Report on Aspects of Strategic Management Process
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Added on 2019-10-09
Report on Aspects of Strategic Management Process
Added on 2019-10-09
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BSG SIMULATION REPORT1
Table of Contents1.Introduction.............................................................................................................................22.Company overview and strategy.............................................................................................23.Industry overview....................................................................................................................34. Decision made........................................................................................................................55.Final results.............................................................................................................................76. Reflection...............................................................................................................................87.Underlying strategic principles...............................................................................................88.key learning points about strategy...........................................................................................99.Conclusion.............................................................................................................................11Reference list............................................................................................................................12Appendices...............................................................................................................................142
1.IntroductionStrategic management is a comprehensive process that helps to develop the organization.This is a significant process supervised by the manager of the company. They always tend todevelop strategies for changing conditions. This helps to maintain flexibility in themanagement. This paper will analyze several aspects of the strategic management process.There are several things that help the management to achieve the target of financial accuracy.The company that has been chosen for the study is company E. this operates in the footwearindustry goal of this company is to achieve the mission and mission of the company. Thevision of the company is to make sure that their manufactured shoes are available in each andevery home. In consideration of this, there will be a discussion on the overview of thecompany and its strategy. The other part that will be studied is the decision made by thecompany so far. Again, on consideration of the final results, there will be a focus on theoverall performance of the company. Again, there will be a reflection on the success andfailure of the company. The strategic principles used by the company to develop and growwill be considered in the report. it will consider the control and leadership strategy used bythe company so far. There will be a summary of the report that will reflect the overall task. 2.Company overview and strategyFigure 1: Company overview(source: self-created)3Company ECompany overview
The company is a shoe manufacturing company that operates in the footwear industry. Theindustry supposed to have numerous numbers of competitors. The competitors are serving anequal threat to the company in terms of performance. The reports reflect that all thecompanies are giving each other stiff competition. There are chances that some company ymight suffer a loss due to the strategic management of the other company. the majorcompetitors found for the company are company D and company H. They have served theexample of the best strategic management according to the changing business conditions. The mission of the company is to make sure that their selling is sound enough. The missionof the company is to provide good quality of shoes to the customers at an affordable price.This means that they want to make available their shoes in each and every him of the region.This ultimately related to increasing the operational activities of the company (Wheelen et al.2017). It involves the fast convergence inventory into the cash. The liquidity conditions aretrying to be maintained at its best. [Referred to appendix 1] The strategy that has been developed by the company to achieve the mission is to maintainthe styling and quality at the same time. This is being the major activity that has helped it togain a competitive advantage in the market. There have been several things that have pursuedthe company to focus on the mission of the company. The S/Q strategy of the company is setto be four. The production strategy follows the forecast if the demand by 1.6 times moreevery year. The distribution strategy follows selling in the NA region as 30%, AP with 40%,LA with 15% and EA with 15%. This has made the company set a particular target for theregion in order to get more out of the production (Nonaka and Toyama, 2015). The pricingstrategy follows the cost amount plus 35 % percent of addition in the cost. The marketingstrategy of the company teemed to be cost-effective. It does use any celebratory for themarketing strategy. Rather it will focus on saving the cost by low advertising. The financialstrategy of the company is termed to be set free in terms of procuring cash for the company.It will collect cash from the issuing ordinary shares in the market. This choice has been madein order to study the competitive, market of the company and its strategy as a whole. 3.Industry overview The macro analysis for the company reflects the external opportunities and threats present forthe company. there has been a consideration for the several aspects which are discussedbelow:4
Figure 2: Industry overview(source: self-created)PESTLEPolitical- The pestle analysis shows that the company needs to follow the laws which are:international trade agreements, product safety laws, labor laws, and consumer safety andproduct regulates (Eriksson et al. 2015). The following if the political procedures areimportant in this industry in order to increase the sale.Economic factor- There are counterfeit issues in the footwear industry. The industry ofpercent of the good of the sport seemed to be concentrated. The largest companies onlycontribute 70 percent of the overall revenue. These are the leisure items and are not necessitygoods. The cost of the introduction is low. Year Revenue $20132531201427799201530601201632376201734350Table 1: Nike Inc. revenue performance(source: https://seekingalpha.com/article/4109836-nike-earnings-throw-baby-bathwater)5Industry overview Industry overview PESTLEPESTLESWOTSWOT
Year 20132014201505000100001500020000250003000035000025312779930601Series 1Series 1Graph 1: Nike Inc. revenue performance(source: self-created)Region Net sales %Western Europe 29North America 21Greater china 19Russia/ CIS 3Latic America 14Table 2: Adidas net sales by region (source: https://www.ig.com/en-ch/news-and-trade-ideas/shares-news/the-battle-for-sporting-goods-supremacy--nike-vs-adidas-180329)6
Western Europe North America Greater china Russia/ CIS Latic America 05101520253035292119314Net sales %Net sales %Graph 2: Adidas net sales by region (source: self-created)Social factor- The shoppers are said to be conscious of health. The company changes thedesign of the product in order to meet the expectations of the customers. Company E needs toprefer the health preference and needs of the customers in order to cater to the best service(Benner and Tushman, 2015). Technological factor- Technology has been evolved and now there are smart shoes availableto the customers. The emergence of electric shoes is a major invention. Technology thatcould be used by the company is Fitbit which well known in health communities. It will helpto seek a competitive advantage. Legal factors- Company E has design patents which save the right of the company. it willprotect it from infringement and copiers (Chang et al. 2015). There needs to be in compliancewith the laws that could protect the company from unwanted issues. Environmental factor- the company uses natural materials in order to remove hazardouscases. This needs to be done in the industry in which it operates. This is because it will helpthe company in managing customer requirements.Porters 5 forces analysis reflects the following:Industry competition 7
The company has survived in the competition. Most of the sportswear companies are facingthe threat from the company. however, company D and H have managed to give stiffcompetition to the company. there are several things like the R& D activities of thecompanies that are managing by the companies.New entrants in the industry The outsourcing activities from the Asian region has been increased. This is because of thecheap cost. There are many companies that are standing successfully (Bromiley et al. 2015).This attracts new entrants. However, the distribution channel has been improved by thisactivity.Supplier powers The increasing demand of the brans attracts the suppliers. There is less threat from thesupplier side. The supplier power in the industry is low. The manufacturing cost is higherthan the purchasing cost. Power of customers Customer power is deemed to be low in the industry. This is because the knowledge about theproduct is not much high (Wang et al. 2016). This allows the brand to make decisions againstthe buyers. Substitution effectThis threat is said to be low as there are fewer sports apparel brands. The cost ofmanufacturing products is high. Smart acquisition and mergers could help companies in thisparticular industry.Opportunities ThreatsLess power available to thecustomers Opportunities in the field if atechnological factorSubstitution affect Legal requirement Economic pressure 4. Decision made Decision made in the beginning 2011-20128
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