Management Policy and Strategies Essay


            In order to ensure maintenance of competitive advantage and improved performance, management requires a good manager with knowledge about the very many areas of management.  In corporate management, the CEO is responsible for good management to ensure company growth.  He/she identifies an appropriate strategy based on the situation at the market and the goals of the company to ensure that the growth is attained.  There are several strategies that a CEO can choose to use in the management of the company to achieve the goals of the company.  These strategies are based on the market competition, employee motivation, market opportunities, the company’s position in the market, customer behavior and resources that the company has.  The resources are divided into three, all of which have to be managed appropriately to achieve growth, but in selecting an  appropriate strategy, the most appropriate resource to be dealt with is given much consideration.  This is done after analysis of the market, resources of the company and objectives formulated.  These objectives guide which policies the company should have to help it achieve its goals.  Corporate management though is sometimes influenced by the kind of management that existed in the 20th century.  The management that only concerned entity structure and not business management.  The company in this case to be analyzed is Warner Music, which became the only stand alone company in 2005 and is a corporate company (Warner Music, 2008).

Current Situation of Warner Music

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            Warner Music is the only corporate company in the United States that has become stand-alone.  The Current CEO has found out that there are opportunities in the global music business and has decided to make use of it.  He has developed a strategy to help him achieve the goals of the company.  The current management policy is on managing the structure of the corporate by ensuring that the company has good managers with excellent skills that can provide investor confidence, and expansion of the company (Warner Music, 2008).

            It is stated that its goal to ensure growth is to expand to the global market.  The CEO charged with the responsibility of managing the company, appointed several of his employees into different positions which he believed will help the company achieve its goal.  The CEO has used the available skills of the company as a strategy to growth expansion.  He believes so much in the skills that he is sure will make use of the opportunities in the market to ensure growth.  According to the news release of Warner Music, the CEO is also sure of growth because they have a competent CFO who will ensure that the confidence the investors have in the company is maintained and can encourage more investors into the company.  Each person is given a role and who to work under so that the work is supervised (Warner Music, 2008).

            The main aim of Warner Music is “to identify and exploit growth opportunities in the evolving global music business”.  The strategy developed is a world wide operational management strategy with various people in top management appointed to manage different regions where the business is expected to expand.

Real Alternatives

            The aim of the company is to grow based on the opportunities available and to maintain a competitive advantage.  Real alternative to management policy of this company is to manage the business through implementation of strategies that will enable the company grow.  These are growth strategies and strategies to ensure that the company remains a stand alone company in the market.

            As had been noted earlier, there are so many growth strategies that a CEO can use to ensure company growth.  Sometimes in the preparation of strategies, a CEO has to select an alternative alongside the selected strategy to be implemented, if the first strategy does not work (Drucker, 2008).

            The growth strategies are;  benchmarking, consumer ethnography, knowledge management, mergers and acquisition, loyalty management, total quality management and so many others.  According to the presented situation of Warner Music, the company has identified that in the music business, there are growth opportunities in the market due to evolution.  It would therefore be appropriate to select strategies that will help achieve the targets of the company such as consumer ethnography, mergers and acquisition and knowledge management that manage business rather that entity structure.


Consumer Ethnography Strategy

            This is a research based technique that requires research to be done on consumer attitudes, behavior and culture.  Based on the fact that the company is expanding to global markets, it would be appropriate to use this strategy to study the different consumers in different markets in order to increase sales, improve on product quality and result to improved performance.  Performance is measured by the output of the company.  If the company is able to increase out put, then it will improve in performance.  Increased out put results from customers liking the quality of product they are presented with.  For this to happen, their culture, behavior, attitudes and likes have to be studied (Drucker, 2008).

            Consumer ethnography helps companies to; venture into new markets, transform corporate culture into consumer based culture, refresh the already established products, re-brand or create new brand images for the company, and validate new concepts about the product.  This is based on the assumption that the consumer determines the amount of sales.  The consumers is the core to business success, without them, who would buy companies products? (Drucker, 2008).


            This kind of strategy focuses on product development and involves a research process that has to be conducted by trained ethnographers.  To implement this, the CEO of Warner Music should look for trained ethnographers to do the assignment either from his staff or from outside.  The research involves creating a research proposal, of which in Warner Music company’s case, the proposals will be different based on the different periods of operation and the different market situations.  The findings of ethnographers are then analyzed and action taken towards improving the product.  Sales will increase (Drucker, 2008).

Knowledge Management Strategy

            When there is competition in the market, a company may need to maintain a competitive advantage or just to remain competitive in the market.  This requires a strategy.  In most cases the appropriate strategy for this kind of situation is knowledge management.  There are other strategies though, that can be used in the same case.  Knowledge management involves making use of the knowledge resources to improve performance.  The company has the primary knowledge resources and more information can be obtained by training, reading and research on how to improve products.

            In most cases, companies have been involved in copying each other, but in knowledge management, there can never be copying.  It creates unique core competencies on the intellectual capital which is what is required to maintain a competitive advantage, hence becomes superior.

Knowledge management is used to; make the current competencies of the company stronger through asset management, improve the quality and cost of the already existing products, and  encourage innovation of new products at a faster rate among others.  Warner Music company’s already existing products can be improved to boost sales as more sales are needed to maintain the competitive advantage and make the company have more profits.


            The current knowledge base of Warner Music will be evaluated to determine the competencies that will be appropriate for the growth of the company due to the expansion plans,  and to determine the base of knowledge required for the CEO to sustain leadership position.  The CEO of this company has to invest in processes and systems that will help in acquisition of knowledge.  He has to evaluate the impacts of these systems on the culture of the company, the hiring practices and the leadership, to make sure that there are no negative impacts.  It is then that the CEO implements the strategy.  The new knowledge is codified and turned into processes and tools that will improve the company’s performance through product innovation and profitability (Drucker, 2008).

Using Mergers and/or Acquisition

            Acquisition is taking over a smaller company while a merger is an action of joining forces between two relatively equal companies.  These are ways that most corporate companies have used to maximize shareholder value and to maintain competitive advantage.  Mergers increase share holder value through obtaining more market share and absorbing major competitors thereby increasing revenue, by reducing costs, diversification which is to maintain investor confidence and stabilize earning outcomes, and by cross selling products (Drucker, 2008).  It would be appropriate for Warner Music company to  acquire companies from the other regions that there are plans to expand to.


            Acquisition needs conduction of a review of the company that is to be acquired, to determine the stand-alone value and reveal the problems that could interfere with success of acquisition.  For acquisition to be successful, the CEO needs to understand making of trade-offs between careful planning and speed.  This involves formulating integration priorities, forming a new operating plan for the new organization, effective communication within the organization after acquisition and implementing the integration strategy (Drucker, 2008).


Drucker, P. F. (2008). Management: Tasks, Responsibilities, Practices. Piscataway, New Jersey:

            Transaction Publishers.

Warner Music Group. (2008). Investor Relations. Retrieved on 14th October,2008, from:




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