructure the organization to be structured as a matrix structure to improve flexibility;
about this topic? while also noticing the key involvement of all of its subsidiaries within its portfolio in achieving a coherent
strategy.
What new
insights,
understanding,
feelings have
arisen for me?
How does this
topic affect my
(personal and
professional)
life?

. Due to there being a significant shift in the growth in new media market, WRSXs mature and declining
subsidiaries profits were used to fund the Silverfish new media. By using the financing from the other mature
and declining subsidiaries, the equity of the WRSX was kept intact which makes WRSX attractive to investors.

Due to the results of post board meeting six there has been clear growth in the way I make my decisions.

Why do I feel
this way?

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References

Autonomy | Define Autonomy at Dictionary.com. 2015. Autonomy | Define Autonomy at Dictionary.com. [ONLINE] Available at:
http://dictionary.reference.com/browse/autonomy?s=t.. [Accessed 31 March 2015].
Aswathappa, K. (2010). International Business (4th Ed.). New Delhi: Tata McGraw Hill.
Cushman, D., & King, s. (1995) Communication and High-Speed Management, Albany: State University of New York Press
Hitt, M., Ireland, R.D., & Hoskisson, R. (2008). Strategic Management: Competitiveness and Globalization, Concepts, Volume 1
(8th ed.). Mason: South-Western Cengage Leanrning.
Hrebiniak, L. G. (2013) Making Strategy Work: Leading Effective Execution and Change. 2nd edn. United States: Financial TImes
Prentice Hall.
Johnson, G., Whittington, R., Scholes, K.,Angwin, D., & Regner, O. (2014). Exploring Strategy (10th Ed.), Harlow: Pearsons
Education
Mukherjee, S. (2005). Organisation & Management and Business Communication. New Delhi: New Age International.
WRSX (2012) company report (case study) Available: Winchester Learning Network
Lynch, R. (2003) Corporate Strategy (3rd Ed.), Harlow: Pearsons Education

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