Unit 32: Assignment on Business Strategy

ASSIGNMENT 3 FRONT SHEET
Qualification BTEC Level 5 HND Diploma in Business
Unit number and title Unit 32: Business Strategy (574)
Submission date 6 September 2021 Date received (1st submission)
Re-submission date Date received (2nd submission)
Student name Le Hoang Long Student ID GBD18372
Class GBS0815B.1 Assessor name Huynh Ai Van
Student declaration
I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I
understand that making a false declaration is a form of malpractice.
Student’s signature:
Long
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Business strategy
Full name: Le Hoang Long
Class: GBS0815B.1
Teacher: Huynh Ai Van
Word count: 4358 words

Contents
I. Strategic position (SWOT) ...................................................................................................................................... 1
II. Strategies choices .......................................................................................................................................... 4
1. Strategic direction ......................................................................................................................................... 4
Vertical integration ........................................................................................................................................ 4
Product development .................................................................................................................................... 4
2. Business strategy ........................................................................................................................................... 6
Cost leadership .............................................................................................................................................. 6
Differentiation ............................................................................................................................................... 6
3. Strategic methods .......................................................................................................................................... 7
Organic Development .................................................................................................................................... 7
Strategy 1 ............................................................................................................................................................... 8
Strategy 2 ............................................................................................................................................................... 9
III. Evaluation .................................................................................................................................................... 10
SAFe evaluation criteria ....................................................................................................................................... 10
Strategy 1 ............................................................................................................................................................ 10
2. Strengths and Weaknesses .................................................................................................................. 12
Strategy 2 ............................................................................................................................................................. 13
2. Strengths and weaknesses .................................................................................................................. 14
IV. Strategy in VN .............................................................................................................................................. 15
Conclusion .................................................................................................................................................................. 15
References ................................................................................................................................................................. 16

List of figures
Figure 1 : Corporate strategy directions (Johnson et al., 2017: 245) ..................................................... 5
List of tables
Table 1 : Nike's SWOT analysis ............................................................................................................... 3

1
Introduction
Proposing appropriate strategies for an organization by leaders or managers needs to base on
external and internal factors of that organization. In assignment 1, using PESTEL tool and stakeholder
mapping to analyze external factors of Nike Company showed which opportunities that Nike could take
advantage and threats that Nike Company is facing. In assignment 2, however, to identify the weaknesses
and strengths that exist inside the company, value chain method and Benchmarking were applied to
analyze internal factors. When external and internal factors are identified, suggesting the strategies to
help enhance Nike’s business performance will be easier for top managers and leaders of Nike Company
in assignment 3. Besides, evaluating the strategies after proposed in order to how effective they are and
which weaknesses of the strategies are needed to improve by using SAFe criteria, Quantitative Strategic
Planning Matrix – QSPM.
I. Strategic position (SWOT)
Strengths Weaknesses
(1) Strong Brand Awareness – Nike is one of the
most popular brands in the world, as the logo itself
is memorable, easy to say, and exclusive. Its
swoosh mark is quickly understood by anyone.
(2) Low Manufacturing Cost – Most of Nike's
footwear are manufactured in foreign countries. In
fiscal year 2020, Vietnam produced 50 per cent,
China produced 22 per cent and Indonesia
produced 24 per cent of Nike's total footwear.
Other operations include Argentina, Brazil, India,
Italy and Mexico.
(3) Nike possess many different technologies that
the company is using to create various innovative
(1) Poor labor conditions in foreign countries –
Nike has consistently focused on poor working
conditions in the last 20 years. These include
forced labor, child labor, low wages, and appalling
working conditions that were considered unsafe."
(2) Weak managing in supply chain - Nike has
collaborated with many independent
manufacturers around the world. There are some
problems that Nike is facing in supply chain are
Nike cannot control comprehensively cost of
materials that their suppliers buy and quality of
product will be not ensured by some suppliers.