IMG Case Businesses are started with objective and goals to be accomplished however when the business is in operation, these goals may change as the business grows. In other cases, the goals may change completely as the business seeks for diversity. Consequently, as the goals change the target market will equally change in order to fit-in with the new goals. This is situation that International Management Group (IMG), has experienced since its inception as an organization whose goal was to market golfers. However, a time passed McCormack who is its founder realized that other sports could also be marketed. Currently, the company has diversified to include services such as stadium ownership and management, television, event ownership, modeling organization among others (Anand and Attea 1-23).
Further, IMG has proved to be a successful business empire that grew from focusing only on one opportunity kind. However, this single opportunity lead to diversification and realization of other viable but related opportunities. This diversity has however been managed through the introduction of subsidiary companies to manage different interests of the mother company. As such, McCormack (or his successors) should go ahead and seek diversity since it has proved to add value into the mother company. Further, in so doing the company will be hedging itself against competition from other companies that may seek to exploit these diversities.
Moreover, the company has laid down a strategy that has defined the role of any given subsidiary venture. In fact, such a subsidiary company is at liberty to manage itself as an independent company. As such, the need to engage in experts is covered by the presence of IMG itself. However, due to the dynamic unpredictable eventualities in the nature of its business dealing there may crop a situation that will call for expert’s services. For example, if IMG or on of its constituent company is faced by a legal issue, then it will be necessary to indulge the services of an equally potential law firm (Anand and Attea 1-23).
Given the reputation of this organization, the concerns of engaging external consulting firms have not been a concern to it. The founder and CEO of IMG have strategically approached this situation through specialization and division of duties. The specialization calls for an independent company to manage all duties related to that field. For example, tennis duties are ran by a single company, such that the players and tennis events, tennis broadcasts as well as tennis courts will categorically fall under this company. However, this branch company has to operate under the guidelines of IMG so that its goals are in line with other branch companies (Anand and Attea 1-23).
Through such an approach, IMG’s diversity is kept in check because its main role has been changed to that of governing these branch companies. This strategic approach is thus very effective rather than the traditional method that would have seen the organization overseeing all operations. Therefore, it is important to understand the various approaches so that the goals of any organization can remain relevant even after diversifying. Moreover, engaging the services of external experts will increase overheads hence reducing the revenue. In such a case, organizations of IMG status have the capacity to directly employ such experts as its employees rather than subcontracting other existing firms.
Anand, Bharat and Kate Attea. International Management Group (IMG). Western Ave Allston, MA: Harvard Business School, 2002.