Strategic management of ProGo Pty Ltd

This report assesses the disruption encountered by Pro-Go Pty Ltd in the form of burnt camera flames, cancellation of the deals with the retail sellers in China and reduction in the sales revenue. The report proposes strategic planning for Pro-Go Pty Ltd with due consideration to legislations and technological advancements for gaining better position in the local and international markets.

Running head: MANAGEMENT
Strategic management of ProGo Pty Ltd
Name of the student:
Name of the university:
Author note:

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Executive summary
Management and regulation of the activities is necessary for ensuring their smooth
functioning. In this, use of effective managerial techniques yields effective results in terms of
estimating the direction in which the sales would head in the upcoming financial years.
Mention can be made of the sales forecasting, which is assistance towards establishing the
balance between the supply and demand. All these aspects seem to be missing in case of Pro-
Go, which is reflected from the issues of cameras burning into flames, reduction in the sales
values and cancelling the contracts and negotiations with the retail chain in China. These
issues reflects the carelessness of the managers in terms of managing the operations.
Succession planning is needed in terms of developing long term goals for upgrading the
standards and quality of the cameras. Conducting promotional campaigning in social media
for smart invoice in the smartphones would lure the customers. Lowering the price of these
cameras would increase the supply and demand, bestowing better placement to the company
in the local and adjacent markets.

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Table of contents
Introduction................................................................................................................................3
Aim.............................................................................................................................................3
Discussion..................................................................................................................................3
Theme 1- technological advances..........................................................................................3
Theme 2- Privacy legislation.................................................................................................4
Theme 3- Adjacent markets...................................................................................................4
Preferred option......................................................................................................................5
Selected option.......................................................................................................................6
Challenges and opportunities in implementing the preferred option.....................................7
Recommendations......................................................................................................................9
References................................................................................................................................11
Bibliography.............................................................................................................................13
Appendices...............................................................................................................................14
Appendix 1...........................................................................................................................14
Appendix 2...........................................................................................................................15
Appendix 3...........................................................................................................................16

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Introduction
Strategic management is crucial in the present competitive scenario for achieving
higher competitive edge than the contemporary brands. Within this, mention can be made of
innovation, which is an agent in terms of upgrading the standards and quality of the
operations. Consideration of the disruptive innovation is a planned and reasoned approach
towards handling the risks in an efficient and effective manner (Ansoff et al., 2018). This
report assesses the disruption encountered by Pro-Go Pty Ltd in the form of burnt camera
flames, cancellation of the deals with the retail sellers in China and reduction in the sales
revenue.
Aim
The aim of this report is to propose strategic planning for Pro-Go Pty Ltd with due
consideration to legislations and technological advancements for gaining better position in
the local and international markets.
Discussion
Theme 1- technological advances
The cameras manufactured by Pro-Go Pty Ltd are known for their superior colour and
low lighting conditions. These aspects bestow the opportunity to enjoy higher competitive
advantage over the contemporary brands. However, the cases of flame burst is striking. In
addition to this, lack of concrete explanation for this incident degrades the standards and
quality of the cameras. According to the arguments of Noe et al., (2017), this issue reflects
the lack of maintenance from the facilities manager. One of the striking issues in this context
is that the issue of burning has degraded even the market position. This reflects negativity in
terms of penetrating into the foreign markets through product development, which is the
innovative smartphones.
Preferred option

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The need is to generate more funds for the acquisition of new software, which ensures
the safety of the cameras. Experiments can be performed for the manufactured cameras to
detect whether there are any defects, which can erupt during the actual time of operation.
Hill, (2017) is of the view that maintaining consistency in executing the evaluations would be
effective and effective in terms of averting malfunctions, hacker interventions and virus
attacks.
Theme 2- Privacy legislation
Most of the devices used by Pro-Go Pty Ltd owns the patent rights for the
technologies. The other manufacturers need to take permission from the company for
indulging in the deals, trades and transactions. However, Morschett, Schramm-Klein and
Zentes (2015) states that security issues need to be taken special care in terms of averting the
instances of cybercrimes like data thefts, which can result in the loss of confidential data of
the company.
Preferred option
Presence of competitors is one of the threats, which necessitates the need of more
anti-virus, which are flexible for enhancing the security and privacy with the company data.
Mention can also be made of the Data Protection Act (1998), which helps in protecting the
confidential data. However, the incident of cameras burning the flames contradicts the
privacy legislations and practice. Counter arguing, Trigeorgis and Reuer (2017) states that the
issue of the camera flames being burnt adds to the case of breaching and violating the
Computer Misuse Act.
Theme 3- Adjacent markets
The one of the largest customers of Pro-Go Pty Ltd is the major retail chains
operating throughout China. The issue of disruption has compelled these retail chains to

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cancel the contracts. Reduction in the sales within 24 hours has created an alarming situation,
putting the productivity at stake (Aguinis, Edwards & Bradley, 2017).
Preferred option
Untargeted markets would be beneficial for Pro-Go in terms of restoring the balance
in the demand supply chain network. High capital requirement acts as one of the crucial
challenges, which is aggravated in terms of the search of higher investment returns by the
finance managers. Budget allocation is vital for gaining awareness about the expense for each
of the marketing activities. Strategic planning in this case would be a planned and reasoned
action in terms of achieving higher competitive edge than the contemporary brands.
The issues of burning, reduction in the sales value and cancellation of the contracts
reflects a downmarket scenario of the company. In terms of the product life cycle, these
issues place the cameras of Pro-Go at the declining stage. These alarming situations indicates
the need for adopting strategic as well as succession planning. Engert, Rauter and
Baumgartner, (2016) opines that strategic planning would be beneficial in terms of gaining
an insight into the ways and means of lowering the operational costs, which would bring
stability in the demand and supply. Succession planning is crucial in terms of analysing the
ways in which the growth can be sustained in the upcoming financial years.
In order to implement this option, stakeholder meetings are necessary. Although the
executive team and the CEO have engaged themselves in a meeting, succession planning is
lacking. This is striking in terms of assessing the utility value, which would be achieved from
implementing the preferred options. Hitt, Ireland and Hoskisson, (2016) states that feedbacks
from the stakeholders and shareholders is vital in terms of reaching to their specific needs,
demands and requirements. Along with this, alignment of the operations to that of the
benchmark targets is also needed for estimating the direction in which the sales would head
in the upcoming financial years.

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Selected option
The option of cutting down the prices of the cameras would be effective in terms of
penetrating into the international markets. For this, Pro-Go Pty Ltd needs to follow the
strategy of product development. Consulting the engineers and the research and development
team would be helpful for adding innovative design into the cameras (Zhao et al., 2017).
Promotion of the manufactured companies through advertisement campaigns in the social
media would increase the trafficking of the audience towards the brand image. Along with
this, the sales revenue would also increase, mounting the profit margin.
For achieving positive outcomes, the demand supply curve is needed. The slope
would indicates the profit in accordance to the alterations in the prices of the cameras.
D
Fig: Inelastic demand curve
(Source: Hanson et al. 2016)
If the demand curve is perfectly inelastic, the customers would be attracted towards
purchasing the cameras, which have been introduced in the market. Here, the price factor
Price (P)
Quantity (Q) Inelastic demand
Slope (market sensitivity
according to price
change)

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attains importance, but not at a severe rate. On the contrary, raising the price would result in
customer turnover, compelling Pro-Go personnel to encounter losses.
D
Fig: Elastic demand curve
(Source: Bettis et al., 2016)
Price strategy change would be efficient in terms of conducting estimates regarding
the supply-demand curve. Surveys can be conducted on the customers to assess whether the
operations are heading towards the direction of the identified and specified targets. For the
projection of the optimal price, the supply and demand curve needs to be projected
graphically. In case of the elastic demand curve, with rise in the prices, there is substantial
decrease in the volume. On the contrary, when the price is low, the volume rises. These
conditions are to be noted by the managers of Pro-Go in terms of maintaining the balance in
the operations (Jenkins & Williamson, 2015). Consistency in the volume of production with
the increase in prices, the situation would be that of inelastic demand curve. This situation is
one of the preferred one, as it enhances the brand image.
Challenges and opportunities in implementing the preferred option
Challenges
Price
(P)
Quantity (Q) Elastic demand
Slope indicating market
sensitivity according to
price changes

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Saturation of the customers with the existing cameras of the established brands can be
a challenge for Pro-Go in terms of luring the customers through new products and services
like smart invoice techniques in the smartphones. Peppard and Ward, (2016) opines that
advertising about the special discounts, offers and schemes on the social networking sites
would be effective for attracting the customers. However, tactfulness is needed for preventing
the instances of switch over. Adopting the legal legislations in the process of advertising
would be assistance in terms of the dealing with the false claims in the advertisements.
Opportunities
Target segmentation can be one of the effective options for Pro-Go in terms of
chalking out productive marketing plans. The first segments would generate more productive
value to the products and services. Backup plans would be assistance in terms of penetrating
into the other markets. Evaluation of the utility value at every stage would act as an agent in
terms of expanding the scope and arena of the business operations (Rees & Smith, 2017).
Establishment of new stores in the local regions would make the intensity of the competition
less severe. Third party reliance can be beneficial in terms of adding to the customer list.
However, tactfulness and smart marketing would be to keep alternative plans ready.
Long term issues Short term issues
 High capital requirements
 Intensified competitive rivalry
 Innovation in the products
 Budget allocation
Conclusion
Since its inauguration, Pro-Go Pty Ltd has enjoyed continuous growth through the
production of high quality small cameras. The issues of burnt cameras, cancellation of the
deals with retail chains in China and reduction in the sales degrades the hard earned

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reputation. In terms of the product life cycle, these issues place the cameras of the company
in the declining stage. This issue reflects the disruptive innovation in technologies, which
degrades the standards and quality of the cameras. In order to restore the balance in the
operations, the Pro-Go needs to target the untargeted markets with new quality cameras,
which are installed with smart invoice techniques. Stakeholder meetings have been
conducted, however, there is a need of succession planning in order to estimate the utility
value through the implementation of the strategy to cut down the prices and increasing the
demand and supply.
The marketing trends of the contemporary brands can act as a challenge for the
company in terms of adding flexibility into the transactions. In this, adherence to the
legislations of Data Protection Act (1998) and Computer Misuse Act would be effective in
terms of preventing the instances of loss of organizational property and reduction in the sales.
Segmenting the targets would be a planned and reasoned action towards gaining an insight
into the markets, into which the company can penetrate to enhancing their sales revenue and
profit margin.
Recommendations
 Training needs to be provided to the staffs, so that their preconceived skills, expertise
and knowledge are enhanced in terms of marketing. The adjacent markets need to be
researched for enhancing the awareness about the recent trends, which the
contemporaries have undertaken for placing their products into the markets. Taking
post training tests would be beneficial for assessing the extent to which the staffs have
been successful in reaching to the benchmark level of performance. Typical evidence
of this lies in involving the staffs in the meetings and asking them to provide their
suggestions. This would be productive in terms of mapping the skills and arenas,
through which their thought processes venture.

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 Taking demand supply curve into consideration would be productive in terms of
estimating the direction in which the sales would head in the upcoming financial
years. Elasticity would be crucial in terms of detecting the market sensitivity in
accordance to the fluctuation in the prices of the spare parts. Systematic planning in
this case is vital for forecasting the sales in terms of the demand and supply.
 Innovation in the design of the cameras would be effective for luring the customers.
In this, social media advertising would be beneficial for enhancing the supply chain
network.
 Extension of the product lines would be effective for enhancing the growth stages
according to the product life cycle. Increasing the vigilance in the product lines
through the installation of CCTV cameras would be productive in terms of ensuring
that the cameras are manufactured without any defects.
 Capital requirements is a major issue, which needs to be take care. Within this, the
important aspects are budget allocation and higher investment returns, which would
act as an agent for increasing the affordability of the shareholders.
 Evaluation of income at every step of the transaction would be crucial in terms of
detecting the need for acquiring the additional requirements needed for standardizing
the production of the smart invoice cameras.

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References
Aguinis, H., Edwards, J. R., & Bradley, K. J. (2017). Improving our understanding of
moderation and mediation in strategic management research. Organizational
Research Methods, 20(4), 665-685.
Ansoff, H. I., Kipley, D., Lewis, A. O., Helm-Stevens, R., & Ansoff, R. (2018). Implanting
strategic management. Springer.
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2017). Human resource
management: Gaining a competitive advantage. New York, NY: McGraw-Hill
Education.
Bettis, R. A., Ethiraj, S., Gambardella, A., Helfat, C., & Mitchell, W. (2016). Creating
repeatable cumulative knowledge in strategic management: A call for a broad and
deep conversation among authors, referees, and editors. Strategic Management
Journal, 37(2), 257-261.
Engert, S., Rauter, R., & Baumgartner, R. J. (2016). Exploring the integration of corporate
sustainability into strategic management: a literature review. Journal of cleaner
production, 112, 2833-2850.
Hanson, D., Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2016). Strategic management:
Competitiveness and globalisation. Cengage AU.
Hill, T. (2017). Manufacturing strategy: the strategic management of the manufacturing
function. Macmillan International Higher Education.
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2016). Strategic management: Concepts and
cases: Competitiveness and globalization. Cengage Learning.

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Jenkins, W., & Williamson, D. (2015). Strategic management and business analysis.
Routledge.
Morschett, D., Schramm-Klein, H. and Zentes, J., 2015. Strategic international
management (pp. 978-3658078836). Springer.
Peppard, J., & Ward, J. (2016). The strategic management of information systems: Building a
digital strategy. John Wiley & Sons.
Rees, G., & Smith, P. (Eds.). (2017). Strategic human resource management: An
international perspective. Sage.
Trigeorgis, L. and Reuer, J.J., 2017. Real options theory in strategic management. Strategic
Management Journal, 38(1), pp.42-63.
Zhao, E. Y., Fisher, G., Lounsbury, M., & Miller, D. (2017). Optimal distinctiveness:
Broadening the interface between institutional theory and strategic
management. Strategic Management Journal, 38(1), 93-113.

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Bibliography
Bailey, C., Mankin, D., Kelliher, C., & Garavan, T. (2018). Strategic human resource
management. Oxford University Press.
Rosenbaum-Elliott, R., Percy, L., & Pervan, S. (2015). Strategic brand management. Oxford
University Press, USA.
Slack, N., & Brandon-Jones, A. (2018). Operations and process management: principles and
practice for strategic impact. Pearson UK.

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Appendices
Appendix 1
Fig: Collaborative strategy process for Pro-Go Pty Ltd
(Source: Zhao et al., 2017)

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Appendix 2
Team participation score matrix
Member name/ID Average participation
score (1-5)
1 Gregory Andreson 1
2 Shawn Ford 3
3 Casey Grice 5
4 Thomas Hurley 2
5 Arjawander Kaur 4

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Appendix 3
Peer Evaluation Grading Scheme
Rating Description
1  Commitment towards building team identity
 Leading the team performance
 Evaluation of the team performance
 Strategic planning for enhancing team effectiveness
5  Understanding team dynamics and roles
 Facilitating team development
 Re-planning of the duties in accordance to the required changes
3  Small group discussions for development agreement on the identified
and specified issues
2  Participates effectively in teams
 Identifies team and individual goals, tasks, responsibilities and
schedules
 Contributes to group processes
 Supports the team
4  Does not participate effectively in a team environment
 Places individual goals ahead of the group responsibility
 Hinders the group process and upsets the schedule

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Appendices