Strategic Management

Running head: STRATEGIC MANAGEMENT
STRATEGIC MANAGEMENT
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STRATEGIC MANAGEMENT
Answer 3.
Part 1.
Creative Technology Limited is a global information, sound and communication
Technology Company base based in Singapore. The company has branch offices in the US,
Japan, Ireland and China. The company is listed on Singapore Stock Exchange and operates
under the leadership of Sim Wong Hoo in the capacity of its CEO.
The competitive dimension which Creative Technology Limited has over its competitors
is the aggressive use of the strategy of merger and acquisitions in offshore assets. The company
has acquired shares of various IT companies and sound technology companies situation in North
America and Europe. These acquisitions of shares of foreign companies allows Creative
Technology Limited to play significant role in deciding their business strategies (Creative.com,
2019). Thus, in other words, the company is able to control large portions of the information,
communication and sound technology of the North American and European markets.
Part 2.
The importance of strategic sourcing and sustainability in the business organisations lie in
revenue generation and gaining leadership position in the global market. Kotula et al. (2015)
mention clearly that strategic sourcing of raw materials and work-in-progress inventory enables
business organisations to mitigate or at least minimise disruptions in supply chains. The strategic
sourcing enables the business organisations are able to acquire supply on raw materials from the
suppliers located both the local market as well as foreign markets. This allows the company
acquire supplies from large number of suppliers at economies of scale, lowering transaction
costs borne to acquire each bulk of supply. Moreover, by having access to a large number of
suppliers, the company can terminate contracts with unprofitable suppliers and enter into
contracts with more profitable suppliers. This enables these companies to ensure uninterrupted
flow of production of finished products according to the client requirements. For example,
Creative Technology Limited is based in Singapore and present in several host countries like the
US and Ireland. Strategic sourcing of raw materials from suppliers located both within the
respective host markets and overseas. This enables the company to produce high quality
products. This allows the company to make the finished products available to consumers readily,
thus ensuring customer satisfaction and generation of high revenue as well as financial
sustainability. The high rate of customer satisfaction enables the company to acquire a huge base
of loyal customers which ratifies its gain market leadership. Thus, it can be inferred from the