There are basically four important components of a business strategy namely product market focus, core activities, and goals as well as value proposition. The work of Crossan, Fry and Killing provided a framework called Diamond-E which has helped the organizations to evaluate whether a particular strategy works or not. The model unravels four important components that affect the success of any strategy including preferences of the current management, organizational capabilities, behavior and culture of stakeholders; resources, and the environment. However, to be able to understand Diamond E theory, this paper shall undertake to study an article by Tim Bajarin titled “6 Reasons Apple is so successful” accessed from http://techland.time.com/2012/05/07/six-reasons-why-apple-is-successful/ .
The article is suitable for this analysis because very few people understand how Apple has been able to grow so fast in non-computing devices after losing the battle to Microsoft. Additionally, for nay product that Apple designs, all the people that are involved in the production have to desire it themselves. More importantly, the products produced by the company’s engineers are easy to use making them more desirable in the market compared to competition devices. Apple as a leader in the tech industry strives to ensure that the customers get a wonderful experience from the use of its products. There is always complexity with the use of certain devices even if they were designed to be simple to use therefore the need for any company to come up with a n exciting in-store experience (Bardeen & Cerpa, 2015).
The application of the model
The model is significant because it helps people as well as the management and stakeholders to the organization understand if a particular strategy works as anticipated. The model looks at the success of the project by seeking to first understand the management’s preferences. The management here includes executives, the board of management, owners, operators, and shareholders apart from the current management’s preferences, Diamond E framework also seeks to bring to light the organizational capabilities, resources and the environment within which the business is operating.
The preferences of the current administration
Apple currently ranks as the top most performing brand in the world today valued at some value above 200 billion US Dollars surpassing other renowned brands such as Google and Microsoft as well as Coca-Cola. The administration the management of Apple have created an environment that empowers the employees to perform to their very best even as they pursue production of the greatest products in the world. The management at Apple understands that for the brand to command loyalty from the customers, the employees have to take a center stage in ensuring that the customers get the most out of using an Apple product. Apple also owns a vast retail experience that helps it stay in front of their competition when it comes to marketing and branding their products (Bardeen & Cerpa, 2015).
Those in management at Apple have to be people of stature and good leadership skills since its launch in 1976. Despite Steve Jobs getting an appointment to the position of the CEO of the IT Company, the board of management ousted him in a coup in 1983. But the amount of losses the organization incurred in 1997, the firm and the board of management sought after Steve Jobs in a desperate move to revive its image. The board saw a charismatic leader in Steve Jobs who could inspire the firm to success. In order to respond to the crisis that the company faced, Steve Jobs had to make certain decisions that appeared authoritative to others. In short, it takes a good management to push any organization to profound success. From this case, it can be clearly shown that the interference of management on the issues and affairs of the organization can negatively affect the performance of the organization. While Steve Jobs was out of leadership, Apple lost so much money and opportunities.
Organizational capabilities, behavior and culture
The organizational culture is very important for the success of any entity and the management has to strive to create an enabling environment for the employees to perform to their full potential. Apple has a fitness center where its employees go to exercise and keep fit and healthy hence enabling them to perform to their full capacity. Employees are given the opportunity to develop their talents. Through, a flexible working schedule members of the staff have the chance to take up higher learning courses in a bid to improve their skills ("Diamond E & Strategy-Enviro Analysis," n.d.).
Every company desires to have a workforce that is equally talented and skilled to perform its tasks and discharge their duties effectively. Employees that have been trained adequately have the ability to increase productivity which translates to improved profitability thus overall success of the firm. This typically explains why Apple has been able to remain at the top as the most valuable brand in the world surpassing companies such as Coca-Cola that have been in operation for more than a century (Lin & Cheng, 2015).
Apple’s management has also strategized around the economical use of raw materials to conserve the environment. Some of the innovative and creative strategies that the company has put in place to ensure effective compliance with environmental conservation includes recycling of old devices. Besides recycling of old devices, Apple apportions quite a substantial amount of budgetary allocations to research and development. The employees are therefore given all the resources that they need to create great products which impress customers as well as meeting their needs.
Linking the information with Diamond E theory
Diamond E theory emphasizes the need for any organization to create an enabling environment for every member of the staff to perform to their level best. For instance, it is the desire for every company to see its employees perform and therefore as such, the firm has to provide the necessary resources to enable them reach their targets. The management too has to show leadership skills. Many employees look up to their managers and leaders for direction which great leaders often provide. According to Diamond E model, the management of any organization plays a crucial role in motivating employees to work hard towards attaining success (Son, Lee & Kim, 2015).
Looking at the Diamond E template, my case strongly agrees with my knowledge of what a successful strategy should contain. In edging out competitors, leadership skills by the management of any firm is very crucial. Further, the creation of products that create a lasting impression in the minds of the customer hence more likely to remember. If customers remember a brand more often, they are more likely to buy it. Another important similarity between the information and Diamond E template is, the effect of according employees with all the resources they need(Lin & Cheng, 2015).
Through my analysis, I have come to learn and understand the strengths of Diamond E theory in the evaluation of a project’s success. The template provides a meaningful guideline for analyzing and critically evaluating if a given strategy will achieve its intended purpose or not. It does so by outlining four major factors namely, current management’s perspective, environment, organizational capabilities, and resources. Additionally, it happens to be a good measure as well as a tool to forecast on future performance of the organization. With Diamond E, an organization is capable of considering a proposal in line with alternative proposals by way of ranking (Son, Lee & Kim, 2015).
More importantly, Diamond E model provides a useful and meaningful way for companies to assess the strategic position of any strategy before implementation. Evaluating a strategy before implementing it is important in the sense that it reduces the risk of an organization investing in a project that would not give forth to good results. Additionally, the performance of any strategy is assessed and evaluated at the onset as well as during implementation to ensure that employees get the resources they need to perform to their level best while at the same time helping the organization succeed.
Bardeen, M., & Cerpa, N. (2015). Technological evolution in society-the evolution of mobile devices. Journal of theoretical and applied electronic commerce research, 10(1), i-vii.
Diamond E & Strategy-Enviro Analysis. (n.d.). Retrieved June 19, 2018, from http://faculty.bcitbusiness.ca/kevinw/4800/documents/mylec-1-Diamond-E-Strategy-Enviro-09- handouts.pdf
Lin, C. J., & Cheng, L. Y. (2015). An integrated model of service experience design improvement. The Service Industries Journal, 35(1-2), 62-80.
Son, I., Lee, H., & Kim, J. (2015). Preannouncement Effects on Apple’s Supply Chains: Using the Event Study Based on iPhone 6 and 6 Plus. Advanced Science and Technology Letters, 84, 73-78.