Strategic Management Analysis

Question: Describe about the Strategic Management. Answer: In this particular research work, focus would be shed on three types of innovation and special focus would be shed on Subway group. Baregheh et al. (2012) have stated that innovation is a diverse activity and there is no monopoly on creative thinking. In this part, focus would be shed on three innovation activities that Subway Group is required to incorporate for the further advancement of business growth (Ceylan, 2013). Figure 1: Three Types of innovative activity (Source: Ceylan, 2013) Incremental Innovation: This is not likely to supply a spectacular change in the operation of the commerce presentation. However, continued modernism in the part is needed to fuel unremitting enhancement in both the manufactured goods and the process-related features of the commerce. It can be stated that this is needed to put off a corporation from deteriorating behind its contestants and making sure its predictions for the long-standing endurance in the existing market place. Therefore, it is required to mention that this innovation would help the company from failing behind the competitors. Already there exist several competitors in the market of Subway like KFC, McDonalds and Berger King. Therefore, this innovation is essential for the expansion of the company in different parts by staying ahead of the existing competitors (Hassan et al., 2013). Substantial innovation: This type of innovation gives superior chance to add worth, as this brings about the creating of the commerce chances that are expected to guide the business and supply a spirited benefit to the organization budding them. In this case, it can be stated that the level of innovation demands considerable investment in the entire procedure along with an successful policy for running the modernization from its development and the expansion period through to victorious commercialization. Incorporation of several effective strategies would help the organization to add value to their existing products and services and this would help Subway to create several business opportunities. Therefore, it is regardless to say that in order to stay competitive in the stiff business environment, Subway is required to add value to their products as well as services (Hill, Jones Schilling, 2014). Radical Innovation: This novelty can revolve commerce on its head by generating new bases of presentation along with new trade models as well as new competitors in the market place. Hitt, Ireland and Hoskisson (2012) have stated that this stage of innovation is frequently noticeable across the industries and crops up as the topic of commerce articles and the business school case studies. Radical innovation most of the times comes from the outside of an industry and this is frequently technology based. For example, it can be stated that to grab the attention of several customers, the company is required to transform their operation online. Taking down the delivery of the customers, maintaining the database of the customers online as well as making the delivery system online are some of the radical innovation that Subway must incorporate for staying competitive in the market place (Joshi, 2013). However, it can be stated that innovation is an necessary constituent of the business movement. For the expansion of the business, the company is required to rely on three generic innovation strategies and these have been mentioned here in details. The company is required to be pioneer and focus on bring new and business foremost technologies to the marketplace, so that the customers of the competitors get attracted to this corporation. The second strategy is the fast follower that adapt at improving the obtainable technologies through incremental modernism in both the manufactured goods and procedure technologies (Lasserre, 2012). This stage most of the times focused on the cost downs and in order to stay competitive in the market place, Subway is required to revise their existing pricing policy in case of some of their products. The third strategy in this case is opportunistic and this makes some venture in the substantial innovation but also sources innovation from the third parti es and spends in adapting these for its recognized marketplace chances. Figure 2: Three generic innovation strategies (Source: Hill, Jones Schilling, 2014) After going through these strategies, it can be stated that Subway is required to be innovative, as these exist several competitors in the market place and this has been already mentioned. Ceylan (2013) has stated that often the level of innovation is linked to the maturity of the industry and this fast food chain is one of the fastest growing industries globally. The target of the organization presently is required to be pioneering and only this strategy can help Subway to stay competitive in the market. Hill, Jones and Schilling (2014) have stated that pioneering players in this fast food industry generally have a strategy of growth from the new products and market development. References Baregheh, A., Rowley, J., Sambrook, S., Davies, D. (2012). Food sector SMEs and innovation types.British Food Journal,114(11), 1640-1653. Ceylan, C. (2013). Commitment-based HR practices, different types of innovation activities and firm innovation performance.The International Journal of Human Resource Management,24(1), 208-226. Hassan, M. U., Shaukat, S., Nawaz, M. S., Naz, S. (2013). Effects of innovation types on firm performance: An empirical study on Pakistan's manufacturing sector.Pakistan Journal of Commerce and Social Sciences,7(2), 243-262. Hill, C., Jones, G., Schilling, M. (2014).Strategic management: theory: an integrated approach. Cengage Learning. Hitt, M., Ireland, R. D., Hoskisson, R. (2012).Strategic management cases: competitiveness and globalization. Cengage Learning. Joshi, M. (2013). Types of Innovation.Available at SSRN 2262206. Lasserre, P. (2012).Global strategic management. Palgrave Macmillan.