Business Strategy Report for ABC Shoes Limited

This report analyzes the major strategic decisions made during the six-round BSG simulation for ABC Shoes Limited. It also reflects on relevant theoretical frameworks applicable to understanding the internal, external and competitive environments of the business. The report evaluates the impact of emerging technology on the future of the business and makes useful recommendations to future managers. The subject of the report is business strategy and the course code is not mentioned. The college/university is not mentioned.

Strategy

Executive Summary
On the basis of this report, it is determined that the importance of business strategy is more
which can help full to improve the operational activities of the company. In this report various
types of models are applied which can help full to identified the Macro environmental, micro
environmental and competitive environmental situation which helped in the decision making of
the organization. These entire theoretical framework helped lot to consider the appropriate
decisions for the welfare of the company.

Table of Contents
Executive Summary.....................................................................................................................................2
Introduction.................................................................................................................................................4
Main Body...................................................................................................................................................5
1. Evaluate the major strategic decisions made during the six-round BSG simulation. Reflect on one
round that stood out, why and key lessons learnt.........................................................................................5
2. Reflect on relevant theoretical frameworks applicable to understanding the internal, external and
competitive environments of your business; and discuss how these frameworks helped in shaping
decisions made in your BSG........................................................................................................................8
Porters five force model............................................................................................................................11
3. Critically evaluate the impact of ONE specific emerging technology on the future of your business and
make useful recommendations to future managers....................................................................................15
Conclusion.................................................................................................................................................17
References.................................................................................................................................................18

Introduction
Every business require a specific strategy which can helpful to boost the structure,
performance and productivity so that business can effectively gain more advantages. There are
various types of business strategy which can helpful to maintain the operations in the current
market. Some specific kind of business strategies like growth, cost leadership, focus, acquisition,
differentiation and price skimming (Anwar and Hasnu, 2016).This report will create a business
named ABC shoes Limited and the prime purpose of this business is to adopt specific techniques
and analyze the internal and external environmental situation so that company can effectively
improve their profitability level. The main motive of this assessment is to major strategic
decisions, theoretical frameworks applicable to understanding the internal, external &
competitive environments. This report will also analyze the emerging technology on the future
purpose. There are various things are involved which can helpful to maintain the structure of the
company. The mission, vision, values and objectives of the company are as follows -
Mission
Mission statement is to inform & motivate the industry's shareholders, especially managers,
the advertising & the general public, about the business.
Vision
To inform and inspire the organizational stakeholders so that company can effectively achieve
the goals for the future purpose.
Value
A values statement is intended to consider all stakeholders about the business's essential
convictions - most commonly, ethical stances, particularly in respect to corporate responsibility,
improved supply chain networks, and so on.
Corporate objectives
 To identify the most appropriate strategies which can helpful to achieve the business
targets and investors expectations.

 To achieve at least 13% within 2 years as per the SMART Objectives ( Specific,
Measurable, Attainable, Relevant, and Time-Bound).
Main Body
1. Evaluate the major strategic decisions made during the six-round BSG simulation.
Reflect on one round that stood out, why and key lessons learnt.
Basically BSG (Business Strategy Game) is considered as the selling computer simulation
in strategic management market. It is identified that simulation games are considered as the most
specific single exercise which are helpful for the students in order to make clarity about how to
function the appropriate business and gain good experience.
Strategic decisions are work like a those decisions which can influence the project and also
staff members so that they can consider the effectiveness of the decisions for short or long term
period of time.
General activities & decisions of 6 years strategic business decision making
In order to obtain success, there are various decisions are taken by the organization and all
the decisions are made as per to full fill the requirements of the corporate strategic objectives.
ABC shoes Limited is considered as the creative organization which manufacturing designer
and creative design shoes and delivery it to their customers via online platforms (Buil, Catalán
and Martínez, 2018). In order to maintain the 6 years strategic business decision making, ABC
shoes limited adopt specific strategies & also utilize the strategic management planning process
so with the help of this , shoes company can take appropriate decisions. There are some specific
factors are determined which can provide the impact on the decision making for company before
taking decisions.
 Programmed vs. Non-programmed decisions - This is considered as the most
appropriate strategy decision which needs to play a specific role in the business purpose.
The main concern of this decision is to generalize basic activities of the business and take

decision in a programmed and nonprogrammer purpose. These type of decision are
considered in a random situation. ABC Shoes Limited concerned about their business
activities and also so take decision as for the demand of the situation that's by owner of
the business consider programmed and non programmed decisions. For instance, internal
consideration and legal considerations are considered as the programmed decisions and
analyze competitive performance is considered as non programmed decisions.
 Information inputs- in order to take an appropriate decision, it is necessary for the
organization to properly take care about information inputs so that company can get
appropriate output as a decision. The prime concern of the ABC shoes Limited is to
provide appropriate information to their stakeholders and other staff members. Owner of
the business take care about the communication channel so that proper information can
be circulated to each and every participated members so that all the members can provide
their contribution to take decisions as per the relevant information.
 Cognitive constraints - As per the situation of the company, cognitive limitations cause
probability distortions & consequent decision-making errors. Human perceptions of
possibilities, particularly extremely tiny and very large probabilities, can be significantly
skewed, leading to potentially fatal conclusions. Some specific activities are involved in
cognitive constraints which considered by the ABC Shoes Limited like Thinking,
understanding, memorizing, evaluating, and drawback are examples of cognitive
processes. Language, imagination, perception, and planning are examples of higher-level
brain activities.
 Attitudes about risk and uncertainty - it is necessary for the each and every
participated members of the organization to focus on the positive attitude so that they can
effectively overcome the risk and uncertainty situation. With the help of positive attitude
every participated members can take an appropriate decisions and avoid the risk factor
effectively. For instance, company is looking forward to adopt high-level of technologies
so that company can effectively improve their online marketing and maintain customer
relationship activities. In order to take this decision, owner of the business need to avoid
the risk factor and considered positive attitude so that all the staff members can easily
learn to access the technologies (Cosenz, RodriguesandRosati, 2020)

 Personal habits - This is also considered as the most specific factor in order to take a
strategic decision. Personal habits need to be very e specific and also supportive for the
decisional purpose. ABC shoes Limited is function about their employees and also
focuses on their personal habits so that all the employees can work effectively and show
their participation in the decision making.
 Social and cultural influences - in order to take an appropriate decision, it is
compulsory for each and every participating members of the company to concerned about
the social and cultural aspects. ABC shoes Limited is focus on the social and cultural
activities so that all these aspects cannot influence their decision. Main motive of the
company is to improve their 13 % profit in the upcoming 2 years so that company can
effectively achieve their organizational goals and objectives (Durán, Córdova and
Palominos, 2016).
Outcomes of the decisions
ABC shoes Limited is a creative designer company of the shoe which is more concerned
about their marketing and selling activities. The main objective of the company is profit
maximization and company is looking forward to adopt appropriate strategies in order to boost
their market share. There are various types of decisions are considered by the companies owner
whether it is programmed or not programmed decision, information inputs, social and cultural
influence. All these factors affect the decision making and influence be decisional prospective of
the owner and other staff members. As an outcome, in order to follow the strategic objectives of
the company that is achieve at least 13% profit in the next two year, company is looking forward
to adopt high level of technology and provide appropriate training sessions to their staff members
so that they can easily access the technology and become familiar with that. Advanced level of
technologies helpful to boost the performance level of the company so that company can
effectively improve their profitability (Jelassi and Martínez-López, 2020).
Reflect on one year round of stood out

There are various types of decisions are taken by the business owner so that all the
operational activities can be done in an appropriate way. In context of first year, business is
totally new and owner didn't have any idea about the operational activities of the business.
During the initial days, company was facing difficulties in order to attract the customers and also
target the right customer. As for to deal with this problem, company decided to conduct strategic
hiring process so that company can recruit high potential employees who can easily deal with the
customers and also improve the customer ways. So this type of decision taken by the business
owner in the one year round. From the situation, I have generalized that a potential and skilled
employees are necessary to improve the performance of the organization. On the basis of ABC
shoes Limited situation, I have analyzed some specific factors which need to be considered
while the owner of the business like for initial purpose on a need to provide appropriate training
sessions to their staff members and also hire those employees who have technological skills.
2. Reflect on relevant theoretical frameworks applicable to understanding the internal,
external and competitive environments of your business; and discuss how these
frameworks helped in shaping decisions made in your BSG.
In order to take an appropriate decisions for the profitability of the ABC Shoes Limited ,
there are various theoretical frameworks considered by the owner so that all these theoretical
frameworks can help phone to shaping the decision which is generally made by the business
strategy game. There are various types of theoretical frameworks tools are applied by the
organizations whether it is micro environmental tools, macro environmental tool or competitive
analytical tool. The main prospective of these kinds of tools is to maintain the decision making
of the company (Enos, Kalabokes and Zamora, 2019). The explanation about all these
theoretical frameworks tools in order to generalize the internal external and competitive
situations of the company are given below -
2.1. Macro-environment (External Environment)
Micro environment theoretical framework is helpful to generalize the external environmental
situations of the organization. In order to understand the external environmental situations of the
company, ABC shoes Limited implement PESTLE analysis. With the help of PESTLE analysis

company identified the whole scenario of the external factors which influence their decision
making process. There are various factors are involved in this analysis, which are discussed in
context of ABC Shoes Limited are as follows -
 Political factors - In This Factor, there are various elements are involved such as
taxation policies, foreign trade policies, trade rules and regulations, employment. In order
to deal with the political factors, ABC shoes Limited generalize the whole aspect and
maintained the political stability so that company easily avoid the political disturbance.
 Economic factors –In this factor economical growth level, inflation, recession,
employment law and minimum wages are considered by the organization. In order to
maintain the economical factor, ABC shoes Limited implemented effective pricing policy
live competitive pricing policy so that company can easily gain more profit and take more
competitive advantages (Jida, and et.a l., 2020).

Figure 1, Scanning the Environment: PESTEL Analysis, 2016
 Social factors - cross cultural activities, buying behavior of the customers, age, income,
educational background, income level are considered by the organization. ABC shoes
Limited is more concerned about social factor and also generalized appropriate factors
which can improve the customer relationship of the organization. Company owner
provided various offers and discounts so that company can attract the customers and
improve their customer base (Kong and et. al., 2020).

 Technological factors - Advanced level of technologies and modification in the
technologies are involved in the technological factor, the main concern of this factor is to
improve the technical applicability of the ABC Shoes Limited. Owner of the business
adopted high-level of technologies so that owner can appropriately maintain their
operational and customer relationship management like satisfy their queries instantly with
the help of technology.
 Legal factors - Legal Factor is associated with the legal considerations, lawful policies,
acts, procedure. ABC shoes Limited focused on their companies legal structure and also
maintain each and every legal considerations so that company can work effectively
without any government restrictions.
 Environment factors - Climate change, population rate are generally considered in the
environmental factor. ABC shoes Limited is a creative designer of the shoe and the main
concern of the company is to focus on seasonal aspect so that company can designed and
provide shoes as for the seasonal purpose like summer, winter, spring.
On the basis of education related with the Macro environmental factors, it is generally is
that technological factors, legal factors and social factors provided positive effect on the decision
making of the stakeholders and other participating members.
2.2. Meso-environment (Competitive Environment)
In order to generalize the competitive environment situation, there are various types of of
decisions are taken by the organization so that company can easily understand the current
competitive environmental situation and also actual status of their rivals. In order to take down
the competitive environment situation and generalized the whole aspects of the competitive
environment, ABC shoes Limited utilized Porter's Five Forces model, there are five component
are involved in this model which demonstrated the force of all these factors on the business. The
explanation about this theoretical framework are given below -

Porters five force model
In 1979, Michael E. Porter released the five forces framework, which is a basic notion
concerning competitive forces. It quickly would become the de facto technique for assessing
forces that drive productivity and competitiveness. The explanation about this model in context
of ABC shoes Limited are as follows -
Figure 2, Porter’s Five Force Framework, 2020
 New entrants -The first of Porter's Five Forces we'll look at is new entrants, or the
prospect (and likelihood) of new rivals entering a sector and increasing competition. The
likelihood of admission is usually determined by the barriers to entry. If they are low and
involve little effort, time, or money, there is a good chance that competitors will rush in.
Because this company is new in the market, the force of new entries for ABC shoes
Limited is high. As a result, the company makes sure about its long-term viability.

 Bargaining Power of Suppliers –ABC shoes Limited bargaining power is limited due to
the large number of suppliers on the market. When vendors are in high demand, the
company works with a range of vendors to ensure that production is maximized.
Company supply chain must be improved, and they must attract a large customer base.
(Lin and et. al., 2021).
 Bargaining Power of Buyers-Because there are so many buyers in the market who have
a choice of where they want to invest their money, and also because clients are the kings
of the market, the buyers' bargaining power is high in ABC shoes Limited . It was
discovered that the company provides high-quality services to its customers and clients in
order to attract them and gain a competitive advantage over its rivals. Customers can
target different customer segments and promote their products in the local supermarket,
allowing a greater group of people to become aware of their valuable services. In the
context of ABC Shoes Limited, the buying power of customers is very strong.
 Threat of Substitution –Because of various customers , there is possibility that each
customer can go for another brand and maintain their own approach to purchasing, the
threat of new entry is significant for ABC shoes limited . Company is thought to be able
to attract locals by offering simple bargains and discounts, as well as low-cost bundles,
allowing the phone to continue to give better market stability (Liu and et.a l., 2020).(Liu
and et.al.,2018) .
 Competitive Rivals –Because there are so many competitors in the footwear field, the
company rivalry are strong, so the ABC shoes Limited must assess its competitors'
current state and devise a strategy to increase productivity by addressing customer needs.
Because ABC Shoes Limited is a new company, the competitors' force is formidable..
2.3. Micro-environment (Internal Environment)
As per to take an appropriate decisions and identify the real capability and applicability of the
organization, it is compulsory for the business to adopt micro environmental theoretical
framework tool. With the help of this tool, Company can appropriately understand the internal

environmental situations of their organization. ABC shoes Limited utilized McKinsey 7-S model
to understand the internal environment situations of there. With the help of this model company
effectively generalize the whole internal aspects which helped a lot to take appropriate decisions.
This theoretical framework is important because with the consent of internal environmental
factor, company can appropriately generalized the whole external environmental situations of
their business. The description about this model in context of ABC shoes Limited are as follows
McKinsey 7-S
This notion was developed by Robert H. Waterman and Tom Peters in the 1980s. This is a model
work that may be used as a managerial tool to maintain all of the internal activities of the ABC
shoes Limited which are stated below -
 Strategy –For the organizational daily processes to run effectively, this intellectual
framework is required. Through effective approach and the assistance of effective
approach, ABC shoes Limited easily assessed risk and adopt appropriate methods to
reduce risk uncertainty.
 Structure –This feature facilitates in the establishment of a certain working arrangement
among employees. The company manager maintained a steady organizational structure in
place in order to give proper instructions to employees and guarantee that communication
lines are open (MartínezHernández and et. al., 2021).
 System- The purpose of this part is to methodically plan and manage all of the activities.
ABC shoes Limited establishes guidelines to guarantee that all personnel follow a
systematic approach to their work.

Figure 3, What is the McKinsey 7S Model?, 2018
 Shared value –This feature of McKinney is beneficial in terms of providing more value
to customers and ensuring consistent brand image. The ABC shoes Limited followed all
moral norms that might help clients and customer gets more value.
 Style –Company managers and leaders are most likely to pay attention to this factor in
order to adopt a specific management and leadership style in order to improve the
business performance.
3. Critically evaluate the impact of ONE specific emerging technology on the
future of your business and make useful recommendations to future
managers.
It is necessary for the organization to adopt a high level of technologies and also
considered the utilization of emerging technologies so that company can easily maintain their
performance for the future. ABC shoes Limited need to evaluate the technological aspects of the

organization and improve their understanding about the emerging technologies so that company
can adopt one specific technologies for the future purpose.
Understanding of emerging technologies
In order to take more competitive advantage and improve the profitability of the business,
ABC shoes Limited need to generalize the whole technological aspects and also improve their
understanding about the emerging technologies. There are various types of technologies are
taking a wider place in the market such as Artificial intelligence , 3 D techniques , Cloud based
Technologies & Robotics. The importance of all these kind of technologies are more and these
technologies are mainly utilizing why most of the organizations in order to improve their
technical applicability. Artificial intelligence and cloud based technologies are considered as the
most preferable technologies which can improve the effectiveness of the organizations within a
short period of time. Robotic and other 3D technologies are also appropriate and improve the
working productivity of the organization (Sánchez-Herrera and Donate, 2019).
Impact of one specific emerging technology for future purpose
On the basis of organizational situations of the ABC Shoes Limited, it is determined that
artificial intelligence and also cloud based technologies are more appropriate. ABC shoes
Limited mainly offering high quality e and designer shoes to their customers and also doing
online marketing effectively. So as for the situations of the company, artificial intelligence and
cloud based technologies are more appropriate. The main motive to opt artificial intelligence for
the future for course is that AI is helpful to improve the customer experience and also support the
customers effectively, AI is also good for target marketing and supply chain, maintain the quality
control and in healthy smarter and save operation. With the help of artificial intelligence and
cloud based techniques, ABC shoes Limited will maintain their performance level for the future
purpose (Peng, 2017).
Recommendation for future manager
On the basis of current marketing situations of the ABC Shoes Limited , there are some
recommendations recommended like as per my opinion after analyzing the whole situation, ABC
shoes Limited need to adopt high level of technologies like artificial intelligence and cloud-based

technologies so that senior manager of the company can effectively improve their performance
level for the future purpose. I have also identified that senior manager need to conduct strategic
planning process in order to understand the current status of their competitors so that senior
manager will easily understand the current Strategies and pricing policies of their rivals (Yuan
and et. al., 2020).
Conclusion
According to this project, it can be concluded that organization need to prepare a specific
business strategy so that IT company can effectively improve their profitability rate. This report
is identified various types of theoretical framework which can help full to improve the internal
and external market situations of the business and helpful to take competitive advantages. In this
report various types of theoretical framework are applied like PESTLE analysis, porters five
force model and Mickey 7 S. All these models generalized the whole situations of the company
and help to take appropriate decisions. In this report, artificial intelligence technology is
considered as the most appropriate technologies in order to improve the future marketing
situations of the company.

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