Strategic Management in Global Context

This report explores the process of strategic management in a global context, focusing on planning, monitoring, controlling, analysis, and assessment within an organization. It covers topics such as market analysis, internal analysis, marketing objectives, implementation of marketing strategy, business strategies and models, performance analysis, and corporate social responsibility.

Strategic Management in
Global Context

Table of Contents
INTRODUCTION...........................................................................................................................1
1. Introduction of global athletics footwear market.........................................................................1
2. Vision and Mission Statements plus Corporate objectives..........................................................2
3. Situation Analysis........................................................................................................................2
3.1 Macroeconomic Analysis- Environmental Scanning............................................................2
3.2 Industry and Sector Analysis................................................................................................3
3.3 Feeding of all external observations into SWOT analysis....................................................4
4. Market Analysis...........................................................................................................................5
4.1 Application of 7P's................................................................................................................5
5. Internal Analysis..........................................................................................................................6
5.1 Application of value chain....................................................................................................6
5.2 Feeding of all internal observations into SWOT analysis.....................................................6
6. Marketing Objectives...................................................................................................................7
6.1 Application of SOSTAC model over the concept of marketing communication.................7
6.2 Marketing objectives in aligned with overall corporate objectives......................................7
7. Implementation of Marketing Strategy .......................................................................................8
7.1 Application of 7 P's...............................................................................................................8
7.2 Identification of design, style and quality issues; TQM.......................................................8
7.3 Brand management through opting the option of celebrity management.............................9
8. Business and Strategies and Models............................................................................................9
8.1 Application of Ansoff...........................................................................................................9
9. Performance Analysis: Financing of organizational operations..................................................9
9.1 EPS........................................................................................................................................9
9.2 ROE.......................................................................................................................................9
9.3 Credit Rating.........................................................................................................................9
9.4 Image rating..........................................................................................................................9
9.5 Stock price gains.................................................................................................................10
9.6 Balance Scorecard...............................................................................................................10
10. Corporate Social Responsibility and Citizenship ...................................................................10

10.1 Application of CSR...........................................................................................................10
11. Recommendations for Future Strategy - milestones and leadership........................................10
11.1 Changes required and application of change management model....................................10
11.2 Changes required in company culture...............................................................................11
11.3 Required Corporate Social Responsibility and Citizenship – Corporate Responsibility
and Corporate Governance........................................................................................................11
11.4 Leadership Required.........................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
.......................................................................................................................................................13

INTRODUCTION
Strategic management is the process that involves performance of different activities
related to planning, monitoring, controlling, analysis and assessment within an organisation to
meet its goals and objectives (Strategic management, 2020). It is wide in nature and includes all
the different determinants that are must within an organisation to perform for long term
sustainability within the market includes setting objectives, analysis of competitive environment,
determining internal organisational capabilities, formulating & evaluating strategies and
facilitation of management roles. The organisation considered in this report is named as Alpha.
The main operations of this organisation exists in Shoe industry. It provides all products and
services at worldwide level. The main objective of this report is to analyse the ability of an
organisation regarding effective strategy management for attainment of desired goals and
objectives. It is a reflective report that depict the results of business simulation game regarding
attainment of their vision towards create trainers that empower people to be inspired to make it
happen.
The aspects performed in business game and reflected here to throw light over
information along with results includes situational analysis, market analysis, internal analysis,
determining marketing objectives, implementation of marketing strategy, formulating business
strategies and models, performance analysis, assessing Corporate Social Responsibility and
Citizenship and providing recommendations for future strategy on the basis of information
ascertained from existing results.
1. Introduction of global athletics footwear market
The global footwear market is in good condition and large amount of demand is present
regarding various types of wears. Consumers are curious to try different type of footwear's in
accordance to the nature of function. Now, consumers want that product must be qualitative in
nature and fulfils the designing requirements as per function standard. The condition of athletics
footwear market is much strong as compared to the normal one. Here, consumers are willing to
pay high price in consternation of attaining valuable products (Ansoff, et. al., 2018). Also, the
level of different athletics is improved at world wide level and taken seriously from the point of
safety too. This would be the reason that demand of quality footwear is high in demand and
provides the opportunity to organisations that fulfil their demand towards earning of hight
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amount of profits along with large market share. The number of sports game is also improved
and played at world wide level that simultaneously increases the demand of athletics footwear's.
This clearly depicts the opportunities present in this industry to grow through providence of
quality products. Now, Alpha has chance to improve quality of products and brand image
through involvement of CSR activities along with building quality trainers.
2. Vision and Mission Statements plus Corporate objectives
Organisation: Alpha
Industry: Athletics Footwear
Tag Line: Alpha works in the market by adhering the concept of “ Make it happen”.
Vision: Create Trainers that Empower people to be inspired to make it happen.
Mission: Alpha is committed to develop trainers that en-globe quality image, creativity,
innovation, social responsibility, as well as acknowledge our staff members needs and
continually improve relationship with our stakeholders (Ward, Hill, Jones and Schilling, 2014).
Corporate objectives
 To increase profitability by 10% in next 5 years of time period.
 To improve the knowledge of personnels in creation of competent workforce within next
1 year of time period
 To improve the quality of products by 25% within next 1 year of time period.
 To increase social contribution by 10 % within next 6 months of time period.
3. Situation Analysis
3.1 Macroeconomic Analysis- Environmental Scanning
This includes the activities related to scanning of external environment where business
organisation have operations. The main objective of this analysis is to ascertain the impact of
existing conditions over business functionalities. Alpha is the organisation having operations at
worldwide level in athletics footwear market. The main aim of this organisation behind
environmental scanning was to analyse the aspects that present at global and have impact over
their operations in adverse manner. The framework which was used to analyse external
environment is PESTLE. This model is effective in nature to ascertain the impact of various
factors such political, economical, social, technological, legal and environmental upon
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organisations operations. The application of this is defined below in detailed manner that
represent situations exists in different factors and have impact over functional abilities of Alpha;
Political: This includes the factors such as stability of government, level of corruption,
tax policies, fiscal policy, trade tariffs etc. Alpha has operations in developed and developing
continents where presence of government is stable in nature. They have the strong policies and
regulations towards the quality of products and services served by the organisations within the
nation. It creates the obligation over Alpha to produce quality products and deliver to different
continents otherwise have to face negative consequences. This was the reason that in last two
years unable to earn adequate amount of profit such as 74693 in year 2013.
Economical: The economic conditions of each and every nation where Alpha have
operations is quite good. This shows the opportunity to focus over adopting innovative concepts
that enable in production of quality products without any extra efforts (David and David, 2016).
Social: The preference of consumers is also towards the consumption of quality products.
In relation to athletics product, quality is the prime factor that persuade the behaviour of
consumer to purchase the product of particular brand. This creates the threat upon Alpha is to
produce quality products to compete in market.
Technology: All the four continents where Alpha has operations have high level
technology presence. This proves as positive factor that provides an opportunity to the
management of Alpha as to implement new technologies and focus over adopting innovative
approaches that enables in production of quality products.
Legal: This includes all the aspects related to legalities associated with nation. In all the
different nations, government is strict towards application of all the laws related to employment.
This creates the threat as they have to adhere otherwise will be faced negative consequences.
This also restricts to cut the cost in payment of employees.
Environmental: The production of shoes has negative impact over environment.
Satisfaction of society needs in other form is the option that will to gain image. In this regard,
opportunity is present in front of Alpha that focus over diversified CSR options.
3.2 Industry and Sector Analysis
Industry analysis includes ascertainment of the conditions present in particular sector.
The benefit of same is ascertained in future as development of strategies that contributes in
attainment of competitive edge. Alpha is the organization that operates in athletics footwear
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industry (Vogel and Güttel, 2013). This organization also have world wide operations. To build
effective strategies better to analyze the conditions from the perspective overall world. Porter
five force is the best model to analyze industry conditions. The detailed application of this model
upon the athletics footwear industry is provided below to ascertain the power of different players
against the organization;
Buyers power: The total number of buyers present within this sector are high along with
the existing number of players. This clearly depicts that power of buyer is high against the
industry players where they can shift to other seller easily without any cost increment. The
strategy that will help to combat the power is providence of quality products.
Suppliers power: The number of suppliers present under this industry are high. This will
creates the opportunity for players to switch to another option in cost effective manner. This
depicts that power of supplier in this industry is low.
Competitive rivalry: The number of rivals within the industry is high. This clearly
depicts that power of competitors is high in this industry. To combat and sustain in market
needed to focus over providence of qualitative and innovative products (Hitt and Duane Ireland,
2017).
Threat of new entrants: The threat of new entrants is low in this industry as requires
large amount of investment along with adherence of strict policies and regulations.
Threat of new substitution: The different number of competitors is present in this
industry. Also, they produce various products that are substitute of each other. This depicts the
threat of substitution is high. The aspect that will aid to overcome from the effect will be
production of qualitative and differentiated feature products.
Material prices
Footwear production and sales
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Demand forecast
Supply and demand analysis
3.3 Feeding of all external observations into SWOT analysis
The analysis which is used for the purpose of feeding the information attained from
external observations is SWOT. The information gathered is related to external and recorded in
the option O and T of SWOT. The detailed external observation in relation to Alpha is presented
below:
Opportunities
 Good economic conditions of nation provides an opportunity to innovative easily through
ascertaining the support of financial resources.
 Technological advancement of all continents creates the opportunity to grow through
adoption of new processes that improves product quality.
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 Adoption of additional CSR activities creates the opportunities in form attaining support
of society along building positive image.
 Low power of supplier has opportunities as able to grab raw materials at low cost. This
further contributes in reduction of overall cost of production (Keupp, Palmié and
Gassmann, 2012).
 Low power of new entrants to enter in market has opportunity for existing one's to attain
large market.
Threats
 Satisfactory level of government stability creates the threat to adhere policies and provide
quality product.
 The preferences of consumer to purchase quality products creates the threat that non
fulfillment of their needs diminish the ability to retail consumers.
 Employment laws is must to follow at different nation that creates the threat by hindering
the capacity pay low amount to labor.
 High power of buyers has threat as they can easily switch to others.
 High power of substitutes also threat towards retention capacity of an organization.
 Large amount of competition is threat as diminish the ability to compete over prices and
quality of product.
4. Market Analysis
4.1 Application of 7P's
7P's model is used by Alpha to analyze the position in market. Detailed description of
each point is presented below;
Product: The different category of shoes are provided by Alpha in market at world wide
level. This organization does business in three different segments internet, wholesale and private
label. The strategies adopted in respect to all three is different due to consideration of buyers
nature (Nixon and Burns, 2012).
Price: The strategy followed by an organization in respect to sell their articles and
maintain sustainable position within the market is penetrating. It will be increasing as the
conditions changed and becomes better.
Place: The organization serve the products at global level with aid different distributors.
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Promotion: The strategy adopted to market the products was traditional.
Process: The process of sustaining was adopted by Alpha to hold position in market.
People: Employees working by use of traditional methods that restricts the ability to
maintain quality and adopter new reforms.
Physical evidence: Delivering product on time for the purpose of creating perception that
able to get the products at the time of need.
5. Internal Analysis
5.1 Application of value chain
This help in internal analysis of an organization by analyzing the interrelation between
primary and support activities. This help to ascertain that how inputs are converted in to final
products that are purchased by consumers. The interrelation between primary and support
activities of Alpha is presented below;
Relation between both primary and support activities: All the different aspects have
satisfactory interrelation. The point where it lacks is low support of technology in operational
activities. This impacts the quality and innovation capacity. In upcoming years this will be
ascertained if opportunities are implemented properly (Engert, Rauter and Baumgartner, 2016).
Formulation of objective: The main objective in this regard is improvement of
operational quality.
Strategy: The strategy which help in attaining high quality is to focus over new
technological advancements and their successful implementation. This help to reduce cost and
improve quality.
Checking: This is last stage where impact will be determined on the basis of success
ascertained by an organization.
5.2 Feeding of all internal observations into SWOT analysis
Now, the internal information is analyzed which is feed into first two S and O
determinant of SWOT.
Strengths
 Diversified product range
 Effective pricing strategy
 Adoption of good option of CSR to improve image
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 Effective interrelation between major primary and support activities
Weaknesses
 Low level of technology support in operation
 Low quality product
 Low brand image
6. Marketing Objectives
6.1 Application of SOSTAC model over the concept of marketing communication
Digital marketing is the best method of promotion. The benefit of same is ascertained in
the form of spreading awareness in society. This will provides an opportunity to an organization
that retain their existing customers and attract the new one's.
The model which is applied for the purpose of building effective marketing
communication structure within an organization is SOSTAC. The the application of this model
along with important information related to an organization is presented below:
Situation: It is ascertained from the market analysis that effective deliverance of
information is the way that provides an opportunity to attract new customers along with retention
of same for longer period of time. This help to build trust where they not only share the
information about product features but provide authenticity that they always get the quality
product (Foss and Hallberg, 2014).
Objectives: The main objectives in relation to marketing communication includes;
 Use of digital source that have wide reach
 Use of influential personalities in dissemination of information
Strategy: The strategy adopted in this regard is use of celebrities endorsement over
television. The benefit of same will be ascertained in the form of high brand value and wide
reach.
Tactics: Here, decided about the ascertaining the support of sport celebrities that justifies
the nature and features of their product.
Action: The action that will be taken is to focus over measuring the impact of
endorsement in persuading the behavior of consumers.
Control: On the basis of the results determined, taking the actions that will help to
improve working perfection and ability to attain positive results.
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6.2 Marketing objectives in aligned with overall corporate objectives
The marketing objectives setup by the management of Alpha includes:
 To improve market share by 10% within 1 year of time period
 To increase customer base by 20% within next 6 months of time period
7. Implementation of Marketing Strategy
7.1 Application of 7 P's
7P's is used for the purpose of developing the marketing strategy of Alpha. Its application
is provided below:
Product: All the products variants will be same. The major focus is provided over
improvement of their quality.
Price: Focus over adoption of competitive pricing strategy in consideration to the image
of their product in market (Hahn, 2013).
Place: To improve the position in market required to focus over adopting effective supply
chain network. This help to improve the process of procurement and delivery to end consumers
in best possible in least period of time.
Promotion: To promote the different products focus over celebrity endorsements on
television. Also, major focus is provided over celebrities belongs from sports industry.
Process: The main change is required to be done will be acceptance of continuous model
of improvement in accordance to the changes occur in environment and industry.
People: Training and development is provided to employees in improvement of their
skill. This will works as development of their personality that aid in attainment of market
changes appropriately.
Physical evidence: In this regard, the major focus is provided over providence of CSR
activities that not only help to ascertain the support of society but also improves the brand image
that attracts the potential customers (Cadez and Guilding, 2012).
Internet Marketing
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Wholesale marketing
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7.2 Identification of design, style and quality issues; TQM
One of the best strategy that will help the organization to combat different issues like
design, style and quality is TQM. It is the effective approach that will provides an opportunity in
direction of all associated personnel's with the work of designing, styling and quality to work
with adoption of quality approaches that contributes to attain possible targets. This help in
marketing by mentioning that organization adhere the approach of TQM.
7.3 Brand management through opting the option of celebrity management
Brand management is the best option to manage endorsements with the aid of celebrities.
This will help in determination of the one which is effective and suits the product features. The
importance in future attained as high level of persuasion power other others buying behavior
(Godoy and Naidich, 2012).
8. Business and Strategies and Models
8.1 Application of Ansoff
Out of the four different areas of development focus over the option of market
penetration. Here, the two aspects are going to be do in future is about marketing and training in
development of trainers.
9. Performance Analysis: Financing of organizational operations
9.1 EPS
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9.2 ROE
9.3 Credit Rating
9.4 Image rating
9.5 Stock price gains
9.6 Balance Scorecard
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10. Corporate Social Responsibility and Citizenship
10.1 Application of CSR
CSR approaches are adopted by the organization in terms of using the new and
technological inventions so the carbon emission will be reduced. Also, focus over donating the
amount towards society and conducting training programs for employees that contributes in
personal and professional growth (Chen, Delmas and Lieberman, 2015).
11. Recommendations for Future Strategy - milestones and leadership
11.1 Changes required and application of change management model
Needed to made change in the approach of working. They must required to focus over
adhering lewin change management model. This has three different stages unfreeze, change and
freeze. This aid in acceptance of all changes on time when they occur and need felt by an
organization.
11.2 Changes required in company culture
The change in culture is must because there is no scope for employees to innovate. In this
regard, must follow the task culture and allows to complete as per their own with the aid of team
support. This will contributes in improvement of creativity and innovation.
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11.3 Required Corporate Social Responsibility and Citizenship – Corporate Responsibility and
Corporate Governance
Fulfilling the requirement of society by creating employment opportunities, measures to
diminish environmental pollution, contribution towards aspects that aid in improvement of health
etc.
11.4 Leadership Required
Required to focus over adoption of democratic leadership style. This will help to build
friendly culture and invitational capacity among personnel's (McGeorge and Zou, 2012).
CONCLUSION
It has been concluded from the above report that strategic management is important
aspect for development of an organization within the market. This will aid in performance of best
actions that match with the requirements of goals and objectives.
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REFERENCES
Books and Journals
Ansoff, H.I. et. al., 2018. Implanting strategic management. Springer.
Ward, K., 2012. Strategic management accounting. Routledge.
Hill, C. W., Jones, G. R. and Schilling, M. A., 2014. Strategic management: theory: an
integrated approach. Cengage Learning.
David, F. and David, F. R., 2016. Strategic management: A competitive advantage approach,
concepts and cases. Pearson–Prentice Hall.
Vogel, R. and Güttel, W. H., 2013. The dynamic capability view in strategic management: A
bibliometric review. International Journal of Management Reviews. 15(4). pp.426-446.
Hitt, M. and Duane Ireland, R., 2017. The intersection of entrepreneurship and strategic
management research. The Blackwell handbook of entrepreneurship. pp.45-63.
Keupp, M. M., Palmié, M. and Gassmann, O., 2012. The strategic management of innovation: A
systematic review and paths for future research. International journal of management
reviews. 14(4). pp.367-390.
Nixon, B. and Burns, J., 2012. The paradox of strategic management accounting. Management
Accounting Research. 23(4). pp.229-244.
Engert, S., Rauter, R. and Baumgartner, R. J., 2016. Exploring the integration of corporate
sustainability into strategic management: a literature review. Journal of cleaner
production. 112. pp.2833-2850.
Foss, N. J. and Hallberg, N. L., 2014. How symmetrical assumptions advance strategic
management research. Strategic Management Journal. 35(6). pp.903-913.
Hahn, R., 2013. ISO 26000 and the standardization of strategic management processes for
sustainability and corporate social responsibility. Business Strategy and the
Environment, 22(7). pp.442-455.
Cadez, S. and Guilding, C., 2012. Strategy, strategic management accounting and performance: a
configurational analysis. Industrial Management & Data Systems.
Godoy, M. C. and Naidich, D. P., 2012. Overview and strategic management of subsolid
pulmonary nodules. Journal of thoracic imaging. 27(4). pp.240-248.
Chen, C. M., Delmas, M. A. and Lieberman, M.B., 2015. Production frontier methodologies and
efficiency as a performance measure in strategic management research. Strategic
Management Journal. 36(1). pp.19-36.
McGeorge, D. and Zou, P. X., 2012. Construction management: new directions. John Wiley &
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Online
Strategic management. 2020. [Online]. Available Through:
<https://searchcio.techtarget.com/definition/strategic-management>
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