BST714 Strategic and Operational Decision-Making Assignment Sample
Purpose
To give you an opportunity to obtain first-hand experience in
1. Employing strategic management concepts and analytical tools.
2. Appraising strategic choices and develop and evaluate viable strategic options.
3. Demonstrating a comprehensive understanding of the salient issues in the implementation of strategic change in the internal and external organisational environments.
4. Identifying and evaluating appropriate strategies to manage stakeholder demands.
5. Developing project plans to enable strategy implementation.
If you take this assignment seriously, you will teach yourself many basic principles on strategy, which will stand you in good stead in many subjects, and in many walks of life.
Assessment
You will be judged on criteria given in Appendix I.
Tasks
For the sector you have been allocated (see Appendix II) you should;
1. Review the marketplace characteristics for the sector allocated by using any public domain information available and relevant academic literature search. Select a particular case company to undertake Tasks
2-4. Highlight secondary data sources that you will exploit and explain their strengths and weaknesses.
2. Highlight and evaluate the corporate strategy of the organisation selected. Is the corporate strategy effective and is the business model appropriate for the marketplace characteristics?
3. Providing empirical evidence and analysis as appropriate, determine the order winners and market qualifying criteria and classify the supporting operational process using the Hoekstra, and Romme (Buy-to-Order, Make-to-Order, Assemble-to-Order, Make-to-Stock, or Ship-to-Stock) or the Lampel and Mintzberg (Pure Standardisation, Segmented Standardisation, Customised Standardisation, Tailored Customisation, or Pure Customisation) process categorisation system. Is the supporting operational process appropriate for that particular market? If not, what should it be?
4. Develop a change management plan to either a) realign the case company’s operations strategy or b) improve the case company’s operations strategy, taking into account the change levers for each phase.
Is your change plan feasible in days, weeks, months or years? What are the resource implications of your plan?
NB if the case company supports more than one market sector then describe what these are but limit your research to just one.
Each part accounts for 25% of the total marks.
Solution
Introduction
Strategic decision making is a systematic approach used by business organizations to evaluate the pros and cons of existing business situations and developing approaches to realize the goals. Strategic management and the decision-making process of business are interrelated to each other. University Assignment Help, in the present context, Thames Water company has been selected to identify and evaluate their strategic and operational decision-making process. Evaluation of corporate strategy followed by this firm is a necessary part of this task.
A review of marketplace characteristics under which the company runs its operation is discussed in this task. Corporate strategy and operational process followed by the Thames Water company in the UK have been discussed in this present report task. Salient issues linked with the operation process of Thames Water are discussed in this task. Based on the issue, a suitable change management plan is suggested to the firm under this report.
Brief About The Organization
Thames Water is the UK's largest wastewater and water supply company in the public domain. It is basically the private utility company responsible for the supply of the water to the public areas. Kemble Water Holdings Ltd is the parent company of Thames Water; it has 9,000 employees along with vast numbers of suppliers (Thameswater.co.uk, 2021). The organization is responsible for providing services like recycled wastewater; sewage treated water, biosolid fertiliser, recovered phosphates, drinking water and renewable energy.
In each day, 2.6 Gl drinking water per day are produced by this organization (Ofwat.gov.uk, 2020). In addition to this, the firm is responsible for the production of 4.4 Gl recycled water per day. Each day the organization serves 15 million customers in London and in the Thames valley. In the last year 2020, the organization made £97.8 million in revenue which is far lower than the financial year 2019 (Statista.com, 2020). Instead of having a smooth operation process, the organization is facing a certain form of salient issues that need to be managed.
Review of Marketplace Characteristics
With the aim of accessing clean water and sanitation, the water supply sector of the UK has been established. Each day the UK water supply sector provides over 50 million household and non-household consumers in both England and in London. There are 32 numbers of privately-owned companies that provide such types of services to consumers (Ofwat.gov.uk, 2020). Water and sewage industries were privatized in 1989 in the UK, and since then, a regulatory framework has been in place to ensure that consumers receive high standards of service at a fair price.
This type of regulatory framework has allowed the companies under the water supply sector to invest £130 billion to improve the maintenance and service process. Forty-one thousand full-time equivalent jobs are supported by the water supply sector of the UK. The industry is strongly compliant with the European as well as national legislations (Ofwat.gov.uk, 2020). It is necessary to state that currently, there are 25 water suppliers covering England. In the financial year, 2019 to 2020, the overall expenditure of the water supply sector has reached 798 million British pounds (Statista.com, 2020). As per 2017 statistics, there are more than 131.502 million workers in the water supply and wastewater treatment sector in the UK.
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Figure 1: Public sector expenditure on water supply in the UK from 2009 to 2020
(Source: Statista.com, 2020)
The Department for Environment, Food and Rural Affairs (Defra), Environment Agency, Drinking Water Inspectorate (DWI), and Consumer Council for Water (CCW) are the regulatory bodies that maintain the water supply throughout the entire UK region. Currently, 1,000 bodies are responsible for the supply of clean water in the UK, while 1,400 bodies are responsible for sewage and disposal of sewage (Ofwat.gov.uk, 2020).
From the year 1930 to 1940, The Water Resources Act 1963 has been improved to help in managing food and severe drought (Thameswater.co.uk, 2021). As mentioned by Westling and Sharp (2018), transformative changes in the UK water supply security have helped to manage the demand of the public. In order to deliver resilient, reliable, and safe water to all at an affordable rate, innovative technology has been implemented. £200 million innovation competition funds have been incorporated to supply water to people and manage sewage at a much faster rate (Thameswater.co.uk, 2021). Net-zero emissions in the water treatment have been given special focus. The strength of this sector is associated with the five most innovative approaches that strength the operation process of the company, these are as follows:
? Responding and adapting to climate change
? Improvement of ecological status
? Understanding long term operational resilience
? Exploring opportunities
? Testing new ways to conduct new activities
UK water supply sector provides numbers of opportunity for people to become an effective supplier in the UK water supply sector; these options are as follows:
? Having a Water supply licence (WSL), (Ofwat.gov.uk, 2020)
? Having a Water supply and sewerage licence (WSSL)
? Self-supply licence and the new appointee (Thameswater.co.uk, 2021)
From various secondary sources it has been identified that over 60 years, the sector is changing significantly. Different types of secondary sources have been used to identify the market place characteristic of Thames Water supply. The sources have vast numbers of strength and weaknesses [Refer to Appendix].
Corporate strategy of the business
The corporate strategy of Thames Water focuses on the unique long-term plan and framework used to gain a competitive advantage. The organization focuses on delivering quality water service to its consumers. For explaining the corporate strategy of Thames Water, four major elements are necessary to describe; these are as follows:
Resource’s allocation
Thames Water focuses on allocating resources into two main areas, namely people and capital. It has been identified that since the year 2007, the organization has made capital investments of at least £1 billion a year (Thameswater.co.uk, 2021). The figure became £1.2 billion in the fiscal session 2016 to 2017. This type of corporate strategy has allowed the firm to comply with the law regarding tax liability in line with UK tax law. A capital expenditure program was also carried out by the firm with the aim of implementation of the Water Efficiency Strategy. The strategy is implemented to minimize the utilization of water and save it from both the household level and business site. As reported by Lawson et al. (2020), the development of a sustainable and resilient water sector required skilled workforces. Thames Water identifies the core competencies of their workforce and provides training to them. The WRMP19 program is intended to engage large numbers of stakeholders with the operation process of Thames Water. Autocratic leadership style is strongly followed by the business to guide large numbers of staff. Both technical and non-technical training and development are provided to staff so that they can handle water treatment.
Organizational Design
The organizational design focuses on ensuring that form has the necessary corporate structure to handle different kinds of operation processes. Usually, a centralized structure is followed by Thames Water to take the decision of top button manners (Thameswater.co.uk, 2021). Under the centralized structure of the business, management takes necessary decisions regarding the delivery of life's essential services to people. Under this type of strategy, management takes the decision, and the workforce is expected to follow the decision made by management strongly. As opined by Loftus and March (2018), Waterhub is the R&D centre established by the company in the year 2004 with the aim of achieving innovation in minimizing the utilization of resources. It is also aimed at reducing the cost and energy in the water supply process in a safe manner. Top-down reporting structures are followed by the business that helps all levels of employees to work efficiently. Storing communication systems allow staff to cooperate with each other easily. For communicating with different forms of stakeholders, both digital technology and traditional methods are followed by Thames Water. The phone call, Email and face to face communication are the primary channels via which organizations carry their communication process to different stakeholders.
Portfolio Management
Portfolio management of Thames Water focuses on the establishment of correlation between different business units and whether the firm is capable of achieving competitive benefit or not. Vertical integration is strongly followed by Thames Water to manage different forms of suppliers, customers and staff. Under the portfolio management, Thames Water focuses on reducing the corporate risk and minimizing the health hazards from the water distribution process. As opined by Hutchins and Bowes (2018), for managing the quality of water, the organization emphasizes minimizing the stream residence time. This strategy not only helps the firm to manage the quality of freshwater supply but also helps to manage sewage water and reduce the chance of water pollution. Porter's generic strategy is helpful to identify the initiatives taken by Thames Water to achieve competitive benefit. As reported by Islamiet al. (2020), Porter's generic strategy consists of the three most important elements, namely cost leadership, differentiation and focus strategy. Under the cost leadership strategy, Thames Water focuses on increasing profitability by reducing the cost. Under the differentiation strategy, the firm established a Water hub R&D centre in 2004 to treat highly polluted water for reuse. Under focus strategy, Thames focuses on urban areas of England and London where the chances of water pollution are very high.
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Figure 2: Porter's generic model
(Source: Adapted from Islami et al. 2020)
Strategic Trade-offs
Under the corporate level of strategy, Thames Water faces difficulties in managing the trade-offs balances between risk and return across the firm. The company is facing issues regarding environmental issues, quality and availability of natural water resources, pollution, climate change, human right issue, employees’ issues (Ofwat.gov.uk, 2020). In this regard, the company focuses on the differentiation of services. It has mentioned earlier that the firm follows differentiation in terms of managing waste by carrying out continuous research and development in their “Water hub”. Multiple suppliers' strategies have helped the firm to minimize the operation cost and cost required to treat polluted water. As criticized by Morley and Savi? (2020), highly skilled employees are responsible for managing corporate risk in Thames Water. The organization provides promotion and recognition to all levels of staff. Incentive structures are followed for labourers and low-level staff that work efficiently to manage wastewater. A passionate workforce and a good salary structure increase employee engagement within Thames Water (Glassdoor.co.uk, 2020). The organization usually uses a risk register and risk rating process to analyse and assess the corporate level of risk. Risk regarding international conflicts and external aspects are managed efficiently by placing suitable mitigation strategies.
Appropriateness of the Strategy in Marketplace Characteristics
With help of SWOT appropriateness of all the strategy to the market place are can be identified, this is as follows:
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Table 1: SWOT for identification of market place appropriateness
(Source: Developed by author)
The corporate strategy of Thames Water is a combination of different strategic approaches. The strategic ambition of Thames Water focuses on the delivery of brilliant customer engagement, investing in resilient systems and assets and generating public value (Ofwat.gov.uk, 2020). Strong financials and large distribution network are their primary strength.Issues of quality and availability of natural water resources, pollution and climate change have affected growth of Thames Water. But opportunity of continuous research through Waterhub is the R&D centre and water Efficiency Strategy to minimize use of resources helped the firm to manage issues. As there is high-end competition in the marketplace, it is necessary for Thames Water to understand their resources and assets with the help of which they can manage risk (Thameswater.co.uk, 2021). This strategy is effective enough not only to manage the needs and wants of their consumers but also effective enough to beat competitions hindering the operational activities of Thames Water. When compared to the marketplace characters, it is a really suitable strategy for Thames Water in term to manage marketplace demand. Continuous training and development to staff and allocation of sufficient resources for research and development helped to capture the attention of large customers (Thameswater.co.uk, 2021). Diversification of services to minimize the utilization of resources and manage environmental sustainability with the aid of water supply have helped to cope with the marketplace characteristics. Hence, it can be said that all the elements used in making the strategy are suitable with the marketplace characteristic of Thames Water.
Order Winners and Market Qualifying Criteria
Order winners
Order winners are the specific characteristic of a business organization that focuses on winning the consumer's purchase. It depends upon winning attributes that lead to customers buying a product (Banchuenet al., 2017). Thames Water sees its customers as the key reason for the purchase of its services. Consumers of the water supply sector in the UK focus on the environmental sustainability, price, reliability, safety, availability and attractiveness of the services. Both individual customers and business level customers are strongly associated with the services provided by Thames Water. When compared to competitors, Thames Water focuses on the reduction of water pollution, customers safety and cost provision, especially when new water supply plants are implemented. In addition to this, while focusing on the treatment of the wastewater in a safe way so that it cannot harm freshwater and affect environmental sustainability. According to Hutchins and Bowes (2018), the Thames Water focuses on meaning the quality of water by minimizing the residence time. In addition to this, Artificial Intelligence (AI)is used by the company to improve the service inspections process. AI also helps in supporting customers in vulnerable circumstances have been revealed among the winners of the inaugural £2 million Innovation in Water Challenge (Thameswater.co.uk, 2021). With time, the organization has lowered the service cost so that consumers can easily afford it. In the case of the big corporate sector, the organization also follows the lower price tactic so that it can do better than its competitors at an affordable rate regarding the treatment of wastewater.
Order qualifiers
On the other hand, order qualifiers are the criteria and attribute that a service must possess for it to be entered into the competition. Overall service produced by Thames Water to its customers thought the Luton, Thames Valley, London, Surrey, north Wiltshire, Gloucestershire, England and far west Kent are very effective. Sustainable services provided by Thames Water are really very effective in terms of providing suitable service to its consumers. The organization has 60 numbers of highly sophisticated monitoring stations that relay live water quality data (Thameswater.co.uk, 2021). Keeping in mind the waterborne disease and health of consumers, the organization places hygienic practice with the aid of technology, AI is used for the treatment of wastewater. In addition to this, GPS systems and real-time tracking systems are used for continuous monitoring of pipelines in the municipality areas. As the organization strongly focuses on reducing the cost of service to ultimate users, consumers' expectations are continuously increasing. Zero pollution in the water supply system and water management treatment is the primary order qualifying strategy that makes Thames Water different from the rivalries.
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Figure 3: Criteria that make Thames Water order qualifiers
(Source: Thameswater.co.uk, 2021)
It is necessary to state that there are vast numbers of innovation are achieved by the business that has helped them become order qualifiers to the eyes of their consumers; these are as follows:
? Floating Photo-Voltaic fur complex installation process
? Smart Bugs for the instant supply of oxygen during treatment
? Information Knowledge Exchange Champions for bringing the best idea in the operation process
? Virtual Reality for employee’s safety and health
? Personal medical assessment for employee’s safety
? Agile software development for quick installation and treatment process
Operational Process Using the Hoekstra and Romme
As per theLampel and Mintzberg model of operation, Thames Water follows certain criteria in the target operation process. The operation princess of the company has two aims; these are as follows:
? Supply of fresh water to consumers at an affordable rate
? Treatment of wastewater to minimize the spread of waterborne diseases
Lampel and Mintzberg model of operation focuses on the five most important areas. As mentioned by Lampel and Mintzberg (1996), operation process consists of pure standardization of process, customised standardisation, segmented standardisation, tailored customisation and pure Customisation. Among all five modes of operation,
Thames Water follows the two most important ones for their water supply chain process. These are as follows:
Pure standardisation:
It is necessary to state that pure standardization process rely on needs of consumers from the designing process to the distribution process (van der et al. 2019). Thames Water follows sustainability. The pure standardization process of the company focuses on minimizing the cost of operation by maximizing the output. Operation is a vast process from the management of human resources to the production of goods and services. In the case of water supply, the company follows the same process for all customers. From the planning process to the implementation process, the standard of the process is maintained. In the case of the water supply in the municipal areas, the company first screens the facilities, then implements the pumping station to intake water from the ground level (Thameswater.co.uk, 2021). After that, it is supplied to customers to reserve for future use. During the entire course of the process, the organization focuses on maintaining the quality of water to customers. In some cases, chlorination is done to purify water in some industrial areas.
Segmented Standardisation
The organization also follows the segmented standardization process where the consumer has a choice regarding the production process. Under this method, consumers that come to Thames Water for sewage water treatment only focuses on the treatment and recycling of wastewater but not focused on the way by which Thames Water treated water. In the case of wastewater treatment, the company first screens the wastewater to remove bricks, sanitary items and cotton buds. In the next stage, primary treatments are carried out to remove solid organic matter. After that, secondary treatment is carried out to remove visible bits of sludge (Thameswater.co.uk, 2021). In the next stage, final treatments are made to settle down the useful bacteria and then it becomes useful for either generating energy or use in the land for the production of crops.
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Figure 4: Wastewater treatment in Thames Water
(Source: Thameswater.co.uk, 2021)
Along with the water supply operation, the overall operation of Thames is strongly associated with the engagement of consumers, employees, effective management of SC, monitoring of water supply and management of quality of water. For managing employees and labour, rewards, recognition and promotional facilities are provided by the firm. Autocratic and centralized management systems strongly guide employees and help them to achieve success. As opined by Maslow(1943), Maslow's hierarchy model of needs is effective to manage employees needs and wants. The basic five needs of employees are physical needs, safety needs, social needs, self-esteem and self-actualization needs are strongly met by the organization.
Strong training and development facilities help to develop the potential within them. For managing the logistics and supply chain operation, they use AI and a real-time tracking system. Customer-centric operations are followed by Thames Water that has helped them to achieve high-end satisfaction. As opined by Sila (2018), TQM focuses on organizations that can afford to satisfy the needs and demand of employees. TQM is the primary aspect of the operation management process of Thames Water. They always focus on the wellbeing of their staff and focus on their safety during difficult and complex treatment processes. DSS is also used by the organization to carry out their operation of diverse municipal areas of London and England.
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Figure 5: Areas of TQM within business
(Source: Adopted from Sila, 2018)
Appropriateness of Operational Process in The Market
Overall operation process followed by Thames Water is effective enough to capture the attention of consumers. Marketplace characteristic is strongly associatedwith the type of suppliers, pressure from rivalries, consumers demand and delivery of services to consumers. Overall operation management process followed within Thames Water is suitable enough for the UK water supply sector.
Though overall operations regarding the management of employees, management of consumers, and management of quality of services are still needed, there is a need for the improvement of the operation process in terms of the implementation of robotics. Instead of the manual process of treatment, implementation of robotics and automation would be effective to reduce the cost and energy of water supply as well as the water testament process. In addition to this, a decentralized system is required to run the overall operation process of Thames Water. There is a need for the implementation of the transformational leadership style to manage human rights issues and employee issues. It is necessary to state that pollution and climate change are the primary barriers that hinder the effectiveness of the operation process of Thames Water. Hence, improvement is also required to modify employee management systems and leadership styles also.
Change Management Plan for Improving Operations Strategy
From the overall case study analysis, it is said that improvement is needed in the operation management strategy of Thames Water. In this regard, change is required in the use of technology for handling the water supply and wastewater treatment process so that issues of climate change and pollution can be managed. Change is also required in terms of the management of employees and implementation of transformational leadership to increase the motivation level of staff. In order to achieve change, Kurt Lewin's model of change management is effective. Application of this model in the change process of the Thames Water is as follows:
Unfreeze:
This is the first stage of change management where the business needs to create an urgency for the change. As mentioned by Hussain et al. (2018), unfreeze stage required the identification of objectives of change. In this, process, Thames Water needs to carry an open survey to evaluate where the changes are required. In this stage, the organization needs to talk with their staffs and labourers also for implementation of robotics in the supply of water and treatment of wastewater. In this stage, the company also need to create a vision regarding the implementation of robotics for the reduction of pollution and change the leadership style into a democratic one.
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Figure 6: Kurt Lewin's model of change management
(Source: Adopted from Hussain et al.2018)
Change:
This is the most important stage where the change needs to be implemented. As identified, Thames Water faces issues regarding poor engagement of staff and high level of pollution due to the use of manual processes of water supply (Ofwat.gov.uk, 2020). In order to manage the issues and manage environmental sustainability, robotics would be implemented. All types of resources need to be incorporated in this stage of change within the Thames Water. In this stage, a democratic leadership style will also be implemented so that staff can take part in the organizational decision-making process and get high-end motivation to access the technical changes. It is necessary to state that training would be provided to staff in this stage of the change management process so that staff and labourers can be able to handle robotics for treating wastewater and handling water supply operation in a sustainable manner.
Refreeze:
This is the last stage where Thames Water needs to sustain the change regarding the implementation of Robotics in the supply chain operation process. As mentioned by Burnes (2020), changes are required to change organizational culture to sustain its benefit. In this stage of change management, Thames Water needs to implement a strong monitoring system so that any type of issues in handling new technology can be identified. It is also necessary to evaluate the performance of employees after the implementation of robotics for further training. Supporting the activities of employees and providing them with recognition and rewards would help to sustain changes within Thames Water.
Timeline and resource implication of change
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Table 2: Timeline of change process
(Source: Developed by author)
Resource Implication
Overall change would help to manage the salient issue faced by Thames Water. Change in the leadership style from autocratic to the democratic one would help level of staffs within the firm to feel valued. It would help to increase their engagement with the Thames Water. In addition to this, implementation of robotics will remove all the necessary manual error in waste water treatment and supply of fresh water to consumers. It would also help to minimize the utilization of resources and save time and energy for production process. Robotics can help to manage quality of fresh water and minimize the pollution during water treatment after all.
Conclusion
From the overall discussion, it can be concluded that the corporate strategy of business refers to the highest level of the strategic plan of a business organization that defines the specific action to achieve organizational goals and objectives. Thames Water is the UK's largest wastewater and water supply company in the public domain. It is basically the private utility company responsible for the supply of the water to the public areas. It has 9,000 employees along with vast numbers of suppliers. It serves in areas like Luton, Thames Valley, London, Surrey, north Wiltshire, Gloucestershire, England and far west Kent. The organization is responsible for providing services like recycled wastewater; sewage treated water, biosolid fertiliser, recovered phosphates, drinking water and renewable energy. The corporate strategy of this organization focuses on delivering quality water service to its consumers. On the other hand, the business level strategy of this organization is to achieve competitive benefit in the UK water supply sector. However, the organization is effective in managing the demand of their consumers with the aid of a lower price tactic, but still, it required innovation in terms of the utilization of robotics in the wastewater treatment process to manage pollution. In addition to this, change is required to implement a support leadership style that is democratic leadership to develop core potentials within the staff and handle robotics for managing wastewater.
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