Strategic Issues and Opportunities Faced by High Flyers Limited and SCH

0Running head: COURSEWORK 1
COURSEWORK 1
Name of the Student
Name of the University
Author Note

1COURSEWORK 1
Table of Contents
Introduction......................................................................................................................................2
Task 1...............................................................................................................................................2
Issues in the case..........................................................................................................................2
Competitive Pressure...................................................................................................................4
External Environment Analysis using PESTLE..........................................................................5
Recommendations........................................................................................................................7
Task 2...............................................................................................................................................9
Analyzing and evaluating the strategic position and strategic options........................................9
Challenges being faced by SCH................................................................................................11
Opportunity analysis using Ansoff strategic matrix..................................................................11
Evaluating them using Johnson, Scholes and Whittington’s Framework.................................13
Recommendations......................................................................................................................15
Conclusion.....................................................................................................................................15
References......................................................................................................................................16

2COURSEWORK 1
Introduction
Strategic Management is often considered to be an integral part of an organization as it
goes a long way in assisting the organization to ensure that it is on the right track and is being
able to successfully ensure that it gains competitive advantage in the long run (Williamson et
al.2013). The report is based on the strategic issues and opportunities being faced by one such
organization named the High Flyers Limited (“HFL”), the company is based in the United
Kingdom. The second scenario relates to a heath care company called SCH. In the business
environment today, it is very important for any business organization to ensure that it takes
adequate measures to ensure sustainability of the different business (Rothaermel 2015). The
report will be dealing the health care company SCH and will be discussing the different
components related to the future alternatives available to the given business organization
The strategic issues being faced by the organizations will be discussed and analyzed. The
report will be discussing the different issues being faced by the different companies in the two
scenarios followed by the competitive pressures and lastly the external environmental factors
having an impact on the company will also be discussed effectively.
Task 1
Issues in the case
As the business environment is very competitive, it has been facing different issues as to
the competition and changing norms regarding the taxes set by the government. The different
strategic issues being faced by the company have been given as follows:
1. Intense competition

3COURSEWORK 1
The gym wear industry in the United Kingdom is highly competitive in nature. This is
because there is an increase in the different initiatives as adopted by the government regarding
fitness. For this, there are various low cost competitors present in the industry which tend to
provide intense competition
(Rothaermel 2015).
2. Tax Rates
The government of the United Kingdom is planning to increase the tax rates on the
sporting goods to around 22% in order to gain additional receipts. For this purpose, it has been
estimated that the sportswear market will go down to by 5%. Hence, the increase in the tax rates
will have a negative impact on the company in the short run although it may contribute to the
welfare of the company in the long run. The government is thinking about the overall welfare of
the organization, however the immediate survival of the company will become increasingly
difficult.
3. Lack of skilled designers
The industry needs to rejuvenate by introducing new designs and new material
combination. However this is not being possible as there is a lack of skilled designers in the
given industry. Moreover, the company has been trying to introduce new technology and
automation, however the industry is highly labor incentive and thus the company has been facing
problems with respect to this. The lack of laborers is restricted the company to get into a more
innovative sphere and take out new designs for the welfare of the firm.