The importance of Scott’s core capabilities on the stakeholder
According to Jaakkola (2012), a firm’s capabilities determine its strategic orientation. On the other hand, the latter has an impact on both the internal and external stakeholders. Scott’s disruptive innovations, a competent organizational culture and diversity of brands have both direct and indirect impact on their employees, shareholders, customers, suppliers and communities.
Firstly, these competencies raise the workers’ morale. The company’s new technologies are not only incorporated in the produced equipment and systems but are also used internally to improve the production. The BladeStop technology, for example, protects the employees from unnecessary injuries while on their duties. Also, the company’s culture, whereby they work and celebrate success as a team, helps the workers to develop a sense of importance and confidence. When the morale of the staff increases, the productivity increases as well (Abid&Gulzar, 2018).
The capabilities are also beneficial to the shareholders. As investors, the shareholders’ primary goal is to earn more money from their investment (Abid&Gulzar, 2018). When Scott innovates, the effect is that their new technology will attract huge sales. Likewise, having many brands helps the company access a larger market. The larger the market the greater the possibility of increasing revenue. A culture that focuses on the customer and the quality of products similarly increases revenue. When Scott profits go up, then the shareholders’ dividends will increase.
The customers are arguably the frontline beneficiaries of a company’s competitive position (Jaakkola, 2012). The ability of the multinational to continually innovate guarantees the consumer an exclusive experience with the products. The efficiency, and safety and health standards of the firm’s machinery and systems give the consumer value for their money. Secondly, the company’s focus on the customer’s perspective in its production ensures that the latter gets quality products. On the other hand, the availability of many brands increases the customer’s access to Scott’s products. They also have a variety to choose from depending on their specific needs and industry.
When Scott performs well in the market, their suppliers are happy as well. According to Abid&Gulzar (2018), the demand for supplies increases as the company increases its production to meet the consumer’s demand. Scott’s suppliers, therefore, benefit from delivering more materials to the company. In addition, when the firm’s products are widely accepted in the market as being of good quality, the suppliers share in the credit for delivering quality materials. Thus, their reputation in the industry rises as well.
Lastly, Scott’s capabilities also have a positive impact on the communities. According to Jaakkola (2012), a company should have a direct impact on the society. For Scott, innovations with a focus to improve health and safety, such as the BladeStop unit, helps in alleviating the burden that the society bear due to accidents, infections and other health complications developed in manufacturing and processing plants. Also, the society is relieved from unnecessary struggles and suffering. For instance, the Wheel Change Automation saves time and energy one would use to fix the wheel manually.
Abid, M. F., &Gulzar, A. (2018). Impact of Strategic Orientation on New Product Success with Mediating Role of New Product Development Knowledge Management Capabilities. Review of Integrative Business and Economics Research, 7, 1-31.
Jaakkola, M. (2012). Strategic orientations, market-based capabilities and business performance: The moderating effect of business context. Aalto University.
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