When Maria Bellisario became director and CEO of ITALTEL, a state owned telecommunications equipment manufacturer in Italy, the company was in trouble, high losses, large debts, insufficient research and development and an overstaffed unionized organization. Multinational companies had entered the Italian market, but fortunately since ITALTEL was a state owned company, the government was trying to protect it among other domestic companies. Ms.Bellisario took some major steps to turn the company around and to improve productivity. Here are some examples of the new direction;
i. Restructuring the organization into business units which was accomplished through open communication and cooperation with the union.
ii. Leading the company into dynamic management information systems which required retraining of employees.
iii. Developing a programme to upgrade low skilled women in the workforce
iv. Pushing for intra European cooperation with the companies in France, England and Germany.
v. Improving efficiency through innovation of products and manufacturing process.
Required:
a. Identify the strengths, weaknesses, opportunities and threats for ITALTEL telecommunications. (7marks)
b. Assuming Ms.Bellisario had consulted you to make a strategic decision for this company, illustrates the strategic management process that you could follow and briefly explaining the steps. (7 marks)
c. Lewin’s has come up with three steps model of managing change. How could the organization apply this model to manage its change processes without affecting the running of the business? (6 marks)
d. Strategies are formulated in three (3) main levels that form the “Hierarchy of strategy.”Discuss the composition of the hierarchy of strategy in relation to the above case highlighting major responsibilities at each level. (5 marks)
e. How can Ms.Bellisario evaluate the success of strategic decision that she makes for this company? Illustrate. (5 marks)
Question Two
A nation’s competitiveness is very important more so in the present global economic world with a very volatile business competition. Michael Porter has given the diamond model as a tool to measure the nation’s competitiveness. With a clear illustration discuss in detail the application of Professor Michael Porter’s Diamond model in the Kenya’s vision 2030, and how Kenya will be expected to become competitive globally. (10 marks)
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