Topic > Strategic Implementation and Alignment - 1819

In today's business world, companies are forced to make rapid decisions involving large amounts of capital and labor. The risk associated with such decisions is substantial, as business leaders are forced to constantly evaluate their company's position and look for new ways to update developments. Normally, when facing a financial crisis, a company's solution is to reduce input costs while increasing the volume of output by implementing cost-cutting strategies such as outsourcing or laying off employees. Every company is different and has its own unique corporate culture, so cutting costs may not be the most appropriate solution to each company's problems. A successful company should always give priority to shareholders as any change in company policy or decision making can significantly affect shareholder rights. Who are the shareholders? Customers, employees and shareholders are the important human factors in deciding the success or failure of an organization. Harrison-Keyes Inc. (HK), known for its quality products, was once the world's leading publishing organization. . HK is a global publisher specializing in scientific, technical and business books and magazines; professional and consumer books, textbooks and other educational materials for undergraduate and graduate students, as well as lifelong learners. 40% of HK's revenues are generated by its sales offices in Europe, Asia and Latin America. However, as electronic publishing becomes increasingly popular, HK is starting to experience reduced sales, market share and declining profitability in print markets. Hong Kong is under economic pressure and is facing the biggest economic crisis it has ever faced. Organizational leaders must make a series of key decisions to change the situation. Externally, Hong Kong faces several challenges. First, shareholder confidence is waning as the company's stock value has fallen 12%, from 50% to 38% in less than a decade. Second, Hong Kong's old technique is being called into question as the traditional printing business faces higher operating costs than electronic publishing and the outlook does not look good to shareholders. Third, the company is losing market share to competitors in both traditional publishing and e-books. Independent booksellers like Hong Kong are being overtaken by hypermarkets as they offer huge discounts and no-questions-asked return policies to customers, so Hong Kong is forced to consolidate its distribution channels and cut profits to the bone.