Ecco
INTRODUCTION
“Strategy can be thought of as a long term plan of action or execution designed to achieve particular objectives, such as achieving competitive advantage for an organisation. It reflects the values, expectations and goals of those who are in power within the organisation.” (RDI course material-Strategic Management module; Unit 1-Nature and scope of strategic management; Lesson 1-Nature)
Strategic decisions direct the company towards the path of growth. A company formulated and undertook decisions in such a way that a strategic direction was made to ensure all possible opportunities for success and keeping control of challenges alongside. Every strategic decision that is made will have an implication for change all the way through the whole organisation.
TASK 1
ECCO, the Danish pioneer in the footwear industry, as the founder, Karl Toosbuy, declares has always aimed ‘to be the world’s best shoes-shoes with internal values’.
Though the inception of the company has been in Denmark in 1963, today ECCO has been successful in creating an international profile. With reference to the case study, ECCO is one among the renowned companies of the world, operating in the footwear industry, with an in-house production of 80%.
From the given case study it is learnt that there seemed to be a strategic drift, for ECCO, for a period of five years from 1999 to 2003 .They were not going the way they had to going. There was stagnation in the productivity and the opening margins were lower than expected. Strategic initiatives to overcome the negative trend, paved way for an emergent strategy to come in, in order to save the company from transforming into an initial public offering (IPO).
In 2004, the United States, Germany and Japan had been the main markets, where ECCO exported about 90% of their production. Ever since then, like most other large organisations, the company has been seeking market opportunities and working persistently to create
“Strategy can be thought of as a long term plan of action or execution designed to achieve particular objectives, such as achieving competitive advantage for an organisation. It reflects the values, expectations and goals of those who are in power within the organisation.” (RDI course material-Strategic Management module; Unit 1-Nature and scope of strategic management; Lesson 1-Nature)
Strategic decisions direct the company towards the path of growth. A company formulated and undertook decisions in such a way that a strategic direction was made to ensure all possible opportunities for success and keeping control of challenges alongside. Every strategic decision that is made will have an implication for change all the way through the whole organisation.
TASK 1
ECCO, the Danish pioneer in the footwear industry, as the founder, Karl Toosbuy, declares has always aimed ‘to be the world’s best shoes-shoes with internal values’.
Though the inception of the company has been in Denmark in 1963, today ECCO has been successful in creating an international profile. With reference to the case study, ECCO is one among the renowned companies of the world, operating in the footwear industry, with an in-house production of 80%.
From the given case study it is learnt that there seemed to be a strategic drift, for ECCO, for a period of five years from 1999 to 2003 .They were not going the way they had to going. There was stagnation in the productivity and the opening margins were lower than expected. Strategic initiatives to overcome the negative trend, paved way for an emergent strategy to come in, in order to save the company from transforming into an initial public offering (IPO).
In 2004, the United States, Germany and Japan had been the main markets, where ECCO exported about 90% of their production. Ever since then, like most other large organisations, the company has been seeking market opportunities and working persistently to create
References: Rdi course material Ansoff, H I (1987) Implanting Strategic Management, Prentice Hall Schein, E H (2004) Organisational Culture and Leadership, Pfeiffer Wiley Johnson.G,Scholes. K.and Whittington. R.(2005). Exploring Corporate Strategy. 7th Edition. Harlow: Financial Times Prentice Hall http://www.mindtools.com/pages/article/newTMC_90.htm http://www.12manage.com/methods_productmarketgrid.html http://www.franteractive.net/Porter-Five-Forces.html http://www.12manage.com/methods_schein_three_levels_culture.html