Strategic Business Analysis of Desklib: SWOT Analysis, Overall Strategy, and Action Plan

Running head: A REPORT ON STRATEGIC BUSINESS ANALYSIS
A REPORT ON STRATEGIC BUSINESS ANALYSIS
Name of the Student
Name of the University
Author note

1A REPORT ON STRATEGIC BUSINESS ANALYSIS
Table of Contents
A Memorandum to John Clarkson.............................................................................................2
Section A: SWOT Analysis of The Business.............................................................................5
Section B: Overall Strategy for The Business............................................................................9
Section C: Balance Scorecard for The Business......................................................................13
Strategy Map........................................................................................................................14
Action Plan...........................................................................................................................16
Promoting Goal Congruence and Employee Motivation through this Balanced Scorecard 18
References................................................................................................................................20

2A REPORT ON STRATEGIC BUSINESS ANALYSIS
A Memorandum to John Clarkson
To: John Clarkson
From: We Will Make Your Business Great Again
Date: 07/10/2018
Subject: Strategic Improvement in internal Management of The Business
Dear John,
It is a pleasure on behalf of the entire staff of The Business to welcome you on board as
the new Operations Manager. Recently, we have joined hands with XYZ Grocery and Retail
Pvt. Ltd. with a view to expand the horizon of our company’s business growth. Your
exemplary contribution in your previous organisation have convinced us that you are capable
of taking our venture to newer heights. The board of directors have put much effort into
revising the organisation goals, post this acquisition. The three main aspects of the new
objectives consist of the following:
1. Up-surging the sales volume by 5% in each of the coming years
2. On this enhanced sales volume, achieving a positive operating income with return
3. Increasing the total value of market share by 11% within the next five years.
It needs to be mentioned here that our company, The Business, is still the strategic head in
charge of major decision making, post-acquisition. Hence, with your co-operation, we wish to
engage in few major revisions in our marketing and sales approaches that could let us achieve
higher financial returns. Kindly go through the below mentioned ideas and opinions
regarding the stated problem. Apart from these measure, we would welcome any new insight
that you are willing to share with us.
Financial Recommendations

3A REPORT ON STRATEGIC BUSINESS ANALYSIS
I. Positive Variable Contribution- this can be ensured by fixing such a price for our
product that exceeds the cost of producing an incremental unit of that product.
II. Attaining Efficiency through Cost-Cutting- Cost efficiency is being planned around
eliminating most of the discretionary spending. This is relatively a difficult decision
as it requires ample support from the employees. This is where you, our new
operations manager come in.
III. Prioritizing payables- The salary structure of our employees would be restructured
keeping it inclusive of the new commercial taxes levied upon by the Government.
Apart from the salary there are other payables concerning new product launches and
promotional expenditure.
IV. Planning Cash Flow- This mainly concerns balancing the payables appropriately with
the savings and receivables, thus understanding the inventory cost required to sustain
the business.
V. Communicating with Creditors- Strict policies regarding payment to all creditors in
due time and proactively communicating with the bank regarding any discrepancy in
the said issue.
Marketing Recommendations
As per the new mission and vision of this joint venture, The Business aspires to achieve a
nation with maximum self-sustainability in home improvement. The major part of this
aspiration rests on forming concrete strategies of competitive pricing. However, there is
another parameter which the company has considered within the purview of business
improvement. It consists of the sales and marketing strategies like:
I. Focussing more on innovative marketing tactics like Guerrilla marketing.

4A REPORT ON STRATEGIC BUSINESS ANALYSIS
II. Interactive product promotions in public places like malls which generally have huge
crowd pull of potential shoppers.
III. Social media marketing is another new age marketing innovation whereby target
customers are brought together at a common forum where they can explore the
products based on its utility and their necessity as well as compare prices with similar
products delivered by the competitor brand.
IV. Discounts, coupons and mobile promotion is yet another mean by which the company
plans to keep its loyal customers updated about the new launches and provide them
with shopping benefits.
These is the primary draft. The strategies are subjected to revision till the optimum
deadline set at 2 months from now. All the other managers and team leads in each department
would be consulted and their valuable inclusions need to be duly noted down. You would be
in charge of supervising these meetings and act as a bridge between the staff and the board of
directors. The plan of action need to be presented at the end of the deadline, and it needs to be
the final blueprint of the mandatory strategies needed for the overall improvement of The
Business.
We, at The Business, hope that this memorandum is able to cater to your understanding
about the company’s developmental requirements. We also hope that your association with
The Business is mutually beneficial and that you would be competently discharging the
responsibilities during your tenure with us.
With best regards,
Student’s Name,
Senior Manager,
HRD.

5A REPORT ON STRATEGIC BUSINESS ANALYSIS
Section A: SWOT Analysis of The Business
As highlighted in the Case Study, the entire company structure of The Business is
about to undergo transformational improvement with effect from its acquisition by a Grocery
and Liquor retail chain. In order to introduce the necessary modifications, it is imperative on
part of the acquiring company to conduct an objective analysis regarding the market share of
its products, net financial value, its operational assets, infrastructural facilities, sales team and
customer relations. This objective is achieved through SWOT analysis which portrays a clear
view of the internal and external liabilities of The Business along with its potential to
overcome those liabilities (Gupta and Mishra 2016).
Strengths:
1. The Business has 23 stores across Victoria, New South Wales and Queensland. The
Company was able to make 1 billion Australian Dollars in sales in its last financial
year. New South Wales and Victoria happen to be the major centres for hardware and
STRENGTHS
1. Large number of existing stores
2. Planned future investment towards expansion
3. Financial investment towards infrastructural
improvement
4.Post acquisition, management decisions still
rested on the parent company
WEAKNESSES
1. Inconveniently located
2. Outdated products at unreasonably high prices
3. Unskilled and untrained staff
4. Had little or no competitive advantage
OPPORTUNITIES
1. The home improvement and hardware industry is a
relatively fragmented, hence competitive industry
2. Being recently acquired by a grocery and liquor chain,
The Business has been able to diversify.
3. Home improvement items have a consistent demand in
developed nations like Australia
4. The Business would be able to offer extra service like
grocery retail, along with home improvement, after
aquisition.
THREATS
1. Slow growth of hardware and building supply retail
industry.
2. Highly competitive market
3. The competitors offer more discounts on reasonable
marked price
4. Better after-sales service of competitor firms
SWOT