Case study: Newbury Comics & strategic management

 What is the process of strategic management at Newbury Comics? Who is involved in each part?

Strategic management involves of four basic parts: a) Environmental scanning (e.g., collecting, evaluating, and disseminating of data from internal and external sources or environments to management); b) Strategy formulation (e.g., mission, long-term plans or what results to accomplish by when, objectives, and policies); c) Strategy implementation (programs, budgets, and procedures); and d) Evaluation and control (e.g., performance and actual results) (Wheelen & Hunger).

Newbury Comics practices all most of these basic elements of strategic management. For Environmental scanning: in the video, Mike Dreese stated that the top management collected all information and opinions from staffs, people in the trade, and customers, then they formed their new approaches or ideas. On the issues of strategy formulation (including all plans, policies, and SWOT analysis of strengths, weaknesses, opportunities, and threats), both Mike Dreese and John Brusser, the founders, are the key persons to manage and supervise. For strategy implementation or putting plan into action, in the video, John Brusser claimed he looked after the most, but all top management, middle managers and employees are involved as well—the company develops into an expert in the trade and creates a fun environment for staffs and shoppers. On the subjects of evaluation and control or monitoring performance, Jan Johannet, the manager and all employees, top management, and customers as well are taking part of them.

3) What do you think might be the company’s a) current mission/vision, b) objectives, c) strategies and d) policies? Give an example of each from the video.

a) To have fun and good time for customers to shop and for staff members to work with the top selection and expert in the trade.

b) Keeping the company in the top of the industry (from the highly competitive and changing environments), and maintain the growth in the next 3, 5, or 10 years.

c) Putting customers in the center of its business; offering them what they want and need (e.g., bring in the new trend, and give them more selection). In order to be successful, all strategies must get input and commitment from all-level of managers, and employees.

d) Opening communication, and always have a good time to shop (for shoppers) or to work (for employees) in its stores.

4. What theory of organizational adaption is being followed by Mike Dreese?

Organizational learning theory of adaptation is being pursued by Mike Dreese in Newbury Comics, which states that management or business modifies to a changing environment and utilizes knowledge or data to advance the right directions or market areas (Wheelen & Hunger, 2008). The management constantly learns and looks for ideas, innovations, or opinions from employees, customers, and trade people to form its new strategies and business plans in such changing and competitive environments.

5. Newbury Comics illustrates what mode of strategic decision making? Is it appropriate?

Newbury Comics demonstrates logical instrumentalism as its strategic decision making practice. In this approach, “top management has a reasonably clear idea of the corporation’s mission and objectives, but, in its development of strategies, it chooses to us [ an interactive process in which the organization probes the future, experiments and learn from a series of partial commitments]” (Wheelen & Hunger, p. 21). Under its highly competitive environments, and changing market conditions, by adopting logical instrumentalism decision-making mode, it is the right and only choice for the company—with all the above examinations, and organizational culture, innovation, and strategic management, this is why the company becoming a largest chain store of pop culture (from a small comic book shop) in New England areas.

References

Hunger, D., & Wheelen, T. (2008). Concepts in strategic management and business Policy (11th ed.). New Jersey: Prentice Hall

Newburycomics.com. (2008), Retrieved March 19, 2009, from http://www.newburycomic.com