THE STRATEGIC MANAGEMENT

Running head: STRATEGIC MANAGEMENT
STRATEGIC MANAGEMENT
Name of Student
Name of the University
Author Note

STRATEGIC MANAGEMENT1
Table of Contents
Political factors....................................................................................................................6
Economic factors.................................................................................................................6
Social factors.......................................................................................................................6
Technological factors...........................................................................................................7
Environmental factors..........................................................................................................7
Legal factors........................................................................................................................7
Competitive rivalry within the organization........................................................................7
Bargaining power of Buyer.................................................................................................8
Bargaining power of supplier..............................................................................................8
Threat of new entrants.........................................................................................................8
Threat of substitutes.............................................................................................................8

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Introduction
Strategic management refers to process of setting organizational objectives, analysing the
external and the internal environment of an organization, evaluating the existing organizational
strategies and ensuring that top management formulates and implements strategies across the
organization for achieving its overall objectives (Rothaermel, 2016). Therefore it includes the
formulation and implementation of the organizational goals and objectives by the top
management of the organization (Lasserre, 2017). The company selected for the purpose of this
study is Sika AG (NBB: SXYA Y). The main aim of the paper is to carry out external and
external analysis of the selected organization (www.youtube.com., 2020). The paper will
therefore discuss about an overview of the selected company, the internal analysis of the
company using SWOT, carry out the external analysis of the organization with the help of the
PORTERS analysis and PPESTEL analysis (www.youtube.com., 2020).
Company Overview
Sika AG is a Switzerland based Company that is a speciality chemical company and it
supplies to vehicle industry and building sector. The company is engaged in developing and
producing products and services for sealing, bonding, damping and protecting purposes. The
company belongs to the construction and chemical industry. The company was founded in the
year 1910 in Switzerland by Kasper Winkler. The company has got about 101 subsidiaries. The
company has a mission of pursuing its strategies through dedication and trust of the employees.
The journey of the Sika group to become a global leader is based on the Sika Spirit and
Entrepreneurial philosophy. The spirit of the Sika group is based on its strong set of principles
and values. The values of the company determine the culture of the company and its includes-
propriety to the customers, support innovation and creativity, integrity and sustainability, respect

STRATEGIC MANAGEMENT3
and empowerment and managing for the results. According to the 2019 financial report of the
company, company had earned a revenue of CHF 8.1 billion. The number of employees of the
company includes- 25000. The company was formed in order to provide agents for protecting
and cleaning the granite and the company also developed waterproofing agent called the SIKA.
Internal Environmental Analysis
Internal environmental analysis is done in order to explore the competencies of the
organization, identify the cots position and the competitive viability in marketplace (aschalidou
et al., 2018). Through conducting internal analysis the strengths, weaknesses, opportunities and
threats of an organization can be understood. Some of the major benefits enjoyed by the Sika AG
company includes- the company enjoys a strong brand recognition and trust of the public
because it has a long history that can be dated back to 1910 and that can also be understood from
their tagline that “innovation and consistency since1910”. Another major strength of the
company includes its vast workforce that is operating in about 101 countries. The company has
earned its strong and loyal customer base through its cost-effective and energy efficient practices
(Bolland, 2017). The company also enjoys strong financial position because according to the
annual report of 2018, the company maintains its strong record of growth through positive
business performance in all the regions that it operates, through investments, and through its
focus on large cities (Gürel & Tat, 2017). All the above mentioned factors have contributed top
the strong financial performance of the company. The net sales of the company has gone up from
6248.3 in the year 2017 to 7085.4 in the year 2018. Similarly the gross results of the company
has also enhanced from 3399.1 in the year 2017 to 3751.7 in the year 2018, the operating profit
before depreciation was 1068.5 in the year 2016 that rose to 1149.9 in the year 2018, the
operating profits rose from 896.3 in the year 2017 to 945.9 in the year 2018. Similarly the net