Report on Strategic Direction and Strategic Thinking

Running head: STRATEGIC MANAGEMENT
Strategic management
University Name
Student Name
Authors’ Note

2STRATEGIC MANAGEMENT
Table of Contents
Introduction:...............................................................................................................................4
Discussion:.................................................................................................................................4
Task 1:........................................................................................................................................4
Critical analysis of strategic direction in the past:.....................................................................4
Critical analysis of strategic thinking in the past:......................................................................5
Strategic direction of John Keels holding Plc:...........................................................................5
Task 2:........................................................................................................................................6
Industrial analysis of John Keels holding Plc:...........................................................................6
Critical analysis of competitive advantage of John Keels holding Plc:.....................................7
Industry life cycle graph of John Keels holding Plc:.................................................................9
Task 3:......................................................................................................................................10
Critical assessment of whether mission and vision statements of JHK are aligned to market
place demands:.........................................................................................................................10
Changes in business strategic capability:.................................................................................11
Task 4:......................................................................................................................................11
Task 5:......................................................................................................................................14
Conclusion and recommendation:............................................................................................16
References list:.........................................................................................................................17

3STRATEGIC MANAGEMENT
Introduction:
The report is prepared for critically analyzing strategic direction and strategic thinking
of chosen organization in the past five years. A detailed analysis of industry is conducted by
the application of porters five forces model and evaluation of competitive advantage of
company is done by using the VRIO framework. Moreover, strategic capabilities of
organization are analyzed in terms of mission and vision statements. John Keells holding Plc
is a consumer service and business that offers services of hotel management. Some of the
services that are offered by company involve financial services, aviation and airline services,
providing cinnamon resorts and hotels, business process outsourcing, information technology
services, property development services, shipping services, holiday and tour consulting,
integrated logistic services, commodities and plantation (Keells.com 2018). Moreover, John
Keells also provides marine services to IT solutions, real estate applications, manufacturing
of beverages and foods to a running supermarket chain, tea broking and stock broking
(Keells.com 2018). Report also demonstrates the application of model of blue ocean strategy
for discussing the possible strategies that should be implemented.
Discussion:
Task 1:
Critical analysis of strategic direction in the past:
In the past years, importance of information technology was acknowledged by group
as strategic tool for maintaining competitive advantage and there was reviewing of some
information technology process on ongoing basis. For ensuring business sustainability in its
area of operations, various strategic corporate social responsibilities were carried out by JHK.
Resort sector of group makes strategic management of yields for optimizing revenue. The
long-term competitive advantage of business is evaluated by close evaluation of competitive

4STRATEGIC MANAGEMENT
forces, business risks, critical success factors, competencies and value drivers of business.
Furthermore, the annual cycle plan of companies and strategic planning process was based on
holistic approach and it involved building of integrated strategy for considering all the
aspects of triple bottom line (Wheelen et al. 2017). Stores of retail business of group are
expected to roll out in in strategic locations.
Critical analysis of strategic thinking in the past:
JHK used to build their sustainability basis by undertaking corporate social
responsible projects as they perceived serving communities for gaining competitive
advantage. Group used to carry out their business activities in strategic locations that would
drive revenue. Stores of retail business are thought to be roll out continuously in strategic
locations with a bigger format. Overall positioning of business is perceived to improve by
five years strategic mapping exercise. Challenges in transportation and logistics sector was
faced by strategic designing of projects for development of skills, knowledge and attitude and
thereby leading to development of much needed resource base of professionals (Arikan and
Stulz 2016).
Strategic direction of John Keels holding Plc:
JKH employed a differentiation strategy that led to production of products that are
different from competitors. Some of the differentiation strategies used by the group are
technological superiority, innovation of new products, comprehensive customer service,
reliability and product quality (Dälken 2014).
Technological superiority- Upgrading of equipment and machineries are done by
quality and modern technology and it incorporates modern semi automated machineries and
conforms to international standards of safety and hygiene.