Question

In: Finance

1)    Examples of companies that have tried to attempt/execute/design strategic actions and failed. (2)    Your detailed explanation of...

1)    Examples of companies that have tried to attempt/execute/design strategic actions and failed.

(2)    Your detailed explanation of the reason for these failures.

Solutions

Expert Solution

1. Few of the examples of companies that have failed to attempt/execute/design its strategic actions are Nokia, and Johnson and Johnson (J&J).

2. Take the case of Nokia. The company was once a market leader across the globe in the mobile handset segment and is now one of the marginalized players. The company failed to introduce internet enabled smart handsets and with the changing needs and requirements of customers companies like Apple and Samsung took over the market with their more innovate and more technologically sound products. Much before Apple launched its iPhones Nokia was ready to launch its own set of smart phones. But Nokia failed to implement its strategy on ground due to a lack of co-ordination between different decision making authorities. Its innovation and implementation of strategy became a victim of lack of cross-organizational coordination within the company.

J&J’s brand equity nosedived after the recall of it’s over the counter drugs like versions of Tylenol, Motrin, Benadryl, and Zyrtec. J&J was guilty of poor execution and this happened mainly due to a lack of alignment between the attitudes and behaviors of the management of the company with the values and principles of the company. There was a clear misalignment of leader behavior in case of J&J and this led to failed execution of its strategy with regards to over the counter drugs.


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