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Running head: STRATEGIC MANAGEMENT OF STREAM 1

Strategic Management of Stream

Author

Institution

STRATEGIC MANAGEMENT OF STREAM 2

3. Strategic course of action description and analyses, and recommendation.

Describe the opportunities and threats facing the organization from the conclusion of your last

term report (SWOT).

Opportunities:

1. The company has identified a new opportunity in the provision of tax services

2. Most of their current clients require tax work on yearly basis

3. They specialize in analysis based services that have enabled them to acquire new customers

from their primary competitor – Cambridge. For instance, they offer CFO for hire, which is a

plan that targets to help other businesses expand

4. Stream Can Afford to Charge its Clients Lower Fees than the Big Companies

they are Competing within the Industry

Threats:

1. The organization has no access to loan facilities since it is a small company

2. They incur huge labor costs that account for about 90% of their operation costs

3. They undercharge clients to retain their loyalty but they need to offer higher salaries than their

rivals to reduce the staff turnover

4. Clients that use Stream Company services grow drastically and establish their accounting

departments; hence, the organization is losing valuable clients

Write the Possible Strategic Courses of Action Through Which the Organization

May Capitalize on these Opportunities or Overcome the Threats.

The organization can successfully tap into the benefits of its opportunities through:

a). Purchasing the latest tax calculation software so that it can deliver competitive service that

will surpass its primary competitors

STRATEGIC MANAGEMENT OF STREAM 3

b). Outsource some of their tax calculation problems to lower the cost of operations

c). Establish a policy that would prevent staff members from carrying the files of their clients

home. The regulation will attract more customers as they will be assured that their confidential

information is safe

d). The company should develop a standard pricing policy for their services to avoid

undercharging customers

Develop and Describe a Set of Criteria Through Which to Analyze, Measure, and

Compare the Courses of Action.

 The Stream Company can analyze the significance of its actions through determining the

number of clients that are interested in its service.

 The actions taken can be measured through establishing their cost of implementation and

the efficiency of organizing production. If an organization can accomplish a given task,

the decision is then suitable for the business.

 The enterprise can also compare the suitability of its course of actions through

monitoring its capability to attain value creation and the satisfaction of clients. When the

customers express contentment, it implies that they are taking the right course.

How do these Criteria Support the Organization’s Resources and Core

Competencies or What is the Feasibility of Future Acquisition?

These standards support the resources of the organization through helping it to maintain a

competitive advantage since it can deliver comparable or even better service to the clients at a

lower cost, the business will soon need to expand. Acquisition of its competitors would be one of

the most potential means of development.

STRATEGIC MANAGEMENT OF STREAM 4

Decide Upon, Recommend, and Justify a Course of Action.

The Stream Company can beat its competitors through focusing on its core competencies.

The approach involves the provision of unique services that its primary rivals lack. For instance,

the taxation sector has few competitors; hence, the company will easily market its services to

both current and new customers. This course of action is feasible since the team can provide tax

services at a lower cost than its rivals.

Services

Benefits

Disadvantages

Taxation

Numerous clients require it

Customers are reluctant to

change the service providers

Funding

The investors have financed

the company from their

individual resources

The organization lacks access

to loan facilities due to it

small size

Core competencies

Workers have unique skills

needed for the development

of the business

The enterprise overpays

members of the staff to

reduce employees’ turnover.

4. Analysis of organization design and strategic alignment: Evaluate the organizational

culture and strategic leadership

Stream uses adhocracy organizational culture as can be proven by its value for

innovation, dynamism, and risk-taking. Its strategic leadership involves hiring individuals with

STRATEGIC MANAGEMENT OF STREAM 5

unique skills to run particular chores. For example, Twip was hired to run the social media

promotion.

Rewards

1. What Types of Rewards Does the Organization Use?

a. The quality of its services is higher or comparable to its competitors but comes at a lower cost

b. Gives their employees better remuneration than their rivals

2. How does the Organization measure performance?

Organizations measure their performance through evaluating whether the set objectives

have been obtained. For example, the manager can know that the staff accomplished their goals

if they attained the target returns on investment.

3. Consider the Incentive Scheme in Relation to Decision-Making and Control Rights;

Team members can be motivated by allowing them the freedom to make decisions

independently. An individual feels ownership of the business because they make decisions that

play a crucial role in the overall performance of the enterprise.

4. Consider both Intrinsic and Extrinsic Rewards

Stream offers intrinsic rewards as it promises to give promotions to the best performing

employees. Similarly, it provides extrinsic motivation to potential clients to hire its services

through delivering high-quality services at a lower cost than its rivals.

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