Business Strategy and Analysis

Business strategy and analysis
NAME OF STUDENT
NAME OF COLLEGE
AUTHORS NOTE

BUSINESS STRATEGY
Contents
Executive Summary.........................................................................................................................2
Strategic Assessment of the firm (Internal Environment)...............................................................2
Strategic Assessment of the firm (External Environment)..............................................................6
Managerial evaluation of the growth opportunities.........................................................................8
Conclusion.....................................................................................................................................12
References......................................................................................................................................14
Appendix........................................................................................................................................18
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BUSINESS STRATEGY
Executive Summary
WRSX is a global marketing and advertising agency which was established 15 years ago as a
result of merger of three agencies, namely a long established London based advertising agency
WWMV and new partner agencies in New York and Paris. WRSX offers its clients a wide
variety of services and it takes pride for being a “one-stop shop” of the various marketing and
advertising needs of the clients by offering services such as consumer advertising, media
services, public relations, film production, web design, photography, direct marketing,
relationship management, digital media, mail handling, branding and identity consultancy,
lobbying consultancy, consumer research, audio and video production, new media, exhibition
and conferences, outdoor media and sports programs. Though the company offers a wide range
of services to their clients, but they perform below the industry standard in terms of PBIT margin
and Return on Capital Employed. The main aim of the company is to help their clients to be
successful by differentiating and enhancing their brands by developing advertising using a
variety of marketing related activities and therefore they are considering various strategic choices
and tits implications in order to develop the condition of the company and to satisfy the client
requirements. The current report focuses on analysing the internal and external business
environment of the company and recommending the most ideal option regarding the strategic
choices made by the company.
Strategic Assessment of the firm (Internal Environment)
The strategic assessment of the internal environment of WRSX is as follows:
Internal Analysis
Strengths:
 According to Smulyan (2016) the main strength of the company lies in the creativity and
innovation of the services offered by the company to their clients.
 The other strength of the company includes availability of a wide variety of advertising
and marketing communication services for supporting global clients.
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BUSINESS STRATEGY
 As stated by Sun (2014) the other strength of the company is that it is financially sound in
nature which is evident from the fact that all the financial ratios of the company such as
PBIT, staff cost ratio, Return on Capital, financial gearing and current ratio are positive
in nature.
 The other strength of the company lies in the fact that it is a communication company
which is driven by customer expectations and which is developed around highly
specialised business units.
 The other strength of the company includes a strong capability of market research and an
effective understanding of the various market channels and market segments.
Weaknesses:
 The main weakness of the company is the lack of strategic focus and strategic drift of the
company as a result of weak organizational structure.
 The other weakness of the company is lack of previously described code of governance
as the issue of corporate governance is being handled at the local level.
 As stated by Newstex (2014) the other weakness of the company can be considered as the
negative reputation of the company in the market as a result of bribery which led to the
termination of the top executives of the company.
 The other weakness of the company can be loss of a big account in New Work which has
created a bad reputation in the market for the company.
 The other weakness of the company is lack of strategic leadership in the company.
 The other weakness of the company is the absence of entrepreneurial capability and
management of organic growth of the company.
 The other weakness of the company is management of operational market and business
risk.
External analysis
Opportunities
 The main opportunity for WRSX is to explore opportunities in the region of Asia,
Middle East and Africa.
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