Strategic Management Assignment Cover Sheet

This study focuses on the importance of strategic business decision, which can direct the organization in meeting the peak of success. The study has highlighted the core competency of the organization based on which different analytical tool is used. Major recommendations have been provided based on which strategies implemented within organization can be improved for getting immense recognition.

Running head: STRATEGIC MANAGEMENT
ASSIGNMENT COVER SHEET
UNIVERSITY OF SUNDERLAND
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Table of Contents
1. Introduction:.............................................................................................................................2
2. Background of the organization:..............................................................................................2
3. Macro-environmental analysis:................................................................................................3
4. Competitive market analysis.....................................................................................................4
5. Core competency of the organization by using an analytical tool:...........................................4
6. Identify and discuss the content of current business strategy:..................................................6
7. Evaluate the suitability of this strategy:....................................................................................9
8. Recommendations:.................................................................................................................10
9. Conclusion:.............................................................................................................................10
Reference List:............................................................................................................................12

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1. Introduction:
Strategic direction is one of the most significant forces of business, which directs the
employees towards researching a proper aims and objectives set by the organization. In order
to run the entire process of business the organization needs to make appropriate strategic
decision, which can ultimately helps the business experts in reaching the peak of success. This
very specific study has focused to make detailed overview about the importance of strategic
business decision, which can direct the organization in meeting the peak of success. However,
the primary purpose of this very specific study is to make critical analysis about competitive
market strategy by evaluating the environmental analysis of Singapore. The study has
highlighted the core competency of the organization based on which different analytical tool is
used. At the end of the study, major recommendations have been provided based on which
strategies implemented within organization can be improved for getting immense recognition.
2. Background of the organization:
ABR Holdings Limited is one of the most recognized food and beverage chains
occupying a predominant place in the market of Singapore (abr.com.sg 2018). Established their
journey in 1978, Singapore the organization has held its franchise for Swensen's Inc. in
Singapore. ABR has initiated their journey as Swensen’s ice cream restaurant. After that, this
group has expanded their business wings in different geographic areas of Singapore by
launching 25 restaurants. Providing superior quality of products in affordable price range is
the primary mission of this specific study. Foods and beverages are the core product with
which ABR Holdings is maintaining their business sustainability. By 2017, ABR has

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purchased 50% of Bintan Lagoon Resort, which implies S$65 million (abr.com.sg 2018). The
market scope of the organization is growing which has immense opportunity in holding
international fame and reputation. The service providers associated with this group are very
much well mannered and professionally trained. As a result, customers do not have to face
challenges in receiving the services from ABR. It has been observed however that this
particular organization has immense scope and opportunity to expand their business in
multinational countries.
3. Macro-environmental analysis:
Macro environmental analysis implies on how environmental factors leave a major
impact on the overall success of business. Environmental factors imply political,
environmental, social, technological, economic and legal (Hill, Jones and Schilling 2014). In
order to make effective business strategy the executives need to make environmental analysis
with the help of which people have to face immense challenges in dealing with the customers
effectively. Singapore is one of the most popular counties in terms of economic development
due to the rising growth of business industries.
 Political:
Political risk in the market of Singapore is low due to which the business experts do not
have to strive in running a smooth process of business. As stated by Tremewan (2016),
analysing the political environment in Singapore, it has been identified that after the
independence, political stability is being cherished by the people. Due to such opportunities,
living standard in this country has been developed (Yeung 2017). Due to stable political
environment, Singapore is being considered as the Asian country with lowest political risk.

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Therefore, in this situation it will be easier for ABR Holdings Limited to enhance its business
in an effective manner.
 Economic:
Analysing the economic situation in Singapore, it has been identified that the country
has slow economic growth. In the year 2017, the GDP rate in Singapore was 3.6%.
However, if the growth rate in previous years can be analysed, it will be identified that
comparing the previous years, the GDP rate much not increased (Focus-economics.com
2018). Therefore, it can be said that economic risk in this country is quite high for
expanding business. Due to the unstable economic situation, the rate of unemployment in
this country is increasing day by day (Friedman 2017). In this situation it is tough for the
ABR Holdings Limited to sustain in the Singapore market.
 Socio-cultural:
In the socio-cultural situational analysis, it has been identified that it is a high collective
society (Vertovec 2015). Near about 2 million others nationalities of people live in this
country, which has brought the diversified culture in Singapore. In the words of
Esmaeilpoorarabi, Yigitcanlar and Guaralda (2018), it is true that depending on the current
situation, the changing needs and demands of the customers, it can be said that social
cultural risk in this country cannot be ignored. However, it is also true that due to
availability of large numbers of customers, it will be easier for the company to sustain in
the market. Therefore, social cultural risk of ABR Holdings Limited in the Singapore
market is moderate.
 Technological:

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As stated by Gosens, Lu and Coenen (2015), Singapore is being considered as the first
ranked country in digital competitiveness. Due to availability of technology and knowledge, a
strong technological environment has been developed in this country. This situation has
brought various talent, training and development opportunities in the country. Therefore, it can
be said that technological risk in this country is very low, which can help to flourish the
business of ABR Holdings Limited. Technological environment can help the company to
sustain in the competitive business environment.
 Environmental:
According to Kim, Moon and Yin (2016), strict air and water pollution regulation are being
followed by the Singapore government. All the internal environmental agreements are being
followed by the government. However, it cannot be denied that increasing health disease in this
county, the government has become strict for maintaining the food standard in the food selling
organization. In this situation, it can be said that environmental situation is not in favour of
ABR Holdings Limited in the Singapore market. In this situation the pressure on the
organization to maintain the waste management standard will be high.
 Legal:
In order to bring business opportunities various trade regulations have been introduced by
the Singapore government. Maintaining the standard employment policy in the workplace,
different employment regulations as well as customer safety rules have been introduced in the
industry. However, most of the competitive regulations are hard to be followed by the
organizations. Therefore, it can be said that legal risk is moderate for ABR Holdings Limited.

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4. Competitive market analysis:
Porter’s Five Forces:
Situation Analysis
Bargaining power of the suppliers In the Singapore food market, bargaining power of the suppliers
is low. With increasing opportunities in the market, the numbers
of suppliers in the market have also increased, which has
reduced the bargaining power.
Bargaining power of the buyers Analysing the competitive business environment in Singapore
food industry, it can be said that bargaining power of the buyers
is high. After introduction of technological innovation, it has
become easier for the customers to compare the price before
experiencing the service (Flynn et al. 2016). Due to availability
of many options in the food market, customers get options
before purchasing products.
Threats of new entrants In the external environmental analysis it has been identified that
due to slower economic growth in the Singapore market, the
extreme competitive business environment in Singapore food
industry is the major concern for the organizations. In this
situation, most of the food markets are being ruled by the large
organizations, which creates tough situation for the new
entrepreneurs to develop their business in the Singapore food
market. Therefore, it can be said that the threat from new
entrants is low for ABR Holdings Limited.

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Threats of substitute products Threat of substitute products is high in the Singapore market. in
most of the cases, the small organizations provide same types of
services and foods to the customers in lower ranges, in this
situation, it is tough for the companies to maintain uniqueness in
the market.
Exiting rivalry Analysing the food market in Singapore, it has been identified
that Sheng He food Chain, Haji Kadir Food Chain and Dine in
the dark are the major competitors of ABR Holdings Limited.
These organizations have established its strong brand image in
the market, which can create tough situation for ABR Holdings
Limited to sustain in the competitive market. Therefore, it can
be said that threat from existing competitors is high for ABR
Holdings Limited.
Table: Competitive analysis in market
(Source: Flynn et al. 2016)
5. Core competency of the organization by using an analytical tool:
Core competency of an organization implies on how multiple resources and product
features can distinguish the business process at the marketplace based on which the business
experts can gain competitive advantages (Doz 2017). Before analysing the core competency of
ABR Holdings, the business experts have used three major analytical tools for evaluating
company’s internal and external structure. In order to evaluate the core competencies ABR has

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to analyse its resources. VRIO framework is one of the most systematic tools of analyzing the
cre competency level of ABR Holdings.
Valuable:
In this very specific phase, ABR holdings can decide on how expensive the resource is
in gaining competitive advantages in market (Meyer, Neck and Meeks 2017). As per resource
structure of this organization, it has been observed that resources are very much affordable for
the stakeholders with the help of which they do not have to struggle in using the services.
Rare:
ABR holdings resources are sufficient in fulfilling the needs and demands of the
customers. The stakeholders do not have show their dissatisfaction regarding the availability of
resources (Song, Sun and Jin 2017).
Costly to imitate:
ABR after being recognizable in the market has set their own market trends. Therefore,
it is very much difficult for the competitors for to imitate the resources created by ABR
Holdings.
Organized to capture value:
If the resources are not limited and it is valuable, the business experts do not
have to face challenges in capturing organization value in the market instead of having
innumerable competitors (Wheelen et al. 2017). On the other hand, it has also been observed
that the quality of products in affordable price range is the core competency of ABR Holdings
due to which the entire process of business has created a self-identity in market.

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Figure: VRIO framework for analyzing the core competency of the organization
(Source: Todorović et al. 2015)
6. Identify and discuss the content of current business strategy:
In order to gain competitive advantages ABR Holdings has implemented several
strategies and policies within organization. SWOT analysis is conducted for analyzing the
strengths, weaknesses, opportunities and threats of organization. Value chain analysis is
evaluated for maintaining the inbound and outbound procedure of organization (Hill 2017).
Ansoff Matrix is one of the most significant marketing strategies that is implemented for
forecasting future product growths and opportunities.

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 SWOT analysis:
Strengths Weaknesses
 Quality of products in affordable prices
 Good customer management system with
proper professionalism
 Operation system is slow due to limited
number of workforces
 Lack of balance between product supply
and demands
Opportunities Threats
 The organization has immense
opportunities in expanding the entire
process of business in multi-national
countries
 The organization can make more product
developmental growth
 The company has to face major threats
from the competitors due to its limited
workforces
Table: SWOT analysis of ABR holdings
(Source: Stark 2015)
 Ansoff Matrix:
Ansoff Matrix strategy primarily aims to evaluate the market scope and product
opportunity in future. This particular marketing strategy is of four major phases that include
marketing penetration, product development, market development and product diversification.
 Market penetration:

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This very specific phase occurs when a business organization seeks in achieving growth
in market with the existing products (Jarzabkowski and Kaplan 2015). In this very specific
stage, the organization does not have enough opportunity in expanding their products and
services due to economic constraints. Large number of small and medium enterprises after
launching their business in market tends to follow this phase.
 Product development:
Product development is the phase of developing new products in the existing market
segmentations (Miller, Merrilees and Yakimova 2014). In order to maintain market
sustainability the business organization intends to render development on their products so that
they can overcome customer complaints
 Market development:
Market development is the process of expanding target markets with the help of
existing products (Pike and Page 2014). In this very specific phase, the business experts aim to
increase their number of target market for expanding business in other geographic backgrounds
as well
 Product diversification:
Product diversification is the stage of rendering new products in new market. While
expanding the market the business experts have to make product diversification (Cardy and
Leonard 2014). Otherwise, the customers would not be able to get effective services from the
organization.

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After evaluating the four major phases Ansoff Matrix strategy it can be stated that ABR
holdings has implemented diversification stage with the help of which products and markets
both will be developed for expanding their business beyond going the market of Singapore.
 Value Chain:
Value chain business strategy enables the business experts in evaluating the entire
supply chain process of ABR holdings. While maintaining the inbound procedure
systematically the organization has implemented ERP system so that the authority does not
have to recruit large number of labour forces in the warehouse of ABR holdings. Outbound is
the systematic process of delivering the products to proper destination within proper time
(Karadag 2015). The transportation system of ABR holdings is very much systematic which is
constantly controlled by surveillance technology. As a result, the supply chain managers can
get an in-depth overview about the shipping procedure of ABR holdings. In accordingly they
can communicate with the customers appropriately.
7. Evaluate the suitability of this strategy:
However, while evaluating the suitability of these implemented strategy it can
be stated that ABR holdings is going to achieve the peak of success after implementing these
strategies successfully. Value chain business strategy enables the business experts in evaluating
the entire supply chain process of ABR holdings (Hashemi, Karimi and Tavana 2015). After
evaluating the four major phases Ansoff Matrix strategy it can be stated that ABR holdings has
implemented diversification stage with the help of which products and markets both will be
developed for expanding their business beyond going the market of Singapore. However, it is
also true that due to availability of large numbers of customers, it will be easier for the

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company to sustain in the market. Due to availability of technology and knowledge, a strong
technological environment has been developed in this country. This situation has brought
various talent, training and development opportunities in the country. However, it cannot be
denied that increasing health disease in this county, the government has become strict for
maintaining the food standard in the food selling organization.
After introduction of technological innovation, it has become easier for the customers
to compare the price before experiencing the service. These organizations have established its
strong brand image in the market, which can create tough situation for ABR Holdings Limited
to sustain in the competitive market. Before analysing the core competency of ABR Holdings,
the business experts have used three major analytical tools for evaluating company’s internal
and external structure. Ansoff Matrix strategy primarily aims to evaluate the market scope and
product opportunity in future. In order to gain competitive advantages ABR Holdings has
implemented several strategies and policies within organization (Chang and Taylor 2016).
Therefore, it can be stated that the implemented strategies are going to be effective in rendering
business success.
8. Recommendations:
After evaluating critical discussing on various strategic decisions of ABR holdings,
some of the major recommendations can be provided:
 The organization needs to implement more effective marketing strategies and policies
within market based on which the competitors could have got threats. Marketing mix
strategy should be implemented within business strategies with the help of which the

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organization would be able to understand the ways of product promotion in market (Cardy
and Leonard 2014)
 The promotional strategies would have to be very much specific that will focus on
involving Social Medias for creating brand awareness more effectively.
9. Conclusion:
This very specific study has in-depth knowledge about the importance of strategic
business decision, which can direct the organization in meeting the peak of success. The study
has evaluated that ABR has initiated their journey as Swensen’s ice cream restaurant. Foods
and beverages are the core product with which ABR Holdings is maintaining their business
sustainability. It has been observed however that this particular organization has immense
scope and opportunity to expand their business in multinational countries. In order to make
effective business strategy the executives need to make environmental analysis with the help of
which people have to face immense challenges in dealing with the customers effectively.
Before analysing the core competency of ABR Holdings, the business experts have used three
major analytical tools for evaluating company’s internal and external structure. It has also been
observed that In the external environmental analysis it has been identified that due to slower
economic growth in the Singapore market, the extreme competitive business environment in
Singapore food industry is the major concern for the organizations. ABR Holdings Limited.
These organizations have established its strong brand image in the market, which can create
tough situation for ABR Holdings Limited to sustain in the competitive market.
The study has evaluated that fact that as per resource structure of this organization, it
has been observed that resources are very much affordable for the stakeholders with the help of

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which they do not have to struggle in using the services. On the other hand, it has also been
observed that the quality of products in affordable price range is the core competency of ABR
Holdings due to which the entire process of business has created a self-identity in market. In
this study, SWOT analysis is conducted for analyzing the strengths, weaknesses, opportunities
and threats of organization. Value chain analysis is evaluated for maintaining the inbound and
outbound procedure of organization. Ansoff Matrix is one of the most significant marketing
strategies that is implemented for forecasting future product growths and opportunities.

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