Resource-Based Business Strategy

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MODULE TITLE: Legal Aspects of Global Business
MODULE DATES: Oct. 19-Oct. 29
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Poly U: 19109468g,
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Table of Contents TOC \o "1-3" \h \z \uPost Module Assignment Submission Formi1. Resource Based business Strategy…………………………………………………….31.1Overview of Soundbrenner………….…………………….……….…………….……51.2 What is a HRM plan ………………….………. ….…………………….….…………51.3 HRM Strategy for Soundbrenner…………………...….…………….……...………62. Reward………………………………………………………………….………….………52.1 Theoretical Understanding……………………………………………………….……62.2 Implication of reward strategy………………...…………………………….………...72.3 Application and Impact of reward Strategy…………….….………….….…....….…73. Organizational Culture and Structure of Soundbrenner………………………….…...73.1 Overview of Soundbrenner…………...…………………….……….…………….….83.2 Organizational Culture……………………………………………………………….133.3 Applications of Personality and Emotions…...……………………………….…….134. Future Leadership for Soundbrenner………………………………………………….14 4.1 Expand Promotional platforms For Exploding………………………………….….14 4.2 Emphasize on Weaknesses ………………………………………………………...14 4.3 Identify key Indicator………………………………………………………………….145. Conclusion…………………………………………………………………………….….146.Reference List ……………………………………………………………………………17
1 Resource-Based Business Strategy
The strategy is determined as a plan of action that regulates the process for achieving a goal. Management develops goals and allocates plan of action with them in a strategic manner. Soundbrenner does not have any direct competitor. Its business strategy is resource-based, a niche business since they do not have a direct competitor. According to Kim and Mauborgne, "the blue ocean strategies "which deploy new ideas and knowledge to create brand new markets without any competition." Base on Porter's generic competitive strategies, business with a niche business strategy, "concentrates on a narrow segment; within that segment tries to achieve differentiation or cost advantage." Looking at UK's retail business- Fortnum & Mason, as the world's oldest department it has managed stay relevant and thrived in the 21st retail environment. So, what is the magic of the UK's retail business and how relevant is their business model to Soundbrenner's business model? Its innovative bricks and clicks" business model have allowed it to post a strong sales performance over holiday seasons. Fortum & Mason's global business strategy is what is unique about their retail business.
1.1 Overview of Soundbrenner
Different from most metronome devices on the market, Soundbrenner is the perfect combination of technology and music. "A 4-in-1 wearable, it is a modern metronome that looks like a smartwatch and comes in both a regular edition and sophisticated stainless-steel version. The product's most distinctive functions are its vibrating metronome, which produces vibrations seven times more powerful than the average smartphone." A product is perfect for musicians and bands as they can synchronize all devices together via the app. The co-founder/ CTO Julian Vogel started the prototype with USD 1000, and even though it was vile, it worked well. To this date, Soundbrenner builds the world's first wearable smart device for musicians. (Simmerdinger, 2020)
Priced at an average of HKD 2.5k, this niche product is the core of Soundbrenner. Without any direct competitors currently, the management can further build its brand reputation. Having filed two patents, it does not have to worry about the ownership of core technologies being stolen by other companies. Being a cross-border organization, its HRM strategy should be the focus of the business operation.
1.2 What is an HRM plan?
HRM is a strategic and systematic approach that helps the organization using a set approach to manage its people in a way that matches with the organization's objectives. An example of this is the employee handbook that serves a blueprint for building a strong organization.
1.3 HRM strategy for Soundbrenner
After understanding the current start-up culture of Soundbrenner, a strategy was developed to determine the plan of actions that regulates the process for achieving a goal. In a small, medium-sized company, the office manager or operations is usually the person who is in charge of preparing content for the handbook. "Almost 88% of the leaders of Top 50 companies believe that building the HK system from day one proves to be fruitful in the long run because it helps in retaining top talent in the company; eventually leading to a better growth." (Luenendonls, 2019) In order to manage a team of people in both Berlin & Hong Kong, recruiting the right people is the most crucial step of the HRM strategy. According to the 'Best practice/ universalism' Pfeffer (2005), Soundbrenner can use all seven-bullet points to build a reliable HRM system. All the critical areas of human resource management are reviewed under this strategic paradigm. For example, the management under the process of Human Resource Strategy plans the hiring process, training and development, engagement criteria, developmental strategies, and appraisals. In this strategy, the reward is linked to performance.
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2 Reward
A reward is a recognition against a specific act or effort. While a reward can be in any form, its objective is the same. For example, a reward is designed to recognize the efforts and praise for it. HR departments plan to praise and recognize their employees under the process of reward strategy. A reward strategy is a sole of managing human capital.
Reward strategy involves designing of rewardable criteria, policies, and practices as per the organizational attributes. The organizational objectives are kept positively associated with the reward strategies. Further, reward strategies are also essential for motivating employees and directing them towards the organizational goal. For example, if employees are recognized for their efforts, they will make the utmost efforts. As a result, an effective and productive workforce is yield.
Reward strategy encompasses elements such as compensation, benefits, recognition, well-being, and development (Gamble, Brennan, and McAdam, 2017). Concerning Soundbrenner, the reward strategy is different from a traditional scope. Precisely, the company indicate recognition gesture and emphasize on non-monetary reward schemes (Vogels, 2017). Most importantly, appreciation for small deeds is also considered a rewarding strategy for the team. Such considerations give rise to optimal organizational performance. Reward strategy is significant as help all the stakeholders relatively and positively. For illustration, Soundbrenner's employee gets favour through recognition for which they tend to operate effectively.
2.1 Theoretical Understanding
The theoretical framework indicates the philosophy beneath every process. In consideration of this, the reward strategy is also equipped with theoretical understanding. Broadly, the theoretical paradigm indicates that rewards are associated with motivation. Correspondingly, Herzberg claimed work as a source of motivation. Thus, completion work acts as a rewarding activity for the individual. However, the role of reward is to avert an individual from being distracted. Thus, reward strategies must be designed in a manner that abides arising discomfort at work and then prevents them. Accordingly, the expectancy theory of Herzberg state that employees set their behaviour based on expected outcomes.
Herzberg presented another theory to justify the practice of reward strategy (Habaiz, Awan, and Sahibzada, 2017). The author highlighted two factors intrinsic and hygiene that influence (rewards or punishes) employees. Accordingly, motivating forces acts as intrinsic elements of a job that lead to satisfaction, achievement, recognition, and growth (Hur, 2018). On the other side, hygiene forces are outside elements of the working environment—for example, relationship with colleagues, employer, salary, and job security.
Conclusively, reward strategy must be emphasized motivational attributes of an organization. Besides, the theoretical understanding also emphasizes that organizations must consider proper management of hygiene factors. The fundamental of reward theory is the prevention of employee dissatisfaction and boost their motivation to work. Soundbrenner has adapted the same. The company make intensive efforts to sustain hygienic factors influential via peaceful working environment and uses appreciation to motivate intrinsically.
2.2 The Implication of Reward Strategy
In contrast with the benefits of reward, specific implications are also highlighted in the professional literature. Formerly, Habib et al. (2017) claimed that reward is least effectual on retaining employees. Similarly, reward possesses limited significance on the task-dependent practices. For example, employees experience fair competition due to reward strategies. Nevertheless, the joy of working often is laid-off due to intense reward pressure. This may also influence the quality of work being performed. For example, employees experience fair competition due to reward strategies.
Nevertheless, the joy of working often is laid-off due to intense reward pressure. This may also influence the quality of work being performed. For example, an employee is passionate about a specific type of music; instead, he is forced to work on a different kind of music.
Consequently, such employee will lay off his passion and his productivity will suffer. Precisely, rewards strategies are effective in improving the speed of tasks with minimal influence on accuracy. This must be considered by organizations such as Soundbrenner.
2.3 Application and Impact of Reward Strategy
The reward strategy is implemented in four steps. In the beginning, the team is assessed as per their present performance and contribution. Specifically, the problem at present working spectrum is highlighted in the assessment phase. Later on, designing of reward strategies is carried out. In general, comprehensive strategies, policies, and criteria to manage are design by the organization. Correspondingly, designed reward strategies are analysed, and expected outcomes are estimated. Further, execution and regular practice of reward strategies is carried out. Eventually, the impact of reward strategy is evaluated by comparing estimated and actual outcome.
Precisely, reward strategies are applied through the identification, design, execution, and evaluation phases at Soundbrenner. Most importantly, profit-based planning, systemic presentation, and goal sharing are critically considered attributes of consideration to apply reward strategy in the company. Therefore, individuals receive a benefit in the form of directional forces that prevent distraction at the workplace. On the other side, organization performance is empowered through increased productivity, engaged workforce, increase morale, and improved services.
3. Organizational Culture and Structure of Soundbrenner
Collective values, beliefs, expectation, and practices make up the organizational culture. Organizational culture act as a guide to regulate the team members in a particular direction (Kitsios and Kamariotou, 2019). Mainly, organizational culture acts as a trait of the firm. Another important aspect that governs a company is organizational structure. According to Gamble et al. (2019), and organizational structure indicates a system about core activities and directions of a firm. Moreove...