Strategic Analysis Report

STRATEGIC
ANALYSIS REPORT

TABLE OF CONTENTS
STRATEGIC ANALYSIS REPORT..............................................................................................1
INTRODUCTION...........................................................................................................................1
Identifying 3 key strategic issues facing the organization with a clear explanation of why they
are “strategic”..............................................................................................................................1
Analyzing fully the resources and key capabilities of organization plus key factors that give
company its competitive advantage.............................................................................................3
Assessing the extent to which organization’s competitive strategy addresses its strategic issues
and suggest improvements...........................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................1

INTRODUCTION
In today’s era, to make the business sustain in the long run, it is highly significant for
organizations to perform strategic analysis in an effectual manner. Strategic analysis can be
termed as the use of various tools with an aim to prepare business plans with making evaluation
of existing opportunities and challenges that company is facing in the market. In the present
report, to have in-depth understanding about strategic analysis, the firm, Royal Group Mail PLC
has been chosen which is a postal service company based in United Kingdom. Here, 3 key
strategic issues facing the organization will be discussed. Also, the resources and capabilities of
company along with key factors that give business its competitive advantage will be highlighted
in the report. Apart from that, there will be study on the extent to which organization’s
competitive strategy addresses its strategic issues.
Identifying 3 key strategic issues facing the organization with a clear explanation of why they are
“strategic”
With respect to Royal Group Mail PLC, three key strategic issues being faced by the
organization are uncertainty, globalization and innovation. In today’s scenario of business
environment where there is intense competition in between firms, these three strategic issues are
the major one because of which firm may get highly affected in terms of reduced profits,
hampered goodwill and decreased customer base. The reasons because of which these three
issues are considered to be strategic are:
Uncertainty – Uncertainty makes all firms uncomfortable and so, it is in case of Royal
Group Mail PLC. With the changing scenario where techniques and customer’s tastes and
preferences are changing at a fast pace, it is highly significant for company to have proper plans
so as to deal effectually with the uncertain situations occurring in business. This uncertainty
generally occurs in terms like new regulations imposed by government that may affect business,
global economy in which there is ups and downs, changes marketing tactics used by competitors
as well as entrance of new techniques in the market (Muller, 2011). For Royal Group Mail PLC,
this is a strategic issue as because of the same, firm gets negatively impacted in a way that
because of alterations occurring in the business environment, firm needs to bring changes
because of which employees get stressed and demotivated that disturbs the work flow of
organization. With respect to customers, when employees get demotivated, they perform
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inefficient services which makes the customers dissatisfied and thus, affects the profits and
goodwill of business in the market.
Globalization – For Royal Group Mail PLC, challenge of globalization is on their top
concern. It is because; for the expansion, it needs to enter in new markets for which to
understand the foreign languages is necessary so that existing products and services can be made
successful (Williamson and et.al., 2013). Globalization is a strategic issue for Royal Group Mail
PLC because if company wants to design new products and services among new customers, at
first, it has to do proper market research and in case if it will not be successful then business has
to face severe losses with regard to reduced profits and customer base as well as hampered
goodwill. Therefore, in order to resolve this issue, it is important for organization to understand
the international markets and cultures in an effective manner with the help of collecting
information and doing analysis on the same so as to assess the probability of gaining success
(Gorgenl, 2011). Under this strategic issue, one more problem with which firm has to go through
is that of incredible degree of government intervention. In every economy where Royal Group
Mail PLC is operating as well as wants to establish have their own government interventions
according to which organization has to change its strategies and policies so as to save itself
against any kind of legal obligations that regulatory authorities can take against them (Mennen,
2011).
Innovation –As in the present competitive era, all firms are looking for providing
innovative products and services and creative more ground-breaking culture, Royal Group Mail
PLC is also required to do the same. It is because; if the firm would not be adopting innovation
in business, staying in the market and beating competition would not be possible. This is the
reason; it is considered as a strategic issue where especially the large companies are facing major
problem with respect to innovation (Top Ten Problems Faced by Business, 2017). It is due to the
fact that in big organizations, this is the responsibility of CEOs to bring innovation in company
so that competitive edge can be gained in the market and firm would come in the position to beat
rivalry. Apart from that, as per the changing tastes and preferences of customers also, it is vital to
bring innovation by Royal Group Mail PLC otherwise, there will be the risk of their switching
over to other companies providing the same products and services. Therefore, to resolve this
strategic issue which is a threat for business, to bring innovation time to time is important as well
as maintaining a sense of control over the organization is equally important (Chadzingwa, 2010).
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