Strategic Management EXECUTIVE SUMMARY: Sentek Solutions

Strategic Management EXECUTIVE SUMMARY: Business strategy concerned with management, involves formulation and implementation of important goals and objectives that istakenby organisation's top management in perspective of whole organisation. This report covers the both internal and external analysis of environment that is very obligatory to adopt changes and beat their competitors in well manner. EXECUTIVE SUMMARY: 2 GROUP PRESENTATION: 3 INDIVIDUAL REPORT4 INTRODUCTION 4 Analysis of the industry: 5 Internal analysis of the firm: 8 CONCLUSION 10 RE

Strategic Management

EXECUTIVE SUMMARY:
Business strategy concerned with management, involves formulation and implementation
of important goals and objectives that is taken by organisation's top management in perspective
of whole organisation. This report concerned with Sentek Solutions that is basically specialist
optical electronic manufacturer and supplier. This report covers the both internal and external
analysis of environment that is very obligatory to adopt changes and beat their competitors in
well manner. In that report it emphasised on capabilities and opportunities with threats to come
up with in careful manner. For analyse external environment key drivers of growth and porter
five force model is very helpful to achieve important insights and knowledge. Further access
environment need to analyse attractiveness of industry.

Table of Contents
EXECUTIVE SUMMARY:............................................................................................................2
GROUP PRESENTATION:............................................................................................................3
INDIVIDUAL REPORT.................................................................................................................4
INTRODUCTION...........................................................................................................................4
Analysis of the industry:.............................................................................................................5
Internal analysis of the firm:.......................................................................................................8
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

GROUP PRESENTATION:
This report is based on Sentek Solutions which is an manufacturer of specialist optical
electronic device in Europe market and its industry is in which it deals in automotive. And
covers whole scenario in which both internal and external analysis consist. The source of collect
information and data is through online and articles which is a reliable source of collect data. This
report give important insights and knowledge about its strengths and weaknesses so that by it
they can evolve proper solution.
INDIVIDUAL REPORT
INTRODUCTION
Strategic management is related with continuous planning, monitoring and controlling
with accessing work and activities to achieve goals. Rapid innovation, emerging technologies
and with customer expectations emphasis organisation to think and make decision in strategic
manner to get desirable results. Strategic management and steps helps to organisation and their
leaders in access current scenario, in developing strategies with analyse plan and policies
accordingly. Process of strategic management helps in analyse cross functional decisions of
business to implement them (Verbeke, 2013). It has typically involves analyse internal and
external strengths with weaknesses then formulate plan accordingly after formulate plans and
policies organisation have to implement it. After that evaluate degree of changes and action plan
should be successful. This report is based on Sentek Solutionssolutions Limited which is well
known specialist optical electronic device and deal in European market. This industry is type of
automotive industry in which huge scope is available. This company is founded in 2014 and it
has over 10 years of working experience, it planned to expand its market share. Their primary
partner are Hokuyo automatic that helps in provide efficiency, productivity and safety with
security to environment and consumers. This report Covers the whole scenario of organisation by
research its internal and external analysis by observing recent trends that company have to focus
to satisfy consumer wants in well manner. To access environment Pestle is best source which
describes whole factors that influence its proceedings (Bharadwaj and et.al ., 2013.). To grab

large market share organisation have to analyse internal environment also in which resources,
competences and skills and potential advantages before industry that helps in growth by adopt
distinctiveness. The main objectives is the report is by analysing each and every factor and
tactics of organisation and according to it convert weaknesses into their strength. This report
cover all these aspects because it is very obligatory for an organisation to consider and evaluate
all these factors before launching a new product and access in new marketplace (Wang and
Verma, 2012). The main aim of that report is to while expand in market analysis of significant
factors.
Analysis of the industry:
In external analysis organisation focus on wider business and their different factors that
influence business. Following are the main aspects that are very important to consider to grab
large market share.
Pestle:
Pestle connect with access to external environment that are very important for reach at
desirable outcomes by evaluating each and every aspect.
Political environment:
In political environment it deals in UK is changing political philosophies that are modify
or competition with one another. These changing philosophies impede operations of Sentek
Solutions.
In that key driver of political philosophies that change that with the current government
and departments and agencies (Blackburn, Hart and Wainwright, 2013).
Political factors within UK have great impact on performance of Sentek Solutions. At
present scenario customers and governments debts are very large. And continuous change in
governmental policies within UK raised so many problems for Sentek to perform their functions.
In context with this, by adaption of various strategical tools and techniques company can adopt
effectively strengthen their position to overcome these factors.
Social environment:
In that changes in needs of consumers In recent trends of Sentek Solutions is an specialist
of optical electronic device manufacturer and supplier company. In its recent trends consist of
Improving accuracy with help of machines. It mainly focus on adaptation of artificial intelligence
so that desirable outcomes should be attain. Another trend of that organisation is digital twins

that permits about virtual copy of machinery or system. It mainly focus on improve in their
safety and security needs by protecting cyber attacks on infrastructure so that better results
should be accomplished (Chang, 2016). For that organisation have to change in their working
style.
In there key drivers are changing needs of consumers and competitors forces that emphasis on
adopt changes.
Social factors mainly include buying behaviour and trends of consumers and also in their
taste and preferences patterns. All these factors can adversely hamper working performance of
Sentek Solution by lowering down morale of employees. For this company managers is required
to formulate effective strategies and policies with the help of which they can analyse actual taste
and buying pattern of consumers and ensure their sustainability for long run in simultaneous
manner.
Economic environment:
In economic main issue that face by Sentek Solutions is percentage change in real income
of individuals per income that impacts directly on their business.
Key driver of that issue is income elasticity of demand and rising inflation in UK that
negatively impacts on business (Spender, 2014.)
Economical factor affect performance of an organisation in many different ways
therefore, it is important for Sentak manager to have adequate required knowledge of country
economic condition on order to formulate strategies.
Sentak Soultion manager can take advantage of UK market economic condition as it is
stable and run their functions in effective way. While, for adverse situations like, availability of
raw material, transportation, and market conditions can hamper growth performances of
company. Therefore, by adopting effective measures relating to pricing and productivity
company can strengthen their internal working condition.
Legal environment:
Sentek Solutions regulates in UK where majorly Trade restrictions exist with foreign
ownership restrictions available that impacts on business of organisation. While operate in
different environment it faces by them.
Drivers of that change is changes in power that held by parties that change according to
time in UK.

With the implementation of various strategies related to legal and political measure
Sentak Solution can decrease situations of conflict in terms of legal issues that can be faced by
organisation. Managers of Sentak by possessing proper knowledge of legal terms within UK can
effectively formulate strategies so to ensure long term sustainability of company.
Technological environment:
In case of Sentek Solution has to change in working condition because consumers are
more demanding now and to give productive products. In that by new process of production that
is recent change in UK that is use of robotics by to get effective results in quick way (Wheelen
and et.al., 2017).
Driver of change is technological advancement in organisation and emphasis on giving
compensating demand in advance way.
Technology is taking place every essential part in an individual life, so by adopting
innovative technological measures in working structure of their organisation Sentak managers
can satisfy their existing and future customers in best possible way and ensure long term
sustainability and profitability on simultaneous way.
Environmental factors:
In all over world people are more aware about environment and always wants product
that are eco friendly. In that case of Sentek Solutions they have to reduce their wastage and have
to provide less erosion products.
Driver of change is awareness of consumers and country conditions that force to produce
eco friendly products.
It is important for Sentak Solution to have proper knowledge of environmental rules and
regulations and abide them in effective manner so to secure their organisation to being get
affected form any kind of environmental factor.
Porter five force model:
Porter's five force model is an important attribute that describes about external forces that
impacts on both positive and negative way to business. In case of Sentek Solutions they have
some main attributes that are as follows:
In porter five force model consist of five important factors.
Threat of new entrant:

It is very difficult for new brand to enter in that industry and the reason is that large
investment is require to enter in that market (Goffee and Scase, 2015.). Also manufacturing
facilities, distribution network and most skilled staff is required to gain large market share. In
case of Sentek Solutions for it low threat of new entrant is exist. With another major attribute is
higher competition is exist already in that industry which hinders other competitors to enter in
that market.
Threat of new entrants hamper market share base for existing firms in order to achieve
high profitability. New entrants can get easily attracted towards profit and can enter with an ease
that may hamper performance and profitability of existing industry.
Bargaining power of suppliers:
The bargaining power of suppliers is weak in that sector because most of players are
weak of that industry. Only few players are big in that industry. With threat of forward of
integration in forward direction is also minimum for suppliers. In main suppliers of that company
are German manufacturers SSZ and PPT etc.. hence Sentek Solutions is faces low bargaining
power of suppliers.
Bargaining power of suppliers are determined by number of suppliers, dependence of
supplier on specific buyer, switching cost and forward integration by suppliers. Bargaining
power of suppliers become high when switching cost to other suppliers is high, threat of forward
segregation is broad and substitutes are not available. Sentek solution is hardly affected by this
aspect as they have many suppliers.
Bargaining power of buyers:
In that industry mostly buyers are large individuals who purchase in small quantity and
government and corporations buy in fleets of these equipments (Jeston, 2014). In case of Sentek
Solutions buyers are in position to bargain for lower prices.
Bargaining power of buyers depend on number of buyers which specific supplier has,
addiction of buyer's purchase for specific supplier, switching cost and backward integration plays
effective role in this. With respect to Sentek Solution, bargaining power of buyers is high when
switching costs of buyer is low and when buyer purchases product in bulk. These are some
factors which can have negative impact on growth of Sentek Solution but if they provide quality
services then there is hardly any threat.
Threat of substitute products:

In case of Sentek Solutions they have weak substitution power because customers not
frequently substitute products from other one. In case of Sentek Solutions products in which it
deals they are less substitutional.
Threat of substitutes is high when alternatives are present at low prices, switching costs
of customers are low and quality of substitute product is equal. This factor has high threat to
Sentek as customers can opt for other products.
Competitive rivalry among existing players:
In that industry recognized and brand name is low and exit barrier for that industry is
very low. In case of Sentek Solutions main competitors are Mouser electronics, GM Sentek
Solutions etc..
There are different competitors within market who are threat to Sentek as they are also
providing services in same sector. If they provide their customers with effective services and
customers develop interest in their products then they only need to enhance their services
continuously.
Power opportunities and threats:
In automotive industry there are large no. of opportunities that it can grab to enlarge its
market share. Firstly it deals in products that rarely companies deal in such as radar technology,
port system technology, robotics and semiconductor manufacture. So it can grab large market
share with less rivalry in market (Laudon and Traver, 2016.). Another opportunity is that it is
most evolving industry with high growth share. That organisation and industry gives contribution
in improving production efficiency and helps in get effective results. Sentek Solutionshas major
opportunity is that it has strong suppliers that helps in deliver of products with accuracy.
On other hand it has lot of threats is that entry and exit regulations is very harzdous in
that industry. In case of Sentek Solutionsit faces problem of lack in highly skilled workforce that
hinders their production capabilities in adverse manner.
Hence it is most attractive industry to attract large no. of players towards them but on other hand
due to requirement of huge investment people less interest in participation.
Critical analysis:
it has been concluded that it has been favourable working conditions and external factor
also favours its business but sometimes fluctuations in business environment impacts negative on
them.

Internal analysis of the firm:
Core competencies:
Core competencies is an management concept and theory that is horizontal combination
of various resources and skills that differentiate company from others in marketplace.
In its core competencies is their robots that covers multitude of devices that are mechanical in
nature and widely differ in case of autonomy. One most thing that robotics design that make life
easy with their LiDAR sensors that attracts large no. of consumers towards them. Use of robotics
system and device reduce their cost with increase efficiency level and increase in their
productivity. Their sensor devices are small, power fugal system and light weight so any one can
carry easily. In robotics resources consist of path planning, mapping, SLAM are major attributes
in Sentek Solutionssolutions ( Lawton, 2017.). They have the skill to make safety products for
their consumers and take care also about the environment. It produces automated guided vehicles
and other vehicles that look obstacles in path. Further they have path mapping devices and
collision devices that give important attribute for safety at workplace. In its main resources are
machinery tools and techniques which make life easier and they use Mats, bumpers and rails to
give technologies to lead in market. These devices are highly safe and secure with increase in
productivity level (McGrath, 2013.).
Value chain:
Value chain is an chain of activities that should be used in particular industry to deliver
valuable products and services into market. In case of Sentek Solutionsit follow particular path to
deliver qualitative services to their ultimate consumers. Sentek Solutionsfollows firstly inbound
logistics and then take part in operations after that it follows outbound logistics and then
participate in marketing and sales to publishing their products at world-class. Then they provide
services to ultimate consumers
VRIN model:
Valuable: Product of Sentek Solutions are very valuable that makes it competitive enough in
market. In their company due to nature of process human can not enter into clean rooms so
robots work in that condition and it increase their efficiency level and semiconductor device
helps them to communicate within human and robots.
Rare:

There products are rare in world that helps in avoiding obstacles, making decisions and
enables to localise all significant decisions that allow organisation to capture all possible
opportunities. It sensors are highly convenient to handle and small in size so these all factors
shows rareness of products. These products also accessible and rare for students, teachers and
researchers that are used by robotics students and sensors of Sentek Solutions that are used in
whole Europe (Rugman and Verbeke, 2017.).
Inimitable:
they work on unique concept and its SPS covers with digitalize automation with use of
sensors with intelligent solutions of projects. That are not possible for any company to access to
fully digitalized industrial world. It focus on giving practical solution of problem in any area in
which Sentek Solutionsdeals (chaltegger, Lüdeke-Freund and Hansen, 2012.). It product goods
that are rare for any other company to copy and if it copy then it enhances cost.
From above it has been found that, VRIN framework helps to ascertain if resources are
able to provide sustainable competitive vantage within market. Resources must be valuable, this
means that sources which are provided by Sentek are of greater value in both benefits and costs.
Resources should be rare, that implies scarcity related with demand for its usage. They must be
inimiatble which means that services provided by Sentek should not be easily copied by
competitors. Resources used by Sentek must be non-substitutable which indicates that resources
must not be functional substitutes.
Non substitutable:
Sentek Solutionsprovides smallest 3 safety laser scanner in their product category in
market place that are use for protect and safe from AGVs that are very hard and difficult to other
organisation to provide in competitive manner. It provide safe environment to cope up with
changes that occupied in near future in industry and give safety measures to safe environment. It
Competitive skills and advantages:
In their competitive skills consist of high quality sensors and devices that are rarely found
by any company and that enables to increase their efficiency level. Sentek Solutionssolutions
provide devices that are completely safe for environment and no probability of accidents.
Distinctiveness:
They differentiate their products by creating cutting optical devices that helps in increase
their productivity. It produce products that are safer in nature, give profitability and also product-

base. It enables to places should be free from obstacles and easy to deliver data and information
to get desirable results (Scholes, 2015). Hence it is most valuable in their industry type and give
most rare products to their consumers but it faces problem of lack in training and education of
their employees that impede their growth and give negative results. From the above discussion it
should be summarised that external factors majorly influence on their business decisions and
affect positively on business environment (Shuen, 2018.).
Critical analysis:
it has been critically evaluate that all points and attributes are in its favour that are
mentioned above but some problems also face by it that is lack in higher education of employee
in work place.
CONCLUSION
From the above report it has been concluded that it should be in position to achieve aims
and objectives that are above mentioned. From the above report it has acknowledged that to
succeed in business environment organisation have to thoroughly research on different aspects so
that it can easily drawn out opportunities and threats and easily can convert it into their
capabilities. With from above research it found that external environment should be
uncontrollable but internal environment can be control at maximum level so that they are very
important for organisational growth and advancement. business strategy is an significant
attribute in organisational development and enhancement to fulfil goals and objectives. Before
aimed a new strategy firm have to emphasis on various aspects in which internal and external
factors by various methods in which PESTEL, porter, SWOT analysis are important attributes
that provides their help in collection of different views and concepts. By analysing strength an
organisation can easily evaluate possible opportunities and threats that can encounter by it in
near future.

REFERENCES
Books and journals:
Bharadwaj, A. and et.al ., 2013. Digital business strategy: toward a next generation of insights.
Blackburn, R.A., Hart, M. and Wainwright, T., 2013. Small business performance: business,
strategy and owner-manager characteristics. Journal of small business and enterprise
development. 20(1). pp.8-27.
Chang, J.F., 2016. Business process management systems: strategy and implementation.
Auerbach Publications.
Goffee, R. and Scase, R., 2015. The Real World of the Small Business Owner (Routledge
Revivals). Routledge.
Jeston, J., 2014. Business process management. Routledge.
Laudon, K.C. and Traver, C.G., 2016. E-commerce: business, technology, society.
Lawton, T.C., 2017. Cleared for take-off: structure and strategy in the low fare airline business.
Routledge.
McGrath, R.G., 2013. The end of competitive advantage: How to keep your strategy moving as
fast as your business. Harvard Business Review Press.
Rugman, A. and Verbeke, A., 2017. Global corporate strategy and trade policy. Routledge.
Schaltegger, S., Lüdeke-Freund, F. and Hansen, E.G., 2012. Business cases for sustainability:
the role of business model innovation for corporate sustainability. International Journal
of Innovation and Sustainable Development. 6(2). pp.95-119.
Scholes, M.S., 2015. Taxes and business strategy. Prentice Hall.
Shuen, A., 2018. Web 2.0: A Strategy Guide: Business thinking and strategies behind successful
Web 2.0 implementations. O'Reilly Media.
Spender, J.C., 2014. Business strategy: Managing uncertainty, opportunity, and enterprise.
Oxford University Press.
Verbeke, A., 2013. International business strategy. Cambridge University Press.
Wang, J. and Verma, A., 2012. Explaining organizational responsiveness to work‐life balance
issues: The role of business strategy and high‐performance work systems. Human
Resource Management. 51(3). pp.407-432.
Wheelen, T.L. and et.al., 2017. Strategic management and business policy. Pearson.

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