Applied Corporate Strategic: Opportunities and Threats for Business Strategies Plan

This report discusses the opportunities and threats of external analysis for business strategies plan, resources required by VF corporation, value chain model, VRIO model, and strategies beneficial for organization attractiveness. It includes a discussion on the Porter five forces model and how it affects the organization's activities.

Applied Corporate
Strategic

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Opportunities and threats of external analysis for business strategies plan.................................3
Resources that VF corporation required......................................................................................5
Value chain model for VF corporation........................................................................................7
VRIO model for VF corporation..................................................................................................8
Strategies those are beneficial for organization attractiveness:...................................................9
Evolution of SAF strategy with TWOS analysis for management of external forces:..............11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Corporate strategy define as a process where business prepare structure for long term
growth, motivate their employee for maintaining relationship with the customer and fulfil the
stockholders demands. The VF corporation is footwear and clothing retail industry. They apply
various strategies for their long term growth and development. The company prepare structure
and framework for their customer satisfaction. VF corporation acquire supreme industry because
this company also sells the smiler product throughout the online marketing. Both the company
prepare framework for the development of new techniques in their business activity. This report
will show that organization affects from external and internal factors and how company prepare
structure for their long term growth. Also, this study provide information about company
strategy (Hernandez, and Menon, 2021).
MAIN BODY
Opportunities and threats of external analysis for business strategies plan
Organization faces many challenges from the external environment factor. Basically
recently almost every corporation believes in apply new techniques and new beneficial
opportunities in their business plan. This strategic plans are essential for impressive organization.
Effective utilization of new technology is challenging part but the proper knowledge, motivation,
training provide benefits for smooth run organization. Application of online marketing policies
can be easier process and it will create new opportunity to connect with target audience (Temri,
2021). Organization affects from various external factors concluded with opportunities and
threats are as follows-
main business issues are lack of information: if business is lacking in proper researching and
information this can create a big threat to them as they are not able to do any task.
Asset management: Asset management is also the biggest problem for the business. As if
businesses having a good asset or cash flow it will be opportunity for them to invest in good
sector.

Time management: To successfully run a business required a lot of patience and time so
company has to manage all their time sometimes the situation arise in which they have to give
extra time in such situation they need to calm and patient to develop a opportunities for them.
Political factors:
Preparation of strategies organization has follows many aspects for long term
profitability. The retail industry prepares any frame work they have to focuses on government
rule and taxes policy those are prepared by government. The company properly follow political
aspects, they can easily make effectual position in market place. Attractive organization
reputation directly open new opportunities in the market. Any corporation when they prepare
strategies they have to considered taxes policies, legal policies, safety regulation and many more
according to the political factor. The major threat is that sometime changes in the taxes policies,
tread policies are directly affects the organization performance.
Economic factor:
Industries consider the various economic factor those are directly effects the company
sales and their market activities. Every external aspect has some opportunities and some threats.
The retail industry prepare framework for their effective inflation in GDP rates, customer buying
power, interest rate, income per capital rate and many more factors affects the industry
performance. According to the economical factor there are very limited opportunities that
organization can apply like improvement in inflation rate, improvement in the employee salary.
Better employee salary provide better organization performance in the market
Social factor:
The organization open new branches in different place firstly they should consider the
cultural activities, social background etc. It is essential that industry follows the culture for new
opportunities. Number of population, their class, lifestyle and many more things are essential for
any business evolution because these aspects provide effective result from the customer. Proper
idea of audience attitude, their education level provide many opportunities for make impressive
strategies. The major threat of business plan is that the diversification because customer mood,
social convention can be changed any time. According to their aspect is difficult to makes
policy.
Technological factor:

According to recent trend when the company prepares any structure they firstly decide
technological advancement the strategic plan. Currently it is major factor that every company has
followed it. On the behalf of research most of the corporations believes that availability of new
advance technology is beneficial chance or opportunities for effective business performance. The
threat of technology is that experience of technological tools. The fast changes in technology and
low availability of financial resources can affects the application of innovation development.
Environmental factor:
Basically when the organization prepares any strategy they consider various factor but
this aspect is totally different and their plan is also very difficult. Because, climate change,
unwanted situations, law of pollution etc. those factors planning preparation is little complicated.
There is very less new opportunities because most of the time environmental factor are directly
affects that whole business policies. The threats of this factor are so many because its totally
depends on climate changes (Wajid and Zafar, 2021). Conversion in uncertain weather can be
influence all over the business activities.
Legal factor:
Every country has different laws and regulations. Application of legal aspect is necessary
for effective business strategies plan. The business follows that government policy they can
easily survive in huge competitive market. Because its important aspect that every company has
to follow some rules and laws like protection of customer data, employee safety rules, heath
insurance, property laws etc. for the application of new opportunities (Hongcheng and Junchao,
2020). Also, fast changes in legal aspects some time threat of the organization performance.
Resources that Retail industry required
Resources in every organization played an important role it can provide potential growth
to the organization. Resource plays a crucial role in retail industry to achieve their desired
successive goals (Chopra, 2017). Resources can be differed in as human resource, intellectual
resource, physical resource, organizational resource, technological resource, information
resource all have different functionalities in an organization.
Human resource:
Human resources in any organization plays a responsible role. For the VF corporation
human resources department recruits and trained new employees they explain the company's
complete structure to the new joining. They manage all the employees matter related to their

salary, rewards etc. Strength of human resource in VF corporation is that they understand their
employee's situation, they mentor their employees in right direction or main strengths are they
are responsible for developing strategic perspective for the company. Weakness of Human
resources in VF corporation is they avoid the finance part, they are too slow to implement new
strategies in organization.
Physical resource:
Physical resources are the main function of any organization. In VF organization physical
resources includes all tangible resources company invested on infrastructure, on raw material for
their product, their physical resources are effectively managed by their physical resource
department. The main strength of physical resource is plays important role in product based
business as VF corporation is product based company they used to sell goods and services for
their organization's growth. If any problem occur in tangible resources like breaking of
equipments, any fault in raw material then it will reflect on product developing process of VF
corporation (Sebastian, Camelia and Antonio, 2018).
Intellectual resource:
Intellectual resources includes organizational brand, copyrights, IP or even database of
individual. VF corporation is earning substantial benefit in their field with the help of intellectual
resources. Strength of intellectual resources are they are helpful in managing IC of VF
organization as it handles data of customers. Intellectual resources adds additional cost on the
developing product of VF corporation also this resource reduce the quality of product.
Organizational resource:
Organizational resources are those through which organization can make investment on
their projects. In VF corporation organizational resources manage the work within their
employees, it manages all equipments and services which is essential for the development
process of organization. Fault in organizational resources can lead misunderstanding among the
department of VF corporation.
Technological resource:

Technological resources improves the performance of any organization. VF corporation
uses technological resources in order to innovate their product according to new technologies,
this resource allows them to manage all technical tools in their corporation. Strength of this
resource is that it allows use of technology to implement result in a short time which is helpful
for the production process of VF corporation.
Information resource:
Information resources are those which consist of useful data. For VF corporation this
resource work as a provider of useful informative data which can be analysed for further use and
all decision made for corporation based on this data. Strength of this resource is that it provide
useful information to mitigate any kind of risk in corporation (Shakeel and et.al 2020).
Value chain model for VF corporation
Value chain model is used by organization to deliver valuable services and goods in the
market. VF corporation used this model to offer quality services and product to their customers
for the growth of their organization.
Primary activities
Inbound logistics:
This activity indicates the process of storing, distributing of resources in organisation.
With the help of this activity VF corporation easily manage their raw material and easily make it
available the resources to their employees.
Operation:
This activity allows VF corporation to distribute their raw material in a good manner to
develop their company's product.
Outbound logistics:
This activity includes final process of product which is distribution in market, packaging
for the purpose of sale in market.
Marketing and sales:

It is most important activity it allows VF corporation to promote or advertise their
product for sale in market.
After sales services:
After sale service includes process of innovation, quality assurance of the product. With
this VF company can consider customer's recommendations for their innovation process of the
product.
Secondary activities
Procurement:
Procurement handles the supply chain process of raw material it allows VF corporation to
ensure the reliable delivery of their product from their end (Sminia, 2021).
Technological development:
It includes research and designing of product according to new technologies from which
VF corporation is able to deliver good product and services.
Human resource management:
Human resource manages all the activities related to recruiting, trainings of employees
and compensation of employees in VF corporation.
Infrastructure:
This activity includes all finance, strategic management, accounting and legal activities in
VF corporation.
VRIO model for VF corporation
VRIO stands for value, rarity, inimitable and organized this model linked the company's
internal features and performance. VF corporation implement this model to know their
company's performance (Wu, He and Duan, 2019).
Value Rare Inimitable Organized
Human resource Yes No Yes Yes

Intellectual
resource
Yes Yes Yes Yes
Organizational
resource
Yes No No Yes
Physical resource Yes No Yes Yes
Information
resource
Yes Yes Yes Yes
Technological
resource
Yes No Yes Yes
Valuable:
All the above resources are valuable for VF corporation, and they are providing benefit to
the VF corporation to achieve their successive goals. Different activities of these resources are
able to increase revenues for VF corporation in their market field.
Rarity:
The above resources are uncommon for VF corporation these resources helped the
organization to develop unique product from their rivalries and also give them chance to compete
in the market.
Inimitable:
For VF corporation all these resources are hard to copied by other companies, they
include all the copyrights on their items so that it is hard for their rivalry company's to imitate.
Organized:
In VF corporation all these above resources are in organized or in structured form, it
helped company to take good decisions.
Physical resource: for the VF organisation their physical outlets, product process are unique as
because of this their products are able to recognised by many people.

human resource: company's human resource manage all the activities effectively they encourage
employee also train new candidates to carry out their organisational operations quickly and
effectively.
Company has weakness as they are not able to completely communicate with their
customers their gap in interaction is causing many problems for them. There are other weakness
are improper arrangement, lack of interaction among department, no motivation for employee,
lack of skilled professional, retaining the customer.
Company has strength as they are good at giving quality product to the customer, they
have enough supplier of raw materials in the market.
Strategies those are beneficial for organization attractiveness:
External strategies plan is valuable tool for strategic plan or framework for effective
organization expansion. Basically knowledge of macro environment and micro environment is
essential because it provides create proper structure that shows various activities which directly
affects the business performance. This is plan of analysis technique of business competitive
environment. Porter five forces model which is beneficial for attractive business structure are as
follows,
Industry competitive rivalry:
This point shown the idea that which organization or industry provide same product
services in the market. That means if the competition become higher than it will directly affects
the organization over all performance (Khan and et,al., 2021). Development of attractive and
different business is essential to applied discount policy. Lower margin on product and services
is favourable aspect for surviving in the competitive market. Innovative advertisement policies
are powerful option for increase business sales.
Bargaining power of supplier:
Most of the organization purchase raw material from supplier. Suppliers behaviour and
their power is also affects the business activities. Inflation in raw material influence the all over
corporation plan which reflect the product market sales. Management and good relationship with
goods distributor is essential for organization attractiveness. Strategies are obviously prepared
for proper continuity in business performance, but some scare resources availability then supplier
have power to change their product rates.
Bargaining power of buyers:

Effective strategic techniques gives proper idea that how organization can effect the
many factors. Preparation of business strategy it is essential to know about purchaser nature
because the buyer bargaining behaviour is high it directly influences the product sales.
Undifferentiated goods, product cost switching low can improve the industry performance.
Threats of new entrants:
That means organization activities affects from new industries entrants. This model
affects from development of new business but there is some solution that company can apply like
high cost of entry, complicated government policies and many more. Development of new
strategies it is compulsory that the company product and services both the things are different
from other business. Differentiate product quality can defiantly increase the supply.
Threats of substitute:
The major aspect and the major challenge for industry success is the similar product
availability because differentiate product is essential part for survive in large market competition.
The decision of business development firstly consider that product should be different and
innovative from other available resources. If one organization sales tea in the market but
audience prefer other option like coffee then it will directly affects the tea sales.
Evolution of SAF strategy with TWOS analysis for management of external forces:
TWOS analysis Opportunities Threats
Strength (OS) Opportunities and
Strengths
(TS) Threats and Strength
Weakness (WO) Weakness and
Opportunities
(WT) Weakness and Threats
The effective strategy can affected from various type of aspects. The industry prepares any plan
they follow so many aspects for impressive strategy development. TWOS analysis provide
information that how company can smoothly run with effective plan and SAF strategy gives

strength on organization or business strategy they describe every aspect that how company can
manage external factor with application of this strategy are as follows,
Suitability:
According to this analysis tool company can easily consider the external forces those are
reflects the action of opportunities in market. Consideration of the various activities provide
suitable environment in industry. Suitability gives the idea that company can prepare structure
that which aspect is suitable for organization environment, management of strength and
opportunities with evolutional of the external environment factors. Knowledge of strengths and
suitable aspects directly impact the organization effective perform activities. The VF industry
develop plan they consider that expectation and capability suitability which means consideration
of those aspects provide understanding that how industry can evaluate different plan with
guidance of the suitable analysis.
Acceptability:
This measurement tools basically provide idea that how company and industry can mange
risk factor, customer relation, and effective return. These factor management plans impact the
measurement of various resources. The completion of strategy industry summarize the total
number of customer value. Understand the stockholder reaction analysis the risk factor.
Application of strategy with analysis of different aspects is not ans easier part. Because effective
schemes and practices depends on knowledge, information, new idea and many more. The VF
corporation achieve the target according to the basis of the measurement techniques. The proper
measurement aspects consider from customer reaction. Acceptability is measure aspect that
company can evaluate and manage different aspect those reflect the industry performance and
tools are as follows,
Opportunities and Strengths:
The preparation of effective strategy industry consider the new opportunities like
customer wishes, desire and knowledge with external forces that environment changes. New
opportunities and strengths is the combination factor, that means new opportunities provide
strength to the organization strategy plan. Management of various aspects company decided
section that individual or team can focus on this activity. And, according to their collective
information company focuses on new chances.
Threats and Strength:

Organization faces many challenges but the proper guidance and idea gives strength to
the company. This analysis basically provide information that how individual industry solve
threats in the company.The analysis of company customer reviews provide strength to the
company. Some time company prepare structure for their development but changes in external
factor affect the whole organization activity but this individual analysis guide that which factors
are become strength for the organization (Fibbi, Maselli and Pieri, 2020).
Weakness and Opportunities
Proper management of product price according to the customer power is the best chance
to maintain their new opportunities for the organization. Acceptability the combination which is
very fruitful stretchy that makes creative platform. The organization knows some fact but when
the problems are available their solution also available because weakness and opportunities both
the terms includes effective solution. The company creates structure they major focus on both
factor weakness and opportunities. Because new opportunities provide success and analysis of
weakness provide information about new difficulties and how company can resolve.
Feasibility:
This is practical plan of prepared strategy. That means how company implement all over
the activity with effective plan. It considers the significance factor like break ever point of
industry. Assessment of new strategy with feasibility analysis make effective position of the
company. This strategy proves that the pick level of industry activity performing well or not.
They show that organization over all performance work performance is effective. It is guidance
of resource performance and their capability (Chapple and et.al., 2020). Effective work provide
new strength to the company. According to the feasibility the company technical work team
shown that effective work plan. Feasibility shown the all implement activities performing well or
not. It covers the whole industry programs like start to end.
Interest matrix:
keep satisfied: as in this category main stakeholders are whom who take less interest in
company's activity so that company need to keep satisfy their investor by giving them a better
project so that they invest.
manage closely: in this customers are the stakeholders so that company manage them by
providing better services and product so that they always remain loyal to them.

Monitor: in this employee are the stakeholder company need to track the performance of the
employee so that they can work better also provide them a motivation and good guidance so that
they can carry out any task.
keep informed: in this all stakeholders are include as company need to give information about
their every activity if they are launching new product then they need to inform all for their
productivity.
CONCLUSION
It has been summarized form the above reflective study that the effective and attractive
plan and strategy prepared more effective industry development for long run. Knowledge of
various factors and analysis can beneficial of over all business. This report has been reflected the
analysis of various factor is essential for effective organization.
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