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Problem

Strategy experts argue that effective and aligned internal business processes determine how value is created in an organization. Provide an illustration to demonstrate the point.

Step-by-step solution

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Step 1/2

An organization’s success value is based on the internal business processes. The internal processes need to be aligned properly. The company that uses product leadership strategy concentres more on innovation. The company that uses low cost strategy gives more importance to operations.

Considering an illustration where a Company AB, manufactures automobiles. This company has a very good strategic alignment. The company’s employees are trained well. The organization gives importance to product quality and takes into account the cost strategy.

Step 2/2

The company develop new products and gives a lot of importance to innovation of new automobiles at a low cost. The employees of the company come up with new ideas and techniques to innovate products. Innovation of new products enables AB Company to stay on top among its competitors.

The company tries to understand the requirements and needs of customers, thereby design products based on the customers’ needs. AB Company has a continuous strategic alignment which has made the company successful.