Gap Analysis By Harrison Keyes

2794 words - 11 pages

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Running head: GAP ANALYSIS: HARRISON-KEYESGap Analysis: Harrison-KeyesGap Analysis: Harrison-KeyesIn looking for solutions in e-publishing, Harrison-Keyes, Inc. (HK) is venturing for viable options for growth.Whether a company chooses to make further investments in its core business or decides to expand beyond its current core, there are only three avenues by which companies can grow their revenue base: (1) organic or internal growth, (2) growth through acquisition, and (3) growth through alliance-based initiatives. This is often referred to as the 'Build, Buy, or Bond' paradigm. Selecting the right growth strategy is not easy. A growth strategy that works for one company may not be appropriate for another. It might even be disastrous. Making the right acquisition, successfully integrating the acquired company into the acquirer's operations and realizing promised synergies is difficult. Relying on internal growth alone to meet revenue targets can be equally risky, especially in years of slow economic growth. Few companies consistently achieve higher-than-GDP growth from internal sources alone. To formulate a successful growth strategy, a company must carefully analyze its strengths and weaknesses, how to deliver value to customers, and what growth strategies its culture can effectively support. Selecting the right growth strategy, therefore, requires a careful analysis of opportunities, strategic resources and cultural fit. (de Kluyver & Pearce, 2006)The management team of HK must carefully analyze their current financial position and their long-term goals in order to successfully create growth for their company. In reviewing their current options, HK must define their intended growth strategies, evaluate the stakeholders, and look for opportunities to increase shareholders' value in their company. The results, interpretations and implications for HK are discussed in the following pages.Situation AnalysisIssue and Opportunity IdentificationHK's goal is to increase its market share. With the new market environment and changing technology HK has a number of developing issues and opportunities. Since the industry has been evolving, HK needs to compete with their rivals in e-publishing. Additionally, the current management must effectively communicate to their loyal employees the value of these changes not only for each of them but also for the company as a whole. HK's management has provided their employees with their new strategy. However, they have failed to adequately keep employees informed in the process. Therefore creating a number of communication challenges. By failing to effectively communicate management has moved this strategy from an integrative negotiation to a distributive negotiation. The employees will consistently be on the defensive since they feel have moved to an opposed interest from the company. Alignment of all the departments is necessary for HK to implement its current...

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