Managing Strategy, Operations and Partnerships

This document discusses the management of strategies in the context of Thermax Ltd, a leading engineering company. It analyzes the external and competitive environment using PEST analysis and Porter's five force model. It also explores the development of survival and success factors for the industry and assesses the competitive advantage of Thermax Ltd. Finally, it prioritizes issues, develops strategic options, and proposes a strategic direction for Thermax Ltd.

Programme:(e.g. Business Management)
Masters of
Business
Administration
Module Title: (e.g. Studying for Business) Strategy Operations and Partnerships Seminar Group 17E
Module Code: SG7001 Word Count 570
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MANAGING STRATEGY,
OPERATIONS AND
PARTNERSHIPS SG7001

TABLE OF CONTENTS
..........................................................................................................................................................1
INTRODUCTION ..........................................................................................................................4
MAINBODY ...................................................................................................................................4
Pest Analysis ...............................................................................................................................4
Porter’s five force .......................................................................................................................5
Develop survival and success factors for the industry ................................................................5
CONCLUSION ...............................................................................................................................6
REFERENCES ...............................................................................................................................7
Appendix .........................................................................................................................................8

INTRODUCTION
Management of strategies refers as a series of techniques for directing and controlling a
business to gain projected goals and objectives within timeframe. There is an example of
Thermax Ltd company which is headquartered in Pune, India and offers worldwide product
services to the customer. In this report will analyse external environment and competitive
environment of the proposed company with the support of analytical tools i.e. pest analysis and
porter’s five force model.
MAINBODY
Pest Analysis
It is analytical tool that is used for analysing external environment of business (Perera,
2017). This model is used for the Thermax Limited to identify major issue of the company with
different external factors.
 Political factor: Instability of government is a political factor, but this factor does not
have any impact on Thermax Ltd because it offers different kind products to the customer
across the world.
 Economical factor: Economy slow down is the economical factor that impacts on
company’s performance for example it increases interest rate due to this company unable
to invest money in improving advancement in existing technology.
 Socio-cultural factor: Demographical change is one of the major socio-cultural factor but
it do not get any impact from this factor because it mostly sell it’s product through B2B
model.
 Technological factor: Development of new technology is considered technological factor
that impacts on organization’s profitability and performance in it’s sector. For example it
has less advancement in technology due to this it gets negative impact on it’s selling
infrastructure.

From the above discussion can be analysed that company is facing less advancement in
existing technology issue due to this it unable to improving demands of it’s product line in the
domestic markets.
Porter’s five force
 Industry Rivalry: Company has high industry rivalry because there are various other giant
companies i.e. BHEL who already has captured large market share and posses’ highly
advanced technology and offers them to customer across the word.
 Threats of Substitutes: Threats of substitutes is moderate because all engineering
companies i.e. Thermax Ltd, BHEL already are posses’ advanced equipment’s. So, no
company can offer alternative equipment which can compare Thermax’s equipment.
 Supplier’s bargaining power: Bargaining power of suppliers is moderate in Indian market
there are various suppliers who are ready to work on lower prices. Thus, it gets high
quality raw material at lower cost (Porter, Dhami and Mukherjee, 2017).
 Buyer’s bargaining power: High availability of domestic companies i.e. BHEL, Suzlon
which posses’ similar product line like Thermax in that state Chinese imports puts
pressure on price.
 Threats of new entrants: Threats of new entrants is very low because it is not too much
attractive market. So, company gets opportunity to expand its business in global market.
Develop survival and success factors for the industry
 Thermax Ltd needs to develop and restructure technology infrastructure that will support
company to enhance their technological competitiveness as well as capabilities.
 It is required to upgrade technological capabilities of capital goods SMEs then it can
improve demands of product in domestic market ()Huang, 2019).
 Company should promote quality culture by developing technical education and training
facilities through employees will enable to improve their technical skills.

Critically assess competitive advantage of Thermax Ltd as a result of their strategy using tools.
Develop issues to Thermax ltd in light of success factors
 Competitive advantage defines to that factor which helps the business
organisation to produce their goods and services effectively that are reasonable in price
according to the competitors base. This will helps the companies to gain the high sales as
compared to the rival firms. In context of Thermax Ltd that is a leading engineering
company that can highly focus on gaining the competitive advantage that can gives the
high sustainability within the industry so that large number of customers are to be
retained with the business venture. In this they can highly focus on their competitors such
as BHEL that is highly effective in the engineering field(Frini and Benamor, 2018) . To
gain the high advantage within rival market Thermax Ltd can examine the several tools
that can helps in besting the competition within market that can be shown below:
 In this manager can analyse the market development tool in which they can
develop their market by entry into the new place with their old or existing products. It
will enhance the customer base and also helpful to gaining higher profits. It will
maximising the market size that is very effective to enter into the new market effectively
without any changes in the products and services.
 Secondly, manager of Thermax Ltd can focus on analysing the market penetration
term in which they can reduce their products and services price from their competitors
within the same market that will enhance the customer base and also helps in beating the
competitors within the marketplace that is BHEL so that firm can enjoy the longer
survival. In this they can follow the promotion and advertisement related to offering the
discounts so that large number of clients are to be attracted(Mattei and et. al., 2019) .
 Thirdly, Thermax manager can focus on the product development strategy to gain
the competitive advantage, as it is highly effective for the success of the business
enterprise. In this manager can do the high research related to their clients and customers
needs and requirements. In this firm will analyse that the technology which is used by
them in their services and products are not much effective and due to this they can face
the major complexities within the marketplace related to gaining the higher profits and
gaining competitive advantage.

 By analysing the several tools related to strategy Thermax Ltd can highly focus
on the adopting the product development strategy to improving and upgrading their
technology in their products and services that they offers basically to other businesses.
This will helps in gaining the high profits and also helps in beating the rival firm within
the marketplace. In this the firm will get the major competition with BHEL that cannot
deal in the global market and cannot have high technology in their services and
products(Ogbari and et. al., 2018) .
 In this they can face the major issues in developing the success factors
 In this manager of the Thermax Ltd can highly focus on the issues that they can
majorly face at the time of developing the success factors that are:
 In this success factors of the company, Thermax Ltd can face the major issue related to
the technical infrastructure that is majorly weak due to this they cannot attain the high
profits. To overcome this issue organisation can focus on the enhancing their
technological competitiveness and also their capabilities of several resources like human
resources by motivating them. Using high financial resources and machines so that
technological infrastructures are to be enhances.
 Another major issue that a Thermax Ltd can face is the low technological capabilities
due to which demands of their products and services are to be reduced. To overcome this
issues business organisation can highly focus on the customers requirements and needs so
that their demands are to be improved within the domestic market that helps in gaining
high profits and revenues.
 Thermax Ltd can face the major issue in their success factors is that their low quality
culture followed at the working place and to overcome this firm can highly emphasis on
providing the training session to their employees so that their skills are to be enhanced
and due to this task can be attained effectively and successfully.

Prioritise issues and develop strategic options that can address. Assess these options and create
strategic proposal including explantation of resultant the strategic direction of Themax Ltd
 Strategic Options refers to the creative solution that is helpful and efficient for the action
oriented responses that an organisation can provides according to the external situation of
the organisation. In context of Thermax Ltd manager can focus on priority the issues so
that developing the strategic proposal is successful(Sanchez-Gutierrez, Gonzalez-Uribe
and López-Lomelí, 2019) .
 In this the major issue that is highly prioritise by the company is the weak technological
resources that is use by the company in their products and services and promoting it to
their clients. The major issues is the low infrastructure due to this low technology.
 Another issue on priority is weak quality culture due to which work cannot be managed
effectively and proficiently. In this they can highly focus on the employees training and
development(Libel, 2020).
 The last issue is the low technological capabilities due to this their demands related to the
products and services are to be reduced.
 All this issues arise due to the low technology can be used by the company so to
overcome all these issues organisation can highly focus on upgrading the technology in
their products and services, providing training to employees, promoting goods and
services within the marketplace. For this Thermax Ltd can adopts the product
development strategy in which they can improve their technology within their offering
products and services which is helpful in beating the competition within marketplace and
gaining higher profits(Franch and et. al., 2018).
 Strategic proposal
 In context of Thermax Ltd the strategic proposal can be shown below:
 Executive summary- Thermax Ltd is a leading engineering company that is highly
involved in the energy and environment. In this company can face the major issues
related to the weak technology due to this several problems can be faced by the business
organisation like low researches capabilities, weak quality culture, facing high issues in

infrastructure etc. To overcome all this issues business enterprises highly focus on
developing the product that is upgrading the technology in their products and services.
For this strategic proposal is to be shown below:
 Mission- The mission of company is to provide the sustainable solutions to the energy
and environment that is a best partner for attaining the industrial and commercial
segments. In this they can majorly helps their customers and reach the high target based
on saving the environment(Basl, 2018) .
 Vision- The major vision of the company is to conserving the resources for preserving
the future. This will helps in gaining the higher sustainability within the market place and
also helps in beating the competition within rival market.
 Strategic objectives
 The main objective of the company to to gain the high competitive advantage by
enhancing the improvement in their technology. They are working for increasing the high
customer base with 8-10% with the up-gradation of the technology. To get the higher
success within the market face company can offer the proper training and motivation by
using high technology so that high profitable result can be enjoyed. They can achieved
their growth within a time period of 12 months(Boyack, Smith and Klavans, 2018) .
 Strategic analysis using SWOT
 Strength  Weaknesses
 The strength of Thermax Ltd is their
high growth in the profit earnings and
the organisation with zero promoter
pledge.
 The main weakness of the Thermax Ltd
is their declining in the net cash flow.
And also their weak technological
resources.
 Opportunities  Threats
 The major opportunity of the company
is their high volume and high gain due
 The major threats of the Thermax Ltd is
their competitors that are present within

to which they can enjoy the high brand
image within the marketplace.
 Another major opportunity is their
transformation to negative to positive
growth within the sales and revenues.
the market such as BHEL etc.
 Strategies
 Segmenting- In this factor Thermax Ltd can enhance their technology and for their they
can segment the market by using the geographic region, customer requirements etc. this
helps in gaining the high profits by organisation.
 Targeting- After segmenting it is easy to target the customers as they highly target the
several group region so that they market size is to be increased which is majorly essential.
 Positioning- In this company can position their brand by using the different promotional
tool so that high profits can be attained and also image is also enhanced(Lopes and
Franco, 2019) .
 Action plan
 It is to be done by preparing the Budget. In this Thermax Ltd. Can appointed a
experienced person who can prepare the budegt related to upgrading the technology in
their products and services so that wastage can be removed and resources can be used
optimally. At the time of developing the budget company can forecast it on the basis of
past and present scenario. So that best results can be shown by the organisation that
helps in completing the operations effectively and efficiently.
 Monitoring and evaluation
 It is the last stage where Thermax Ltd can monitor and evaluate the whole aspects
that are including in the proposal so that if any mistakes is to be done than it can resolved
by the firm by using the key performance indicator, sales analysation tool, benchmarking
etc. so that productive results are to be come out and firm will gain higher profits(Sousa,
2018) .

Consider whether any stakeholder group would adversely affected the proposal
 In this proposal the stakeholder group is supportive type of aspect which helps to manage
the organisation through better practises in terms of internal memorandum practises
where many other factors are involves such as company government regulation, corporate
government regulation and corporate social responsibility (Mueller and Schmidt, 2020).
Some of the important factor of Stakeholder group is Corporate Social Responsibility:
This help to keeping the record of society development which it helps to brand for
external environmental analysis along with stakeholder are used to involve in Corporate
Social responsibility for increasing the wealth. The impact of CSR in Stakeholder as it
promotes their wealth and other professional career group. Financial impact towards
business where it regulates Thermax company a sit interest to continues towards
tempered by creating towards balance social life and it also allows to better handling
social and professional responsibility.
 As per above stakeholder group helps to creating wealth and impact on Thermax
company is needed towards focuses on financial impact where it would create huge
implication in above proposal in different ways (Purtle, Langellier and Lê-Scherban,
2018) . For example:, Budget planning, Action Plan of objective work implementing as
well as further scrutinize to promote positive expectation for future outcomes generates.
Defend Proposal and preferred strategic direction by explanation each stage of analysis to ensure
your proposal is robust
 As per the above strategic plan each stage is describing on the basis of involvement of
strategic analysis as it plays an important role to better execute in different stages to
briefly explains in productive manner. As the description of each strategic stages is
explains in given below by approaching Thermax company:
 In this uses of designing the Executive summary helps to provide the major
description about effective plan within what terms is implement as per according to the
requirement. Along with facts and findings of overall plan is reflects as in effective
manner that helps to pointing out each and every elements that related topic. As for
Thermax company perspective their plan need a executive summary because that allows
to provide better benefits to reflecting what they seeking for better expectation of positive

outcomes can be generates in term of manpower in perspective. For further analysis
allows to provide more specific outcomes that mainly generates important features of
productive basis of outcomes.
 For now second stage is Mission, Vision and Objectives, in this it provides major
information related with topic and plan of company related which effectively allows for
long term aims and goals that needed to accomplish by manager or expertise towards
betterment of company long term stability. In situation of Thermax company the role of
Mission, Vision and Objectives can reflect their major intention to commencing the
business in competitive marketplace as well as these three plays an important role which
allows productive outcomes in terms of better approaching of plan, task and hire of new
employees. Vision helps to future expected outcomes which company has expected for
their long term sustainability within better approaches involves. Strategic Objective of
Thermax support to accomplish target as what they need to empower to designing the
plan towards current situation analysis as they could attain positive outcomes
accomplishment.
 After scrutinize in better form of mission vision and objective. Then marketing or
expertise of Thermax company would allow to follow the Swot Analysis, this helps to
measure internal analysis about specific company in which team of Thermax company
would scrutinize effective way to approach strength, weakness, threats and opportunity
that long term supportive for high measurable that effectively allows to more gaining of
ideas that how a company can compete in terms of revenue, product and services, market
share, customer and financial loyalty within other competitive companies. Each part of
Swot enhance better recommendation in which strength increases willingness, Weakness
is show about negative aspect, opportunity to gain by specific company and threats
provides challenges, conflicts or barrier that hardly to attain in effective through company
basis.
 Through the approaching of STP of marketing which allows more clarity about to
target market, customer and positioning in competitive advantages that allows more
vulnerable as well as company like Thermax is focuses their new product and service
through measure segmentation in this marketing team can divided their market and type

of customer in which they can select the type of market in efficient manner. Targeting is
one of important features which majorly allows to highlight about customer traits.
 To examine of internal analysis now the next step is to presuming financial
structure or Action plan that provides the optimum and valuable information related
with plan such as budget planning, this allows to enhance better idea to manage funds and
how much can company could easily invests in terms of future outcomes generates
effectively. Proper budget planning is specifically allows overall production, department
manpower, raw material, resources which involves huge plan implementation which
enhance better results can optimised as well as systematic investment by calculating
profit and market ratio in effective manner. This could helps to certain process such as
keeping the record for next evaluation in accounting year ending, audit assessment, filing
report in favour of business plan through which profit can easily scrutinize (Baumgartner,
2019). To predicting the budget now it turns to implementing action plans like
approaches, model and hiring of new employees towards execution to compete in market
for long term aspect.
Monitoring and Controlling are these two major aspect which helps to major quantify
about whatever plan is invested it needs basic knowledge and certain criteria in which Thermax
company marketing team can evaluate as what they invest valuable capitalisation in which it
optimising better outcomes or not (de Medeiros and et. al., 2018). This helps to controlling
about to assessing about major requirement that enhance better mapping of performance
mentoring as well as to highlight basic barriers which is creating more impact in performance
which is allows to measure the further implication secured through process of controlling
through using of resources and effective manpower to accomplishing competitive advantages.

CONCLUSION
This report has been summarized different analytical tools i.e. pest and porter’s five force
model that applied to determine issue of the company in it’s market. the strategic analysis is a
prominent term for the business enterprises to get the high success and sustainability within the
marketplace. As it helps in enhancing the knowledge regarding the company competitive
advantage and also effective for examines the several issues that a Thermax Ltd can face in their
related success factors. In this strategic proposal plan is very significant as it helps in giving the
robust results to the organisation profits and their longer sustainability within the marketplace.
This report also elucidates that the stakeholders are impacted with the proposal that a firm is
develops for gaining the profits. At last it focus on defending all the stages of strategic proposal
plan so that it can easily identified the success.

REFERENCES
Books and Journals
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
Porter, H., Dhami, N.K. and Mukherjee, A., 2017. Synergistic chemical and microbial
cementation for stabilization of aggregates. Cement and Concrete Composites. 83.
pp.160-170.
Huang, Y., 2019, December. Strategic Environment Analysis of Logistics Enterprise based on
SWOT-PEST-Michael Porter's Five Forces Model--Taking SF Express as an Example.
In 2nd International Symposium on Social Science and Management Innovation (SSMI
2019). Atlantis Press.

Appendix
External factors Impact on Thermax Ltd.
Political factor No impact on Thermax Ltd.
Economical factor Economy slow down, due to increase interest rate of bank that
pays by company that impacts on economical infrastructure.
Socio-cultural factor No social impact because mostly use B2B model
Technological factor Less advancement technology: decrease demand of product in
domestic market.