Strategic management Table of Contents Introduction....................................................................................................................3 Background of Thales.......................................................................................................3 PESTLE analysis.............................................................................................................3 Two key competitors and five forces analysis..........................................................................6 Business level strategies of Thales to protect vehicles division in Bendigo......................................7 Thales cyber security division.............................................................................................8 Benefits of Thales strategic relationships................................................................................8 Conclusion.....................................................................................................................8 Bibliography.............................................................................................................10 2
Strategic management Introduction The main aim of this task is to explain and outline the business level strategies and pestle analysis of Thales Company. It is a multinational Corporation that provides electronic product to the customers in the international market. The key sectors that are served by firm include Aerospace, Space, Ground transportation, Defence and security. In addition, pestle analysis, porter five forces analysis and business level strategies have been explained in the task. More detail of the task has been detailed below. Background of Thales Thales group is a French multinational Corporation that designs and produces electrical systems and renders services for the defence, aerospace, security markets and transportation. The company’s headquarter is located in La Defense and it is listed on the Eurnoext Paris stock. The company is operating its business operations and activities across the France. It is major and biggest player in the French high tech industry employing approx 34,000 employees at 70 sites in seven regions. The revenue of the company was€14.885 billion (2016) and operating income was €1.354 billion (2016). The organization operates and manages it activities in more than 56 countries across the world. The company provides world class technology to the consumers in the marketplace. Thales is a key player in keeping the public safe and secure, assisting vital infrastructure and protecting the national security interest of countries across the world (Thalesgroup, 2018). The organizational structure of the company is unique and strong as it helps to attract maximum number of clients in the international market. Patrice Caine is the CEO of the firm. The company attracts and recruits some of the skilled and talented candidates who care about the outcomes and accustomed to success. Chris Jenkins is the country director and chief executive officer and Warwick Strachan is the chief financial officer of the company (Thalesgroup, 2018). Along with this, Thales uses unique and dynamic business and corporate level strategies to overcome the competitors in the international market (Mizzoni et al, 2014). PESTLE analysis Pestle analysis plays a significant role to measure the actions, policies and strategies of the rivalries. This analysis helps to identify and analyze the opportunities and threats of the market. 3
Strategic management Before initiating the business activities and operations, Thales needs to analyze the environment to gain competitive advantages in the international market (Tripes, Komarkova, Pirozek and Dvorak, 2014). Political factors:France is a developed country therefore the political environment of the country is stable and strong. Thus, there is no political trouble, no political crisis and no conflict in the market. This is an effective and good factor that can help the Thales to attract more clients and investors in the marketplace. Along with this, the government of the country has no any control on the culture and religious. Therefore, the company can easily initiate the business activities in such country (Szydlowska, 2017). Let’s talk about the Australia; the country is one of the biggest and important markets for MNC’s in the Asia pacific region. The country maintains stable business environment and political factors. Apart from this, the country uses skilled and experienced employees to conduct business activities and operations successfully. Now talk about the India, the country is one of the most powerful countries across the world. The political factors contribute to maintain a stable political climate in the marketplace. On the other hand, corruption can affect the business operations and activities of Thales adversely. Corruption increases and enhances the cost of the business operations and also affects the foreign direct investment. Economic factors:The economic position of the France is strong and unique in the global market. Talking to economic situation is connected to various factors such as level of inflation, interest rate, and employment. GDP of the company has grown up from 0.3% in 2008 to 8% in 2009. The tax rate is approx 40% higher on the business community as compared to the rest of the world (Hillson and Murray-Webster, 2017). Talking about Australia, economic factors highly influence in such country. It is dominated by the service sector. The economic factors such as inflation rate, employment rate, interest rate and exchange rate could also influence the success and growth of Thales group in such country. On the other hand, the country is facing recession, along with the unemployment rate approx 6% and inflation rate of 2-3%. 4
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