Strategic Management and Competitive Advantage | Assignment

STRATEGIC MANAGEMENT AND COMPETITIVE
ADVANTAGE
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Table of Contents
Assignment B:............................................................................................................................3
1. Introduction............................................................................................................................3
2. Business performance............................................................................................................4
2.1 Observations made inside the target market.....................................................................4
2.1.1 KPMs obtained by the company................................................................................4
2.1.2 Comparison made in actual and forecasted results....................................................6
2.1.3 Trending analysis.......................................................................................................8
2.1.4 Ansoff Matrix..........................................................................................................12
2.1.5 Porter’s Generic Forces...........................................................................................13
2.1.6 Plans for business development...............................................................................15
2.1.7 Strategies for finance...............................................................................................16
2.1.8 Strategies of marketing............................................................................................18
2.1.9 Strategies of operations............................................................................................19
2.1.10 HRM......................................................................................................................19
3. Conclusion............................................................................................................................21
Reference List..........................................................................................................................22
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Assignment B:
1. Introduction
The automobile business firm called “Leopard Eco Automobiles” primarily aims to initiate
higher rate of sales for their budget-friendly cars which are also packed with updated and
modernised features. In addition, the company’s customer base has also helped in providing
best price for their incurred services from the company. Leopard automobiles aim to visualise
and obtain advanced rates in the automobile market by effectively focusing on their
environment and financial background. The records collected from the end of each rounds is
going to help in reflecting the company’s value-added services and norms and reflect upon
the primary reason for the increase rate of sales by 100 per cent for the company during four
different rounds.
Rates of
performance
measurement
Values incurred
in round 1 £m
Values
incurred in
Round 2 in £m
Values
incurred in
Round 3 in £m
Values
incurred in
Round 4 in £m
Rate of revenue
balance (Loss)
3000 4427 6248.45 8189.49
Unsold rate of
stocks values
0 0 0 22421 (Leo
Mini products)
Funds obtained
from
shareholders
832.88 1490.25 2245.33 3788.28
Bank rates and
closing balance
569.99 1146.95 1714.88 3276.71
Outstanding
values and loan
balances
271 0 0 0
Table 1: Summarised values of Key performance measures and derivatives
(Source: Self-made)
The primary objective of the company is reflected upon the rate of sales growth by 100 per
cent, increase in the growth and efficiency rate by 50 per cent, and attaining a definite market
share accounting for more than 6 per cent by expanding the business operations to different
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parts of the world. They overall key performance measurements and derivatives effectively
indicates that company is effectively looking to gain an advanced rate in the market share by
attaining reflective growth and attaining advanced customer satisfaction levels in the future
financial years.
2. Business performance
2.1 Observations made inside the target market
The derivative and target market initiated by “Leopard Eco automobile” has been reflected
upon the clients and customers who have a limited and strict line of budget who effectively
wants to enjoy a source of premium feature inside their cars. The automobiles that are
manufactured and produced by the company are effectively reflected to be efficient and
inherit a lesser rate of environmental footprint by 0.5 per cent which is considered to be very
efficient and low in comparison to the other cars and companies who are operating inside the
automobile market in the UK. A customer who values the environment and considers being
the changing factors considers the products of Leo automobile to be well versed and efficient
in tackling the negative norms inside the environment. The prices of the products are also
extremely efficient and come with fewer price in comparison to the other sectors operating
inside the similar automobile market in the UK. On the other hand, the company also looks to
increase their rate of market share inside the automobile sector by 1.5 per cent in the current
year and then an additional 3 per cent in the next financial year for the company. In addition,
the company also aims to reflect upon their “economies of scale” by reducing the rates of cost
and their required beneficiary choices that has been paid by the customers during the
accounting period. Due to fewer rate of pricings, and increased rates in initiation strategy and
penetration strategy the company has incurred a major dip in the revenue and profitability
values during the initial stages of the business.
2.1.1 KPMs obtained by the company
The major derivatives of KPMs that the company looks to initiate are as follows:
 Increase in efficiency or production rates: The Company looks to achieve this
derivative of increasing their incurred business production by 10 to 15 per cent
despite the increase in inflation rate in the UK by 5 per cent. For achieving this
function, the company is going to initiate building upon the raw materials in
diversified and huge numbers after diverging into their rate of sales. This derivation is
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also going to help the company in reducing their “incurred cost of material prices”
which is going to increase their overall business operations during the current
financial year (Mulligan, 2019). The employees of the company are also going to be
managed and trained well as they are the major contributing factors of the company.
Due to the necessary investment made in the production and innovation techniques in
the initial phases the company is then expected to incur lesser financial derivatives
and value during the initial financial years.
 Growth in sales: The Company expects to keep their sales value stable and looks to
increase their growth in revenue values by 5 per cent in every financial year. The
expected sales growth for the company’s Leo mini products have been reflected or 40
per cent and a total value of 100 per cent in total three financial years. The more rate
of sales and financial growth is designated to incur additional profits for the
company’s investors and stakeholders. The increase in the overall sales value are
going to help in bringing innovation rates and required techniques inside the
international and developing markets.
 Growth in markets share: Leopard automobiles aims to increase their rate of market
share by 6 per cent inside the UK’s automobile industry in the three financial years.
The overall rate of sales and valuation is deemed to be high after reflecting upon the
demand of the products and valuations made in the initial financial years.
 Net cash position and reaching new markets: The Company in the later stages will
look to initiate their business operations outside UK and during the initial stages the
company has focused on processing their business in domestic circuit. The long-term
stability and financial plans of this company has been expected to incur an additional
rate of growth, increase in the incurred production facilities and expansion in the
foreign and diversified markets. This derivation is effectively going to help the
company to save their additional values based on import duties, insurance, freights,
and overall transportation costs of the products which makes the business firm more
expensive for their clients and customers in the future financial years. In addition,
after progressing with this derivative the company has effectively been efficient to
increase their overall value of net cash and position. The round 1 balance of bank has
been estimated to be £569.98 million and after round 4 the values have been exceeded
to £3276.71 million.
 Feature and product development: The qualified and deliverable product is always
expected from the company and it is going to improve with time. Business plans are
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going to be effectively improving only after the company effectively focus on the
business innovation products and rates after conducting a thorough market research.
This is also going to help in making the company’s products more desirable and
qualified for the customers and is going to incur a source of definite competitive edge.
 Gross profit margin: The margin of gross profit has incurred very minimal valuation
and the losses have been observed to increase after each round. This is effectively due
to the advanced rate of cost prices and the expenses that are incurred by the company.
On the other hand, it can be reflected that when a company experiences a higher
margin of gross profit margin by reducing their rate of costs or expenses then the
company is effectively regarded as a profitable business firm [ CITATION CFI224 \l
1033 ].
 Profit after tax: The balances incurred in profit after tax valuation have experienced a
thorough decline and the surge has been valued at 1 per cent after the tax rates. The
profit that has been experienced after tax has been reflected for £332.87 million in
round 1 and after round four the profit has been reflected for £1542.97 million.
2.1.2 Comparison made in actual and forecasted results
Model outlook and name Type of qualified
Promotion
Incurred budget rates
Leo smart product Roadshows, Journal papers,
magazines and online posters
£1.2 million
Leo mini product Newspapers, radio and
Television
£455,000
Table 2: Budget and promotion of products
(Source: Self-made)
As observed from the above table, the relevant methods that have been utilised by the
company are reflected for reaching out to the incurred consumer base. Four P’s of marketing
have effectively been initiated by the company for increasing its overall sales and derivations
for company’s valuable products that are Leo Mini and Leo Smart.
The marketing strategies initiated by the company are reflected to be:
 Product design: The company has looked to particularly invest the ironic body and its
specified design. The overall products have also been effectively initiated based on
diversified forms and have been effectively shaped based on old and weary products.
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