Strategic Management Assignment - Mainfreight

Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................3
PART A...........................................................................................................................................3
Organization's strategy...........................................................................................................3
Evaluating industry environment...........................................................................................4
Examining the global perspectives of the company...............................................................5
Critically analysis its success.................................................................................................5
Presenting two functional strategies for Mainfrieght.............................................................6
Critically evaluating the problem that company facing.........................................................7
PART B............................................................................................................................................8
Examine external environment of Mainfreight......................................................................8
Describing organization's competitive advantages and recommending ways for evaluating
success....................................................................................................................................9
Critically evaluating the success of a firm...........................................................................10
Describing the corporate level strategy................................................................................12
Evaluating the mix of capabilities, competencies and personal attributes of BOD.............12
Describing organizational structure......................................................................................14
Analyse some structural characteristics and issues that the organization may face.............14
Recommend cultural environment.......................................................................................14
Critique how the organization reviews its strategic performance and adjusts strategy
accordingly...........................................................................................................................15
CONCLUSION..............................................................................................................................15
References......................................................................................................................................17

INTRODUCTION
Strategic management mainly involves the preparation and implementation of some
major goals. Further, it is a continuous planning, monitoring and analysing the assessment that is
necessary for the firm in order to meet the goals and objectives. Therefore, it is the process that
mainly involves cross functional business decision prior to implementing them. In the same way,
the report main aim is to provide a knowledge about strategic management that helps to run a
business smoothly. Further the chosen firm for this report is Mainfreight which is logistic and
transport company and the company operates its brand at different countries and also consider
one of the largest freight company as well.
The report is divided in two parts such that in Part A- study will describe company's
strategy with its mission and vision, then using Porter five force model in order to evaluate the
industry environment. Further, it also examine the global perspectives of the company that needs
to implement the strategy. Then report suggest two functional strategies and describe one critical
problem as well. In Part B, study, uses PEST analysis in order to examine company's external
environment and recommending some ways that help a business to its success. Further, report
also show mix of capabilities and competencies of Mainfreight and describe its organizational
structure as well. Lastly, it critically analysis its strategic performance and strategy as well.
PART A
Organization's strategy
Mainfreight is one of the leading company and also provide the best logistics and
transportation facilities to their customers. In 2012, the company also receive an award for its
best growth strategy. Such that the company provides a global supply chain solutions and
moreover, company's presence in Australia also continued to expand through acquisition and
branch proliferation across strategic location (Mainfreight company's growth strategy, 2019).
Vision: To provide the best logistic services to their customers and become a top freight
company at international level.
Mission: The company's mission is to reorganized as a best logistic service providers for the
customers and also deliver the tailor made and provides the best sustainable logistic solutions.

Evaluating industry environment.
In order to determine the competitive advantages, Porter Five force model is used which
determine the company's external environment. This is as mentioned below:
Threat of new entrants (low): The Mainfreight faces low threat of new entrant, it is so
because the technology provides new business models and due to sharing some new business
model, the company's suppliers and customers are not use it, while opening new company. That
is why it faces low threat and even it requires high investment for new start up which is not
possible for ever business Cordell & Thompson, (2019). Thus, by utilizing the latest technology
and offer interactive benchmarking for existing shipping company will help to cope with such
situation.
Threat of substitutes (low): As the company is fast growing company and also offer
variety of products to their customers at different prices. In the same way Mainfreight also
provides different ranges from warehousing, supply chain to transport and it has been analysed
that the only substitute are offered to transport but for they have to pay extra cost. Therefore, the
customers did not have much option for the services and at last they choose low budget services
only. In the same way, Mainfreight also offer the services at low and reasonable rates thus it
helps to attract the customers towards it Scholz, (2019).
Rivalry among existing firms (high): Mainfreight faces tough competition and on the
other side, due to low differentiation, firm also competing with their prices and quality of
services. Thus, the high competition also makes it hard in order to increase their market share.
Further, there are many rivals such as FedEx, GAC and the main reason of competition is related
to price and quality and when the customer find some better or reasonable options then they
easily switch.
Bargaining power of suppliers (low): Mainfreight also faces low bargaining power of
suppliers such that the suppliers who provides services in auto mobile industry in which they
offer lightweight vehicles and cranes Abalkhail, (2019). Even it has been also analysed that
suppliers are abundance in market and company chooses on their differentiated prices.
Bargaining Power of customers (low): It has been analysed that minimum
differentiation and low switching cost also gives a lot of bargaining power to customers. But on
the other side, now customers are also expecting to receive fast shipment service with flexibility
and transparency at low price. Apart from this, buyers also have the power to switch because of