Strategic Management in Parlo Berhad

This assignment provides an analysis of strategic management in Parlo Berhad, a travel agency company in Malaysia. It covers the company's mission, vision, culture, ideology, principles, and grand strategy. It also includes a detailed analysis of the hospitality industry, strategic capabilities of Parlo Berhad, and strategies for defending its core business.

Strategic
Management

Contents
INTRODUCTION...........................................................................................................................................3
TASK 1..........................................................................................................................................................3
TASK 2..........................................................................................................................................................4
TASK 3..........................................................................................................................................................5
TASK 4..........................................................................................................................................................6
TASK 5..........................................................................................................................................................8
CONCLUSION...............................................................................................................................................9
REFERENCES..............................................................................................................................................10

INTRODUCTION
Strategic Management refers to setting of objectives, analysis of competitive
environment, analysis of internal organization, evaluation of strategies and ensuring that the
management is able to roll out its strategies in the organization (Agwu, 2018). It is very helpful
in ensuring that an organization is able to attain a competitive edge in the market. This will make
sure that the profits are increased and a strategic edge is obtained which will lead towards the
achievement of short-term and long-term goals and objectives in the future time period. For this
report, Parlo Berhad has been chosen. It is a Travel agency company in Malaysia. In this
assignment, specific analysis will be made on strategic direction which the company has
followed in the past and how it has changed in the past 5 years, detailed analysis of the industry,
further analysis and discussion of possible strategies. Additionally, analysis and evaluation of
resource implications of the recommendations to be addressed by the company will be discussed
as a part of this project.
TASK 1
Strategic direction refers to the plans and actions which are required to be put in place by
the organization to work towards achievement of the vision of the company.
The Strategic direction which Parlo Berhad has followed in the past is as follows-
 Mission- It means the purpose for which an organization is working. Parlo Berhad’s
mission is to become a new age travel company and cater to the needs and requirements
of the customers. In the past, the company has made sure that it has taken various steps
for achieving this mission.
 Vision- Vision means the plans which a company has set for achievement in the future
time period. Parlo Berhad’s vision is to become a new age travel company catering to the
needs and requirement of the customers. In the past, the organization has made sure to
implement the right techniques for achieving this vision.
 Culture- Culture means the various types of behaviors which are existent in an
organization due to the presence of many members. Parlo Berhad has various members in
its staff and thus there are different types of cultures which exist in the company. In the
past, the company has set up a culture which is conductive for its growth.
 Ideology- Ideology refers to the types of ideas which are implemented by the
organization in its system (7 Types of Strategic Direction, 2019). Parlo Berhad has a set
ideology which will help it in making sure that it is able to achieve its goals and
objectives. In the past, the company has set up an ideology which will ensure that it is
able to use the right techniques for the achievement of its goals and objectives.
 Principles- Principles are various guidelines which a company can follow for the future
strategy and decision-making. Parlo Berhad has various principles which it follows. In

the past the company has made sure that it has set the right principles to be followed in
the future time period.
 Values- Values of a company help in deciding whether it is taking the right step or the
wrong step. Parlo Berhad can make sure that it is able to take the right step on the basis of
its values. In the past it has set up various values which it has to follow in the future.
 Grand Strategy- Grand Strategy refers to a strategy which is made for the long-term and
considers various aspects (Bell and et.al., 2018). Parlo Berhad needs to use it so that it is
able to achieve its goals and objectives. In the past it has set up a grand strategy for
helping it in the future.
Strategic Thinking is the ability to plan for the future. In the past 5 years it has evolved a
lot. The ways in which it has developed are as follows-
 Action-oriented approach- The managers nowadays are adopting a more action-
oriented approach. Parlo Berhad’s managers are also using this approach.
 Competition assessment- Competition assessment has now become a must for the
managers. Parlo Berhad’s managers also use this assessment.
 Market assessment- Market assessment has also become quite important for the
managers. The managers of Parlo Berhad are also using it.
TASK 2
Detailed analysis of the Hospitality Industry-
 Strategic analysis- Strategic analysis can be defined as a process of research of the
business environment in which an organization operates (David, David and David, 2017).
The frameworks which can be used for Strategic analysis are as follows-
 Market sizing analysis- It helps in identifying the size of the market where the
firm operates. Parlo Berhad can use it for finding out the size of the hospitality
industry.
 Product portfolio analysis- It refers to the analysis related to the products of the
organization. Parlo Berhad can make use of it for the purpose of analyzing the
strength of the various services which it offers.
 Forecasting analysis- It means the forecasting of future to find out the growth
opportunities for the future time period. Parlo Berhad can make use of it so that it
can forecast growth opportunities for the future time period.
 Brand perception- It refers to the way a brand is perceived by the people. Parlo
Berhad can make use of it so as to find out how people perceive its brand image.
 Market assessment- It means performing a thorough assessment of the market by
the organization. Parlo Berhad can make use of it for finding out its potential in
the market.

 Business Partner analysis- This can be used by the organizations so that they are
able to identify the business partners they can have for the purpose of growth and
development. This can be done by Parlo Berhad if it wants to partner with any
other company in the future.
 Market Player analysis- It can be used by the organizations by identifying the
various players in the market (Hansen and Jacobsen, 2016). This can be done by
Parlo Berhad for the purpose of identifying various players in the market and
preparing strategy for them.
 Competitive analysis- It helps the companies to get to know their competitors
(Li, 2018). Parlo Berhad can use it for analysis of its competitors.
 Critical discussion of the competition advantage of the company- Parlo Berhad is a
Malaysian Travel Agency Company. Thus it operates in the hospitality sector and
therefore has to face a lot of competition as there are various players which operate in this
industry. Thus the company has a competitive advantage which it has obtained over the
years by operating in the market by providing superior services to the customers as
compared to the competitors.
 Probable industry scenarios- Parlo Berhad operates in the hospitality industry. The
possible industry scenarios here are as follows-
 Chances of higher growth- There are higher chances of growth in the hospitality
industry in the future time period.
 Chances of making higher profits- There are chances of making higher profits
in the hospitality industry in the future time period.
 Boom in business- The hospitality industry can witness a boom in business in the
future time period.
 Varied opportunities- The hospitality industry can offer firms varied
opportunities for their business in the future time period.
TASK 3
Further analysis-
 Mission & Vision- The mission & vision is very important for a company because it is
required in order to set future course of action for the company. Parlo Berhad is a
hospitality company. Therefore it has set a mission & vision of becoming a new age
travel company meeting the needs and requirements of the customers. This will make
sure that it is able to achieve its desired goals and objectives in the future. The new
demands of the marketplace require the companies to be able to meet the new needs and
requirements of the customers and clients in this sector.
In this manner, the companies will be able to adjust according to the changing dynamics
of the business environment and will be able to achieve the desired goals and objectives.

Thus, it can be said that Parlo Berhad has set the right mission & vision for the future
time period. The company’s mission and vision is aligned with the demands of the
marketplace which witnesses rapid changes and thus the organizations are required to
adapt quickly to them so that they are able to sustain themselves in the market without
facing issues and problems. The changes which are witnessed in this industry are very
fast and thus the organizations here are required to make sure that they change their
strategies very fast so that the right steps can be taken for ensuring success. This will
make sure that the organization is able to achieve the desired strategic edge.
 Strategic capabilities- Strategic capabilities refer to the ability of a business to use its
skills, capabilities and resources to obtain competitive advantage (Marland, 2017). Parlo
Berhad’s strategic capabilities are as follows-
 Financial resources- It means the financial position of a company. Parlo Berhad
has a strong financial position (Melander and et.al., 2016). This helps it in making
sure that it is able to set different goals and objectives and use the right strategies
for achieving them in the future time period.
 Skilled workforce- It refers to the skills of the workforce of a particular company
(Ocasio, Laamanen and Vaara, 2018). Parlo Berhad has a skilled workforce which
is capable to meeting different types of aims and objectives which it has set for
the future time period. Thus there is a requirement of making sure that it meets its
different type of goals and objectives in the future time period through the talent
of its skilled workforce.
 Effective planning- It refers to the plans which are created by the company to be
implemented in the future time period after analyzing the different types of
factors. Parlo Berhad has to make sure that it is able to plan effectively according
to the situations which can occur in the future. The company is able to do this as it
has to make sure that it plans according to the changing circumstances in the
market and industry.
 Effective marketing strategies- It means the tactics which a firm uses for its
marketing operations (Oehmichen, Schrapp and Wolff, 2017). It is required if it
has to obtain a strategic advantage in the market over its competitors. Parlo
Berhad uses traditional as well as digital marketing strategies and thus in this
manner can ensure that it is able to target the right customers for meeting its goals
and objectives in the future and maximizing its profits.
TASK 4
There are various strategies which are required to be used by the organizations. These are
required for obtaining a competitive edge over the rivals in the future time period. The strategies
which Parlo Berhad can follow for defending its core business are explained as follows-

 Creativity- Creativity is required nowadays in the businesses in order to sustain in the
market. It is so because the demands of the customers and clients have increased and they
want best services for the price which they are paying to avail them. Thus Parlo Berhad is
required to use the creative approach in providing its services to the customers and
clients. This will make sure that sustainable success is achieved in the future time period
and higher-level of growth is also achieved by the company by bringing the required
level of creativity in the services provided to the customers and clients.
 Innovation- Innovation is nowadays desirable by the businesses because it is needed to
ensure that they are able to increase their revenues and profits in the future time period
(Panico, 2017). Parlo Berhad is required to make sure that they are able to innovate by
using the right techniques which will lead towards achievement of higher level of sales.
In the hospitality industry, regular innovation is desired by the customers and clients as
they want new services to be provided to them for the price which they are paying. Thus
they wish to get better value which the companies are required to provide to them.
 Efficiency in services- Efficiency in services has to be maintained by the hospitality
firms because their core business is dependent upon the level of efficiency. In the context
of Parlo Berhad it becomes highly necessary because in this way this will make sure that
the company provides the right services to its customers and clients at competitive rates
at the desired level of efficiency. Thus, in this way the companies can manage to achieve
the required goals as well as objectives without facing issues and problems if its staff
members are efficient enough in their tasks.
 Competitor analysis- If a business has to sustain in the market it has to perform a
competitor analysis. It is to make sure that it is able to analyze the level of services
provided by its competitors. In this way, Parlo Berhad has to analyze the services which
are being provided by the competitors and the significant improvements they have made
in their services. Therefore the company can adopt the same model and thus can make
sure that it is able to achieve the desired level of outcomes without problems and issues in
the future time period.
 Quick adaption to changes- The business environment is quite unpredictable and
dynamic in nature (Pozdnyakova and et.al., 2017). It can change rapidly and thus its
dynamic changes have to be adopted quite quickly by the organizations in order to make
sure that they are able to sustain in the market. The hospitality industry’s business
environment is also very dynamic and thus it is required that the companies are able to
achieve the desired goals and objectives in the future time period by making sure that
they can adapt quickly to the changes. Therefore Parlo Berhad has to adapt quickly to the
changes for sustaining in the market and defending its core business.

TASK 5
The resources are very important for a business. They are necessary for it to be able to
achieve its various short-term and long-term goals as well as objectives in the future time period.
There are various types of resources which are required by Parlo Berhad. These are as follows-
 Financial resources- Financial resources are required by all the organizations
irrespective of their sectors in which they operate (Steinbach and et.al., 2017). In the
context of Parlo Berhad, these resources are quite important because they are required to
be used in the right manner by the company for achieving its goals and objectives for the
future. There are different sources of funds which are available and can be used by the
organization such as Short-term funds which are provided for a period of 1 year.
Medium-term funds are provided for a period exceeding 1 year and till 5 years. Long-
term funds are provided for a period exceeding 5 years. Thus the company can decide
which sources of funds would be the best one for it in the future time period after taking
into consideration the various types of factors which affect it. This decision is required to
be taken by the management after it considers the various types of factors associated with
the business which will help a lot in getting the desired work done.
 Human resources- Human resources are assets for any organization. They are required
by the companies for getting their work done. Thus a skilled workforce is desired by the
firms in the long-run period of time. This can help them in obtaining a strategic edge in
the market without problems and issues. Parlo Berhad is a hospitality company and thus a
skilled workforce is desired by it for making sure that it is able to achieve its various
types of goals and objectives. Thus it has to make a focus on hiring the best talented
people for doing its work so that overall productivity can be increased. There is a
requirement of enhancing the skills of human resources from time to time for increasing
their productivity.
 Physical resources- This refers to the physical assets which are required by the
organization for multiple purposes (Venkateswaran and Ojha, 2017). Having these
resources are essential for any organization. Firms make heavy investment when they
purchase these resources and thus they desire that they must be able to achieve the
desired level of efficiency through these resources by making sure that they are used
properly and carefully. For Parlo Berhad these resources are quite important because they
can make sure that it is able to attain the set goals and objectives in the future time
period. The maintenance of these resources has to be done regularly to get the desired
output.
 Information resources- These resources are used by the organizations to obtain the
desired information (Witek-Crabb, 2016). Thus they can help them in accomplishing
multiple purposes. By using these resources effectively and efficiently the organizations
can make sure that they are able to achieve their goals and objectives. In the context of
Parlo Berhad these resources are required so that it can obtain the necessary information
which can be crucial for its business. These resources have to be used in the right manner

by the organizations so that they can get the best use out of them to obtain a strategic
edge in the market which will make sure that they are able to achieve sustainable level of
success.
CONCLUSION
From the above report, it can be concluded that strategic management is required by the
organizations in order to achieve their goals and objectives. Strategic direction helps in guiding
the companies and strategic thinking has changed a lot in the past 5 years. Detailed analysis can
be done by the company to analyze its position. Further analysis can be done by the companies
for finding out where they stand. There are various strategies which the organizations can adopt
for defending their core business. Also, there are resource implications which the firms are
required to address so that the required level of efficiency as well as effectiveness can be brought
into the operations of the organization.

REFERENCES
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Panico, C., 2017. Strategic interaction in alliances. Strategic Management Journal. 38(8).
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Pozdnyakova, U. A. and et.al., 2017. Strategic management of clustering policy during
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Steinbach, A. L. and et.al., 2017. Top management team incentive heterogeneity, strategic
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Online
7 Types of Strategic Direction. 2019. [Online]. Available through:
<https://simplicable.com/new/strategic-direction>