Strategic Management Analysis and Case Study

The assignment provided is a strategic management analysis and case study that involves evaluating an entity using various techniques such as SWOT, Porter's 5 force, VRIO, and Pestle assessment. The goal is to propose a specific strategy for the entity to improve its functionality. The assignment includes references to relevant books and journals, as well as online resources such as Porter's value chain and Ansoff matrix. It requires students to analyze and apply strategic management concepts to real-world scenarios, making it an ideal case study for academic purposes.

Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................1
Overview of company.................................................................................................................1
Purpose of report.........................................................................................................................1
Mission goals and objectives statement...........................................................................................1
ENVIRONMENTAL Analysis:.......................................................................................................3
Industry issues..................................................................................................................................4
Capability analysis...........................................................................................................................6
PROPOSED strategy.......................................................................................................................9
Strategy Evaluation........................................................................................................................11
SAF analysis..............................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

Illustration Index
Illustration 1: Porter Value chain model..........................................................................................7
Illustration 2: Ansoff matrix..........................................................................................................10

INTRODUCTION
The effective management of the business and implementation of proper strategies will
help in good rise in meeting of targeted operations and activities that supports an effective rise in
business operations. The proper planning and implementation of strategies will support a good
rise in efficiency of the business organisation to a greater extent (Bettis and et.al., 2014..). This
will help in effective growth and development of the business organisation that will help in good
rise in capability that will help in good rise in effectiveness of business operations to a greater
extent.
Overview of company
The report has lead the emphasis on strategic management at Adventa Berhad. It is a
Malaysian company working in health care sector. Besides this, it also works in distribution and
third party logistics of services and products to other health care services. Since 2014, company
has started a home dialysis service, making it the flagship business of the firm.
Purpose of report
The core purpose of this analysis is to identify the strategic challenges that are been
associated with the organisation. And suggest the suitable alternative strategy to maintain its
business performance. The report will lay emphasis on the mission, goals and objectives of
business entity with the analysis of macro and micro environment. Other than this, the VRIO
assessment will be taken for the capability analysis (Stead and Stead, 2014). Other than this, the
SWOT analysis is been used to discuss the strategies using various tools and techniques like
Ansoff matrix, Porter's 5 force model and value chain model etc.
Mission goals and objectives statement
Various mission, goals and objective statements are been set by the organisation that will
help in good rise in handling of the business operations and thus facilitates a good rise in meeting
of targeted operations and activities to a greater extent that will support a good rise in handling
of business operations to a wider extent.
The Mission statement of Adventa Berhad is, “Customer and supplier intimacy. To
provide high quality medical product and services at the nominal cost to their customers and
buyers.” this statement motivates the firm to handle the effective operations and activities that
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will support effective handling of various strategic measures that will help in effective
development of high quality product and services by the organisation.
Statements supporting strategy of Adventa Berhad
These statements will help in good rise in the effective handling of the operations that
will support a good rise in improving the business performance of the cited business organisation
(Morden, 2016). Other than this, it will help in development of high quality products and
services like medical gloves, renal dialysis etc, that will help in proper handling of the operations
and thus facilitates a good handling of business operations and activities which will support a
better growth and development of the organisation and thus facilitates a good rise in the
operations which will support effective rise in capability and meeting of targeted goals and
objectives to a greater extent.
Focus and motivation
These statements will motivate the enterprise to develop a good strategy which will help
in suitable meeting of business goals and objectives and thus will look after the proper
assessment of the measures and activities that are been taken in consideration by a business
organisation. It will help in effective rise in meeting of the policies and actions in a very effective
way. It will improve the employees focus and motivation to a greater extent and thus help in
suitable increase in efficiency of a business organisation and its work force (Stead and Stead,
2014.).
Setting SMART objectives
The SMART objectives will help in good handling of the business operations that will
help in effective meeting of targeted operations and activities that will support a good rise in
efficiency of the Adventa Berhad to perform effectively and in strategic manner that will help in
effective increase in the business operations and thus will help in suitable growth of the firm.
The managers and leaders at the cited medical business entity will look after the effective rise in
operations that will aid the firm to meet its customers needs and demands. Other than this, it will
help the business organisation to have a financial growth and development to a greater extent. It
will also support a good gaining of the strategic aims and objectives set by the business
organisation.
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ENVIRONMENTAL Analysis:
Macro trend analysis:
The strategies of the organisation are highly affected by the external and internal i.e.
macro and micro environmental factors. These factors impact the overall operations of the
organisation to a greater extent. Especially, the macro trend analysis help in good rise in the
setting up of the operations that will help in assessment of the various risk factors and the key
drivers of changes that are uncertain in nature. The PESTLE assessment of the cited business
organisation is as follows:
 Political factor: as the firm works in the medical sector, it is susceptible to get the proper
medical support that will help in good rise in the operational capability of the firm and
will support the meeting of targeted operations and actions. Besides this, the political
operations will also help the frm to have a good market position and presence which will
help in good rise in business activities and actions to a grater extent. It reduces the risk
factor of facing restrictions from authority that will help in good rise in business
capability of the organisation in a better way (Bettis and et.al., 2014..).
 Economic Factor: the economic factors will lay a very deep and significant operations
that will help in superior growth and development of the cited firm in the medical market.
Te company has to be effectively immune in order to face and tackle any sort of
economic crisis that can impact the firm's development and thus will help in good rise in
the capability of the business organisation that it will support a good growth and
development of the organisation. Besides this, the budget of the organisation and the
government will play a crucial role in the assimilation of any strategic action or measure.
 Social factors: Being operational in the medical and health care sector makes the firm
more associated and related to the social factors and issues that can impact the strategic
performance of the Adventa Berhad in the market. As the majority of the family group
belongs to middle class category in the nation, it forms the major customer base of the
organisation (Bryce, 2017). This will also motivate the firm to develop low cost health
care products and services that will help in suitable rise in handling of the organisations
and thus help in effective meeting of targeted goals and objectives.
 Technological factors: As the latest technologies are been used within the medical and
health care sector. The firm will look after the effective adoption of the activities that will
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help in good rise in handling of the business operations to a greater extent and thus
facilitates the meeting of targeted aims and objectives. Besides this, the company can also
opt for developing high quality products and services using the latest tools and
technologies. This will help in improvement of high quality business operations and thus
will support an effective handling of operations which will support an improvement in
health care services offered by the firm (Morschett, Schramm-Klein and Zentes, 2015).
 Legal factors: They are the most important factors that are required to be taken in
effective consideration by the organisation. The operations of the organisation in medical
field and the various trade and health and social care rules and regulations that are
required to be followed by organisation that will impact performance of the organisation
to a wider extent. Besides this, the proper following of legal obligations by medical
business entity will also have a crucial role in the meeting of aims and objectives set by
the organisation. The proper following of legal rules and regulations will help in
maintaining ethicalness within the organisation.
 Environmental factors: the generation of high amount of biological waste and their bad
effect on environment can't be denied. The firm has to see through the effective following
of the environmental and biological factors and control the bio hazardous pollution in
order to maintain the performance and effectiveness of the organisation. It will also help
the organisation to reduce the threat factor and negative impact on the operations taken in
consideration for the environmental factors by the cited medical and health care firm.
This will provide the firm the cited firm to improve its overall performance of a business
enterprise to a greater extent (Michael, Storey and Thomas, 2017.).
Industry issues
Porter 5 force model
This will help in the assessment of the wide range of business operations that will help in
good rise in effectiveness of the business operations and the organisation to a greater extent. The
Porter's 5 force model for Adventa Berhad is as follows:
Factors Impact
Customers power The customers play a very deep role in the
improving of the quality and operations of the
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organisation that will help in superior rise in
meeting of aims and objectives by the firm.
Many times, the firm has to alter or change its
product or service configuration and pricing as
per the requirements of their customer base
(Bettis and et.al., 2016).
Supplier power The supplier will also play a very deep role in
the handling of the business operations by the
cited medical enterprise. The supplier will see
through gaining of good amount of revenue
and profit by supplying raw material's ad
sometimes finished goods to firm. Thus, the
Adventa Berhad have to develop a strategy,
considering the requirements of their suppliers
in the market.
Threat of new entrants In the recent time the firm has seen the
extensive competition from some new market
entrants that will impact the performance of the
business operations that will impact the
performance of the business operations.
Although, the cited enterprise is one of the
largest medical equipment and services
provider in Malaysia, this factor can emerge as
the big issue or threat factor for the
organisation.
Threat of substitution As with each passing day, the advancement in
medical field is leading to development of high
quality, more effective and cheaper products
and services. Thus, it has created a threat factor
for the organisation. The cited medical service
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provider has to look after the effective
management of wide range of business
operations that will help in maintaining the
market position of the company.
Industrial rivalry The rivalry or stiff competition will also play a
very crucial role in the existence and
effectiveness of the business operations that
will help in suitable rise in handling of wide
range of business operations in order to
increase their personal revenue and market
share. The cited firm will face the stiff
competition from the other major firm like
IHH healthcare berhad. Thus, in such
condition, proper planning of a business
strategy is very necessary for the cited medical
enterprise.
Capability analysis
The significant assessment of the capability of the business entity to perform its
operations will help in good rise in the meeting of operations on a wider scale that will support
an effective improvement in efficiency of organisation (Lasserre, 2017). The capability of an
organisation is based on certain factors which are been taken in consideration by the cited
medical enterprise. This is been analysed by the use of value chain model.
Value chain model
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 Inbound logistics: It will involve all the activities and functions that involve the use of
various resources, raw material and inputs within the cited business operations. It
supports proper handling, stack controlling and transportation that are been taken in
consideration by the cited medical and health care enterprise (Meyer, Neck and Meeks,
2017). Adventa Berhad will purchase raw materials and other components and will see
through the effective distribution and allocation of these resources within a business
enterprise. It will need a better interaction between the entity and its raw material
supplier.
 Operations: Capability of the organisation will be also marked as the efficiency to turn
the raw material or resources in the usable, finished goods. The cited enterprise will look
after the better application of various production strategies and operation to maintain its
capability in a very effective manner.
 Outbound logistics: it involves the proper delivery of the products and services to the
targeted customers and buyers on the correct time, to ensure its proper utilization. It will
include the effective distribution of medical products and equipments that are been
manufactured by the cited firm (Wheelen and et.al.., 2017).
 Marketing and sales: the proper promotion and selling of the products and services will
help in suitable rise in the capability and effectiveness of the firm. The proper promotion
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Illustration 1: Porter Value chain model
Sources: Porter's Value chain, 2018

of the goods and services will help in effective rise in awareness of people or customers
of the cited medical firm. This will help in effective generation of revenue and
profitability by the business organisation (Steinbach And et.al., 2017).
 Services: this are the services that are been provided by the cited business organisation to
maintain its strategic performance and thus help the cited enterprise to get the proper
feedback in order to improve the quality of products and services by the organisation.
This will help the firm in building a good relation with its customers and employees.
Other than this, various other operations and factors are been taken in consideration by
the cited firm that will support a good handling of medical operations that will help in effective
rise in capability of enterprise. Some major factors that are been taken in consideration are:
 Firm Infrastructure: the infrastructure of the organisation will also play a crucial role
in execution of various operations by the cited medical and health care firm. It will help
in suitable rise in strategic planning and quality control of the operations by the
organisation.
 Human resource management: the proper management of workforce or HR within the
firm will help in effective rise in capability of business enterprise to perform business
operations in a very efficient way (Ginter, Duncan and Swayne, 2018).
 Technology development: the utilisation as well as improving of technical measures
will help in suitable rise in the effective handling of the business operations by the firm
will help in improving capability of cited business firm.
 Procurement: it involves the proper utilisation, resourcing and distribution of raw
materials within a firm that will help in suitable rise in business capability of the
organisation.
VRIO assessment
Value chain
activities
Value Rarity Imitability Organisation
Inbound Logistics Yes No Yes No
Operations Yes No Yes Yes
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Outbound
Logistics
Yes No Yes Yes
Marketing and
sales
Yes No No Yes
Services Yes Yes Yes No
Thus, based on the above assessment, it can be said that the proper handling of the
operations is very necessary which will prove helpful in improving its strength and identify the
threat factors to mitigate in order to maintain its performance.
PROPOSED strategy
Significant internal and external assessment will be followed by the organisation in order
to determine and plan a proper strategy that will help in good rise in capability of the
organisation. It will involve the proper TWOS matrix analysis and Ansoff matrix is been
identified that will help in proper planning of the business strategy.
SWOT analysis
SWOT analysis
Strength Weakness
 High quality products and services are
been offered by the organisation.
 It is one of the oldest firm in its sector
and thus have a good reputation
(Moutinho and Vargas-Sanchez, 2018).
 Good R & D services improves its
performance.
 It has a limited market and thus has a
low profit margin.
 The cost control approach of the
organisation is very poor for the
organisation.
Opportunity Threat
 The firm has the big opportunity to
expand its market with the rise in
demand for health care services and
products.
 Te decrease in rubber plantation and
increase in latex prices possess a threat
of shortage of raw material for the firm.
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 There is a potential market around the
globe for medical equipments.
 The instability on the global economic
level is a big danger for the firm.
Ansoff matrix
Ansoff matrix will involve the following approaches that will help the cited firm to
develop a good strategy.
Market development: this will include the development of effective environment for the
company to sell its products and services. This will help in improving the customer base of the
company.
Diversification: This will involve the process to diversify the product and services that will help
in improving product portfolio of the cited business firm.
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Illustration 2: Ansoff matrix
Source:Ansioff matrix, 2018

Market penetration: this is an approach to enter into a new market depending on the strength of
the organisation. This will help in effective rise in compatibility and thus will help in increasing
strategic development of the firm (Barney, 2014).
Product development: this involve the developing of a new and innovative product that will
help in increasing the scope of the organisation. However, it is a costly ad time consuming
process.
Based on this evaluation, this can be said that the firm can opt for the market penetration
and better development of a product as the strategic measure to improve performance.
Strategy Evaluation
SAF analysis
Suitability Acceptability Feasibility
The proposed strategy will
help the firm to handle the
business operations in a very
effective manner. As the
demand for the medical and
health care equipments on the
global level will cause the firm
to effectively improve its
business operations that will
help in suitable rise in
capability and effectiveness of
the business enterprise. This
will also help te firm to utilize
the opportunity to expand the
business activities on
international level.
The Firm will accept the new
product development as it will
be beneficial for the firm. This
will help in good rise in the
revenue generation and
productivity of the firm to
meet the operational capability
of the organisation. Besides
this, it will also facilitate an
exclusive improvement in
production capacity and
effectiveness of the operations
that will lead the cited medical
enterprises in a much effective
and better way (Hill, Jones and
Schilling, 2014. ).
The proposed strategies of
market penetration and product
developmnet is been found to
be feasible for the cited
enterprise as the firm has a
good R & D department which
will work for the effective rise
in efficiency of the
organisation to develop and
manufacture latest and
innovative product and
services. Besides this, a good
reputation of the organisation
on local and national level in
Malaysia will prove as a
catalyst to promote its product
and services in foreign
countries.
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CONCLUSION
Thus based on the analysis, this can be said that Adventa Berhad need specific strategic
management that will help in good rise in the capability of the firm to handle the business
operations in a very effective manner. The proper evaluation techniques like SWOT, Porter 5
force, VRIO and Pestle assessment helped in proposing a specific strategy for the cited entity to
improve its functionality.
REFERENCES
Books and journals
Barney, J.B., 2014. Gaining and sustaining competitive advantage. Pearson higher ed.
Bettis, R., Gambardella, A., Helfat, C. and Mitchell, W., 2014. Quantitative empirical analysis in
strategic management. Strategic Management Journal, 35(7), pp.949-953.
Bettis, R.A., and et.al., 2016. Creating repeatable cumulative knowledge in strategic
management. Strategic Management Journal, 37(2), pp.257-261.
Bryce, H.J., 2017. Financial and strategic management for nonprofit organizations. Walter de
Gruyter GmbH & Co KG.
Ginter, P.M., Duncan, W.J. and Swayne, L.E., 2018. The strategic management of health care
organizations. John Wiley & Sons.
Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an integrated
approach. Cengage Learning.
Lasserre, P., 2017. Global strategic management. Macmillan International Higher Education.
Meyer, G.D., Neck, H.M. and Meeks, M.D., 2017. The entrepreneurship‐strategic management
interface. Strategic entrepreneurship: Creating a new mindset, pp.17-44.
Michael, S., Storey, D. and Thomas, H., 2017. Discovery and coordination in strategic
management and entrepreneurship. Strategic entrepreneurship: Creating a new mindset,
pp.45-65.
Morden, T., 2016. Principles of strategic management. Routledge.
Morschett, D., Schramm-Klein, H. and Zentes, J., 2015. Strategic international management (pp.
978-3658078836). Springer.
Moutinho, L. and Vargas-Sanchez, A. eds., 2018. Strategic Management in Tourism, CABI
Tourism Texts. Cabi.
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Stead, J.G. and Stead, W.E., 2014. Sustainable strategic management. Routledge.
Steinbach, A.L. And et.al., 2017. Top management team incentive heterogeneity, strategic
investment behavior, and performance: A contingency theory of incentive
alignment. Strategic Management Journal, 38(8), pp.1701-1720.
Wheelen, T.L. Na d et.al.., 2017. Strategic management and business policy. Pearson.
Online
Porter value chain, 2018.[Online] Available through:
<https://sites.google.com/site/cis4397introtocloudcomputing/home/module-3/porter-s-
value-chain>
Ansoff matrix, 2017. [online]. Available through: <https://www.executestrategy.net/blog/the-
ansoff-matrix-helps-organizations-grow/>
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