Report on Business Strategy for Innostat

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Project of “Big Shoes” Report on Business Strategy for Innostat BAHR 550 StudentName Date Organizational Behavior by Tracey Gurton StudentNumber 12192100 DerekDonghui Chen Oct 15, 2010 “Innovation distinguishes between a leader and a follower.” ------ Steve Jobs BAHR 550 Organizational behavior Project of “Big shoes” Derek Donghui Chen 12192100 Executive Summary Dear Stephanie, Thank you for inviting me to conduct a strategy consultation on Innostat! I am glad that you agree that Innostat is at a turning point and some effective actions must be taken immediately. I wish my suggestions will help you solve the problems and make the company back on track. The following report is prepared for senior executives of Innostat. The report uncovers the existing problems which led to the Innostat’s loss of market share. The problems generally lie on three different layers: department problems, Inter-department problems, and problems in the whole organization. The result of the interactions of these problems is the lack of innovation in the organization, which further leads to the slow development of successful new products. To address the short run needs of Innostat and sustain the company’s long run profit, the strategy consisting of three stages is developed and elaborated. Stage one is to develop a successful new product and introduce it into the market in the short run. Stage two involves the building a new department which is in charge of product development and product introduction. Stage three is actually the most critical part of the strategy, which is to change the culture that innovation is not prevalent in Innostat. Combining the three stages of the strategy, Innostat is expected to change its current poor performance in the market and achieve long run economic profit. Given that the reorganization and cultural change are both tremendous

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