Using Wall Street Journal articles, I have listed what makes a company action strategic according to the different articles:
1. Caterpillar Restarts Its Growth Engine – in the South
By James R. Hagerty and Bob Tita
August 13, 2010 B1
Action: Caterpiller’s expansion project in Victoria, Texas.
Strategy: It is definitely a part of their strategic plan to expand the company in Victoria, Texas. This move will affect the entire organization because the new location/ branch will alter even the logistics of the companies dispatching. Because the decision to move a manufacturing plant to Texas was a long term commitment that would cost a large sum of money to execute, the business move can be considered strategic. The article commented that the plant was “strategically” planted in this lower-cost area where it could stimulate the local economy by bringing nearly 1000 new jobs to the community.
2. Ranks of Car Dealers Continue to Decline
By Jeff Bennett
August 13, 2010 B3
Action: Dealerships are continuing to close showrooms.
Strategy: My first response was that this move was strategic but after learning more about the criteria of strategic formation I found that the business decision was merely tactical. GM s choice to close there showrooms as a response to the instability of the market was tactical because it was not long term but hopefully only until the market sees success through innovation and ambition.
3. Banks Get New Restraints
By Damian Paletta
Action: The U.S. Treasury is putting new restraints on banks to protect against risky activities that can result in financial struggle. The rules are being phased in over the course of eight years.
Strategic Plan: I would say this is a strategic move although I am not sure about the monetary commitment element of the Strategic formation identification process. Although the new restraints are going to be long term once they are implemented and will affect the whole organizations process understanding and responding to financial struggle. (P.S As for the banks across America these new rules will challenge their strategic plans and more than likely cause them to be revised. )
4. Broken Pipeline Pushes Up Crude Price
Jerry DiColo 9/12/10
Action: Enbridge Inc. the Canadian company that operates crude oil lines, has been experiencing oil leaks and has been investigating the leaks since the happenings.
Strategic Plan: At first look, the recovery appeared strategic but after analyzing further it is primarily operational. The action will not affect them long term, affect the organization as a whole or commit large sums monetarily. Unless the lines are unrepeatable the repairs and clean up are only temporary.
5. H-P Nears Deal to Buy ArcSight for 1.5 Billion
Ben Worthen 9/12/10
Action: H-P plans or is suspected to buy the small technology company of security software, ArcSight Inc.
Strategic Plan: If H-P buys the software and technology company of ArcSight, it will be a long term decision to add their product to the H-P line and will affect the entire company as it will increase market share, saturation, and logistics. Last, buying a company involves monetary risk and commitment therefore H-Ps plan to buy the small company is definitely strategic.
6. China Airline to Join Sky Team Alliance
Wall Street Sept 14, 2010
Action: China Airline Ltd. Is joining alliances with Sky Team global airlines.
Strategy: This is a part of Sky Team’s strategy to dominate and expand in Asia. It will be a long term collaboration that is seen as wise business move to dominate cross-strait flights. It will affect the entire organization, as it will open up more air ways and more business (= more money). It will be a large monetary investment but will open up opportunity for more revenue as they can compete with other top global-airlines.