Corporate Strategy 2022 Report

Corporate Strategy
1

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1) Recent news on corona virus and effect on business and strategy..........................................3
2) Different principles and theories in relation to news event.....................................................5
3) Suggestions and Recommendation..........................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
2

INTRODUCTION
Corporate strategy is defined as overall plan of company in order to select and develop
specified markets for competing with improvement of different units and divisions of business
(Adamides, 2015). This is also regarded as way in which organisation strives for creating value,
developing unique selling proposition and capturing high market shares. It is very important for
business to make different types of strategy so that goal and objectives are attained in an
effective manner. This report is prepared to know about current events published in different
media business news. The event selected is corona virus and its effect on strategy and company.
It also covers about way of organisation responding towards such situation in both long and short
term. Principles and theory applied to illustrate new items or event taken place at market by
using economies of scale, merger, PESTLE analysis and others. It also cover recommendation
provided to manager as well as CEO of companies for improvement.
MAIN BODY
1) Recent news on corona virus and effect on business and strategy
The new event selected for this assignment is Corona Virus. According to World Health
Organisation, it is defined as infectious disease that is caused through newly discovered virus
called corona. This is also called COVID-19 in which people are infected will experience by
respiratory illness and recovering without any special treatment (Coronavirus, 2020). It will
develop more in older people, medical underlying problems such as diabetes, cancer,
cardiovascular disease, chronic respiratory disease. Main way to prevent as well as slow down
transmission is informing about disease, cause and ways it is spreading at marketplace. It can be
protected through washing hands on frequent basis through using of alcohol and avoid touching
nose, face, eyes. COVID-19 virus spread by droplets of saliva coming from nose whenever
infected person sneezes as well as coughs. Therefore, it is essential to use elbow while coughing
or sneezing. In current time, there is no any particular medicine or vaccines for treating
respective disease. Though many ongoing clinical trials are evaluating treatment. Such virus is
coming from animals and capability to transfer from them to human beings.
According to article published by worldometer, there are many cases of Corona Virus
taken place till now and impact health of people. As per published data, total cases are 5,687,
new cases confirmed are more than 137, total number of deaths are 34, new death reached to
3

more than 4. Out of these, total recovered are 2315, active case are 3338, serious critical are 85
(COVID-19 CORONAVIRUS PANDEMIC, 2020). It is effecting on all types of companies in
negative manner that has decline their sales and profitability inn negative manner. According to
opinion of Peter Eavis (2020), Corona Virus has affected world’s largest companies in terms of
their supply chains, empty stores, manufacturing, flagging demand for wares. It has announced
by businesses such as United Airlines, MasterCard, Microsoft, Apple that virus has affected their
consumer behaviour and business sentiment (How bad could it get? Companies gauge the
coronavirus impact, 2020). Stock market has gone down in negative manner. There is no growth
of profit in this year and bank had forecast that 6% rise in earnings. Corona Virus has impacted
strategies of business as it is very important for organisation to make proper plans and strategy in
advance in terms of rise in profits, sales to be made, profits to be earned and so on. These all
strategies made for different things are impacted as it is not possible for companies to
accomplish outcomes from such strategy.
In order to cope up with such situation, organisation would respond by forming different
strategies and plan in long and short term. These are described below:
Long Term
Working on long term investments- Corona Virus is an opportunity for making long
term investment to re-evaluate platforms, operations and processes for long term strategic
planning (4 Strategies to Help Your Business Recover From Coronavirus, 2020). Business has to
make plan for making long term investment to avoid issues and problems in most effective
manner.
Preparing for pent up demand- The lesson which can be learned from Chinese business
is that post Corona Virus economic recovery is faster than people has expected (Agrawal,
Schaefer and Funke, 2018). Everyone has to take precautions and stay healthy for reducing
spread of virus. Organisation has to make step for tomorrow success and growth at marketplace.
Short Term
Thinking about how Corona Virus is Affecting Consumers- Society is affected with
corona virus so users are worried about supply chain disruptions, travel restrictions, wondering
to manage cash flows and so on. In this respect, organisation would work on making long term
investment for such aspects to avoid crisis after disappearance of such disease
4

Embrace new channels for sales- In order to rise sales, new channels has to be
introduced at marketplace for people and society so that sales and productivity can be raise in an
effective manner.
2) Different principles and theories in relation to news event
The different theories and principles discussed in news item related to Corona Virus are
as follows:
PESTLE Analysis
Corona Virus has impacted Australia and other countries in negative manner. They are
described below:
Political- There is decline in exports, ban on entering students from China, tourism has
decline as visa are not granted to them and so on (Australia’s growth outlook dims as China’s
momentum falters amid coronavirus outbreak, 2020). For each and every activity, strict
restriction has been made by Australian government for other countries.
Economic- The economy of every country has declined due to rise of Corona Virus.
Value in currency, stock price, purchasing capacity of people has declined in negative manner.
All sectors are negatively impact due to such disease (Arasti, Khaleghi and Noori, 2017).
Social- The respective virus is impact society and people living in that people as
consumer are facing problems for stock, non availability of resources, social distancing among
each others.
Technological- All payment, banking, media, digital information are impacted. The
business running in technological sector has decline profits and consumers are facing issues with
network.
Legal- All legislation made for business; employees are failed due to such virus. They
should be reframed again for people and society.
Environmental- Australia is having winter tends due to which people are getting sick
from such viruses which causes them influenza, colds and so on (What effect will winter have on
coronavirus in Australia?, 2020). Illness Covid-19 broke out from China’s winter and spread in
different countries such as Iran, Europe, Italy and rest of world.
Core competencies
With rise in cases for COVID-19, business leader are dealing with different problem from
sales to supply chain and keeping employee fit to ensure them they can work. This has changes
5

the way of doing business by companies. Different leaders have presented their view in terms of
rising core competence of business. They are as follows:
Michael Beer-Business will develop trust based cultures with employees
Corona Virus challenge demands to speak about corporate response. It is very important
for business to make new plans and strategies in most effective manner (How the Coronavirus Is
Already Rewriting the Future of Business, 2020). This crisis has to be solved through opportunity
for trusting culture in proper way.
Ryan W. Buell- Business will assist consumers to be helpful
Organisation has to help their consumers by connecting them with each and every people
in most effective manner for positive outcomes (Awino, Machuki and Ogaga, 2017). They have
to focus on solving problems of their consumers in best way so that they are connected to each
other.
Corporate Governance
The corporate governance of organisation has to work on Corona Virus where boards has
given responsibility to overseas as well as monitor different issues arises due to virus. They are
liable to monitor health and safety of people, financial impact and cash flow, risk oversight,
business continuity in terms of supply chain, employee disruption (Brooks, Chen and Zeng,
2018). Along with these, they are liable to manage other board functioning such as
communication, proper reporting and disclosure of information, annual shareholder meeting,
remuneration and others.
3) Suggestions and Recommendation
The suggestions as well as recommendations to manager and CEO of companies are
described below:
 Organising war room approach by launching team, decision taken in right way, clarifying
work streams.
 Working with senior team by sharing best practices and running different sessions and
establishment blueprint for action.
They can learn from team that unity is must to resolve any problem and has to work
collectively and efficiently for achievement of goal and objective. This event provides lots of
knowledge and information about subject matter in terms of occurrence, ways to solve
problem, formulation of plans and strategy.
6

CONCLUSION
From the above report, it has concluded that recent events taken place is Corona Virus
which is transmissible disease from one person to another. It was evolved from animals and then
to human being. It has impacted whole world in terms of profits, buying power and so on. Every
day, cases are rising and impacting live of all human beings, organisation and companies running
at marketplace. All of the country has lock down them to overcome from such issues as they are
liable to stay at their home and remain safe.
7

REFERENCES
Books and Journals
Adamides, E. D., 2015. Linking operations strategy to the corporate strategy process: a practice
perspective. Business Process Management Journal.
Agrawal, A., Schaefer, S. and Funke, T., 2018. Incorporating Industry 4.0 in Corporate Strategy.
In Analyzing the Impacts of Industry 4.0 in Modern Business Environments (pp. 161-176). IGI
global.
Arasti, M., Khaleghi, M. and Noori, J., 2017. Corporate-level technology strategy and its linkage
with corporate strategy in multi-business companies: IKCO case study. Technological
Forecasting and Social Change. 122. pp.243-252.
Awino, Z., Machuki, V. and Ogaga, B. J., 2017. Corporate strategy and performance of Kenyan
companies. Archives of Business Research. 5(5).
Brooks, C., Chen, Z. and Zeng, Y., 2018. Institutional cross-ownership and corporate strategy:
The case of mergers and acquisitions. Journal of Corporate Finance. 48. pp.187-216.
Da, H. U. O. and Ken, H. U. N. G., 2015. Internationalization strategy and firm performance:
Estimation of corporate strategy effect based on big data of Chinese IT companies in a complex
network. Journal for Economic Forecasting. (2). pp.148-163.
Engert, S. and Baumgartner, R. J., 2016. Corporate sustainability strategy–bridging the gap
between formulation and implementation. Journal of cleaner production. 113. pp.822-834.
Foucault, T. and Frésard, L., 2019. Corporate strategy, conformism, and the stock market. The
Review of Financial Studies. 32(3). pp.905-950.
Hardy, J., 2018. 15 Cultural Embeddedness, Corporate Strategy and Foreign Investment in
Poland: A Tale of Two Firms. Knowledge, Industry and Environment: Institutions and
Innovation in Territorial Perspective: Institutions and Innovation in Territorial Perspective.
Krämer, A., Tachilzik, T. and Bongaerts, R., 2017. Technology and disruption: How the new
customer relationship influences the corporate strategy. In Phantom ex machina (pp. 53-70).
Springer, Cham.
Leal, C., Marques, C. P., Marques, C. S. and Ratten, V., 2016. The role of intellectual capital and
corporate strategy on sustainable value creation. International Journal of Foresight and
Innovation Policy. 11(4). pp.215-224.
Minár, P., 2016. Goodvertising as a paradigmatic change in contemporary advertising and
corporate strategy. Communication Today. 7(2). pp.4-17.
Online
4 Strategies to Help Your Business Recover From Coronavirus. 2020. [Online]. Available
through: < https://www.entrepreneur.com/article/347557 >.
Australia’s growth outlook dims as China’s momentum falters amid coronavirus outbreak. 2020.
[Online]. Available through: <https://www.cnbc.com/2020/02/27/coronavirus-outbreak-australia-
economic-impact.html>.
Coronavirus. 2020. [Online]. Available through: <
https://www.who.int/health-topics/coronavirus#tab=tab_1 >.
8

COVID-19 CORONAVIRUS PANDEMIC. 2020. [Online]. Available through:
<https://www.worldometers.info/coronavirus/>.
How bad could it get? Companies gauge the coronavirus impact. 2020. [Online]. Available
through: < https://economictimes.indiatimes.com/news/international/world-news/how-bad-could-
it-get-companies-gauge-the-coronavirus-impact/articleshow/74425964.cms >.
How the Coronavirus Is Already Rewriting the Future of Business. 2020. [Online]. Available
through: < https://hbswk.hbs.edu/item/how-the-coronavirus-is-already-rewriting-the-future-of-
business>.
The corporate governance of coronavirus - what boards should consider. 2020. [Online].
Available through: <https://www.iod.com/news-campaigns/news/articles/The-corporate-
governance-of-coronavirus---what-boards-should-consider>.
What effect will winter have on coronavirus in Australia?. 2020. [Online]. Available through: <
https://www.theguardian.com/world/2020/mar/17/what-effect-will-winter-have-on-coronavirus-
in-australia>.
9

10