The Hour Glass Case Study

Topics: Problem solving, Corporation, Strategy Pages: 5 (1792 words) Published: November 14, 2011
1. Based on the case study above, attempt the following questions : a. Identify and justify three strategies that have been implemented in the organization. From the case study given, The Hour Glass has been facing lots of tough time while they trying to be everlasting in the business world. In making the base of the company will going lasting, this company has been taking lots of the strategy in avoiding their business find the way to be doom in the upcoming years. So, there have three strategies that has been use the by the company in facing the problems. This strategy has been structured in decide, in making the impact of the company will be going advantages to the company soon. The first strategy that has been found in the case study, which is, The Hour Glass has been decide taking this decision as their strategy. Their first strategy is related diversification. The related diversification can be understand as the company has been adding the new diversification in their company and the diversification will be related with their products or services before. The implication by using this strategy in maintaining the company flows, which are, this strategy can make the company will be more understand the business really well. Other than that, the company will know the opportunities and threats that will the company facing in using this strategy. So, from that, the company also can predict the problems that will come in future by preparing to face it. This will puts the company in the save the condition, and on same time, the company is on trying to make the business runs smoothly. The proof has been seen that THG has been deciding to take this decision as their strategy in their business, that is, THG company has been started the business by retailing the watches. So, they structured the initiatives while facing the problem by incorporation with watch making business. This is Swiss, the luxury watches. This business has been changed THG from the retailer to the manufacturer. The related diversification can be seen when the company has been started the business as the retailing of watches and after that, they becoming the manufacturer for the luxury watches, which is, Swiss. The second strategy is unrelated diversification. Unrelated diversification can be understood as the company has been adding the new diversification in their products and services, but they adding the different diversification to their business. The implication for the company in using this strategy in their business is, risk spreading. In entering the new products into the new markets, this strategy will offers the protection in against the failure the current products and markets. Other than that is, the company will potentially will have the high profit opportunities. This can be explain, the company will have the ability to move into the high growth profitable. So, this will help the company in improving the company profits. In proofing THG using this decision for their strategy, THG whose core in the watches business before than they change the way of the business in the food industries, which is Milano’s pizza. This can be seen the different between before and past product that has been THG chosen for the next improving for the company. The third strategy is divestiture. Divestiture can be understood as the removal of assets from the company books. The businesses divest by the selling of ownership stakes, the closure of subsidiaries, and the bankruptcy of division and so on. In understand simpler, this divestiture is about selling a division or part of an organization. The implication to the company in using this strategy is, this strategy will be improving the company operating. Most of the company will use this strategy when they have any problems. So, in making the company still tough harsh in the business world, the company will take this strategy as the other steps in make the business will be stronger. The...
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