International Management Group - Article Example

IMG (International Management Group) is noted as an example of how strategic management can take a firm to the heights of prosperity. Since its inception by Mark McCormack, the firm focused on hunting established and sprouting talent so that it could bring them to the global limelight with significant financial gain. This has remained a noble idea as it propelled IMG to where it was up to the early 2000s when it began to feel the threat of emerging competitors (Hitt, et al. 56-8). This can be seen from the mass exit of employees, signed athletes, and the rising criticism on the issue of conflict of interest. The facts presented in this case study show that IMG grew exponentially due to its initial competitive advantage but later ran out of managerial techniques as far as sustainability and maintenance of value creation activities are concerned (Hitt, et al. 67-9). The emergence of market dynamics with increasing competing firms that have embraced technology and strategic pricing policy is putting the IMG under significant threat of failure hence the relevance of the company “out of control”.

In the contemporary turbulent market, it is advisable that McCormack or his successors need to boost the size and diversity of IMG’s portfolio of businesses. This is in line with the changing market conditions in which diversification would help it cushion losses from one aspect of its portfolio. For it to manage competitive strength in the market, it only needs to reorganize its management techniques that should be coupled with a shift towards global standards in order to survive among the several new entrants in the industry. One approach of strategic management that would revive IMG is to blend outsourcing of skilled personnel with its own employees. This would provide a hybrid technique that would serve to help it deliver quality services to its diverse clients.

This implies that IMG would do a better job for its clients if it contracted with highly-trained and experienced specialists in various fields that include financial planning firms; legal firms specializing in entertainment and sports contracts; stadium and concert management specialists; video production companies; advertising and public relation firms(Hitt, et al. 126-8). By adopting this managerial approach, the firm will cut the cost of production while maintaining high-quality services. This can be achieved by recruiting a foresighted leader from among the experienced lot that has been in the company for more than 10 years. An overall analysis of the competitive challenge and sustainable performance of IMG significantly depends on management reforms and portfolio diversification. Read More