Assignment Sample on BUSI1271 Global Strategy Analysis and Practice

Individual Report (Article Review)

Section1

Name of author- FRANÇOIS CANDELON AND THEODOROS EVGENIOU

Title of the selected article- (Business article)- “With A.I., business leaders must prioritize safety over speed”.

URL link- https://fortune.com/2021/09/03/artificial-intelligence-business-benefits-safety-risk/

Section 2

Apple is a big tech company in the USA. iPhone, tablet, laptop, air-pod and many more are the huge products of this company. The founder of this company was Steve Jobs and B2B app store by this company is quite popular throughout the globe for distribution of the products. Evidence suggests that acquiring of net income of Apple is about 94.68 billion US dollars (Apple.com, 2021). In the year 2020, international business revenue of this company has lost drastically due to the negative impact of COVID-19. However, that loss is mitigated in the year of 2021 with the help of income increment at about 29% than before years. The company has vision to make the best products of the earth. However, inherent risk to consider artificial technology (AI) is increasing constantly and this is directly related with the data leaking. As a result, it is needed to align products and services with the emergence of technological disruption for long time.

Apple has mission to satisfy their customers with the help of continuous innovation and this has helped to acquire betterment in business position. Serving of customers has to be the main purpose for any organisation as this has affected directly to the productivity and profitability level. From the business case, it can be understood that the mentioned organisation delivers an efficient contribution in mobile business world with the help of its creativity and uniqueness. Major challenge has been faced due to lack of security of the new technological scheme and coping up with the design as well as business operation. In case of this organisation, linear business model is considered by which generation of revenue is required (Apple.com, 2021). Easy-to-use with the assurance of data migration is therefore effective for Apple with customer satisfaction with high sustainability level. As a result, business standpoint of this organisation is fairly affluent by which stabilisation for future growth can be monitored.

Section 3

As companies begin to deploy A.I. at magnitude, the emphasis has shifted away from of the cloud computing potential to establish and execute strategies and toward the associated risks that A.I.-based processes imply. Thousands of cases of A.I.-related grievances have already been recorded by protection agency organisations such as the Machine Learning Incident Database, tend to range from debatable exam goals scored to the unsuitable use of algorithms in talent acquisition and the discrepancy treatment for people by medical systems (Fortune.com, 2021). As a result, businesses will soon be required to comply with regulations in a variety of countries aimed at ensuring that A.I.-based systems are reliable, secure, robust, but instead fair. The European Commission is yet again leading the charge, laying out using a conceptual model in its White Paper on Artificial Intelligence: A European Approach to Excellence and Trust last year and proposing a regulatory precedent in April 2021 (Fortune.com, 2021).

Major corporations should always learn to manage A.I. uncertainties not only since it will be required by law, but also because their interested parties will assume them to do so. According to a current Economic Planning Unit study, as many as 60% of chief executive officers said their companies decided not to find employment with A.I. telecommunications companies last year due to personal accountability concerns (Fortune.com, 2021). In order successfully address A.I., companies must understand the ramifications of legislation and cultural pressures on its use, as well as the humankind’s distinctive features, which we discussed in the report in a recent Harvard Business Review article. Finding a way to balance the benefits of using artificial intelligence with the consequences could be a new, long-term source of sustained competitive advantage (Fortune.com, 2021).

Section 4

According to the taken case study about artificial Intelligence, it has been stated the advantages of AI and relevant strategic leadership to use AI in the business field by prioritising safety over speed. “Business strategy: strategies for competitive advantages” have been chosen topic from the class lecture here to align two subjects in respect of one business strategy, that is competitive advantages.

According to this case study, two years ago “Apple” launched an “Apple card” as a credit-free card for business use purposes, for which a major argumentative discussion happened among so many business experts (Janes and Sutton, 2017). In 2019, Dane Tweeted applied for Apple Card and his wife too. Though he got 20 times higher credit limits than his wife. Similar breaching has also happened with the Co-founder of Apple. Such credit issues had given a lesson to all interested people (Fortune.com,2021). In respect such example of this case about the innovation of Artificial Intelligence has created a major connection with one significant business strategy, that is a competitive advantage.

Technology has been emerged its position in every business. National, international, or multinational, global in every business the best combination is now strategic leadership with best possibilities of innovation (Dyer, Kale and Singh, 2004). Such a diverting case study has been created some opportunistic areas to learn the process of how an organisation can get a competitive advantage by using such appropriate combinations as well.

“To learn, not to learn”- Artificial intelligence is not a short field, it includes vast technologies and techniques, tools to captivate all types of business activities. Tackling AI risks is a regulatory requirement. AI’s much-estimated ability to improve continuously by learning and modification is the most important feature that gives unique results in technology as well (Nan and Tanriverdi, 2017). For example, “Microsoft chatbot”, “Tay” are the major comfortable results of AI. Hence, organisations should focus their strategies on what they will include and what they will exclude from their AI system to get market position opportunities respectively.

Based on such contradictory discussions, the “Blue-ocean strategic model” is very suitable to highlight those areas, which can give a competitive advantage (Kim, 2004). As per this theoretical perspective, there are two types of strategies, “red ocean strategy” and “blue ocean strategy”. Red ocean strategy is used for known and existing markets, as a company is already in that market position. Alternatively, a blue ocean strategy defines the competition happening in an unknown or new market, as a company is going to spread their business to another new country, where competition is unknown (Reeves and Deimler, 2011). Though there are no strategic ways defined by this theory, that is how an organisation can adopt the correct blue ocean strategy when entering the new market. Methods to get competitive benefits have not been defined by this theory and this theory has too many risks for arriving new products in new market space (Apple, 2021). Similarly, Apple had made the same mistakes, by launching their Apple card without researching the benefits and scope of profit, which was a big mess for this company as well.

“Taking responsibilities for business decisions”- Another feature of AI is making critical business decisions. Many organisations take decisions according to the principles of AI strategy to treat all stakeholders fairly. Consumers to the governing body, executives to employees and employers, suppliers to vendors, all internal and external stakeholders, all stakeholders are essential to be connected with organisational activities, that has not been happened in Apple (Apple, 2021). As a result, they lost their reputation in similar markets, from which a big lesson has been learned, that sustained market position is important to get benefits in market competition as well (Fortune.com,2021). “Adaptive strategy theory” helps an organisation to recognise the signals coming from external business environments and to understand when situations are changed and when they will change as per the situation. Ability to experiment, ability to act according to the situation, ability to manage complex multinational company situations are the advantageous impact of this strategic theory (Yunus and Sijabat, 2021). Though, for a multinational company, it is not possible to operate their business by maintaining this strategy as well. Speed to adapt to the changing situation, choosing proper strategy among multiple options, risks on initiatives are the most common challenges for big companies. Apple has faced the same condition, without knowing the scope and opportunity they launched their innovation of artificial intelligence.

“Increasing accountability, traceability, and improving audit”- Most companies have no sufficient options to examine the market, though they have to develop the process and job roles very fast. Making ethical decisions and AI innovation fair and stable some companies like “federal Home loan Mortgage corporation” have installed an AI governance structure for maintaining traceability protocols and diversity training. Developing AI tools to ensure their activities are fair (Nan and Tanriverdi, 2017). Similarly, Apple has to adopt such a system within their AI infrastructure that they can also ensure their innovations are fair and flexible to the customer in the future. “Strategies of alliances and acquisition” is another perspective, that states a company has to know when they will take decisions and when they will execute their decisions for competitive advantages in the market.  As per this theory, Nan, and Tanriverdi, (2017), every small to the large company should learn the process of alliances and acquisition to make a profit, customers, and to increase sales, and most importantly stock price in the existing market at first. By aligning with “Porter’s five forces model” this strategy can be explained easily (Fortune.com,2021). Threats of substitutes, threats to enter into new markets, bargaining power of suppliers, bargaining power of suppliers, and market competitions are five components that help to understand the concept of “Alliances and acquisition” (Bruijl, 2018). During entering the new market or promoting a new product, research on the customer area, suppliers’ power, and presence of the substitute product in the market as well. Apple did not do any research or collect data regarding their Apple credit card for which stakeholders were impacted negatively (Apple, 2021). Using AI tools for innovation and marketing was a poor mess for this company. According to this strategic concept, a big company has to make alternatives about collaboration with other similar markets and acquisition of the market. Apple may collaborate their new product with other brands to increase value and they can promote to reduce risks or they may research the deliverables of their new products before promoting.

Section 5

Research has delivered information that it is necessary for any company to maintain accountability for better recognition and position. In case of Apple, explainability cannot be accepted in business process rather easy way algorithm is effective to enhance the quality of business in a greater manner (Fortune.com, 2021). Other than this, application of new algorithm of Artificial Technology is effective to acquire future sustainability and possibility of trade-offs are diminished. This has affected positively on business accuracy that in turn can be helpful to work across the globe with a betterment perspective of regulatory innovation in business purpose. From the article, the idea of cross culture business has projected by which social expectations of business has been forecasted. Therefore, the report is a clear overview regarding the business accountability as well as the aspects of customers to acquire feasible assurance for business performance (Fortune.com, 2021).

Correspondingly, businesses must make a decision whether or not to permit their artificial intelligence systems to gain knowledge in instantaneously. Firms are expected to forego one of the main advantages of A.I., namely its capacity to execute better with experience in some cases, if employee training is not allowed (Fortune.com, 2021). In other cases, manufacturers will have to strike a balance between riskiness and computational accurateness, which will be hindered if they don’t allow for constant learning. Even though the same A.I.-embedded good or service will operate differently by each individual, pace with the fast A.I. systems create operational complexities. The subtle differences in legislation and cultural pressures in each country will exacerbate these management problems (Fortune.com, 2021). Companies will be required to train their artificial intelligence systems using local information and monitor them in accordance with local regulatory requirements. This will inevitably limit the ability of A.I. to broaden.

References

Books

Dyer, J.H., Kale, P. and Singh, H., 2004. When to ally and when to acquire (pp. 109-115). Massachusetts: Harvard Business Review.

Janes, A. and Sutton, C., 2017. Ebook: Crafting and Executing Strategy: The Quest for Competitive Advantage. New York: McGraw Hill.

Kim, W. C., 2004. Renee Mauborge. Blue Ocean Strategy. Massachusetts: Harvard Business Review, 10.

Journals

Bruijl, G.H.T., 2018. The relevance of Porter’s five forces in today’s innovative and changing business environment. Available at SSRN 3192207.

Nan, N. and Tanriverdi, H., 2017. Unifying the Role of IT in Hyper turbulence and Competitive Advantage Via a Multilevel Perspective of IS Strategy. MIS Q., 41(3), pp.937-958.

Reeves, M. and Deimler, M., 2011. Adaptability: The new competitive advantage.

Yunus, M. and Sijabat, F.N., 2021. A Review on Blue Ocean Strategy Effect on Competitive Advantage and Firm Performance. Academy of Strategic Management Journal, 20(1), pp.1-10.

Websites

Apple, 2021. Apple. Available at: https://www.apple.com/ [Accessed on: 8^th December 2021]

Fortune.com,2021. With A.I., business leaders must prioritize safety over speed. Fortune. Available at: https://fortune.com/2021/09/03/artificial-intelligence-business-benefits-safety-risk/ [Accessed on: 8^th December 2021]