Strategic Management Case Study: Carsales.com.au

Assessment Task 2
(Case Study)
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1. How is strategic management illustrated by this case study?
The strategic management is referred to as the formulation as well as the execution of the
major goals and objectives of the various initiatives adopted by the company in order to attain
a large market share on behalf of the stakeholders. In regards to the case scenario of
“Carsales.com.au”, the company is having the unique selling proposition and business model
which has helped in the growth and development of the company in the near future. In the
late stages of the 90’s the cars were used to sell and purchase through the classified
advertisements and there were only a limited amount of information is available to the users.
With the introduction of carsales.com.au which is an e-commerce trading platform for the
trading of the motorcycle, automotive, boats, and many others. The strategic management
leads to involving all management functions which includes the planning, organising,
directing, staffing, controlling and many others. The company has used the innovative
strategic or business model and framework which has helped in making more amounts of
profits for the company (Hill, et. al., 2014).
Significance of Strategic Management
 The use of strategic management has led to making more money for the company
carsales.com.au.
 It is significant for formulating of the unique selling point for the company so that it is
helpful for carsales.com.au to stand out in front of its various competitors.
 It helps in leading to a game changer for the carsales.com.au as the strategic
management consists of various phases that generate advertising revenue for the company
(Hill, et. al., 2014).
Strategic Management Process
It comprises of the six-phases through which the organisation passes in order to be successful
in the market force. It contains the steps such as planning, execution to its end evaluation.
The practicing of such strategic management process helps in gaining the competitive
position for the company. The carsales.com.au uses such strategic management phases in its
structure which is explained below with the help of a diagrammatic representation that is as
follows:
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Figure 1: The Strategic Management Process
Source: (Robbins, et. al., 2016)
The six steps in the SMP (Strategic Management Process) are:
i. Determining of the organisation’s current goals, objectives, vision, mission, strategies,
and others of the company.
ii. Performing of an external analysis which includes of all factors that externally impact
on the growth and performance of the company (Zott, et. al., 2011).
iii. Internal analysis of the company’s strengths, weakness, opportunities and threats and
also assessing the internal core competencies and resources of the company required to
challenge with the external impact.
iv. Formulating of the strategies according to the respective needs and wants of the
customers matching with the organisation’s vision (Robbins, et. al., 2016).
v. Implementing of Strategies in which the best strategy is selected and opted which
address best to the respective and issue and concern of the organisation.
vi. Evaluating the results and monitoring on a regular basis so that there are fewer
chances of repetitive mistakes and threats to the company.
Hence, in such a way the company has designed and used for the strategic management to be
successful in the market and gain competitiveness (David, 2011).
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