Literature Review and Research Directions

This document provides a literature review on strategic management and energy management strategies. It includes various studies and research papers on topics such as project and portfolio management, power management for PV/battery hybrid systems, dynamic replica management in data grids, chief strategy officers, and rule-based energy management for series-parallel plug-in hybrid electric buses. The document also covers control strategies for power flow management in PV systems, communication management, sustainable strategic management, and the application of Pontryagin's Minimal Principle to energy management strategies for plugin fuel cell electric vehicles. Additionally, it discusses trip-oriented energy management control strategies for plug-in hybrid electric vehicles.

STRATEGIC
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASKS ............................................................................................................................................1
1) Business environment of the firm and main competitors and their competitive position......1
2) Internal analysis of the firm giving details of its current strategic position and tactic...........3
3) Strategic models and Strategic options open to the board to leverage its core business........4
4) Change could be accomplished and barriers may occur and these can be pre-empted in
change plan..................................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Strategic management refers to continuous planning, analysis, monitoring and assessment
of all which is required for company in order to meet with its objectives and goals (Boyd and et.
al., 2012). It includes formulation as well as execution of main objectives and initiatives taken
through top management of company. It consist related concepts of strategic thinking and
strategic planning. This present report is based on the Manchester Furniture company. In this
mention report will be studied about the major competitors and also their competitive positions.
Internal analysis of company providing details of current strategic position and the tactics will be
discussed here.
TASKS
1) Business environment of the firm and main competitors and their competitive position
Business environment refers to external and internal analysis which impact how
functions of company consisting staff members, management, demand, consumers and supply.
The business environment of company can control functioning of business and these impact the
business from, internally as well as externally. Manchester is leader in household furniture
market with acquisition of Paul Logan’s Furniture Division (PLFD). Manchester was one of
leading producre of the office furniture in United States. It was well known to the business
buyers with red- script Manchester logo. In context to this, ergonomics, durable designs, skills in
engineering of company can be applied to the furniture goods (Atkinson and et. al., 2012).
Acquisition of Paul Logan’s Furniture Division expanded Manchester’s Household Furniture
Division (MH) overnight and through this, firm make strong brand and also gain the market
leader position in the furniture segment. The main competitors of Manchester’s Household
Furniture Division are Curits Furniture, Dynasty. The cost strategy of its all competitors are low
cost based and they sell the products on medium range so that every person can purchase (Doz,
2017). In addition to this, imports from the minimum cost labour areas for an instance Mexico
and Asia that has placed the minimum cost pressure on market. Under this, PLED provided the
extensive line by providing the high quality of furniture and also occupied the one or two number
of the market share position in some categories (Belbin, 2012). The critical analysis of business
environment of firm by using Porter five force model as per Manchester Furniture Inc. are as
follows:
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Porter Five Force Model
It refers to tool that is used for analysing the business competition. It develops from the
industrial business economics for drive the five different forces that helps in identified
competitive intensity and also attractiveness of sector in context to enhance profitability. This
kind of model is helpful in determined along with measure competitive forces which shape the
each sector and helpful in examine strengths as well as weaknesses (Bisbe and Barrubés, 2012).
It helps in determine the corporate strategy. On the basis of mention case study, competitors
were fierce between established and large household manufacturer of furniture. Under this,
import from the minimum cost labour areas for an instance Mexico and Asia that had to be
placed downward the cost pressure on market. In context to this, competition from the domestic
players and imports were eager to be challenge to new dominance position of Manchester. This
was given by Michael Porter for analysing the market effectively and efficiently. It has impact on
firm profitability which is described below:
Threat of new entrants- It determines the way to enter in a particular industry. The
company need to create high barriers for entering into market. The threat of new entry is high
when there is no regulation, low customer loyalty because in furniture sector, there is already
large number of competitors exist and if the new organisations will enter in market with the new
concept then it will be threat for Manchester company (Grunig, 2013). Manchester Furniture
Inc. has many other competitors which comes into market with low pricing strategies, cost
reduction. It has to manage all these to safeguard competitive edge by building economies of
scale, innovating new products.
Bargaining power of suppliers- The bargaining power allows supplier for selling at high
price to their buyers. It affects buying firm profits as it has to pay more for materials. This
situation can be tackle by Manchester Furniture Inc through building efficient supply chains
with different or multiple suppliers (Brewster and Hegewisch, 2017). It can also experiment with
product design using various materials in case if price goes up can shift to another materials.
Also developing dedicated suppliers for firm. Under this bargaining power of suppliers is high
because there are few suppliers at market place which provide the materials of furniture. So,
company need to purchase raw materials from the selected suppliers on the basis of their price.
Bargaining power of buyers- The buyer can easily demand lower price and high quality
product from existing industry when they have strong bargaining power. Manchester Furniture
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Inc. customer want best product with minimum price. Under this, bargaining power of
consumers is high because at marketplace there are many firms which deals in same sector.
Consumers have the option to purchase products from the other company (Dauvilliers and et. al.,
2014). So, it is necessary that Manchester firm should provide its products to consumers on
reasonable cost with the better quality. Manchester Furniture Inc. through building large base of
customers. The organisation can bring rapidly innovating new products for the consumers. As
new product reduce defection of existing individual for its competitors.
Threat from substitute product- It means when buyer find substitute products at
attractive prices with better quality can easily switch from one to another with little cost. It is
also threat for company surviving in market. Manchester Furniture Inc can provide service
oriented rather than product oriented. It should understand core need of consumer. It can
collaborative with competitors for increasing market share (Hahn, 2013). In this company can
tackle from its substitute threats. Under this, at market place, there are many competitors with
same products and provides the better quality at reasonable cost. So, it is necessary that company
should make its quality better and focus on providing the goods or services at the minimum cost
as comparison to its strong competitors.
Rivalry among the existing players- In this firm have to do competition with their
existing players. It occurs when there are many competitors, low customer loyalty, exit barrier is
high, products are same nature, competitors are equal size. Manchester Furniture Inc. is
operating in very competitive home furnishing industry (Davis and et. al., 2016). It does not
provide profit for long term. The company can build sustainable differentiation and collaborate
with competitors for increasing market size rather than small market competing.
PESTEL analysis of Manchester Furniture
This analysis is a tool and techniques which is used by marketers for analyse the internal
and external market or environment in which product will sale or purchase. This analysis can be
used by Manchester for knowing that how the factors of PESTEL analysis is affect the brand,
price and the probability of the products (Gavetti, 2012).
Political factors
When Manchester operates its business globally, many political factors affect its
business. These factors can be the government of that country, supply chain and rules and laws
or act of the host country because every country have their different policies so they can affect
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the other country's business. Since Manchester Furniture is looking forward to expand business
in areas where it is not doing business, it will be required for this organisation keep its focus on
ethical considerations and laws which has been made by local authorities of targeted areas. This
could aid them in performing operations with an ease (He and et. al., 2013).
Economical factors
This factor play a important role in the business of Manchester. The economic condition
of the home and host country decide the economic growth of the company. Manchester set the
price of its product according the customer so they are loyal for it and help in the growth of the
company. As, United States economical conditions are good enough, doing business in this
country will be much more fruitful for Manchester Furniture and with unique design with
minimal money. Organisation can easily grab good position in US (Mahmood, Michaelson and
Jiang, 2014).
Social factors
This factor create a big impact on business profits and loses. Manchester mad furniture
and do its business on globally so it set in mind the culture of the country and provide the
product culture and their values. Since, citizens of United States focuses on brining in innovation
in their lives, Manchester Furniture's products and services has also consists with the same.
Therefore, performing operations in US will help in reaching to an all new level or to gain
competitive advantages in short span.
Technological factors
By using this factor Manchester do its online business properly and provide the product
in the reach of the customer. By this customer can book its product and get it on location. United
States' people uses updated tools and technologies (Mansouri and Dastghaibyfard,
2012).Therefore, if Manchester Furniture uses updated tool in order to manufacture furniture so
that right product could be carried out. This will directly grab attention of customers in specific
time frame.
Environmental factors
It is related to the climate and weather. Manchester use this factor to reduce the
operational cost and improve company's image by the overall experiences. Away with this, since
Manchester Furniture keeps its focus on using raw materials in an optimised manner. This could
help them in reaching to an all new level because people of United States do not likes wastages if
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any takes place. Through this, approach Manchester Furniture would easily grab good position
in US market.
Industry Life cycle graph
It refers to method for analysing the industries which are based on idea which they go
through series of determining the phrases of life cycle (Menz and Scheef, 2014). Under this,
there are different stages are included:
Introduction: At this stage, firm enter in to the industry with its new business setup. It
developed the unique products to attract more consumers.
Growth: Under this, Manchester company slowly attract to gain attention from the large
market segment in furniture industry and also move towards enhance profitability.
Maturity: At this stage, growth of firm is saturated and some firms in furniture industry
are already establishes and it reaches at the point of saturation. In addition to this, Manchester
realise more revenue cash flows and profits due to high demand of consumers (Minneci and et.
al., 2014).
Decline: It is a last stage and in this, competition level is high and firm is at the declining
stage where the profit level is low. So, there is a need to Manchester to find better opportunities
for survival at marketplace for long period of time.
Market detail- Under this, Manchester firm acquires the Paul Logan Inc. to expand its
business in competitive market. On the basis of given case study, market revenue of Manchester
firm was £1.83. the sales of this company is enhancing year by year. In United States, sales of
Manchester furniture was $36.64 dollar.
2) Internal analysis of the firm giving details of its current strategic position and tactic
An internal analysis is the exploration of organisation's competency, competitive
viability, cost position in marketplace. It analysis and provide all relevant information about
company's strength, weaknesses, opportunities and threats. It helps in knowing competency, cost
position, competitive viability (Hair and et. al., 2012). It can be explained with VRIO model
which means tools used for finding out firm's internal resources and capabilities. Manchester
Furniture Inc also use such tool for strategic position and tactics.
VRIO Model
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This was given by Barney J.B for considering resources and capabilities of firm and their
impact. According to Barney, resources must be rare, valuable, imperfectly imitable and non
substitutes for achieving competitive advantages (Modell, 2012). It is described as given below:
Valuable- The resources are consider as valuable for organisation for increasing
perceived customer value. It is done by increasing differentiation or decreasing price of product.
It is significant for Manchester Furniture Inc. to review value of resources for changing internal
or external conditions to make useless or valuable.
Rare- It means resources acquired by one or few companies. Most of firm neglect
common resources to be used. Manchester Furniture Inc. use rare substances in their furniture
product to make it different from its competitors.
Costly to imitate- It is very costly for firm to imitate other organisation. It can be done in
two ways: by directly imitating resources or through substituting products and services.
Manchester Furniture Inc. has achieved competitive advantage as it possess valuable, rare and
costly to imitate. As Barney has explained three main reasons for imitating hard for firm are
historical conditions, social complexity and causal ambiguity (Hill, Jones and Schilling, 2014).
Organised to capture value- The resources cannot confer any advantage for company
unless it organised for capturing value for them. A firm organise its processes, organisational
structure, system, policies and culture to be fully realising potential of valuable, rare, costly to
imitate resources and capabilities (Peng, He and Xiong, 2017). Through this companies achieve
competitive advantage. In context of Manchester Furniture Inc., it capture value for firm and
achieve success and sustainability.
Value chain refers to process through which firm add some value to article consisting
marketing, production and provision of the after- sales service. It is helpful to Manchester
Furniture Inc. to analyse particular activities by which company can develop some value as well
as get the competitive benefits. On the basis of mention case study, several manufacturers of
furniture has integrated in value chain in to the firm- owned retail stores. The distribution outlets
were independent as well as chain furniture stores. The sales forces of the PLFD has better
relationship with consumers from main furniture chains, wholesalers and departments which sold
to independent , small furniture and also to the speciality stores.
SWOT analysis
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It is helpful in analyse the internal environment of firm by determining the strengths,
weaknesses, opportunities and threats of firm in a better manner. SWOT analysis of Manchester
Furniture Inc. mention below:
Strengths Weaknesses
 It uses innovations for reduce the costs.
 It provided an extensive line of high
quality of the furniture in many
different categories.
 Reducing quality is main weakness of
this company.
 The market presence of Lanchester
Furniture is not good.
 Deficient access to distribution
channels for household furniture.
Opportunities Threats
 It can provide its furniture online.
 It can expand its business in developing
economies.
 High competition.
 Average income level of consumers.
 Rise in teleworking and refurbished
furniture.
3) Strategic models and Strategic options open to the board to leverage its core business
The strategic models are based on industrial company to drive the different forces which
can identify the attractiveness of market along with the competitive intensity. It constitutes the
strategic model or plan that is helpful in designing for make improvement in process. The main
purpose of company to use the strategy model to improve the business operation and also meet
with the objectives which are set through top management of company. In order to attain the
objectives and improving business operations, Manchester Furniture Inc. use the strategic model
in an effective manner (Hill, 2017). The strategic model that company will use Porters generic
model. This strategy states how firm pursue the competitive benefit across its selected market
scope. Under this, there are different strategies are included and mention below:
Cost leadership strategy- This kind of strategy consists firm to winning the market share
through appealing to price- sensitive and cost- conscious consumers. In this strategy, Manchester
Furniture Inc. company need to set its cost low as comparison to its competitors so that large
number of people can be attracted. In context to this, cost advantage sources are different and
also based on the industry structure (Rani, Ilango and Nagamani, 2013). It consists propriety
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technology, preferences access to the raw materials, economies of scale etc. it is necessary that
the low cost producer should search as well as exploit the cost benefit sources. If Manchester
Furniture Inc. can attain as well as retain cost leadership strategy then its performance will be
enhanced at market place. It can gain the competitive benefits.
Differentiation- Under this kind of strategy, Manchester Furniture Inc. company seek to
be better in its sector and also gain the value through consumers (Hitt, Ireland and Hoskisson,
2012). In this, it chooses one and more than one attributes which several customers in same
furniture sector as necessary. In addition to this, differentiate services or products in some
manner for complete in a successful manner. This strategy is proper where segment of target
consumers is not to be cost- sensitive, market is saturated and also needs of consumers are very
specific. In this, if Manchester Furniture company will develop any new product which unique
features and quality then it will be helpful in target the new market. It offers hedge against the
various markets along with the product life cycle that allowing the cash flow if the goods are at
the decline stage.
Focus strategy- The focus strategy rests on choice of narrow the competitive scope with
in sector. Organisations which use this kind of strategy, concentrate on specific niche markets
through understanding changes which happen in markets along with demands of consumers. If
Manchester Furniture Inc. apply this strategy in differentiation then it may be select to apply in
the conjunction with the focus strategies. The main concentrate of focus strategy is on narrow
segment and attain cost benefits. The focus strategy are of two different types: Cost focus- In this, company target the niche market and also provide the products in
minimum costs. In context to this strategy, Manchester Furniture Inc. firm is looking for
the cost benefits in its intended market (Keupp, Palmié and Gassmann, 2012).
 Differentiation focus- Under this focus strategy, it is essential that product should have
the unique features. It consists the strong brand loyalty between the customers. In
addition to this, it is necessary that product should be unique and firm can compete with
its strong competitors in competitive marketplace.
These all are the effective strategies and among the all, Manchester Furniture Inc. will
use the Cost leadership strategy for the consumers which are more price- conscious. It will be
helpful in gain the competitive benefits to business.
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Pull strategy refers to consumers seeking for product and the retailers are placing the
orders because of the direct demand of customers (Raupp and Hoffjann, 2012). It needs visible
brand that can be created by the mass media advertising. It is helpful in determine as well as
interact with the audience. On the other hand, push marketing is use in the marketing channels
like for an instance promotions and it push to consumers by the sales channels.
Among both of them, Manchester Furniture Inc. should select the pull strategy because
through this firm can communicate with many people and also can attract them towards the
services and products.
Bowmans strategic clock model
This model is used in marketing to analyse competitive position of firm in comparison to
offerings of rivals. This model shows that how Manchester company can position its service or
product that depends on two different dimensions. Under this, some positions are mention below
as above:
Position 1. Low price and low added value
This position is not competitive for business of Manchester company. Under this, product
is more differentiated and consumer perceives less value as comparison to the minimum cost.
For company, keeping minimum price is only the competitive methods that Manchester can be
use to compete with the other suppliers (Xu, L. and et. al., 2013).
Position 2. Low price
At this stage, firm start to produce the large quantities and goods are to be valued. Under
this, Manchester company sold its goods or furniture products at minimum cost that leads to be
minimum profit margin on the individual goods. This type of position regards to cheap leaders of
market and its main focus on the cost minimization.
Position 3. Hybrid
This position included firms which use the differentiation in products. Under this,
furniture of Manchester is highly valued. The main focus of this company is on the low cost.
Company can provide the high value products with reasonable cost.
Position 4. Differentiation
The main objective of this differentiation strategy is to provide consumers high perceived
added value. Under this position, brand plays a necessary role not quality.
Position 5. Focused Differentiation
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In this position, main focus of this position is to providing the high quality of products
with high profit margins. In context to this, Manchester company use the promotion, distribution
and segmentation that leads to gain high profit margin.
Position 6. Risky high margins
Organisations using this kind of strategy by charging the high cost for products of which
perceived value of consumers is mediocre. In context to long- term, there is a risk and position is
likely to be fail.
Position 7. Monopoly Pricing
At market place, there is monopoly then there is only single business that providing
goods. Strength of firm that the position themselves as monopoly at market place is that it is only
a company that providing its goods in segment.
Position 8. Loss of market share
It is not enviable position for firm because in this, Manchester company is not able to
provide the service or product that provides some value to consumers. Due to the high cost,
consumers are stay away.
4) Change could be accomplished and barriers may occur and these can be pre-empted in change
plan
Change management refers to collective term for all the approaches in order to support as
well as prepare the teams or person in making any change at workplace. In order to manage the
change, Manchester Furniture Inc. can apply the Lewin change management model. If company
will make any change at workplace then staff members as well as other stakeholders should be
aware about that change and know about the importance of that change. Management should
provide the training about the change to employees so that they can focus on them. Sometimes,
the barriers are occur in applying the change such as technological, employees are not feel
comfortable in new changes etc. In order to neglect the barrier or pre-empted in change,
management should understand its employees to importance of the change and benefits of
implementing the change. It is helpful for employees to understand the structured as well as
organizational change. Different stages in this model mention below:
Unfreeze- This first stage is related to preparation for change. In this, Manchester
Furniture Inc. should be prepared for change and also try to be resist that change.
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Change- At this stage, change or transition is taken place. This step take some time as
people spend their time to embrace the new developments, changes and happenings. It is
necessary that better leadership is necessary because it will helpful to lead the employee in right
direction.
Refreeze- Under this stage, alterations have been accepted and executed through people,
firm. In this stage, firm process start and employees to be refreeze and also go back to their
routine work (Yu, Kuang and McGee, 2014). In addition to this, there is a need to staff members
to sure that all changes should be used properly and implement them in attain the specific
objectives.
These all are the steps of change management and company can execute the change at
workplace by following all these steps in an effective and better manner. At the time of
implementing the change, manager will include all team members in the process of executing the
change.
In context to change management, Manchester Furniture Inc. use the Kotter 8 step change
model. Under this, different 8 stages are creating sense of urgency, forming powerful guiding
coalitions, developing vision and a strategy, communicating vision, removing obstacles, creating
short-term wins, Consolidating Gains and anchoring Change in Corporate Culture (Yu, Kuang,
and McGee, 2014).
These all the important steps in change management and helpful for the Manchester
Furniture Inc. at the time of executing change at workplace. When company implement change,
it should be assure that people can see need of change, feel motivated and change way of doing
work so that they can think that vision can be achieved.
Under this, main focus of Manchester Furniture Inc. is on the cost leadership strategy. It
will provide its furniture product on low cost top its competitors so that they can be satisfied
from the product as well as cost. It will be helpful in provide the competitive benefit to business.
In order to using this kind of strategy, Manchester Furniture Inc. will use the Six Sigma. It is set
of the tools and techniques for the improvement in process. Under this kind of process,
99.99966% of opportunities in orM11544015799 (2)der to develop some feature of part that is
defects free (Killen and et. al., 2012). It is helpful in make improvement in quality of process
output through determining as well as removing defects causes along with reducing the
variability in business and production process. Each type of project of Six Sigma carried out with
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in company that follows steps along with particular value targets for an instance minimize
process cycle time, reduce costs, enhance consumer satisfaction, maximise profit level etc. This
approach represents ideology and its main focus on make improvement of the business process.
This approach is helpful fore firm to using the low cost pricing strategy. But at the time
of using this strategy there are some barriers faced by the company for an instance knowledge,
technology, cost, training etc. These all develop the main issues in business. Under this, the main
problem of the knowledge. About the new concept, it is not necessary that employee have any
knowledge about it (Vogel and Güttel, 2013). This develops the negative impact on business and
operations of firm are negatively impacted. In context to overcome from this barrier, Manchester
Furniture Inc. should hire an expertise that can provide the relevant information and data in an
effective manner. It will be helpful in conducting the business operation in a better manner. On
the other hand, technology plays a necessary role in this present time period. Advanced
technology is helpful in enhancing the capacity of the working along with reducing the workload
of staff members. Obsolete technology develops the negative impact on performance and
operations of business in addition to this, it is a responsibility of company to adopt and use the
advance technology. It will be helpful in enhancing the business operations along with
minimizing the time (Stead and Stead, 2014). Cost is also a main concern and for using the new
technology along with the quality tools, it is a responsibility of finance manager to arrange the
funds for the company. In order to adopting the new technology, policies and machineries, it is a
responsibility of Manchester Furniture Inc. company to provide the training to staff members so
that they can not face any issues and their skills or knowledge of staff members.
CONCLUSION
It has been concluded from above mention report strategic management is helpful for
company to meet with the particular business objectives. There has been studied about the
Manchester case study and also know about the competitive analysis. In given report mentioned
about the internal analysis of company by knowing about the tactics and strategic position has
been discussed. In this report studied about determination of strategic options to board to the
leverage to its business. at Kotter outlines these steps is to emphasise that change is not a simple
and quick process. Many steps of planning are required and even when the change has been
implemented there is still a lot to do to ensure it is successful. Kotter argues that 70% o
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