Management in Practices

This report elaborates on the strategic management concepts for Riverwood Company, a logistics solutions provider in Singapore. It includes an external and internal analysis, PESTLE analysis, Porter's 5 forces, and dynamic capabilities.

Running Head: Management in Practice 1
Management in Practices

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Contents
Introduction......................................................................................................................................3
Background of the company............................................................................................................3
External organizational analysis......................................................................................................4
Pestle Analysis.............................................................................................................................4
Political........................................................................................................................................4
Economical...................................................................................................................................4
Social............................................................................................................................................5
Technological...............................................................................................................................5
Legal.............................................................................................................................................5
Environmental..............................................................................................................................5
VUCA..........................................................................................................................................6
Porter’s 5 forces...........................................................................................................................7
Affect of the external environment on the company....................................................................8
Internal organizational analysis.......................................................................................................8
Strategic capabilities....................................................................................................................9
Dynamic Capabilities.................................................................................................................10
SWOT analysis..............................................................................................................................11
Challenge is a result of the combination of external and internal.................................................12

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Conclusion and recommendations.................................................................................................14
References......................................................................................................................................15

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Introduction
Strategic management is considered as the process that helps in identifying and defining the
strategies that managers can carry so as to attain the better performance and a competitive
advantage for their organization. The main objective of this report is to elaborate the strategies
management concepts. An effective management can provide a way to anticipate potential issues
and opportunities. The productivity of the employee can be increased with the help of an
effective strategic management. The logistics are the term which has the roots in military science
dealing with the maintenance, procurement and the movement of strategies of personnel and
military assets as a component of a campaign. The role of the logistics management and
solutions are an essential part of any kind of business that ensures the supply chain is functioning
to its optimal to satisfy the follow of the product and satisfy the customer needs. The report will
emphasize the internal and external analysis of the specific company in which the report will
take Riverwood Company of Singapore.
Background of the company
Riverwood Company provides customized logistics solutions which are encompassed into the
existing process of the business that covers everything from retail logistics to door-to-door
deliveries. Riverwood integrated logistics solutions are the company which is an external
provider of logistic solutions looks for to be preferred logistics partner for businesses all over the
world by giving that personal touch. This company is providing its services in six areas such as
retail logistics, freight solutions, Industry sector solutions, warehousing distribution solutions,
moving solutions and E-commerce. The mission of the company is to offer the inclusive and
absolute solution of logistics that is perfect for the business (Riverwood, 2017). There is a

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number of things to deliver but the clients of this company are aware about the best way of the
delivering system of the company to their client in which the company is giving a personal touch
to the logistics business. The values of the company are reliability, responsiveness, responsibility
and personality. The vision of the company is to be the favoured logistics partner for businesses
all over the world. With taking the help of global partners, the company deliver anything to
anywhere in the world. Singapore is the home ground of this company and they know Singapore
inside out, even the complicated things.
External organizational analysis
Pestle Analysis
Political
The political risk is quiet low in Singapore. Indeed, the political and economic risk consultancy
elaborates that the country enjoys the lowest political risk in the continent. Political interferences
and instabilities are the major reason that can impact the entire business. in the context of a
logistic solution, it is vital for the stability of the company to have the political support in an
effective manner.
Economical
The economy of Singapore is a vibrant free-market economy. it is enhancing at a very fast pace
as it has been found that the per capita income of the country is the highest in ASEAN. The
economic environment of this country is corruption free that supports the logistics business. This
country has educated and motivated workers. GDP per capita income of the company is
52,960.71 USD (2016) and the growth rate of the country is 2% annual change in 2016. This
dictates logistic company can develop in the country with effective way. The economy of

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Singapore is conquered with the service sector, which added around 75.5% to the totality GDP in
2016 (Riverwood, 2017).
Social
The social impacts are purchasing, labor use, and transportation, social issues with drivers,
warehousing, and discrimination for minority suppliers. Customers across Singapore are showing
dissatisfaction that Amazon Prime Now is inundated with demand. The company seems to have
undervalued the motivation and has chosen to not admit deliveries instead of making a false
commitment.
Technological
The technology is changing rapidly all over the world. Riverwood has invested in the latest
technology to compete with other competitors in the entire world in an effective manner. The
company invests across the technology landscape entailing Hardware & Semiconductors,
Consumer electronics, and Digital & Consumer Internet, Tech-Enabled Leaders in Other
Industries.
Legal
The legal structure of the company is effective in comparison of other countries as there are zero
taxes on capital gain (Abad, et. al., 2009). There is a strong consumption in the context of urban
and high per capita income. The import procedure is restricted into Singapore.
Environmental
The Ministry of the Anti-Pollution and Environment unit has major focus on maintaining the air
quality and other factors of the environment. It has been found that the pollution from the

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transportation is the major issue in the urban areas of Singapore. The country has lost around
30% of its mangrove zone. The company involve in CSR activities and take care of the
environment at the time of developing anything (Hoi, Wu & Zhang, 2013).
VUCA
VUCA is an acronym for Volatility, uncertainty, complexity, and ambiguity which are a
combination of qualities. Volatility is the quality of being subject to often, haste and
considerably change. In the market of volatility, for instance, the prices of commodities can
increase or down significantly in a short span of time, and the way of a tendency might change
suddenly. Uncertainty is the factor of the situation, in which the results are not predictable.
Complexity encompasses a plenty of concerns and factors, some of which might be interlinked.
At last, ambiguity is apparent in a need of clarity and the complexity of understanding exactly
what the situation is (Sheffi, 2013).
In the context of the volatility, it has been found that the national retail federation is assuming
3.6% development in holiday sales over 2015, determined by firm advantages in housing as well
as jobs. Speed to shelf is top of mind, and it is able to develop the efficiency of the logistics
within strict cycles of delivery which provides the competitive advantages (Du and Chen, 2018).
With respect to uncertainty, it cannot be predicted that what is going on in the next level.
Inherent uncertainties and risks, which cannot be expected by Riverwood Company, might
impact the effectiveness of the process of the logistics. The main issues are that these kinds of
risks cannot be reduced as it is happened due to human error and complexity in the tasks (Baki,
Sahin Basfirinci, Murat and Cilingir, 2009). It has been analyzed that intense competition in the
3PL market globalization, enhanced the complexity of the supply chain network and the
customer expectation. It can be the threat for the company. Ambiguity refers to the lack of

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knowledge as it is vital for the company to have the better understanding about the latest
information in the related industry (Comelli, Fenies and Tchernev, 2008).
Porter’s 5 forces
Porter's five forces is a structure for analysis of industry and expansion of business strategy, it
also decides the competitive strength and magnetism of a market. Magnetism is related to in
general productivity of industry while repulsiveness force down productivity. The concept of P5
is elaborated below in the context of the Riverwood Company.
Bargaining power of suppliers
There are a number of factors that are relied on the price of fuels, cost of land, and an increase in
rents, government policies, and taxes. The bargaining power of suppliers of the company is
higher as there are so many options for the supplier to move another company for supplying the
products.
Bargaining power of buyers
The bargaining power of buyers is medium for this company due to enough number of the
logistics companies. The buyers of the company can be moved from one place to another.
Rivalry among competitors
The company has a number of competitors that can beat them such as DHL which is an
international player, GATI which is domestic company and the unorganized transporters.
The threat from new entrants

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The company can face the market cornered with the product, but the growth of the business
inspires others to involve the business .the threat for the Riverwood is from cargo companies that
can involve in the logistics business. UPS international company can be the threat for the
company as they have performed in the same industry in a well efficient manner (Yang, Marlow
and Lu, 2009).
Threat from substitutes
The substitutes for the company are to be the transporters who offer services at cheaper rates.
The company can face the issue regarding this issue.
Affect of the external environment on the company
The effect of external environment can affect the company because changes in the political and
economic term of the country can influence the revenues structure of the company. However,
Riverwood is able to give logistics solutions for companies such as Singapore Post, Standard
Chartered, and DHL E-commerce. Captivatingly, one of the clients of the company, Honestbee,
introduce that people is distracted from this company due to the launch of Amazon Prime Now.
It has been found that the company offers all kinds of things from freight logistics to the retail
logistics and help in moving as well but there is some sort of risks such as volatility. The
technology has been increasing day by day and it is required for the business to be updated with
the latest technology (Genchev, 2009).
Internal organizational analysis
There is number of clients of this company such as DHL Global Forwarding, Luxola, Humming,
HTK, GOOD YEAR, SEPHORA, Hupco and many more. The internal organizational analysis
helps business to make company more powerful. An internal analysis is an examination of the

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competency, competitive viability, cost position and competitive viability of the organization in
the marketplace.
Strategic capabilities
Strategic capabilities are those capabilities that elaborate the strategy which is entirely different
from the competitors (Christopher, 2016). It has been found that Riverwood has many
competitors and it is required for the company to make different strategy in order to remain in
the competitive advantages. However, the competitors of the company are forward and do a lot
of things to attract customers. It has been found that the company is dealing with retail logistics,
freight solutions, industry sector solutions, warehousing & distribution solution and moving
solutions. The strategic capabilities of the company in each logistic solution are described below:
Retail logistics
The company is provided a number of services related to the logistic at fewer prices in
comparison to its competitors which make it different from other company (Rushton, Croucher
& Baker, 2014).
Freight solutions
The extensive network of the company provides the best prices. The company is consolidated
diverse cargoes into single shipments to make sure sizeable less cost for the customers.
Industry sector solutions
The company is glocal and having reliable as well as strategic partners in major cities. The
company is able to help customers in the context of dealing to propel the business to the next
level (Curado and Teixeira, 2014).

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Warehousing & distribution solution
The company is creating the environment in which the customer of the company do not require
to think about managing the inventory as the company handles all inventory management on
behalf of their customers.
Moving solutions
The company provides the space for storage for every budget and size. The company provides
safe and convenient relocation. The company is able to manage the relocation of the customer’s
business from door to door (Solakivi, Töyli, Engblom and Ojala, 2011).
These kinds of services help to make it different from its competitors which can be considered as
the strategic capabilities.
Dynamic Capabilities
These are the activities that are required if the organization is to support itself as technologies
and market change. The dynamic capabilities entail the three clusters such as sensing, seizing
and transforming.
(1) SENSING – Riverwood is able to identify the opportunities of the company in the context
of the technology. The company understands the terms of challenges that are the way it
provides a high quality of services to the customer as well as the employees of the company.
The company has specialization is the sector of industrial, engineering and manufacturing

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industry. The company is able to modify an incorporated logistics solution which creates the
prices in a more efficient manner with cost-effective (Ambrosini and Bowman, 2009).
(2) SEIZING - It is the capability that entails the designing the business models to content the
customers and keep the value. They also encompasses securing right to use to capital and
they require human resources. It is necessary for this step that the employee of the company
should be satisfied with the services what they get. In the context of Seizing, Riverwood
Company uses the approach of just-in-time approach, transportation management and
warehousing. The company knows how to satisfy the customers that is why it provides a
number of services such as relocation management, move management and storage
solutions.
(3) TRANSFORMING – It is the capability which is required most because radical latest
opportunities are addresses. But it is required for the company to soften the rigidities that
improve over time from standard operating features. The company brings transformation in
the services as it deals with a number of the industry so the company focuses on the pre-
shipment services in which it entails the goods inspection, sorting and packaging and
repackaging (Teece, 2012).
SWOT analysis
Strengths  Different service from other

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competitors
 Effective dynamic capabilities
 Customer-focused company
Weakness  Lack of concentration towards CSR
activities
 Less investment in trend research and
solution development
 Lack of involvement with the partners
in the comparison of the company.
Opportunities  Riverwood can expand its business to
worldwide
 It can involve in the CSR activities for
the purpose of eliminating the
weakness.
 It can involve more partners in the
business.
Threats  Competitors such as DHL
 Natural disasters and turbulent
economies
 Declination of the traditional services

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Challenge is a result of the combination of external and internal
The company is facing a number of challenges at the time of managing the entire environment. It
has been found that the company is both a product of and a driver for the fourth industrial
revolution. However, the company grows eventually but there is need to do focus on the internal
and external environment. The company is facing issues in a number of ways as uncertainty is
the aspect of the situation, in which outcomes are not predictable. In the context of the external
environment, the company is facing a number of challenges such as political changes which
cannot be controlled by the company (Helfat, et. al., 2009). However, the logistic company can
develop in the country with an effective way because the economy of Singapore is conquered
with the service sector. With respect to internal analysis, it has been analyzed that the company is
facing issues in managing the team as the competitors of the company are moved forward. The
company is facing issues in innovating new things within the company which might be the cause
of the internal management. Training is the major issue for the employees because it is vital for
the employee to get training about the new technologies.

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Conclusion and recommendations
In the limelight of the above discussion, it can be concluded that the logistics industry need to
focus on the development of the entire business. The report is based on the Riverwood Company
that is Logistics Company. The discussion has been made on the internal and external analysis
that can impact the entire business of logistics industry. Pestle analysis has been done in order to
describe the impact of the external environment on the overall industry. Along with pestle,
VUCA has been elaborated under this assignment. SWOT analysis showed the internal analysis
of Riverwood Company.
It has been recommended to the company to keep the focus on the internal and external
challenges that can influence the entire activity of the business. The company should focus on
the CSR activities to eliminate the weakness of the company. Innovation is the key to success
and it is vital for the company to focus on the innovation so that the customers can connect with
the company for a long time. The company should expand its business globally and work as per
the strategy to compete with the competitors.

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References
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