Business Strategy for KTA Group Ltd.

This report discusses the business strategy for KTA Group Ltd. in the automotive repair and maintenance industry. It includes an overview of the organization, Pestle analysis, stakeholder analysis, value chain analysis, Porter five force analysis, and Bowman's strategy clock. The report also provides recommendations for growth and improvement.

UNIT 32 BUSINESS STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Section 1...........................................................................................................................................3
An overview of the organisation and analysis which should include mission, vision,
objectives, and core competencies of the organization................................................................3
Pestle analysis..............................................................................................................................4
Stakeholder Analysis...................................................................................................................5
Factor need to be considered while strategic plan.......................................................................7
Value chain analysis....................................................................................................................7
Porter five force...........................................................................................................................8
Section-2..........................................................................................................................................9
Strategic Plan...............................................................................................................................9
Growth platform.........................................................................................................................11
Recommendation.......................................................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES................................................................................................................................1

INTRODUCTION
Business strategy refers to the combinations of all the decision which are related to
decision taking and the actions that are need to accomplish the business goals for getting
competitive position in market. This is also known ass the backbone of business which are
leading roadmap that desired goals. The present report depend on the KTA group Ltd. That is
based on UK with 50 employees who are working with is established in 1998. The report discuss
on core competencies of company in order to evaluate and critique various factors by applying
Pestle analysis. Then, applying appropriate strategic analytical framework for assessing the
internal environment such as competitive advantages, McKinsey 7s model and value chain
analysis. Further, evaluating competitive forces by using porter five forces also considering
Ansoff Matrix for devising strategy in order to improve competitive edge. Lastly, there are
different types of strategic directions that are available for the organisation by justifying and
recommending appropriate growth for the chosen company.
MAIN BODY
Section 1
An overview of the organisation and analysis which should include mission, vision, objectives,
and core competencies of the organization.
KTA group Ltd. Is related to automotive repair and maintenance industry, it is situated in
HIGH WYCOMBE, UK. There are more than 45 employees working at this location so that it
can generates more than $ 13 million in sales that can be like USD. It also deals with dealers,
repair and maintenance or other services etc.
Mission
To be the champion of maintenance industry.
Vision
It is related to getting the position which are related to loyalty as well as committed with
all the employees.
Objectives
1. To increases productivity by 20%
2. To improve the strategies in order to enhance the skills of employees.

Core competencies
It includes all the resources and capabilities which are comprising advantages of the
business. Emotional intelligence played important role in order to maintain logistic work, also
team building are important factor that helps company to increase the productivity as well as it
helps to maintain good relation with employees.
Pestle analysis
It is a strategic tool that is used by organization in order to analyse about external factor that will
affects overall company growth. Along with this, it is important for organization so that it can
identify opportunity and threat in order to expand their business in external area as well as to
deal with threats (Pan, Chen and Zhan, 2019). In addition to this, Pestle is an acronym for
political, environmental, legal, economical, technological and social.
 Political factor: This factor is consist of rules and regulation maid by government in
order to maintain peace in the society. Along with this, all these policy can affect
business in a negative way. Such as due to COVID government has made policy such as
restriction on trade that has affected overall growth of firm as it cannot deal
internationally (Kairuz and et.al., 2020). In addition to this, all the rules like tax policy
can also affect company income as it has to pay more to government in order to sustain
in competitive environment.
 Economical: This factor is consist of various aspects of economy and outlook each area
that could impact on business. Along with this, includes economic growth rate, interest
rate, inflation and unemployment rates (Zentner and et.al., 2020). Moreover, if
organization is conducting their business at country with good GDP rate then it will
contribute in earning large profit. In addition to this, if the economic growth is poor then
many companies will lay off employees and due to that customer buys only essential
products. That will further reduce total revenue of business.
 Social:
 This factor is consist of culture aspects and perceptions, health consciousness,
population growth rates, age distribution and career growth (Patil, 2018). Along with this,
KTA group follow market trends in order to attract large customer as well as to interact
with them. In addition to this, due to pandemic people has started buying more cars to

avoid public transportation. Furthermore, KTA group has divided their customer on basis
demographic like income, gender and employment level.
 Technological factor:
 this factor is consist of advance technological tools and techniques that helps
organization in making effective products and services. However, KTA group need to
invest in market research so that it can identify best tools for technology that will help
company in increasing their sales as well as market performance. Furthermore, KTA
group is trying to make electric cars that will contribute in attracting large customer as
well as to increase overall sales of firm. KTA group is making use of digital marketing
techniques such as Social media sites that will contribute in reaching customer more
effectively.
 Legal: This factor is consist of legal rules and law that has been developed by
government in order to maintain peace in the society (Marinović-Matović and Arsić,
2020). However, if KTA group is not following these laws then it can lead company
into downfall and company can face lawsuits that will affect brand image of firm. In
addition to this, KTA group is following employment act, company law in order to
avoid intervention of government.
 Environmental: This factor includes various rules that organization has to follow in
order to sustain in competitive market. Along with this, KTA group is following CSR
policy in order to protect environment form hazardous substance. In addition to this, CSR
policy has helped organization in attracting large customer (Dzwigol, 2020). KTA group
is trying to make Eco- friendly business operation in order drive positive impact on
environment.
Stakeholder Analysis
It is a technique that is used to identify the key people that can contribute in success of
organization. Thus, KTA group need to make proper stakeholder planning that will help inn
succeeding.
The first step is to identify right stakeholder that are interested in building organization. After
finding stakeholder, the second step is to prioritize them as it can influence business with their
power. Along with this, KTA has to determine who has high or low power that can affect project
as well as who that have lower and high interest (Ketchen and Craighead, 2020). Moreover,

stakeholder with high power should be kept satisfied while people with high interest need to
be kept informed. However, stakeholders with both need to managed closely by meeting their
needs.
The above figure explains different approach that KTA group need to follow for segregating and
prioritizing stakeholders.
 High power- High interest: It includes people such as SME, executive and PM that
need to be manage closely as it play important role in decision making as well as create
biggest impact on success of business.
 High power- Low interest: These are known as customer, sponsor and regulator that
need to be kept in loop as well as it need to keep them satisfied even though it is not
interested because they yield power. Along with this, KTA needs to deal with them
cautiously as it has high power.
 Low power- High interest: This includes people such as internal user, suppliers, trainers
and developers. It need to keep these people adequately informed and talk to them to
ensure that no major issues are arising. Additionally, these people can be very helpful
with detail of project (Barbosa, Castañeda-Ayarza and Ferreira, 2020).
Illustration 1: Power Interest Grid
Source: Stakeholder Analysis., 2022

 Low power- low interest: It includes people like help desk and system admin and it
needs to be monitored closely as well as it should not be bored with excessive
communication.
Factor need to be considered while strategic plan
KTA need to consider various factors such as guide for updating or devising a plan that
ensure business position in market as well as to increase profitability of firm. Along with this,
KTA need to articulate vision and mission that describe what the business would be in long
term as well as purpose of operating. Furthermore, identifying stakeholders such as employees,
customer, suppliers and it needs to be managed properly in order to increase business. The
strategic plan should consider each group that is relevant for operation as each stakeholder play
different role in busines.s. It need to scan internal environment KTA group need to scan
internal and external environment in order to understand strengths and weakness of company
before launching new products (Suriyankietkaew and Petison, 2020). Along with this, political
and legal factor need to be considered as it can affect overall growth of firm directly. In addition
to this, it will also help firm in making right and appropriate strategic plan so that organization
can sustain.
Furthermore, resource based view strategy is formulated by an organization to understand the
elements of business for a long term competitive advantage. This model explains that it is very
important to accept and full fill external or new opportunity using existing resources
innovatively by acquiring new niche skills. This strategy helps them to achieve the same
visibility for efficient resource allocation. Thus, it helps manager in making use of resources
effectively as well as in limited frame of time. Thus, real time information helps them in
making data driven decisions, leverage talent to maximum potential and maximize profitability.
Value chain analysis
It means evaluating each activities in a company value chain to understand
opportunities for improvement life. Along with this, conducting value chain analysis prompts
business to consider each steps adds or subtracts value form final product or services. That
helps company in realizing some form of competitive advantage such as cost reduction by
making activities in the value chain more efficient and therefore less expensive (Rafiq and et.al.,
2020). On the other hand, product differentiation by investing more time and resources into
activities like research and development , design or marketing that will help company in

standing out their product. Along with this, it can be conducted by KTA is by identifying value
chain activities if the organization is selling multiple product this step is very important to
follow. In addition to this, after finding primary and secondary activities have been identified
the next step is to determine the value that each activity adds to the process with total cost
involved. Thus, if company know the cost involved it will then find that lowering expense is an
easy way to improve the value of each transaction. Furthermore, identifying opportunity for
competitive advantage such as if company goal is to reduce firm cost then it need to evaluate
each piece of value chain for reducing overall expense. Moreover, the advantage of using this
model is to identify activities where it can reduce its product and services, optimize efforts,
eliminate wast and increase revenue. It helps in identifying the insights into elements that
bring greater r value to end user as well as it contributes in serving their customer good
quality of product and services.
Porter five force
This model helps in identifying and analysing five competitive forces that shape every
organization and helps in identifying industry weakness as well as strengths. Along with this,
five force analysis is frequently is used to identify an industry structure to determine
corporate strategy. This model analyse about competition in the industry, potential of new
entrants into the industry, power of suppliers, power of customer and threats of substitute
products. High competitors: KTA group face high competition in the market that has been major
threat in the performance of the organization. Along with this, in order to reduce that
KTA group has to make use of innovative products so that it can attract large
customer (Isabelle and et.al., 2020). Along with this, it need to focus on t making electric
car as it is very much demanded by customer as well as it is environmental friendly.
However, if there will be high competition then it has to reduce their price of the
product. Potential for new entrants: the organization that have potential of high entrance in the
market has to invest more in the resources in order to attract customer.
 Power of supplier: It has high power to influence overall business such as if suppliers
are low t then organization has to depend on them a lot. Whereas, if there are many

supplier then KTA group can reduce its input cost and increase its profitability
(Anastasiu, Gavriş and Maier, 2020).
 Power of Customer: it play very important role in business and influence
organization sales inn both positive and negative way. Along with this, KTA has strong
client base so it can increase its price as well as increase profitability.
Section-2
Strategic Plan
Vision
The vision of the organization is to develop cost oriented products.
Objectives
The objective of the organisation is to improve the quality of products and deliver satisfaction to
the consumer.
Bowman's strategy clock
It is the marketing model which is consist of different elements which determine the
strategical positioning of the organisation (Desai, 2019) . In general, it is the plans of action
which is utilized in the marketing process. The considered element bifurcated the products
according to values and prices. It give assistance in identifying the relationship with the
consumer and the organisation which is delivering the wide range of the product in the
marketplace. The components of Bowman's strategy clock are as follows:
 low price and low value added
 low price
 hybrid
 differentiation
 focused differentiation
 risky high margins
 monopoly pricing
 loss of market share
therefore, among all the components the organisation utilized the low price product to the
consumer in effective as well as efficient manner. The organisation manufactures the product at
lowest price then competitors in the market.
Porter’s strategy model

According to this models the firm can identify profitability of the organisation above or
below scale also it is depend on long run sustainability competitive advantages. In which it is
classified by low costs or differentiation and scope is related to the broad market and target
market.It is the most essential strategy which the organisation adopt in order to increase the
competitive advantages in the domestic as well as international marketplace (Pikor, 2018). Due
to porters strategy model the organisation acquire the highest value in the auto-mobile industry
as well enhance the performance of the company in effective and efficient manner. The
organisation provides the greater value to the buyers with the assistance of delivering the product
at lower price and exclusive quality motors to the consumer that satisfy in effective as well as
efficient manner. Moreover, it create competition in the market and defeat the competitors of the
organisation this strategy is consist of four different elements which are mentioned as following
manner:
 cost leadership strategy: the KTA organisation focuses on delivering the product and
the services to the buyers at lower price as compare to the other competitors in the
market. It give assistance in attracting large numbers of the customers which enhance the
profitability of the organisation. For reducing the cost the company reduce the over
processing system along with that modify the transportation system. Also, the company
collect only relevant as well as effective information. Any firm set to become low cost
procedure in the industry, also the sources are related to varied about it and depend ons
the structure of industry. This is including all the related activities which are pursuing
economies of scale, preferential access to the raw material and proprietary technology or
other factors. The low cost procedure are help to exploit all the sources of cost
advantages in order to achieving and sustaining overalls leadership cost. Also, the
average performer in the industry that can provide command prices.
 Differentiation strategy: the organisation differentiate the product and services as per
the innovation and the technology used in manufacturing the auto mobiles (Dănălache,
2018). In this strategy the firm seeks to be unique in order to consider all the value of
buyers. Also it can help to select mores than one attribute related to buyers in the industry
for perceiving. This strategy termed as the uniqueness by offer products at premium
price.

 Cost focus strategy: in the plan of action the organization provide the commodity and
the services at lower prices as compare to the competitors in order to acquire profit as
well as increase the production of the organisation. Beside the cost, the company also
provide the better quality to the buyers that satisfy the needs and wants. The cost focus
strategy help the firm focus on niche market according to the geographical area that can
become expert in delivering for that industry. It refers to the company that are producing
services or products for aggressive cost that are likely to manage cost leadership
strategy. There are several benefits of cost leadership in which it help to become thought
leader within an industry, also open with partnership wits pother companies. It helps to
provide levels of credibility in order to provide overall company story. It can help to
generate customer loyalty in order to become single trusted provider in industry.
 Differentiation focus strategy: the organization is focussing on expending the market
by providing innovative manufactured product to the consumer. When company choosing
this strategy it helps to target niche market with the little competition and in this strategy
the product or services are covered up with unique features. It helps to create brand
loyalty for the consumers which are ensure about remain the uniqueness of product by
considering possible competition.
Growth platform.
Differentiation strategy
The most appropriate and the growth strategy that company can use i effective as well as
efficient manner. The company should utilize this strategy for facing forthcoming challenges.
The organisation should deliver the unique product which are completely different from the
competitors (Bigelow and Barney2021). In context to differentiate the product of the
organisation as per the feedbacks collected from the customer.. The company can deliver the best
quality product to the consumer in less price . Moreover, it will become easy to the consumer to
bifurcate or make difference between the product of the company as well as the product which is
formed by the competitors. Along with that organisation should grab the opportunity to innovate
the cars with the latest technology and the preferences of the consumer (Cescon, Costantin and
Grassetti 2019). Furthermore, in order to attract the customer for the growth the organisation also
provide demos of the cars to the consumer along with company should provide the safety
measure to the buyers while consuming the product. All this reason and plan of action will give

assistance in acquiring the good reputation in the marketplace along with that enhance the
performance of the company. With the assistance of this strategy the organization can provide or
fulfil the demand of the niche market. Furthermore, the organisation can communicate with the
customers about the uniqueness of the product in more appropriate manner which satisfy the
buyer and encourage them to enjoy or experience the services as well as product of the company.
Recommendation
After all the analysation the company should consider the essential points for enhancing the
growth of the company and acquire good amount of the product from the marketplace. For the
welfare of the organisation the company should work on the product which the organisation is
forming for the customer . Along with that the employees of the organization should work on the
feedbacks comments that the buyers provide to the organisation which improve the services of
the company as well as increase the value of the brand I the marketplace. In order to acquire or
create presences in the market the organisation should use the digital platform for creating and
spreading the awareness among the peoples (Islami, et.al 2020). Beside this the organization
should develop the products or manufacture the cars in less period.
CONCLUSION
From the above report it will be concluded the KTA organisation is working on the
business strategy by analysing all the pros and cons of the business in domestic as well as
international market for the effective service. From the report it will be examined that the
business strategy should clear and specific for the employees as well as organisation in order to
accomplish the common goal rapidly (Vlados, 2019). The present report highlighted the various
strategy that company can used in the future in an appropriate manner along with the factors that
should consider by the organisation while forming the strategic plans for the company's growth.

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<https://www.projectmanagement.com/contentPages/wiki.cfm?
ID=368897&thisPageURL=/wikis/368897/Stakeholder-Analysis--using-the-Power-
Interest-Grid#_=_>
(Anastasiu, L., Gavriş, O. and Maier, D., 2020.)()()())
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