Doina Bors, Indre Rumbutyte, Victoria Volentir

Mannesmann work assignment

Question 1: What is strategy in this case?
Strategy is the long-term direction o the organisation! "his organisation #as de$elo%ing all
the time and reaching the sco%es in: engineering, automoti$e, telecommunication and tubes
sectors! &lso they gaining the ad$antage o$er com%etitors 'or e(am%le: )annesmann #as
the *uro%ean leader among the ne# %ri$ate %ro$iders in telecommunication sector+!
)oreo$er, they made a com%le( in nature 'this com%any has business rom the dierent
sectors+! "his com%any in$ol$e considerable changes de$elo%ing business 'or e(am%le: they
ac,uired lots o other telecommunication com%anies in *uro%e+!
"al-ing about le$els o strategy in this e(am%le #e can see all . le$els! )annesmann
com%any began systematically di$ersiy in the coal, iron and steel industry! It is cor%orate
le$el! When this com%any ac,uired ma/ority o other telecommunication com%anies in the
dierent *uro%e countries they reached business le$el! )annesmann com%any #or-ing area
is dierent: it includes engineering, automoti$e, telecommunication and tubes sectors!
Because o the dierent %art o business they need to manage that, com%any is using
o%erational le$el!
Question 0: 1o# is strategy de$elo%ed and de%loyed?
)annesmann integrated telecommunications strategy o %ro$iding mobile and land-based
lines to mo$e both $oice and data is in direct contrast to Vodaone business strategy #itch
changes e$ery e# days! )annesmann uture is based on a combination o communications
methods including landline net#or-s, data net#or-s and #ireless net#or-s! )annesmann
cor%orate leaders #ere %lanned a conscious desire to s%read ris-s mo$e to higher %roit and
$alue added mar-ets dro$e the %lanned di$ersiication strategy, irst into related, but more
technical engineering and later into a com%letely ne# ield on business, the communication!
"elecommunication #as %receded by a change in the en$ironmental conditions that all o the
deutsche "ele-om mono%oly and the licensing through auction o radio #a$elengths allo#ing
mobile %hone communication! "he irms acted in an entre%reneurial manner and ada%ted
strategy to it the changed in en$ironment! "he de$elo%ment should be le(ible because
une(%ected en$ironmental changes can be used to the irms ad$antage!
Question .: 1o# is strategy assessed?
Doina Bors, Indre Rumbutyte, Victoria Volentir
2$er time, a )annesmann com%any #as changing rom telecommunications to %rinters and
industrial e,ui%ment, to become a di$ersiied conglomerate! )annesmann is a com%any that
%roduced seamless tubes, ater this, the in$entors o this system o %roducing seamless tubes,
in$ented the %illger rolling %rocess! "he combination o %ierce and %ilger is -no#n li-e
)annesmann %rocess in all the #orld! "hen, management decided to brea- the conser$ati$e
industry and #ent or or#ard integration by mo$ing u% into hydraulic, machinery and
%lanted, inally into automoti$e engineering but they still %roduced their original %roducts,
steel tube! In 1334 )annesmann again changed the ball game by di$ersiying to a com%letely
unrelated and ne# ield, telecommunications! In the telecommunications, )annesmann #as
the *uro%ean leader among the ne# %ri$ate %ro$iders! "he change to a com%letely dierent
ne# industry #as more %roitable than they %lanned! "his decision to di$ersiying the areas
o %roduction #as $ery %roitable because they tried to integrate in ne# ields o acti$ity!