Evaluation of Canon’s Strategies

Evaluation of order Strategies The protrudening(a) part of this investigation involves an evaluation of the strategies utilize by decree and the severalise factors for advantage. In order to being this analyze, it is first necessary to canvas how the family has performed in new years. Table 1 hand overd beneath yields an overall refreshen of the brass sections performance in recent years. The data distinctly suggests that cornerstoneyon has made famed proceed toward evolution market sh be, revenues and profitability. In add-on to reducing its debt to asset ratio in 2008, the governing body in any oddball increased its stockholder equity to assert ratio.Table 1 Key execution of instrument Indicators for canon, 2004-2008 pic Data politeness of http//www. shadowon. com/ir/annual/2008/report2008. pdf early(a)(a) indicators of codes succeeder are provided in write in codes 1 and 2 below. These illustrations provide a criticism of net sales and ROE/ROA fo r 2003-2007. Figure 1 concluding Sales for lawFigure 2 ROE/ROA for regulation Data courtesy of http//www. canon. com/ir/annual/2007/report2007. pdf With the realization that Canon has performed so well in recent years, it is pertinent to consider the limited realms which acquire promulgated success for the organization.A crucial review of the case schooling provided on the organization suggests that there are a shape of pertinent dodging components which have been pertinent to the success of the organization. In particular the organization has worked to develop a military mission and resourcefulness which it has incorporated on all levels of its operations. The maturement of a guiding mission for the organization is essential for success (Henry 2007). Missions provide the foundation for the exploitation of military actionable processes which can be occasiond for moving the organization toward special goals (Johnson, Scholes & Whittington, 2008).In accessory to de veloping a mission and vision which provided the organization with a directive for action, Canon also veritable a firm dodge center on attainable goals for operations. Specifically, the organization set the specific goal of obtaining 30 percent of the world market by the 1980s. Research regarding the current assure of achieving this objective suggests that even though Canon has not been able to preserve a 30 percent market share in the industry, it has pass over competitor Xerox to become second only to Hewlett Packard.Figure 3 below provides a review of global market share for companies competing in Canons industry. Figure 3 Global Market Share for Canon and Competitors pic (Data courtesy of Office electronics industry profile, 2008, p. 12) The focus on a specific goal for the organization has hitly had an impact on outcomes for operations. By utilise this specific goal for development, Canon has been able to set clear, measurable objectives which can be evaluated by the or ganization to determine outcomes. Setting measurable goals is an cardinal comp anent of developing a strategic see for the organization (Huang, 2009).Measurable goals are viewed as essential to the successful implementation of a strategic plan which provides significant results for the ongoing development of the organization. Another issue which appears to have had notable implications for the successful development of Canon is the use of specific philia competencies to realise the outcomes of operations. In addition to developing a strategic plan which provided clear and measurable objectives, the organization delineated specific nerve center competencies which it has been able to hone in order to coordinate its strategic objective and contact its goals.A review of what has been observationd regarding the use of cell nucleus competencies suggests that meaning competencies can provide the organization with the ability to focus development in particular areas (Zook, 2007). This process, in turn, sets the full stop for the development of way practice and shapes how the organization approaches the market and its competitors. Collis and Montgomery (2008) provide a more integral review of core competencies noting the importance of review int caned core competencies in the circumstance of the external surroundings in which an organization competes.As reported by these authors, organizations take to consider the external environment and competitors in developing core competencies. While it is evident that core competencies moldiness meet the internal demands and capabilities of the organization, Collis and Montgomery assert that improper alignment of core competencies in light of competitors and the larger industry in which the organization operates get out result in failure of core competencies to be effective. In developing its core competencies, Canon appears to have taken these issues into consideration.The specific outcomes in this area are witn essed by the fact that in the 1970s, Xerox held a mass market share, which it has subsequently lost to Canon. In the 1970s, Canon recognized that the practice for success being used by Xerox was not the like formula which it wanted to pursue in the development of its organization. In this context, Canon chose to pursue a different pathway for competitive development one which changed the keep company to synthesize its internal capabilities with the market environment to shit a unique competitive advantage against its largest rival.Because of this process of developing particular core competencies for operations, Canon was able to maximize its internal capabilities and use this as a strategic advantage in the marketplace. In summarizing the overall approach used by Canon to develop its strategic plan and subsequent management processes, it seems reasonable to argue that Canon did more than just place terminology on paper to establish a foundation for the organization. Rather, the organization developed a comprehensive plan for vision, outline and development which were use on every level of the organizations operations.In addition to delineating the larger objectives for the organization, Canon developed all of the intermediate steps that would be needed to hand these objectives. In doing so, the organization aligned all of its activities toward the achievement of the organizations overall strategy. The development of strategy in this manner is commensurate with what scholars note about the strategic plan and management processes. Kaplan and Norton (2008) assert that the strategy think and development processes for the organization often end in failure because of the unfitness of the organization to effectively execute its strategy.Further, these authors assert that strategy failure is commonality because of implementation problems which manifest as organizations attempt to make critical connections among strategy objectives and specific outcome s which leave be achieved to ensure that objectives are reached. Placing this information into the case of Canon, it becomes evident that these issues did not arise. Rather than struggling to implement, the organization developed to tools and resources needed to effectively ensure that it built a foundation which would enable success.It is this specific process which has enabled the success of Cannon. When strategy development is formulated as more than just specific words on paper the end result is the development of a strategic plan which provides concrete action steps for the organization to take. With these action steps in place, the organization is remediate poised to control the development of the strategic plan and its implementation (Neilson, Martin & Powers, 2008). This element of control in the strategic grooming process has been noted to be an important contributor to the success of strategic implementation.When control is established in the strategic planning process, the organization is able to dictate the specific changes which will occur and respond to outcomes in a manner that is commensurate with the capabilities of the company and responsive to the specific external environment which will impact the outcomes of operations. What new(prenominal) Companies Can Learn With a basic review of the success of Canon in the development of its strategy provided, it is now possible to consider what, if anything, can be learned by other companies from this case.In examining the development and outcomes of Canon, it becomes evident that the specific protocols and practices which have been used by the organization to achieve success should not be mimicked by other companies. Even though Canon has been instead successful in its efforts to develop its products and services, the reality is that other companies cannot expect to use the same formula for success and to achieve the same outcomes achieved by Canon. Other companies have attempted to use this app roach in the pasti. . lot City, K-Mart, etc. Even though mimicking another organization may provide some benefits in the short-term, the reality is that the outcomes achieved will not provide an organization with a long-term foundation for development. Even though companies examining the case of Canon may not be able to use the same specific tactics employed by the organization, Canon did employ a number of general models for strategic planning and development which could be considered by other organizations.In particular, the development of core competencies for operations is an important tool which other companies could consider for success. An examination of models for the development of core competencies in the organization suggests that companies need to begin with a core strategy for the development of their operations. Once this core strategy has been delineated, it is then possible to articulate specific areas of organizational development by attaching them directly to the core strategy.Figure 4 on the following page provides a generic model of how core competency development for the organization has been conceptualized in for translation of core competencies into organizational practice. The application of this model to the development of core competency planning for the organization would serve as the foundation for the development of the basic ideas which could then be used for the further development of the organization. ground on the specific core competencies decided upon by the organization, a nominal strategic plan for organizational development could be implemented.This plan would need to reflect the development of measurable goals to ensure the overall success of achieving core competencies. Figure 4 Generic Model for Core Competency formulation pic Image courtesy of http//www. ulv. edu/cbpm/business/img/mba_exp_graphic. jpg Once the core competencies for the organization have been delineated, it will then be possible for companies to con sider the development of a strategic plan. Examining the specific steps used by Canon, it becomes evident that good advice for planning and development in this area are provided in the case.In addition to developing a driving vision and mission, the organization also implemented critical success factors which enabled the organization to formulate goals. The goals were codified in the context of action steps which provided a concrete foundation for the organization to achieve success. All of these issues were supported by the core competencies established by the organization. Figure 4 below provides a review of this process and demonstrates how other organizations could effectively adopt this process to generate success in their strategic planning and management processes.Figure 5 General Strategic Planning Processes pic Figure courtesy of http//www. bottomlineresultsonline. com/images/uploads/StrategicPlan-Graphic_t humb. jpg In the end, the most pertinent lessons that organization s can learn from the Canon case are those related to the development and execution of strategy. Although Canons success is due in part to the specific choices that it made, the development and implementation of strategy on every level of the organizations operations intelligibly had implications for the success of the company.Other organizations seeking to capitalize on this success should consider the development of core competencies, the evolution of an integrated strategic plan and the development of clear defined goals for execution which can be measured to ensure progress and outcomes. By following these basic processes, other organizations should be able to create notable success in strategic planning and development. Reference dip Canon Annual Report (2007). Canon. Accessed April 19, 2009 at http//www. canon. om/ir/annual/2007/report2007. pdf. Canon Annual Report (2008). Canon. Accessed April 19, 2009 at http//www. canon. com/ir/annual/2008/report2008. pdf. Collis, D. J. , & Montgomery, C. A. (2008). Competing on resources. 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