Analysis of Strategic Management - PDF
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Added on 2020-10-05
Analysis of Strategic Management - PDF
Added on 2020-10-05
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Strategic Management
TABLE OF CONTENTSEXECUTIVE SUMMARY:............................................................................................................1INTRODUCTION:..........................................................................................................................1MAIN BODY:.................................................................................................................................2Analysis of the organisation’s strategic position using relevant key performance indicators(KPIs)..........................................................................................................................................2Analysis of the organisation's strategic direction........................................................................3Critical evaluation of the organisation's strategy........................................................................5CONCLUSION :..............................................................................................................................6RECOMMENDATIONS :...............................................................................................................7REFERENCES ...............................................................................................................................8
EXECUTIVE SUMMARY:In this report it is shown that the strategy followed by Mercedes Benz for growth anddevelopment in the market. An analysis is done on firm present strategy and how it can grow anddevelop in the market by applying different strategies. Also, it has shown that how company KPIis been used in developing strategies. In this report analysis is done on organisation currentstrategic direction. Moreover, critical evaluation of the organisation's strategy is described withhelp of SAF framework. In the last some recommendations will be provided to company fordeveloping strategies for growth and development. INTRODUCTION:Business needs different strategies for continuous growth and development in the market.Strategies are modified and implemented according to the market condition. These strategiesensure that business can survive for long term (Hill, Jones and Schilling, 2014). Besides this, astrong strategic management is required to develop different strategies. Generally, strategiesdeveloped are for expanding business operations in various markets. This helps an organisationto gain more market share and customers. For undertaking the present report, organisationselected is Mercedes Benz. Firm belongs to auto-mobile sector and is operating in all over theworld. The existence of company on global level requires effective strategic management. Mercedes Benz present strategy is to improve product quality. Along with this, it hasfocused on increasing market share by targetting a particular segment. Its financial situation isbetter and much stronger than previous year (Rees and Smith, 2017) The sales of company haveincreased by 9%. It has delivered over 3.3 million vehicles in a year. Total profit earned was 10.9billion Euros. Moreover, the auto mobile sector is growing rapidly in the market. It has boomingat high rate due to flexibility in trade between countries and variety of products available. But, onother hand, many companies are focused on developing eco-friendly products to protect theenvironment. This is the reason there has been decline in growth in recent scenario. Also, thecompetition in this sector is getting intense. Mercedes Benz is a MNC having a stable marketshare in auto mobile sector. There are many other companies operating in this like BMW,Volkswagen, Toyota, etc. that are giving tough competition to Mercedes Benz. (Moutinho, and
Vargas-Sanchez, 2018). Therefore, an analysis is done on firm’s present strategy and the way itcan grow and develop in market by applying different strategies. MAIN BODY:Analysis of the organisation’s strategic position using relevant key performance indicators(KPIs)Mercedes Benz is a German company that is owned by Daimler Group and is known forits high quality and performance products. It is one of the largest volume selling auto makers inthe world in sedan, racing cars, etc. It has sold over 18, 80,100 cars in 2015. Besides this, it hasgained a strong market share in industry by developing high quality products (Goetsch andDavis, 2014). Company’s key performance indicators stated the measures through which it isable to grow and develop in market. Also, it is very important for business to identify its KPI sothat it can gain strong competitive advantage over rivals. KPI shows how firm focuses on certainmeasures to achieve its goals and objectives. Moreover, it helps in evaluating the strategicposition of company in industry. KPI can be related to customers or products. It can also reflecton firm’s financial or strategic performance. Generally, KPI are used by top management todevelop strategies. An effective KPI will focus on improving the business process so thatproduct’s quality can be improved. Moreover, KPI importance is it helps to monitor companyperformance with its goals so that proper actions can be taken. KPI of Mercedes Benz are :- High quality product - The products of company are of very high quality. This has attractedlarge number of people (Gamble and Thompson, 2014). Moreover, because of this company isable to grow. The main purpose is also to improve product quality so that customers can beretained. So this KPI has enabled company to build a strategic position of high quality product. Brand awareness – It is having a strong brand awareness in the market that enables them tobecome MNC. Also, it has given them a competitive edge over others. Due to brand awarenessMercedes Benz is able to maintain customer base. This indicator has enabled company to attractsmore customers. Diversified range of products – Company is having a variety of products available tocustomers. It produced sports, sedan, SUV cars, and is now also engaged in buses and trucks.
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