The paper "Strategic Management Principles for Shefa’ a Company" is a good example of a management case study. Globalization and economic changes today have escalated the challenges in the business environment. In particular, Teece (2010) explains that these developments require the enterprise to re-evaluate their means to create value along meeting consumer needs. Here, the ability of the enterprise to achieve these successes requires the availability of a well-developed business model (Teece, 2010). The model employs an efficient strategy in capturing and delivering value. Moreover, it outlines the resources and capabilities of a firm that generate value to the target markets (Teece, 2010).
At this point, it is important to consider the term strategy whereby Cui, Meyer and Hu (2014) define it as a plan outlining the activities to perform. The plan focuses on achieving long-term objectives and tapping future opportunities that provide a firm with competitive advantage along maintaining financial success. This report considers the case study of Shefa’ a discussing the appropriate strategy to employ. It includes the advantage and disadvantages of the strategy projected through an argument of its suitability to the different shareholders of the company. Strategy for Shefa’ a The case study identifies the underlying situation in the business where there are both the financial and non-financial concerns about the future of the business.
As such, Shefa’ a cannot apply a strategy that only addresses one segment of their existing challenges. Therefore, it is only a combination of strategies that will see the successful mitigation of the situation at Shefa’ a. Here, the equity investment and begin human testing strategies strike as suitable solutions, especially since they account for both the economic and social concerns of the future operation at the company.
Working with the American hospital to commence human trials is a strategic step in the fulfillment of the philanthropic pledge. Here, contracting the hospital to continue the human trials ensures that the company becomes elevated from inquiring further financial burden in financing the research. Furthermore, the collaboration with a philanthropic organization such as the hospital will ensure that the population benefits from the success of this medical trial. This mechanism agrees with a functional level of strategy where there is the making of tactical decisions that center on collaborative efforts (Grinblatt & Titman, 2016). Grinblatt and Titman (2016) explain that corporate-level strategies address the firms’ ability to produce positive net present value.
Imperative in generating the net present value is its dependency on the factors of investment and financial choices. Barton and Wiseman (2014) include that with the current financial crisis affecting the profitability of the business, it is important to shared value and sustainable capitalism solutions. These solutions describe the mechanism employed in equity investment whereby the firms manage to secure long-term investment and value (Barton & Wiseman 2014).
Furthermore, the strategy provides a return on investments along with economic growth which at the moment are central challenges in Shefa’ a. In reference to Grinblatt and Titman (2016), equity investment is a significant source of external capital. More important are its different types which all together interpret to enhanced financial performance. Advantages of the Combined Strategy The situation at Shefa’ a calls for a broad strategy that effectively eradicates their financial and social burden. As such, the proposal to engage a combined strategy seems beneficial for some reasons.
First, the collaboration with the American hospital to perform human trials provides the advantage of generating open innovation. Saebi and Foss (2015) explain that an open innovation technique controls external knowledge to enhance internal innovative changes for expansion in markets. Furthermore, it generates a restructuring of the organization through changes in the business model realizing more flexible management process. Here, working together with the American hospital acts as a driver to positive changes through developing open innovations channels.