Al Nahda LLC was a diversified business entity having business operations all over the Middle Eastern and North African (MENA) region. The company leadership had just changed as Ali handed over the reins to his younger brother Sultan, owing to Ali’s poor health. The family business had expanded in a big way and within a time span of ten years became one of the two leading players in all the industries where they had their business interests. The company had ventures in retail, hospitality, healthcare, entertainment and aviation. Being services based player, Al Nahda had to have leadership and employees who had different approach from a product based organization, especially when it came to strategic issues. Ali was a person who believed in a unified, comprehensive and integrated plan that is designed to assure the basic objective of the enterprise, which basically translated to delighting and retaining the customers by differentiating from the competitors. Sultan was following the principles of Ali for the first year, however, the results started to show negative trends quarter after quarter as well as throughout the year. A worried Sultan was unable to find reason to this change especially when he was blindly following the tried and tested strategic decisions made by his brother cum predecessor, that was bringing in results year after year. Sultan approached a consultant in Muscat, Al Lima Consultancy Services to conduct a thorough study and present a report within a fortnight.
The report submitted by Al Lima had the following highlight that had to be analyzed by Sultan and his team to reorient the strategic decisions of the company-
(1) Competition changed, but the company didn’t alter its policy towards the competitors.
(2) Companies neither expanded nor diversified and were obsessed only with operational effectiveness.
(3) A turn around was called for, however, the new management was yet to get a firm grip on the whole organization.
(4) Divestment was not even considered as the company wanted to make their presence continue even though competitive advantages were lacking vis-à-vis the competitors.
(5) Triggering events like New CEO, threat of change in ownership, for initiation of new strategies was never taken up seriously.
(6) Variables changed but the company was blindly following the old SWOT and PEST analysis related findings.
(7) The company moved back into phase I of the development of strategic management discipline and was focusing more on basic financial planning rather than to be in phase IV of seeking a competitive advantage through a successful future by managing all resources.
Question 3- How do you think strategic management related issues got affected due to the change in competition, and the company didn’t alter its policies towards the competitors?
Question 4- What can you make out from the fact that the company neither expanded nor diversified and were obsessed with operational effectiveness for one long year after Sultan taking over as the CEO?
Question 5- “Divestment was not even considered as the company wanted to make their presence continue even though competitive advantages were lacking vis-à-vis the competitors”. Do you think strategic planning was impacted by this incident? Give reasons for your answer.
Question 6-Trigeering events for initiation of new strategies were never considered seriously. How do you think it might have affected the company?
Question 7- List out four things along with reasons, you would do as Sultan to turn around the company.
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