Strategic Management for Competitive Advantage

This report discusses the importance of strategic management in gaining a competitive advantage. It explores the concept of company performance and the use of key performance indicators. The report focuses on the company performance of Genius Global Car Ltd and provides insights into the production reports and the results of different rounds. It also covers the forecasted figures and the actual results, along with the balance sheet, profit and loss account, cash flow, and financial indicators.

Strategic Management for Competitive
Advantage

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Company performance.................................................................................................................1
Learning.....................................................................................................................................22
CONCLUSION..............................................................................................................................25
Team Performance.....................................................................................................................25
REFERENCES..............................................................................................................................28

INTRODUCTION
Strategic management is crucial part of organisation that will assist business in gaining
competitive edge over other companies (Torres, Ferrar and Santos-Rodrigues, 2018). Strategic
management can be describe as the process of organisation which will includes planning and
implementation of business strategy. This will help in increasing performance and productivity
of organisation as well as help in attain set goals. This report is based on Genius car
organization. This company is manufacturing high quality cars which is affordable for
customers. This organization is based in European market area in order to provide small and
medium vehicles to targeted customers. In this report company performance in properly
evaluated. Different learning about various concepts is determined for increasing decision
making. Apart from this team performance of organization is evaluated.
MAIN BODY
Company performance
Company performance refers as a composite assessment of how well an enterprise
executes or performs on its most essential parameters, typically, market, stakeholders and
financial performance. For this Key performance indicator is a best measurement tool that will
be beneficial for an organisation in measurement of its market and financial performance easily.
In context of Genius Global Car Ltd, KPIs measures their success versus a set of objectives,
industry peers or targets. It can be financial, considering revenue minus certain expenses, net
profit (or the gross profit margin, bottom line), or the current ratio i.e. liquidity and cash
availability. There are different rounds that help in identification of company performance with
the use of balance sheet, cash flow, company report, current cost and data sheet, financial
indicators, decisions included, profit and loss, profit and loss breakdown, production cost,
product life cycle etc. All these are considering best ways for measuring financial performance
of Genius Global Car Ltd in four rounds.
Along with this, there are certain benefits for using Key performance indicators as a
performance measurement tool for Genius Global Car Ltd. These are improving decision
makings, performance evaluation, complete overview of progress towards goals, direct
behaviours and performance visibility. This will help company by keeping real metrics visible to
each and every stakeholder such as scores shows who is and more essentially who is not
1

performing. There are most essential financial KPIs that inform business strategy within Genius
Global Car Ltd such as income source, profitability overtime, working capital, revenue growth
and revenue concentration. Therefore, KPIs is essential for company because it gives objective
evidence of growth and progress towards accomplishing desired outcomes. This will also help in
making better and accurate decision easily. According to the Genius Global Car Ltd, KPIs
includes minimum production, gross margin, net cash position, post-tax profit and market share.
Round 1
Forecast
For round 1, forecasted the total assets around to the amount of £750 after deducting the
amount of current liabilities. Even after the presence of tough competition, forecasted about the
attainment of the post-tax profit about £150. It was assumed about the completing all business
activities with positive bank balance in end. This is so because it helps in maintenance of
liquidity and payment of short term liabilities. In last, among the two models G32 and G35
forecasted about the total combined production of cars around 140000.
Result
In respect to the round 1, the favourable results were ascertained but not up to the mark as
forecasted. The total amount of assets remained in hand after completion of first initial phase was
£636.99 after deducting the among of current liabilities. The amount of post-tax profit
ascertained was £86.99. The total number of cars produced in total for both models was 132000.
The aspect about the completing phase with positive bank balance was also not achieved. At end,
there was negative bank balance of £87.48. The main reason behind non ascertainment of all
marks is the intense level of competing and less knowledge about aspects present in market.
Production report
Market Sector Model Name Produced Sold In Stock Model Price £ Market
Share %
5 G32 44000 44000 0 11600.00 0.71
10 G35 88000 88000 0 16200.00 1.60
2

Market
Sector
Model
Name Workforce Materials
Cost £
Design and
Options Cost £
Labor
Cost £
Gross
Margin
%
Produc
tivity
5 G32 1000 6660.00 1092.01 534.46 28.56 44.00
10 G35 2000 9120.00 2007.37 534.46 28.01 44.00
Market
Sector
Model
Name
Target
Production
Potential Productivity
Cars/Worker/Year
Potential
Productivity with
Overtime
Warranty
Cost per
Car £
5 G32 44000 42.59 51.11 155.04
10 G35 88000 41.84 50.21 222.55
Workforce 3000
Strike Days 4
Productivity (cars/worker/year) 44.00
Productivity Index 1.03
Total Market (m) Small Medium Large Luxury
Size 6.18 5.49 3.09 0.80
Profit and Loss
Sales 1936.00
Cost of Sales* 1390.85
Gross Profit (Loss) 545.15
Fixed Overheads 141.00
Stock Upkeep Cost
Product Recall Cost
Promotion 50.00
Research and Development 124.25
Professional Charges 10.00
3

Warranty Claims 26.41
Training Cost 0.80
Extraordinary Events
Depreciation 77.60
Operating Profit (Loss) 115.10
Interest on Current Account
Interest on Loans 3.58
Cost of Redundancies
Factory Sale Loss
Pre Tax Profit (Loss) 111.52
Tax 24.54
Post Tax Profit (Loss) 86.99
*Cost of Sales Breakdown
Opening Stock 0.00
plus Materials Costs 1320.30
plus Wages 70.55
minus Closing Stock 0.00
Cost of Sales 1390.85
Financial Indicators
Outstanding Debt £m 50.00
Return On Assets % 13.66
Current Ratio 0.72
Gross Margin % 28.16
Quick Ratio 0.72
Post Tax Profit / Sales % 4.49
4

Liquidity Ratio 0.00
Profit / Employee £ 37174.31
Return on Shareholders’ Funds % 14.82
Cash Flow
Opening Bank Balance 500.00
Revenue 1776.88
Corporate Subsidy
Government Subsidy
Insurance Claim
Factory Sale Income
Bank Interest
Extraordinary Events
Material Costs 1211.78
Wage Costs 70.55
Total Overheads 352.45
Factory Cost 670.00
Redundancy Costs
Automation Expenditure 6.00
Loan Repayments
Tax Payments
Bank Interest 3.58
New Model Production Costs 100.00
Balance Before Loan -137.48
New Loan 50.00
Closing Bank Balance -87.48
5

Balance Sheet
Fixed Assets
Cost 776.00
Depreciation -77.60
Book Value 698.40
Current Assets
Stock Value 0.00
Debtors 159.12
Bank Balance
Current Liabilities
Tax 24.54
Creditors 108.52
Overdraft 87.48
Net Current Assets (or Liabilities) -61.41
Total Assets Less Current Liabilities 636.99
Capital and Reserves
Share Equity 500.00
Total Retained Profit (Loss) 86.99
Total Subsidies
Total Shareholders’ Funds 586.99
Long Term Liabilities
Loan 50.00
Loan 50.00
Round 2
Decision and Forecast
6

In round 2, according to the ascertained information decision was taken regarding the
production of new model i.e. G40. Also, in accordance to the improved situations with industry
decision taken about improvement of the forecasting aspects. Here, in this phase forecasted about
the production of total 165000 cars in all three models. The amount fixed to attainted as post tax
profit was around £100. As the business grow, focused over the improvement of total assets up to
the amount of £700. Here, also forecasted about the attaining positive balance of bank
Results
In this round, results are quite significant as per the forecasted figures. The post-tax profit
was in negative of £ 22.16. The production is quite equivalent along with the amount of total
assets. But, in the case of cash balance the amount goes more in negative. The overall situation,
depicts that second phase was not good as compared to the one along with the forecasted
scenario. The main reason behind this was technological issues and ineffective marketing
approaches.
Production report
Market Sector Model Name Produced Sold In Stock Model Price £ Market Share %
5 G32 44000 44000 0 11600.00 0.70
10 G35 88000 88000 0 16200.00 1.60
11 G40 29900 29900 0 25670.00 0.99
Market
Sector
Model
Name Workforce Materials Cost £ Design and
Options Cost £
Labour
Cost £
Gross
Margin
%
Productivity
5 G32 1000 6803.65 2411.07 395.16 17.16 44.00
10 G35 2000 9316.71 4226.58 395.16 13.96 44.00
11 G40 700 13535.79 3020.20 407.06 33.92 42.71
Market
Sector
Model
Name
Target
Production
Potential Productivity
Cars/Worker/Year
Potential
Productivity with
Overtime
Warranty Cost
per Car £
5 G32 44000 55.25 66.30 175.56
10 G35 88000 70.11 84.13 260.06
7

Market
Sector
Model
Name Workforce Materials Cost £ Design and
Options Cost £
Labour
Cost £
Gross
Margin
%
Productivity
11 G40 29900 104.78 125.74 503.30
Workforce 3700
Strike Days 5
Productivity (cars/worker/year) 43.76
Productivity Index 1.03
Total Market (m) Small Medium Large Luxury
Size 6.27 5.51 3.03 0.77
Profit and Loss Account
Sales 2703.53
Cost of Sales* 2156.61
Gross Profit (Loss) 546.92
Fixed Overheads 207.92
Stock Upkeep Cost
Product Recall Cost
Promotion 30.00
Research and Development 141.04
Professional Charges 20.32
Warranty Claims 45.66
Training Cost 0.80
Extraordinary Events
8

*Cost of Sales Breakdown
Opening Stock 0.00
plus Materials Costs 2092.28
plus Wages 64.33
minus Closing Stock 0.00
Cost of Sales 2156.61
Pre Tax Profit (Loss) -22.16
Tax
Post Tax Profit (Loss) -22.16
Cost of Redundancies
Factory Sale Loss
Interest on Current Account 13.12
Interest on Loans 11.17
Operating Profit (Loss) 2.14
Depreciation 99.04
Financial Indicator
Outstanding Debt £m 130.00
Return On Assets % -3.19
Current Ratio 0.53
Gross Margin % 20.23
Quick Ratio 0.53
Post Tax Profit / Sales % -0.82
Liquidity Ratio 0.00
Profit / Employee £ -5988.42
Return on Shareholders’ Funds % -3.92
9

Cash Flow
Opening Bank Balance -87.48
Revenue 2640.45
Corporate Subsidy
Government Subsidy
Insurance Claim
Factory Sale Income
Bank Interest
Extraordinary Events
Material Costs 2028.83
Wage Costs 64.33
Total Overheads 445.74
Factory Cost
Redundancy Costs
Automation Expenditure 200.00
Loan Repayments
Tax Payments 24.54
Bank Interest 24.30
New Model Production Costs 92.00
Balance Before Loan -326.77
New Loan 80.00
Closing Bank Balance -246.77
Balance Sheet
Fixed Assets
Cost 1,068.00
10

Depreciation -176.64
Book Value 891.36
Current Assets
Stock Value 0.00
Debtors 222.21
Bank Balance
Current liabilities
Tax 0.00
Creditors 171.97
Overdraft 246.77
Net Current Assets (or Liabilities) -196.53
Net Current Assets (or Liabilities) -196.53
Total Assets Less Current Liabilities 694.83
Capital and Reserves
Share Equity 500.00
Total Retained Profit (Loss) 64.83
Total Subsidies
Total Shareholders’ Funds 564.83
Long term liabilities
Loan 130.00
Total Capital Employed 694.83
11

Round 3
Decisions and Forecast
In round 3, decision was taken to further improve the production and introduce the new
models. Here, the management focused about the introduction along good technology and
marketing approaches. The different forecasted according to this was production of around
180000 cars. The post-tax profit limit was around £80. In this stage, also forecasted about the
improved assets up to the market of £1100. For maintaining cash balance focused over the
adoption of better strategies through which able to reduce or control amount of consumption.
Results
In relation to this phase ascertained that organization doing quite as compared to the
forecasted aspects and results of the round 2. Here, able to attain the positive post tax profit i.e.
£76.58. The amount of total assets was also increased very close to the forecasted limit. The
strategies also worked where there was nothing like high jump in consumption activities.
Afterward, there was slight increase in the amount. In this phase, organization did and able to
attain the nearby targets.
Production report
Market Sector Model Name Produced Sold In Stock Model Price £ Market Share %
5 G32 44000 44000 0 11600.00 0.76
10 G35 88000 88000 0 16200.00 1.69
11 G40 29900 29900 0 25670.00 1.06
12 G60 12500 9529 2971 67500.00 1.42
Market
Sector
Model
Name Workforce Materials Cost £ Design and
Options Cost £
Labour
Cost £
Gross
Margin
%
Productivity
5 G32 1000 7048.29 1727.08 407.27 20.84 44.00
10 G35 2000 9651.71 4530.62 407.27 9.94 44.00
11 G40 700 14022.50 3213.93 419.53 31.22 42.71
12 G60 250 28415.40 7504.70 358.40 46.25 50.00
12

Market
Sector
Model
Name Workforce Materials Cost £ Design and
Options Cost £
Labour
Cost £
Gross
Margin
%
Productivity
Market
Sector
Model
Name
Target
Production
Potential Productivity
Cars/Worker/Year
Potential
Productivity with
Overtime
Warranty Cost per
Car £
5 G32 44000 75.38 90.46 136.28
10 G35 88000 100.07 120.08 210.42
11 G40 29900 160.41 192.49 376.85
12 G60 12500 57.59 69.11 1122.32
Workforce 3950
Strike Days 6
Productivity (cars/worker/year) 44.15
Productivity Index 1.32
Total Market (m) Small Medium Large Luxury
Size 5.78 5.20 2.83 0.67
Profit and Loss Account
Sales 3346.74
Cost of Sales* 2561.53
Gross Profit (Loss) 785.21
Overheads
Fixed Overheads 260.53
Stock Upkeep Cost
Product Recall Cost
Promotion 30.00
Research and Development 147.29
13

Professional Charges 5.00
Warranty Claims 46.48
Training Cost 0.80
Profit and Loss Account £m
Extraordinary Events
*Cost of Sales Breakdown
Opening Stock 0.00
plus Materials Costs 2598.53
plus Wages 70.78
minus Closing Stock 107.78
Cost of Sales 2561.53
Pre Tax Profit (Loss) 91.93
Tax 15.35
Post Tax Profit (Loss) 76.58
Cost of Redundancies
Factory Sale Loss
Interest on Current Account 37.02
Interest on Loans 36.03
Operating Profit (Loss) 164.98
Depreciation 130.14
Financial Indicator
Outstanding Debt £m 380.00
Return On Assets % 7.50
Current Ratio 0.72
Gross Margin % 23.46
Quick Ratio 0.52
14

Post Tax Profit / Sales % 2.29
Liquidity Ratio 0.00
Profit / Employee £ 23274.63
Return on Shareholders’ Funds % 11.94
Cash Flow
Opening Bank Balance -246.77
Revenue 3293.87
Corporate Subsidy
Government Subsidy
Insurance Claim
Factory Sale Income
Bank Interest
Extraordinary Events
Material Costs 2556.92
Wage Costs 70.78
Total Overheads 490.09
Factory Cost
Redundancy Costs
Automation Expenditure 300.00
Loan Repayments
Tax Payments
Bank Interest 73.05
New Model Production Costs 110.00
Balance Before Loan -553.74
New Loan 250.00
15

Closing Bank Balance -303.74
Balance Sheet
Fixed assets
Cost 1,478.00
Depreciation -306.78
Book Value 1,171.22
Current assets
Stock Value 107.78
Debtors 275.07
Bank Balance
Current liabilities
Tax 15.35
Creditors 213.58
Overdraft 303.74
Net Current Assets (or Liabilities) -149.81
Total Assets Less Current Liabilities 1,021.41
Capital and reserves
Share Equity 500.00
Total Retained Profit (Loss) 141.41
Total Subsidies
Total Shareholders’ Funds 641.41
Long term liabilities
Loan 380.00
16

Total Capital Employed 1,021.41
Round 4
Decisions and Forecasts
In the round 4 decision was taken regarding the introduction of one more model named as
GX. In this stage, plan was regarding improvement of production to above of the 200000 cars
among all models. It was also forecasted the post-tax profit of £100. The improvement in total
assets was quite significant in the lasts stages so the same trend followed. In respect to the flow
of cash focused over the use of same round 3 strategies to gain sustainability in the amount of
cash flows.
Results
It was ascertained in the round that post tax profit was in negative £2.19. This was the
reason of high amount of expenditure and large competition. The amount of cash flow was also
increased up to the double of old figure. Still the positive signs were ascertained from the
business total assets increased and production too near to the forecasted limit. For further
achievement of success in market, organization has to focus over controlling expenditure and
improving profits.
Production report
Market Sector Model Name Produced Sold In Stock Model Price £ Market Share %
5 G32 44000 44000 0 11600.00 0.85
10 G35 88000 88000 0 16200.00 1.81
11 G40 29900 29900 0 25670.00 1.12
12 G60 12500 9956 5515 65000.00 1.67
1 GX 40000 40000 0 13500.00 0.77
Market
Sector
Model
Name Workforce Materials Cost £ Design and
Options Cost £
Labour
Cost £
Gross
Margin
%
Productivity
5 G32 1000 7364.16 1856.11 426.87 16.84 44.00
10 G35 2000 10084.25 4885.51 426.87 4.96 44.00
17

Market
Sector
Model
Name Workforce Materials Cost £ Design and
Options Cost £
Labour
Cost £
Gross
Margin
%
Productivity
11 G40 700 14650.92 3443.07 439.72 27.80 42.71
12 G60 250 29688.84 8597.80 375.64 40.52 50.00
1 GX 1000 7364.16 1731.17 469.55 29.15 40.00
Market
Sector
Model
Name
Target
Production
Potential Productivity
Cars/Worker/Year
Potential
Productivity with
Overtime
Warranty Cost per
Car £
5 G32 44000 85.98 103.17 128.06
10 G35 88000 110.68 132.82 207.91
11 G40 29900 175.88 211.06 281.34
12 G60 12500 74.81 89.78 1073.72
1 GX 40000 85.98 103.17 273.53
Workforce 4950
Strike Days 5
Productivity (cars/worker/year) 43.31
Productivity Index 1.24
Total Market (m) Small Medium Large Luxury
Size 5.19 4.86 2.68 0.60
Profit and Loss Account
Sales 3890.67
Cost of Sales* 3101.05
Gross Profit (Loss) 789.62
Overheads
18

Fixed Overheads 339.57
Stock Upkeep Cost 16.17
Product Recall Cost
Promotion 30.00
Research and Development 33.27
Professional Charges 5.00
Warranty Claims 53.97
Training Cost 0.70
Extraordinary Events
*Cost of Sales Breakdown
Opening Stock 107.78
plus Materials Costs 3106.44
plus Wages 92.97
minus Closing Stock 206.14
Cost of Sales 3101.05
Pre Tax Profit (Loss) -2.99
Tax
Post Tax Profit (Loss) -2.99
Cost of Redundancies
Factory Sale Loss
Interest on Current Account 45.56
Interest on Loans 52.15
Operating Profit (Loss) 94.73
Depreciation 216.21
Financial Indicator
19

Outstanding Debt £m 580.00
Return On Assets % -0.25
Current Ratio 0.42
Gross Margin % 20.30
Quick Ratio 0.26
Post Tax Profit / Sales % -0.08
Liquidity Ratio 0.00
Profit / Employee £ -603.18
Return on Shareholders’ Funds % -0.47
Cash Flow
Opening Bank Balance -303.74
Revenue 3845.97
Corporate Subsidy
Government Subsidy
Insurance Claim
Factory Sale Income
Bank Interest
Extraordinary Events
Material Costs 3064.69
Wage Costs 92.97
Total Overheads 478.69
Factory Cost 740.84
Redundancy Costs
Automation Expenditure 250.00
Loan Repayments
20

Tax Payments 15.35
Bank Interest 97.71
New Model Production Costs
Balance Before Loan -1198.03
New Loan 200.00
Closing Bank Balance -998.03
Balance Sheet
Fixed assets
Cost 2,468.84
Depreciation -522.98
Book Value 1,945.86
Current assets
Stock Value 206.14
Debtors 319.78
Bank Balance
Current liabilities
Tax 0.00
Creditors 255.32
Overdraft 998.03
21

Net Current Assets (or Liabilities) -727.43
Total Assets Less Current Liabilities 1,218.43
Capital and reserves
Share Equity 500.00
Total Retained Profit (Loss) 138.43
Total Subsidies
Total Shareholders’ Funds 638.43
Long term liabilities
Loan 580.00
Total Capital Employed 1,218.43
Learning
Through this game there are different factor and elements that has been analyse that is crucial for
enhancing my performance in future. In this game various important decisions are made that is
significant for increasing performance and capability of organisation. Learning through this
game will help in developing skills and competency. This I have analysed various important and
crucial function of business that will increase sale. Information gained through financial, human
resource, operational and marketing activities are very supportive in taking better decision that
will lead to growth of organisation. Genius car organization is creating its products in order to
provide security and comfort to customers in very affordable price (Ginter, Duncan and Swayne,
2018). The motive of respective organization is develop high quality vehicle products which is
able to meet with the need and wants of customers. In this game I have learned that it is crucial
to determine and analyses market segment in order to become leader of market area. I have
analyzed that cost leadership is very important in order to gain competitive edge over other rival
22

companies as well as increase demand of product in market area. I have gain information and
learning about cost leadership in marker area. It is one of the effective strategy that will help
organization to increase demand of products as well as support n gaining edge over rival
organization. Cost leadership can be achieve by business by providing high quality and
innovative products in comparative less price as compare to other companies in market area. It is
essential for employees and manager of organization to have complete understanding about
different function and practices of organization. This will help in performing organization
activities in effective and efficient manner and achieving set objective of respective learning. In
this I have learned that competitive strategies are very important for development and growth of
business. In this Genius car organization is performing business activities on the basis of
differentiation strategy. For development of effective car it is crucial to consider different factors
such as comfort, safety, speed, green, style and Hi tech (Gannon, Roper and Doherty, 2015). I
have learned that this will assist in increasing performance of car in market area as well as full
fill requirement of customers. Through this I have learned about the importance of competitive
strategies as well as its impact on business operations. I have learned that differentiation strategy
includes creating new and innovative products which is as per the requirements of customers. By
creating products on the basis of customer preference and designing products in order to provide
more comfort organization will be able to enhance it customer base. Through this I have gain
more understanding about different ways that will support in providing high values to customer
as well as full filling requirement of customers. I have analyzed that marketing play crucial role
in growth of business and this support in attracting large number of customers towards business.
By conducting effective marketing activities such as adverting and promotion practices company
will be able to communicate features about manufactured products to customers. I have analyzed
that marketing function of organization is beneficial for creating more awareness about products
in market area that is beneficial for company to sale it products. I have learned that it is essential
for organization to clearly define and analyses target market as this will help in smooth flow of
organization activities Target market includes all those customer which is consider as potential
customer for large market segment. In this, Genius organization is considering targeted market
on the basis of customer age group. I have determined that it is essential to consider features and
quality of products and compare it will requirement of different market segment customers. This
learning assists me in enhancing my decision making skill regarding selection of target market
23

(Bhaumik, Driffield and Zhou, 2016). Pricing strategy play important role in making customers
satisfy along with this it is essential to ensure that price of offering make customer satisfy. In
relation of Genius Global Car Ltd. Is to provide high quality vehicles to customers with
affordable price tag so that business fir can decided price of their offerings on lower end of the
price scale. Respective car manufacturing company is offering car at economic price which can
be affordable for every type of customers and provide assistance to company in making their
customers satisfy in appropriate manner. In addition to this, it is important for an organisation to
choose suitable marketing strategy for attracting large number of customers towards their
product and services (Pisano, 2017). There are several marketing strategies such as
advertisement, promotional offers, sponsorship and many other which provide assistance in
attracting numerous customers towards products as well as services. Genus Global Car Ltd is
going to spend £293Million on promotional by using several marketing strategies for reaching
customers who are reaching entire Europe. There strategies are dealer incentives, promotional
offers as well as sponsorships. Moreover, they are using several type f promotions such as
television, radio, newspaper, digital media, dealer incentives, promotional offers and so on.
Human resource and production both are important department of an organisation.
Human resource play essential role in motivating Their employees as well as help in ensuring
productivity and quality of offerings full stop in simple terms it can be said that main objective
of human resource is too low labour turnover, efficient workforce with high productivity. Along
with this they play important role in hiring talented candidates for fulfilling vacant job position
and conducting activities of company in effective manner. Along with this working of human
resource and production division are interrelated because HR take care of employees and their
welfare in organisation and they are the one who play essential role in production of car within
respective organisation. Furthermore, in other words it can be said that working of human
resource and production division with each other help Organisation in accomplishment of their
goals and objectives in effective manner as well as also provide assistance in serving their
customers better quality products and making them satisfy. Thus, these both are essential for
respective car manufacturing and play essential role for welfare of customers, employees as well
as business firm.
Operations include operational strategy as well as research & development-design and
options. Operations of an organisation require proper material so that production will take place
24

in effective manner (Hitt, Ireland and Hoskisson, 2016). Along with this, it is essential for
business firm to implement some strategies within their working which can be related to Just in
time as well as lean manufacturing because these will provide assistance in conducting
operations within more effective manner without any wastage and mistake. Along with this, it is
essential to frame operational strategy in effective manner so that company will be able to
provide quality offerings to their customers which help them in making satisfy and generating
high revenue. Apart from this, research and development is also important for Genius Global Car
Ltd. Because by conducting research in better manner respective car manufacturer will be able to
design their car in proper manner as per the current trends as well as customers needs. Because
with the assistance of research and development and organisation will be able to determine
current market trends, taste and preference of customers within effective manner which provide
assistance to respective car manufacturer in making their customer satisfy, gaining long term
sustainability, increasing customer base as well as generating high revenue.
Finance is backbone of an organisation without proper management of financial
resources an business firm may face several challenges as well as can loss their long term
sustainability within business environment (Salavou, 2015). A money related forecast is a
estimation of future monetary results for an organization. Budgetary figures gauge future salary
and costs for a business over some undefined time frame, by and large the following year. They
are utilized to create projections for benefit and misfortune explanations, monetary records,
consume rate, and other income conjectures. Monetary conjectures can utilize chronicled
bookkeeping and deals information, and outer market and financial pointers, to anticipate what
will befall the organization in money related terms over the given timeframe. As it is essential
for business firm to manage their financial resources in better manner because it will help in
conducting daily basis operations in effective manner as well as by making budget through
financial forecasting result in no wastage of funds and help in optimum utilisation of available
resources. Moreover, it is essential for business firm to manage resources in effective manner in
relation of finance so that better outcomes will be gained and company will also able to generate
high profitability.
25

CONCLUSION
From the above report it can be concluded that strategic management is a crucial process of
organisation that assist business in taking correct decision. Effective strategic management
practices will support business in performing organisational activities in better manner as well as
achieving set objective of organisation. Company performance will be improved when all
strategies is correctly executed and implemented in required manner. There are different function
of organisation such as marketing, human resource management, operation and research and
development department. This will help organisation to perform organisational task in better
manner and increase efficiency of organisation. Apart from this it has been analysed that team
performance will lead to have major impact on efficiency of business performance. Effective
performance of team will help in enhancing productivity of business as well as accomplishing
common objectives.
Team Performance
Team performance is very important in order to correctly perform required task as well as
manage all activities in correct manner. In this project, group of 6 member is created for
participate in business simulation exercise that is business game. In this business game we have
to develop organisation which is based in European car industry. My team consist of 6 member
and my role in this team group practice is team leader. In this team we all have to identify
different opportunity in market in order to increase our learning majorly about four functional
areas of organisation which is marketing, finance, human resource and operation management. In
this team exercise we all have divided our role and activities according to our interest and
capabilities. In this business game, two team member is responsible for identifying different
function of human resource of business as well as its impact on organisational activities and
other two member role is to determine operational management activities that is required for
manufacturing car. Me and one other team member is responsible for considering marketing
activities. Whereas other two member of team is responsible for managing financial activities of
organisation. All of these four function of organisation play crucial role in effective performance
in business. My role in this team project in to plan and manage all activities of team as well as
supporting team member to effectively perform organisational activities (Foss and Pedersen,
2016). Each and every team member is considering their full effectiveness and efficiency in
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order to perform team. I have analysed that correct division of work will lead to increase
capability of team as well as performing all organisational activities in more significant manner.
Team member who were responsible to managing financial activities will lead to create properly
budget plan and along with this determine cost that will be required for manufacturing car as
well as promoting it in market area. Team member who were responsible for determining
operational management practices and human resource practices will lead to analyse all of the
resources that will be required by Genius organisation to perform its function. Their role is to
determine all those activities of organisation that need to be managed correctly in order to
effectively conducting business task. In this project, I am responsible for managing marketing
activities of organisation that will assist in promoting and creating awareness about products in
market area. I have focused in creating useful marketing strategies that will support in
promotional and advertisement activities of organisation. In this I have analysed that it is very
important to identify target market area and customer of business who have potential to
purchase products and services of organisation. I have conducting marketing activities in order to
determine target market segment of business which have capability to purchase high quality
products that is developed by business. Me other team member who were responsible for
managing marketing activities has developed pricing strategy of manufactured car as well as
identify different marketing promotional tools. All team member of organisation has taken
important decision which will help manufactured product to perform organisational activities in
correct manner. Each and every member of team have performed their task and role in effective
manner that will lead to successfully accomplishment of business objectives.
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REFERENCES
Books and Journals
Torres, A.I., Ferraz, S.S. and Santos-Rodrigues, H., 2018. The impact of knowledge
management factors in organizational sustainable competitive advantage. Journal of Intellectual
Capital.
Ginter, P.M., Duncan, W.J. and Swayne, L.E., 2018. The strategic management of health
care organizations. John Wiley & Sons.
Gannon, J.M., Roper, A. and Doherty, L., 2015. Strategic human resource management:
Insights from the international hotel industry. International Journal of Hospitality
Management, 47, pp.65-75.
Bhaumik, S.K., Driffield, N. and Zhou, Y., 2016. Country specific advantage, firm
specific advantage and multinationality–Sources of competitive advantage in emerging markets:
Evidence from the electronics industry in China. International Business Review, 25(1), pp.165-
176.
Pisano, G.P., 2017. Toward a prescriptive theory of dynamic capabilities: connecting
strategic choice, learning, and competition. Industrial and Corporate Change, 26(5), pp.747-762.
Salavou, H.E., 2015. Competitive strategies and their shift to the future. European
Business Review.
Hitt, M.A., Ireland, R.D. and Hoskisson, R.E., 2016. Strategic management: Concepts
and cases: Competitiveness and globalization. Cengage Learning.
Foss, N.J. and Pedersen, T., 2016. Microfoundations in strategy research.
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