Closed Circuit Systems Ltd: Strategic Management

Subject: Strategic Management
Pages: 8
Words: 2150
Reading time:
9 min
Study level: PhD


The content by the researcher is articulate and clearly explains that strategy and planning serve as a backbone for which many organizations can be able to carry out their operations efficiently so as to achieve their corporate goals (Towers 2008, 44). This document clearly demonstrates a clear understanding of strategic business advantage from both the industrial organization model and the resource-based view of the firm. This is because the researcher takes a look at the importance of applying principles of strategic management in the manufacturing of high quality security products and also the importance of operating with the best human resource strategies (Kourdi 2009, 94-95). Human resources are the most important resources to a firm because it is human’s knowledge that runs all other functional departments in an organization and thus if an organization does not ensure optimal use of its resources then the organization is most likely to fail and not realize their industrial purpose (Paauwe p.62-66).

Main body

The resource based view of the firm requires managers and strategic managers used various tools to analyze how these resources can be used to the advantage of the firm, the researcher through contents of the PowerPoint has clearly brought to light the fact that Closed Circuit Systems Ltd has various resources in its availability that has enabled it emerge as one of the most respected security technology companies in Europe selling CCTV products and remote monitoring systems. The document takes a look at the capabilities of the company and its resources and also employs a SWOT analysis to measure the company versus other competitors such as Panasonic and Meyertech. The researcher has also illustrated the understanding of strategic business advantage from an industrial model point of view whereby Closed Circuit Systems Ltd being a very large company with highly segmented operations which can often present themselves as a weakness, should be clearly planned so that the company can continue growing comfortably and pass out services to its clientele efficiently. The researcher explains that by putting in place the necessary resources and strategic framework together with streamlining Human Resource activities the company can be able to realize its missions and goals more efficiently (Becker & Gerhart 1996, 85-87).

The researcher’s descriptions of the business environment are quite vivid and thus clearly and accurately draw a line that distinguishes threats and opportunities that face Closed Circuit Systems Ltd. The company is currently a market leader in Europe but there are many other participants in the industry who have built a reputation over time which include Panasonic and Meyertech have brought a new twist into the business environment. As new opportunities present themselves and the company uses their brilliant R&D department to develop new technologies there is a possibility that other followers who exist in the same industry may imitate and use their superb brand recognition to compete with Closed Circuit Systems Ltd. The documents contents are quite clear although the researcher would have expanded even further on how these opportunities and threats present themselves in the European market. The internet security market is an opportunity field that is rapidly expanding and thus many companies are tapping into the market, this fact is clear hence it is necessary that any company that wants to tap into the market to dedicate the required resources in order to realize the benefits of doing so. The researcher has also made it clear that the brand name of Itys Company as compared to that of its competitors who have been in business for over half a century presents itself as a challenge because the other companies are more likely to penetrate the market because they are known due to the fact that they possess well known brand names (Armstrong 2006, 104).

The researcher has given an explicit strategy statement which states that Closed Circuit Systems Ltd is optimistic of been one of the reckoned brands in the world when it comes to technology security. The company intends to advance and embrace technology that will enable the company to create vast opportunities for the company to diversify its markets and products. This statement explains what kind of plans will be put in place to ensure that these events occur and these include putting more resources into the research and development department and by marketing the company’s products aggressively additionally the company has put in place a five year plan and a committee which will assist the company realize its ambitions. The strategy statement has come about out of the contents of the SWOT analysis (internal and external environment). The statement assures that the company will continuously step up R&D and also dedicate a lot of resources towards competing with other competitors within the market (Lancaster & Withey 2006, 87-89).Circuit Systems Ltd has insisted that marketing efforts will be taken a notch higher so that the company can be able to acquire more market share and sell its products to the market. The internal and external environment analysis indicated that there exist a lot of business opportunities and threats that the company needs to either tap into or militate against. Some of these opportunities included the market arising internet security sector and strengths of the company which include a strong R&D department. Hence the company has decided to involve itself vigorously on R&D to tap into existing business opportunities and also step up marketing activities in order to increase their revenues (Charles et al 2009, 57). The contents clearly illustrate that the researcher made his strategic deductions and constructed his strategy based on the outcome of what presented itself in the review of the external and internal environment.

The human resources strategy takes into consideration elements best fit approach more than best practice approach of strategic human resources management. Best fit approaches usually aim to ensure that human resource strategy is suitable and good for different circumstances of the entire organization especially culture, the environment and processes. This strategy incorporates the needs of the organization and people into human resource strategy (McLean, Osman-Gani & Cho 2004, 24). Conversely best practice approaches speculates that given human resource strategies can be applied in almost any organization and result to positive output, this theory does not take the needs of an individual organization and the people into consideration but rather generalizes. The researcher states that with new business strategy and operational processes, the strategic plan recognizes that there is need for the organization to achieve these goals and that a new HR strategy is needed to enhance the existing HR frameworks and, where necessary, identify new difficulties and execute HR solutions (Boone 2010, 29-31). The researcher in particular is referring to a more customized Human resource strategy that is customized to meet the needs of the organization and of the people (Drath 2001, 56). The researcher insists on a human resource strategy that is long-term and both macro and micro in nature, in other words a best fit for the organization, this way recruitment, training, appraisal, and promotions can be handled much well (Paauwe 2009, 12).

The document illustrates a clear understanding of proactive and reactive Human Resource practices. The researcher insists that Closed Circuit Systems Ltd in recognition of the expansion of the business and arising needs, the Human Resource department is required to be proactive and is also required to take action more swiftly to the shifting needs of business units and individual employees (Paul & Seerberger 2002, 53). This fact makes it clear that the Human Resource department is aware of the various challenges within the workforce and the importance of human labor to the achievement of business strategy and thus intends to put in place necessary mechanisms that will allow the Human Resource department to become more proactive to the needs of the employees of Closed Circuit Systems Ltd. This is why the company intends to be proactive when it comes to staffing, performance management, and compensating employees and also training employee’s so that they can instill loyalty and high quality performance within the company (Brayden, Teppo & Whetten 2010, 52).

The human resource approach used is a best fit approach that has taken into consideration the needs of the organization and the needs of the workforce also (Armstrong p.67-69). The organization requires highly efficient, accurate and loyal employees who will assist it achieve their vision and mission while on the other hand the needs of the employees are catered for by putting in place the necessary systems that will ensure staffing, training, compensation and performance management is accurate. Hence the current Human resource strategy takes into account both the needs of the organization and workforce in designing work systems.

Yes, the current operations demonstrate a high degree of vertical and horizontal alignment. Alignment of human resource strategy is highly important to organizations. Vertical alignment most of the time refers to a type of alignment whereby the human resource strategy is properly in tandem with a firm’s corporate strategy (Legge 2004, 57-59). The business strategy of Closed Circuit Systems Ltd is to empower customers with technology to compete and emerge as a world leading company in that sector. The planned Human resource strategy is in cycle with this desire and vision of the company because it aims to recruit and staff the most brilliant minds, train, promote and even compensate them in such a way that the entire workforce of the company will be able to operate with a high degree of efficiency and loyalty by creating a workplace that will be suitable for high degree of performance (Mathis & Jackson 2008, 77-79). Thus Closed Circuit Systems Ltd has a Human Resource strategy that has a strong link between the workforce and the business strategy meaning that the degree of vertical integration of Human resource strategies within the company is quite high and this can be seen in staffing, training, performance management and compensation operational area of the human resource strategy. On the other hand the Horizontal strategy in this case deals with the various policies such as training, performance management, recruitment and compensation. The level of horizontal integration can be measured using Human resource policy areas; the contents of the power slide indicate that the company has put in place a clear Human resource policy that will help the company achieve the overall Human Resource objectives (Elwood, Holton, James & Trott 1996, 18-22). An example of compensation policies is a compensation mix consisting of monetary and non monetary rewards that supports and is customized to the needs of every employee. The staffing functional area is supposed to match the needs of the organization with the market and acquire the right people of the organization as well as maintain them through various ways. It can shuffle the performing and non performing employees, and put in place appropriate training and development operational programmes or recruits and managers in order to motivate organizational employees (Chakraborty 2010, 68-69). The performance management has built in systems to measure performance and appraise employees in order to motivate them while the compensation functional area has set the appropriate reward systems (Rothwell 2005, 119-121). The above operational areas of the human resource department are an indication of how there exists both horizontal and vertical integration in the human resource strategy.

Conclusion and recommendations

The organization has a clear goal and a business strategy and every operational area has been designed with the clear intention of assisting the organization achieve its goals and objectives. The human resource department is a functional area so is the R&D department all these operational areas are made so that they can assist the company become one of the most respected and known brands in the technology based securities industry (Kelly 2001, 109-111). Knowing that this industry requires innovation and highly creative minds, the human resource department is now operating with a clear strategic rational that is linked to the overall business strategy of Closed Circuit Systems Ltd (Storey 2007, 72). This way, the staffing department will be able to acquire the most talented individuals, train them, monitor their program, offer promotions within the organization and compensate them accordingly. All this human resource department efforts are carried out in order to ensure that the organization is able to create a conducive environment that will be suitable for the workforce to realize the business objectives and goals of Closed Circuit Systems Ltd. Each operational area including appraisal and compensation will this work together to ensure that the effort of every employee will be appreciated and bring about motivation which will inspire the workforce not only realize the human resource objectives but also the business objectives of Closed Circuit Systems Ltd (Hersey, Blanchard, and Johnson 2007, 43-49). The strategic role that is to be taken up by every operational area plays a specific role to ensure that Closed Circuit Systems Ltd will have a healthy workforce which is essential for business excellence.


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