Business Strategy and Responsible Supply Chain Management

This assignment examines the interplay of business strategy with socially responsible supply chain management, sustainable development, competitive strategies, work-life balance, and high-performance work systems. It delves into empirical evidence from different industries and regions to understand how strategic orientations impact organizational responsiveness and performance.

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
ASSESSEMENT:............................................................................................................................1
SWOT Analysis..........................................................................................................................1
VRIO Analysis............................................................................................................................4
TOWS MATRIX.........................................................................................................................7
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
A business strategy is a plan action designed to achieve certain goals and objectives. It
gives a clear description of the means by which the goals will be accomplished. The strategies in
the long term are generally established for a time period of 3-5 years. It gives a clear description
of scope of business operations (Annabi and McGann, 2013). Formulating a business strategy is
essential for a business as it defines the objectives and means to achieve team. The analytical
tools such as SWOT, TOWS and VRIO are used in formulation of strategies. These tools can be
accessed by both beginners and experts. The tools gives a clear picture of the working of the
business and pays emphasis on activities which are crucial for organisation. A effective business
strategy helps in accomplishment of the business objectives in a competitive and economical
manner.
ASSESSEMENT:
SWOT Analysis
SWOT is one of the most commonly used analytical tool. This tool can be easily accessed
by a beginner as it does not involve and technical requirements. SWOT stands for Strengths,
weaknesses, opportunities and threats (Mehta and Mehta, 2011). Strength can be defined as
soundness of individual or best performing parts. Weaknesses are the skills that lack in an
individual. Opportunities are the chances to grow skill and threats are the situation which reflect
danger and pain. I have conducted SWOT analysis on myself trying to gauge the skills and
capabilities I need to evolve in order to grow personally and professionally.
STRENGH
 Interpersonal skills
 Decision Making
 Knowledge of management
 Time management
 MS office
WEAKNESSES
 Lack of practical application
 less work experience
 Pressure Handling
 less participation in social activities
OPPORTUNITIES
 Work experience
 learning Software
THREAT
 Unemployment
 No opportunities
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 Practical application of learning Develop employable skills
 Competition
Strength
SWOT when applied on individual gave a clear view of the skills which are optimum and
skills which require nourishment. Strength are performing skills which are yielding output such
as interpersonal skills and adequate knowledge of the topics of the management. The mentioned
skills does not require much efforts as they are appropriate considering the given circumstances.
The major strengths of Starbucks are its strong financial position and goodwill of the company.
Catering the premium segment company is #1 coffee provider in the world. The profits earned by
the company invested for expansion in business. The company can utilise these strength to able
to achieve a bigger market segment by retaining its position.
Weaknesses
Weaknesses are the non performing skills which require nourishment for the overall
growth of the individual. The lesser work experience and less practical knowledge are the areas
where I have to work in order to turn them into my strengths. I have to focus on applying the
gained knowledge into various areas of life and work to develop a better understanding about
them. It is evident from the above analysis that I am not able to handle pressure well. So I have
to face those circumstances in a regular manner to know how to deal with them in a better
manner. I have to learn to be more social to change the perception of the people about me in their
minds. The weakness of Starbucks is its dependency of on coffee beans which makes the
company vulnerable to the market fluctuations. The company needs to divert its resources into
various segment to have a financial stability.
Opportunities
Opportunities are the chances to grow to an individual and develop the needed skills
(Moseley III, 2017). In order to become a successful business person I have to gain a better
understand of the market which can be done through more experience. Staying updated in terms
of technology and practical application are the areas in which I have the chance to use the
knowledge I possess in a practical manner. Along with this I have to gain employability skills
such as punctuality, discipline and work management etc.
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The opportunities in the case of Starbucks are its expansion into the emerging markets
and lining up a diversified range of the products. The company should raise capital to open its
coffee shop to cover the uncovered markets. Brand name and goodwill of the company will assist
in incurring huge level of profits from the newly ventured markets.
Threats
Threats are the areas which can cause hindrances in the course of development. The
threats require development of a contingency plan to counter them. One of the biggest threat
which can cause hindrances in the development and growth process is the lack of opportunities
in the market which is of my interest and really provides me with an opportunities to explore my
skills and knowledge. Other than this the level of competition is so intense that one needs to be at
the top of his game to avail the same. The above average performers like me have to work hard
to have access to the such facilities.
The threat in the case of Starbucks is its dependence of single factor of income and rise in
the prices of inputs (Coffee beans). The rise in the intensity of competition by the local or
emerging coffee houses is another factor which can cause major harm to the company.
The above mentioned tool is not only beneficial to individual but is also utilised by the
business houses for their situational assessment. It is an important tools of analysis as it helps in
identifying the strengths and weaknesses of the organisation. This audit helps in understanding a
business actual position by taking into consideration the internal factors of the environment. The
SWOT analysis is conducted on a regular basis to get a clear view of operations and formulating
of strategies (Murthy, 2012). The benefits of SWOT for a business are as follows:
Efficient Utilisation of resources: The resources that a company possesses are limited in
number. This tool helps in determining the best functioning areas so that more resources can be
allocated to explore the potential. The weakness are provided with less resources as they are not
able to yield the desired outcome. The supply of coffee beans for Starbucks as their origin is
confined to some countries so the company have developed a workforce to influence efficiency
in the operations.
Improving Operations: this assessment of the strength and weaknesses helps in
identification of the areas which are to be improved to achieve better results. The another
benefits is that it can help prevent major disasters from happening within the organisation. The
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scope of improvement is clearly defined and management formulates plans keeping in mind the
audit.
Uncovering Opportunities: This analytical tool help in identifying of growth
opportunities for the business house. The opportunities which exists in the market can be availed
by the company by allocation adequate resources to gain competitive advantage. This can be
done by introducing new products, venturing into new markets and developing a distribution
network. Starbucks with its SWOT analysis identified the expansion opportunities in to the
emerging markets all around the globe.
Formulation of Contingency plans: Threats in the business are defined to be the
circumstances which may cause loss or damage to the firm. This audit helps in identification of
losses which may or may not arise in the future. The contingency plans are developed to reduce
the effect of the losses upon the organisation. Changes in the environment and changes in taste
and preference are causes which are beyond the control of company (Oyedijo, 2012). SWOT
helps in preparing against these risks. The increase in the price of the coffee beans prompts
Starbucks to store coffee beans so that rising prices can be countered with.
VRIO Analysis
VRIO is another important tool used for the process of analysis of business organisation.
It helps in conducting an internal assessment in the organisation. It helps in identification of
possible improvement in respect to the organisation (What is VRIO Analysis?, 2017). Thorough
identification and evaluation of resources is done in a company. The VRIO framework with
reference of Starbucks is given below:
V- Value
It helps in identifying whether the resources possessed by the company stands for any
value towards the organisation. The resources can be internal as well as external. The valuable
resources add value to the organisation and there is an substantial perceived customer value on
the same. The competitive advantage can be achieved through increasing the differentiation with
the existing products and reducing the price of the product. Starbucks is offering many unique
styled coffees to its customers that other competitors are not offering. They also include calorie
information on their menu for their customers. So, this has become a competitive advantage for
them.
R- Rare
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Rare is when the resource owned by the company is not available in the market and are
only possessed by a very few companies in the market. The possession of rare resources equips
a company with certain level of competitive advantage. Where as the possession of the same
goods by the rival companies gives rise to competitive parity. The possession of OLED display
by Samsung gives is rare and awards with competitive advantage. No matter how common the
company should not lose its valuable resources. Starbucks is the only big coffee brand that is
providing a sophisticated an upscale ambience which encourages customers to come there and
spend some time.
I-Imitable
Imitation refers to the copying or duplicating a product of service. It can be done in two
ways: duplication and substitution. Duplication refers to copying the product and substituting
refers to launch a product or resource which can be used in the place of the existing resources. If
the firm possess something of value which is rare and costly to imitate it can offer competitive
advantage to the company for a long run (Scholes, 2015). The coffee of Starbucks is have
achieved competitive advantage due to its employee benefits, corporate image, customer
experience and its relationship with coffee farmers. Starbucks can be imitated easily as any other
coffee brand can copy the cosy atmosphere and renovate their cafes like that of Starbucks.
O-organised
The organisation needs to be capable to understand and achieve the competitive
advantage with the help of its rivals. The availability of the resources will not assure anything
until the business house is capable of utilising them. An organisation needs to systematically
organise its management, policies and processes so that it can utilise its strength up to its
potential (Zott,Amit and Massa, 2011). The effectively and efficient management can help
achieve competitive advantage to the organisation. Apple Inc. is one of the best example when it
comes to efficient management of resources which helps them gain competitive edge over its
rivals. Starbucks is very efficient in using its capabilities in right direction and create an
atmosphere that is keeping customers happy. It is keeping track with track withn the trendy
lifestyle followed by people and providing them same inside cafe.
VRIO analysis is considered perfect or evaluating company's resources and once
company gets to know what resources they are having then they can better understand what are
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the competitive advantage they are having and where they are weak (Ackermann and Audretsch,
2013). It evaluates all of its resources by considering its dimensions which are :-
1. Value – how expensive the resource is in market
2. Rare – How rare or limited is the resource?
3. Inimitability – How much difficult it I to imitate this resource?
4. Organisation – can organisation use this resource easily and properly?
VRIO Analysis can be explained with the help of example given below:-
VRIO analysis of Starbucks is conducted below :
Resource or
capability
Valuable Rare Inimitable and
non-p
substitutable
Organised to
exploit
Impact on
competitive
advantage
Strong global
presence
Yes Yes Yes Yes realized
sustainable
competitive
advantage
Speciality
coffees
Yes No No Yes Realized
competitive
parity
Cozy
environment
Yes Yes No Yes Realized
temporary
competitive
advantage
 VALUE – It is having a strong global value which is very important for company's
success. It is helping company in increasing in size and structure in market all over
(Hoejmose, Brammer and Millington, 2013).
 RARE – It is considered s one of the biggest coffee company having its unique taste and
globally recognised because of this.
 INIMITABLE – No other coffee company has been able to gain such large market share
in this much time in which Starbucks achieved (Klettner, Clarke and Boersma, 2014).
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 ORGANISED – It is an organised coffee chain having more than 5500 coffee shops in
50 countries all over. So company is taking good advantage of it by opening new shops in
various localities.
Benefits of VRIO to organisations:-
In practical situations, VRIO analysis is used as a combination in organisations along
with other techniques to help companies in conducting organisational management and
evaluating business resources in a more detailed view. They mainly help in understanding the
human resources because they are the most important asset or resource of an organisation. Each
and every employee is having a unique quality in them . Once company gets to know about it
then they can use this quality in favour of company and because of this value of company is also
increased. Through this organisations are able to gain competitive advantage in market also.
TOWS MATRIX
The TOWS analysis model has been derived from SWOT Analysis model which defined
the internal strengths and weaknesses of an organisation and also the external opportunities and
threats that will be faced by business. It is generally aimed at developing strategic options from
an external and internal analysis and it is a practical tool which is highly used in fields of
business administration and marketing. In this analysis, first external environment analysis ie.
Threats and opportunities are examined first. Through this, the organisation gets a clean picture
of its business environment and also the opportunities available for which strategies will be made
and directions in which company will go should is also known. Thus it helps company in making
better decisions, seize opportunities and protection from potential threats (Parnell, 2012).
Strategic Options-
TOWS Matrix helps company in identifying their strategic options. A company gets
various opportunities to use its strengths and gets to deal with its internal weaknesses properly.
Through external environment, company gets to seize lots of market opportunities and recognize
possibilities. This matrix also helps in developing big ideas which can be used to generate
effective marketing strategies and tactics. This does not helps only in determining opportunities
and strengths but also forces company in thinking deeply about then changes that they can
introduce in company by doing certain improvements in them (Schrader, Freimann and Seuring,
2012).
External Environment -
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It is not just prepared for highest level of organisation rather it is useful for small
department as well like marketing department , sales department or even for individual
employees etc. once company gets to know employee's or department's strengths , then they can
easily improve the problems that are occurring in them and try to make them better.
Here an example of TOWS Analysis of Starbucks company is done below in order to understand
it more clearly:
INTERNAL FACTORS
EXTERNAL
FACTORS
Strengths:
 Identified
corporate
brand name
with with good
reputation ion
market
 huge
manufacturing
store brand
 high quality
products
available at
low cost.
 It has string
sales and
service
networking
Weaknesses
 They don't do
much
advertisement
and promotion.
 It is having a
narrow product
line
 it is losing
market share
now slowly
Opportunities
 It is growing
with good
packaging high
quality and
SO
 must enter into
export business
to earn foreign
currency
WO
 training should
be provided to
make an
efficiernt work
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commitment
with retailers.
 Declining ion
brand loyalty
 shift in
consumer
attitude
towards private
labels.
 bring
innovation in
products and
should increase
its market
share.
team
 R&D
department
should be
provided with
all the facilities
so that they are
able to
generate new
products
Threats
 competition
with other store
brands
 competitive
pricing policies
 Introduction of
new players.
 Government
policies
ST
 in house
monitoring
team should be
made which
will give
updates in
changes
introduced in
external
environment.
 Online buying
process should
be improved.
WT
 Introduction of
differential
online pricing
strategies
 cost of
production
should be
reduced.
TOWS Matrix example: in the above mentioned matrix, we discussed about what are the
strengths, weaknesses, opportunities or threats of company. Along with this what more can
company achieve is also included which are:
 EXTERNAL – here, threats and opportunities are included.
 INTERNAL - Here, strengths and weaknesses of company are included
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 STRATEGIES – in this four types of strategies are created by organisation like:
Strength-opportunities(SO) , Strengths-threats(ST) ,Weakness-opportunities(WO) and
Weakness- threats(WT) (Wang and Verma, 2012).
TOWS Matrix is applied in daily routine of an employee then it will be help them a lot.
This type of matrix is widely used in Starbucks because it helps in increasing the overall
efficiency of not only company but also employees. Foe this employee has to follow these step:-
1. They should write down what are their strengths and weakness and they should write it
honestly after doing a proper study on themselves.
2. Employee should also gain third person opinion on this where they will examine it
correctly,
3. Strategies must be created to develop skills ,
4. finally , they should also refer findings after creating strategies.
5. Measurement and evaluation is conducted in which employees tries to know that where
they are and where should actually be.
when an individual will follow these steps then they will be able to know what they are actually
capable of achieving in organisation.
Benefits to Starbucks-
1. Tows analysis helps organisation to match its internal strengths, and internal
opportunities(SO) in developing maxi-maxi strategies which are having greatest potential
of providing success to organisation. It can be in the form of high brand recognition,
customer loyalty etc.
2. it also helps organisation in highlighting organisation's vulnerability which is based n its
weaknesses and then strategies are created which will help in avoiding threats from
entering into organisation (Ackermann and Audretsch, 2013).
3. It will help in knowing what changes are required to be done and where, so that potential
changes can be made and company will be able to perform better.
4. It helps in finding new opportunities in market which can be used by research and
development department to create a new product in market (Hoejmose, Brammer and
Millington, 2013).
So, TOWS matrix helps the organisation as well as individuals in achieving theirs and individual
goals as well.
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CONCLUSION
From the above report, it can be concluded that business strategies are a very important
part of business organisation . These strategies are prepared by the top level managerment of
companies by properly analysing each and every factors that ca be proven effective in an
organisation. While making these strategies, various tools and techniques are used by company
to understand where changes and improvements are required. So for this, company conducts
SWOT Analysis, TOWS Analysis, VRIO Analysis and other techniques also. Through swot,
company gets to know about its strengths and weakness and opportunities and threats as well.
Through TOWS Analysis, company is able to understand the strategic choices they are having in
organisation which can be used to improve problems that are available while performing work of
organisation. In VRIO analysis, company tries to analyse that one rare quality that they are
having which is not there with other organisations and which has the capability to increase value
of company in market. Along with this how much these tools are benefiting the organisation is
also included in this report.
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REFERENCES
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