Strategic Management Concepts: Doc

Strategic Management

Table of Contents
TASK 1............................................................................................................................................3
1. Types of strategies in relation to the school of strategy and strategic concepts......................3
TASK 2 ...........................................................................................................................................5
Exploring competitive drivers and the effect on competitive position of an organization..........5
Internal analysis of Paragon Limited ..........................................................................................7
TASK 4............................................................................................................................................9
Exploring strategic choice model for sustaining firm competitive position................................9
TASK 5..........................................................................................................................................10
Resource implication of selected strategy..................................................................................10
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Strategic management can also be referred to as defining of business strategy. Purpose of
Strategic management includes development as well as implementation of an effective strategy.
It involves various activities such as continuous planning, monitoring, analyzing and assessing
the tactics or operations which are required for accomplishing desired business objectives. It is
the procedure in which manager makes selection of set of strategies which help in improving
performance. The formulation as well as implementation of strategy requires lot of resources.
An effective strategic management drive firm towards accomplishment of success. Stratergic
management provides the related concepts of strategic preparation and strategic conceiving of
the plan.
The report have focus on identifying the strategies adopted by Paragon Ltd. Company for
accomplishing desired business goals. It will also include the description about different types of
strategy as well as strategic concept. Study will emphasize on exploring competitive drivers and
the effect on the competitive position of an enterprise.
TASK 1
1. Types of strategies in relation to the school of strategy and strategic concepts
In present scenario, it has become important for business owner or manager in an
organization to develop strategy, as without making plan firm can not sustain in highly
competitive business environment. Strategic management can be defined as the procedure of
establishment of organizational goals and using these milestones for driving firm towards
success. Manager is required to conduct market analysis before formulation of strategy. In
addition to this the strategic concepts should be considered by management when creating the
business plan. An effective strategic management also helps in ensuring an effective as well as
efficient utilization of business resources It also supports firm in gaining competitive advantage
in the market (Wheelen, Hunger and Bamford, 2017.). Strategy can also be considered to be as
master plan which consist of detailed information about the way Paragon will achieve its
objectives. There are three school of strategy these are :
Planning school :This school of though emphasizes on rational as well as analytical approach
related to formulation of strategy. It is required by manager in an enterprise to formulate strategy
related to production of product only after conducting market research as well as analyzing
trends. Planning concepts of strategic management also states that manager in paragon should

make flexible planning , as this will assist an enterprise in providing suitable response to changes
in business environment or market.
Position school : This concept of strategic management states that strategic management is a
procedure of attaining a fit between the internal capabilities and external possibilities of an
enterprise. As per this strategic management concept, it is required by manager in Paragon to be
develop the business strategies considering the position of an organization in the market as well
as in industry. As per this strategic management concept manager in paragon during the
procedure of strategic formulation must select the market where they want to position their
products.
Resource based school : this is an approach which can be adopted by Paragon Ltd for gaining
the competitive advantage in the market. Resource based view of strategic management is
considered to be as managerial framework which can be utilized by manager in Paragon for
determining the strategic resources utilizing which an organization can gain competitive
advantage. This concept of strategic management states that organization are heterogeneous as
they have unique, highly expensive and valuable resources (Ethiraj, Gambardella and Helfat,
2018). Resource based strategic management concept emphasizes on managerial concentration
on business resources. According to this strategic management concept, it is required by
manager in Paragon to address the resources, assess or analyses internal competencies or
capabilities of firm before developing the strategy, as this will help an enterprise in gaining the
competitive advantage.
Purpose of resource based strategic management concept is to manager a means of
evaluating potential factors that can be deployed to gain competitive advantage. This concept
states that all the resources are not equally important in context of accomplishment of strategic
objectives.
There are different types of business strategies which can be adopted by manager in
Paragon for accomplishing desired objectives these are :
Product development : this strategy includes developing innovative product or bringing
improvement in existing goods. It is considered to be as less effective strategy as by utilizing this
firm can only attract little growth opportunities and it can explore growth opportunity in current
market. But by adopting the product development strategy Can attract customers. This also
enables business entity to gain competitive advantage .

Diversification: This strategy can be utilized by Paragon for entering into new market.
Diversification strategy will assist an enterprise in increasing market share.
Market development : It is also considered to be as growth strategy. By adopting this strategy
Paragon can sell its existing goods in new market.
Market penetration : This strategy includes selling your existing products or services into
existing markets to gain a higher market share. It is required by Paragon to adopt low cost
pricing strategy while entering into new market,as this strategy will provide firm an ease in
attracting customers (Doz,2017).
TASK 2
Exploring competitive drivers and the effect on competitive position of an organization
Porters five force analysis is considered to as strategic technique which can be utilized by
manager in Paragon for analyzing the competitiveness as well as effectiveness of an industry in
which an organization is established. It enables systematic as well as systematic analysis of
market structure and competitive situation. By applying the five force model, manager in
Paragon company can identify the various factors or can address threats which might have effect
on its operations as well as profitability (Lasserre, 2017.). Porters five force strategic
management techniques helps management in identifying the strategies which can be adopted for
gaining the competitive advantage and reducing the threat or negative effect of five competitive
forces on business.
Threat of New entry : There are high chances of entrance of new companies in industry. New
firm can enter into market by developing innovate products or services. New entrant in the
market by lowering the prices of product might create pressure on Paragon company to reduce
the costs of product. Adoption as well as implementation of new pricing strategy by competitors
have direct as well as significant effect on the profitability of firm.
It is required by manager in Paragon organization to concentrate on providing high value
proposition to customers, as this will help firm in reducing the effect of competitors actions on
business. In addition to this., an organization for reducing this threat can continuously develop
innovative products (Hitt and Duane Ireland, 2017). It also required by Paragon Limited top
continuously define the standards, this strategy is considered to be an effective as it will reduce
the chances of extraordinary profits for the new companies. This is considered to be as an
appropriate strategy for creating obstacle in entry of new Enterprise.

Bargaining Power of suppliers: It is high. Suppliers in dominant position can decrease the
margins Paragon can earn in the market. Higher bargaining power of supplier has direct as well
as great impact on the profitability of an organization. There are number of suppliers in an
industry. Paragon is required to develop an efficient supply chain with number of suppliers, as
this strategy will assist business entity in reducing this threat. It will also an organization to
facilitate negotiation with suppliers. Firm should built strong relationship with suppliers, this can
be developed by making time payment to them.
Bargaining power of buyers: It is high. As in the market there are number of companies
offering same products at low cost. Customers intends to buy good quality of products or
services by making less payment. In addition to this switching cost for customer is low, they can
easily switch to other brand. Customer can force Paragon to reduce prices of goods or can
pressurize firm to launch new offers or schemes.
It is required by Paragon to develop new products, as this strategy will assist business
entity in fulling the needs as well as demand of customers. In addition to this, Paragon should
concentrate on maintaining the quality Of products, as this tactic will aid firm in reducing
bargaining power of customers. It will also support business entity in retaining profitable
customers for long time (Hill, 2017.).
Threat of substitute products or services: Launch of substitute products by competitors can
have direct as well as significant effect on the sale as well as profitability of Paragon. Threat of
substitute product is high, as there are big companies in an industry which are financially sound
and they have capability to develop same good. Competitors can introduce substitute products
for giving rise to intense competition.
It is important for Paragon to provide value proposition which is hat is uniquely different
from present offerings of the industry. In addition to this, business entity need to adopt service
oriented approach. It is required by an organization to develop understanding about the demands
as well as needs of customers.
Rivalry among existing firm : Paragon has to face stiff competition. Increase in level of
competition has direct as well as significant effect on quality of business operations. In addition
to this, an intense competition can also have negative effect on the profitability of an enterprise.
By creating a sustainable differentiation Paragon company can reduce this threat (Michael,
Storey and Thomas, 2017). In addition to this, firm can also collaborate with competitors, as this

strategy will help an enterprise in increasing market share and will aid in reducing competition.
An organisation major competitors in India are Bata, Liberty, Reebook, Adidas , Nike etc.
TASK 3
Internal analysis of Paragon Limited
Mission of paragon organization is to increase market share. Vision of an organization is
to achieve leadership position in an industry. Mission and vision of Paragonare aligned to the
demand of the marketplace. Swot analysis is considered to be as an appropriate technique which
can be utilized by manager in Paragon limited for conducting internal analysis. This technique
will assist management in determining the internal strength, weakness, threat and opportunities
for firm.
Strength :
Paragon has achieved leading position in an
industry.
Strong distribution network: Due to this an
organization has able to distribute or sell its
products to large number of customers.
Highly talented and competent workforce:
employees are highly skilled and talented. They
have helped firm in expanding business.
Trained staff has enabled business entity to
deliver professional services to customers and
provide them with high level of satisfaction.
Innovation skills: This is considered to be as
the biggest strength of Paragon which has
assisted an enterprise in achieving success and
fostering growth. It has provided organization
an ease in attracting customers.
Advance technology: It has helped firm in
facilitating innovation and has supported an
enterprise in bringing improvement in quality
of products.
Weakness :
Limited range of products or services offered
by an organization. Lack of choice can give a
new competitor a to get an ease in attracting
customer.
Incompatible business structure
Ineffective marketing strategies : product
positioning as well as unique selling
proposition is unclear, there can be high threat
of attacks in this segment from the
competitors.
Low level of modernization and up gradation
of technology.
Weak support infra- structure for export

Opportunities :
Market development : This will assist business
entity in increasing its competitiveness.
Implementation of modern technology. This
will assist Paragon in delivering quality
products or services to customers and will help
firm in retaining profitable customer for long
time.
Product diversification :There is lot of scope
for diversification into other goods.
Threats:
Changes in economic factors : changes in
factors such as pricing policy by competitors,
inflation in prices of products, economic
condition of nation has direct as well as
significant effect of an organization.
Increase in competition
Threat of new entrant in an industry
Business Canvas model
Key partners: Paragon has form strategic partnership with many multinational companies which
has supported an enterprise in gaining competitive advantage in global market.
Key activities: Marketing and corporate social responsibility ate the two core activities which are
Performed by Paragon. An crucial aspect of Paragon promotional plan of action is to develop the
image of an enterprise rather than particular product. CSR activities are executed by an
organization for gaining the brand recognition in the market.
Key resources: Paragon has implemented advance technology at workplace which has enabled
business entity to innovate and bring improvement in products as well as procedures. Advance
technology has helped firm in providing quick responses to customer queries,It has enabled an
enterprise to provide moire services to customers (Daspit, Chrisman and Long, 2017).
Customer relation ship: Direct marketing strategy has adopted by Paragon which has enabled
business entity to built strong relationship with customers. In addition to this , an organization
also deliver good quality of products which has also supported an enterprise in strengthening
their relationship with clients. In additions to this, environmental initiatives has assisted an
organization in building good relationship with customers.
Cost structure :Modern and highly advanced structures allow for rapid construction, total design
flexibility and fundamental cost-effectiveness .
Core competencies : Highly skilled and talented staff has enabled Paragon to facilitate
innovation and has helped an organization in expanding business. Manager in an enterprise has

developed websites in order to provide customer an ease in getting access to information about
company.
TASK 4
Exploring strategic choice model for sustaining firm competitive position
It is the company position in an industry which helps in determining profitability of an
enterprise. In today's, highly competitive and dynamic business environment it has become
difficult for companies to sustain its competitive advantage. There are few strategies which can
be adopted by paragon limited as this will help an enterprise in sustaining its competitive
position in an industry these are :
Cost leadership strategies: This is considered to be as an effective strategy which can be
utilized by Paragon for maintaining its leadership position in an industry. By adopting this
strategy an organization become the low cost producer in its industry. It is required by manager
in Paragon to identify suitable ways or techniques for reducing the cost of production. As by
minimizing the cost of production firm will be able to deliver good quality of products to
customer at less price (Trigeorgis and Reuer, 2017.). Cost leadership is considered to be as a part
of marketing strategy utilizing which business entity can easily attract customer and can maintain
its position. By utilizing the competitive pricing strategy firm can easily differentiate itself from
competitors.
Cost leadership strategy will also assist Paragon company in increasing market share. In
addition to this, management in paragon organization need to concentrate on increasing the
operational efficiency. Business entity need to bring improvement in procedures.
The biggest drawback of utilizing the cost leadership strategy is that there is great decline
in the profit margin of companies. In addition to this A cost leadership strategy does not readily
allow time for any detailed market research or product development.
Differentiation : It is required by paragon to develop innovative products as this strategy will
help business entity in attracting more number of customers. It will assist firm in increasing sales
, profitability and will support an enterprise in gaining competitive advantage. Differentiation
strategy is considered to be as an effective in context of building sustainable competitive
advantage. It is required by Paragon to develop products according to the demands of customers.

An enterprise need to concentrate on delivering high value proposition to their clients, as this
strategy will assist business entity in differentiating itself from that of competitors. In addition to
this, firm can have its own label on products, as this labeling strategy well help an enterprise in
differentiating their goods from that of other organizations. Paragon can bring change in the
manufacturing procedure, as this can be an effective way of differentiating brand from that of
competitor. Unique product design is a very effective way to differentiate (Aguinis, Edwards,
and Bradley, 2017).
Paragon needs to make more investment researching, developing, and introducing new
products and improving the existing ones.
Focus strategy : This strategy can be implemented by the Paragon company only when the firm
has knowledge about its customers. It is required by Paragon to sells its products or services to a
niche market. This considered to be as an effective strategy in context of avoiding competition. It
is important for paragon to concentrate on core activities especially marketing, as this strategy
will assist an enterprise in building strong relationship with target customers.
TASK 5
Resource implication of selected strategy
Strategic implementation is considered to be as complex as well as critical task. It is
important for manager in Paragon to involve both internal as well as external stakeholders in
strategy implementation procedure. Resource allocation is a central management activity that
allows for strategy execution.
Human resource: These are important resources in context of implementation of strategy. It is
required by manager in Paragon to develop an effective reward system , as this strategy will
assist them in encouraging people to participate in change process.
Finance : It is another important resources which is required for executing the strategy. Capital
is required for purchasing as well as installation technology, buying equipment etc. It is
required by manager in Paragon to arrange the finance before executing the strategy, as this will
help them in eliminating the barriers which might occur in execution of plan.
Technology : It includes tools and equipment s required for execution of strategy. As Paragon
planning to differentiate their product on the basis of quality need to ensure that advance
technology is being utilized in operational activities.
Force field analysis:

It is considered to be an appropriate model for identifying the factors which might have
effect on the strategic implementation procedure. Force field analysis is a useful way of
visualizing striking forces and may permit management to better measure the probable direction
and speed of movement in implementing new strategies. There are variables such as technology,
social components, government regulations or legal factors might have significant effect on the
change management plan of Paragon (McKiernan,2017). Internal factors such as employees
resistance, lack of resources can create major barriers in implementation of strategies. In addition
to this, an ineffective business culture may also limit the ability of a firm to change strategy. But
this is that fact that both internal as well as external variables are the main factors which force
firm to bring change at workplace.
CONCLUSION
It has been concluded from the report that an effective strategic management is very
much important in order to drive form towards success. Study has provided some of competitive
forces such as threat of new enter ant , competitors are some competitive forces which effects the
business. Development of an appropriate strategy is important in context of driving company
towards accomplishment of desired business objectives. It has been concluded from the report
that companies vision and mission are aligned to market place.
There are various strategies has been suggested in the report which can be utilized by an
organization, as this will help an enterprise in sustaining competitive advantage. It has been
recommended to an organization that it should concentrate on delivering unique value
proposition to customers, as this is the best way to gain competitive advantage

REFERENCES
Books and Journals:
Hill, T., 2017. Manufacturing strategy: the strategic management of the manufacturing function.
Macmillan International Higher Education.
Hitt, M. and Duane Ireland, R., 2017. The intersection of entrepreneurship and strategic
management research. The Blackwell handbook of entrepreneurship, pp.45-63.
Doz, Y.L., 2017. Strategic management in multinational companies. In International
Business (pp. 229-248). Routledge.
Wheelen, T.L., Hunger, J.D., Hoffman, A.N. and Bamford, C.E., 2017. Strategic management
and business policy. Pearson.
Ethiraj, S.K., Gambardella, A. and Helfat, C.E., 2018. Theory in strategic management. Strategic
Management Journal, 39(6), pp.1529-1529.
Lasserre, P., 2017. Global strategic management. Macmillan International Higher Education.
Michael, S., Storey, D. and Thomas, H., 2017. Discovery and coordination in strategic
management and entrepreneurship. Strategic entrepreneurship: Creating a new mindset,
pp.45-65.
Daspit, J.J., Chrisman, J.J., and Long, R.G., 2017. A Strategic Management Perspective of the
Family Firm: Past Trends, New Insights, and Future Directions. Journal of Managerial
Issues, 29(1).
Trigeorgis, L. and Reuer, J.J., 2017. Real options theory in strategic management. Strategic
Management Journal, 38(1), pp.42-63.
Aguinis, H., Edwards, J.R. and Bradley, K.J., 2017. Improving our understanding of moderation
and mediation in strategic management research. Organizational Research Methods, 20(4),
pp.665-685.
McKiernan, P., 2017. Historical Evolution of Strategic Management, Volumes I and II.
Routledge.