Strategic Management: Analysis, Competitive Advantage, and Market Scenarios

Strategic
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Strategic direction which the entity has followed in past as well as the way through which
strategic thinking has developed in last 5 years...........................................................................1
TASK 2............................................................................................................................................2
Choices as well as use of appropriate framework for strategic analysis.....................................2
Critical discussion on organisational competitive advantage among direct competitors............4
Probable industry scenarios facing the entity in existing marketing domains.............................5
TASK 3............................................................................................................................................5
Mission and vision statement of company are aligned to demands of marketplace....................5
Organisational strategic capabilities............................................................................................6
TASK 4............................................................................................................................................7
Discussion on possible strategies which can be followed by the entity for defending its core
business........................................................................................................................................7
TASK 5............................................................................................................................................9
In light of discussion in Task 1 to 4, analyses and evaluation of resource implication of
recommendations which the entity has to address.......................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Strategic management is a continuous planning, designing, monitoring, analysing and
assessing major necessities that a business requires for accomplishing objectives. With the
concept, a firm take stocks of pertaining circumstances, chalking strategies, arranging and
installing them along with analysing overall effectiveness of executes management tactics
(Armstrong and Taylor, 2020). For understanding about strategic management, VADS Berhad is
selected. The headquarters of the entity are located at Kuala Lumpur, Malaysia. It is among the
entity which is listed in Malaysia Public List and Bursa Malaysia Company. The main working
of the entity are in IT and technology which brings together processes, technologies along with
people for enabling effective and dynamic utilisation of ICT as well as BRP Services.
The report covers strategic direction that has been followed by the entity in last 5 years,
suitable frameworks for strategic analysis, industry scenarios and competitive advantages of
business among direct competitors. It also includes alignment of mission and vision to
marketplace demand. It also discusses possible strategies which the entity could follow for
defended its core business.
TASK 1
Strategic direction which the entity has followed in past as well as the way through which
strategic thinking has developed in last 5 years
Organisational overview
VADS Berhad was established in 1991 at Kuala Lumpur, Malaysia for providing IT and
technology services to the citizen of nation. It offers international addition to national managed
technological services, managed application services along with system integration services. The
company is listed in Bursa Malaysia Stock Exchange and Malaysia Stock Exchange. It is only IT
service provider in Malaysia which provides managed services as well as end to end solutions to
customers in the market. Along with this, the entity has right mix of expertise and set of skills
ranging from operations, project management, software development etc (VADS Berhad, 2020).
Company background
VADS Berhad was incorporated in the year 1990 and formed in 1991 for taking
advantage in IT and technology industry. The official workings of the organisation were started
on 1993 and 1995. Its major activities include core hosting services, virtual private services, Web
1

& Domain hosting, hosted managed services, system integration services, managed networks
services etc. Since its establishment, the entity always geared towards maximising values of its
customers. It also has proven track record to provide reliable technologies addition to expertise
for serving needs (Baumgartner and Rauter, 2017). With this, it takes complexities out of
managing its e- business infrastructure.
Strategic thinking
VADS Berhad works with the objective of maximising business values for its customers
and clients. With this, it has gained huge market share in information technology industry of
Malaysia. The dept and breadth of activities of the entity has improved in last 5 years that
assisted it to work with huge dedication in the field and expand its customer base and margins of
profit. Moreover, it is also analysed that the company has hired competent professionals that
have huge knowledge about the field and their decision making helped it to accomplish its
objectives (Chakrabarti and Mitchell, 2016).
TASK 2
Choices as well as use of appropriate framework for strategic analysis
Strategic analysis
It is said to the process which comprises researching business environment in which the
firm operates. It is important for devising strategic planning in context to decision making
addition to smooth working of entity (Coelho and Et. Al. 2012). It is also essential for business
which has goals, mission and vision for themselves. In case with VADS Berhad, strategic
manager uses framework of PESTLE Analysis for strategic analysis as it is best model that assist
the about external factors and their impacts on entity.
PESTLE Analysis
It is widely and most suitable framework that is used as strategic analysis technique. It is
said to the framework adopted for scanning macro environmental components related to external
strategic analysis. With this framework, strategic manager of VADS Berhad finds out issues that
are beyond organisational control, identifies impacts of each factor and many more. The
PESTLE Analysis of VADS Berhad is as follows:
Political: Malaysia is politically stable nations that have people with good command as
well as high values in IT and technology field. Moreover, the government of the nation is also
2