Accuray Company concentrates its efforts in providing premier radiations oncology which basically manufactures and sells tailored innovative treatment solutions that ensure high standard care mainly for cancer patients. The corporate is the leading adopter of modern technology- Tomotherapy and Cyberknife system which in a broad way assist in delivering stereotactic body radiation therapy, radiosurgery, image-guided radiation therapy, intensity modulated therapy, and adaptive therapy. Looking the organization on a business perspective, it hasn’t been doing well, and there has been dire need for the company to adopt new change to realize maximum profit and growth. The intent of this paper is to evaluate the alternatives the organization must adopt to realize growth.
There are several key disciplines that the company needs to consider so as to realize higher growth levels. It is significant for the company to consider the strategic management process as a means to increase growth capacity. Strategic managing is a continuous process which advance and revise future-oriented plans that allow the company to achieve its objectives with regard to its capabilities, constraints, and the environmental which it operates. The strategic management process is comprised of three sub-disciplines, which are diagnosis, formulation and implementation. Diagnosis involves several functions such as performing a situation analysis which is basically scrutiny of the inner, as well as the exterior environment of the organization. Considering Accuray internal environment is comprised of the company weaknesses, and strengths of the company, it would be advisable for the company to outline both weaknesses and strengths.
The company enjoys a number of strengths such as advanced technology including cyber knife and tomotherapy which eventually helps in countering competition, the company has a large market share, and overtime it has been able to acquire high consumer loyalty. Nevertheless, the company is being lagged behind by poor employee engagement in decision making process and complicated decision making procedures which eventually leads to ambiguous decisions. More so, the corporate faces threats from aggressive competitors in the near future, but nevertheless, Accuray has numerous opportunities to embrace so as to procure a better future. The diagnosis process also involves identification of the company’s current mission, strategic objectives, and strategies.
The second stage of strategic management, formulation, crops a concise set of recommendation with backup justifications that review the mission and objectives of the company, and provides strategies required to achieve them. In this sense, the company should review the current objectives in a way to make the corporate more successful. This include strategies such as building and developing competitive advantage by using advanced technology and creating consumer loyalty through the customer relation management strategy. Other recommendation include effective solving of the stated problems through inclusion of employees in the decision making process, formulate practical projects with regard to available resources, setting a deadline for a specific task and goal attainment and more so adhering to the set deadline. Lastly, the company should reflect on fits amid resources plus capabilities with prospects, and also fits amid risks and anticipations.
The last phase of strategic management, implementation requires that Accurray set an implementation plan to achieve the set objectives which will eventually lead to growth. Also, the implementation stage includes such aspects as maintenance of the new operational strategies.
The generic strategy being the corporate level strategy involves wide-ranging conclusions concerning the total organization scope and direction. At this strategy, changes mostly occur on the growth objectives and strategies for achieving. Usually, corporate level strategy is comprised of three components, which involve growth, or directional strategy, portfolio strategy, and parenting strategy. Growth or directional strategy involves the formulation of growth objectives, ranging from retrenchment to varying degrees of growth and how to accomplish the objectives. Portfolio strategy involves defining the line of business, and which of them implicitly requires much concentration or diversification. Parenting strategy concern itself with allocation of resources and managing capabilities and activities across the portfolio.
The grand strategy being growth strategy can be classified can be categorized into two categories: concentration and diversification. Concentrating in the provision of radio therapy would only be suitable for growth purposes if the company faces minimum threats or competition. On the other hand, diversification though with many risks, is appropriate when Accuray is facing stiff competition or is either having little growth potential. The concentration strategy is divided into vertical integration and horizontal growth, whereas diversification is divided into either concentric or conglomerate. Each of the four growth strategies can be realized also internally or externally over acquisition, mergers, and/or strategic alliances which are used specifically to link resource and technology gaps, and eventually obtain quick market position than internal development.
In nutshell, there are several strategies that Accuray can adopt to gain growth. The best value discipline being strategic management, the generic strategy being corporate level strategy, and the grand strategy being growth strategy combines in such a way to envisage future growth of the company. These strategies together promote revision of current and long-term, formulation of recommendations, and lastly formulation of an implementation plan to achieve the set objective. Accuray can achieve either concentrated or diversified growth through mergers, strategic alliances and/or acquisition.
Bibliography
Kotler, P., & Shalowitz, J. (2011). Strategic Marketing For Health Care Organizations. New York: Cengage Learning.
Lawson, K. (2006). Successful Strategies for Growth. Georgetown: Barron's Educational Series.
Sisaye, S. (2004). Organizational Change and Development in Management Control. Bingley: Emerald Group Publishing.
Ungson, G. R. ( 2008). Global Strategic Management. New York: M.E. Sharpe.
