Strategy and Change management for Green Spoke Company

This study is based on Green Spoke which is a trading company dealing in road bike market. The current study will analyse the decision and effects of launching new product ‘StreetSmart’. It includes the review of strategic vision and mission, analysis of corporate, business and operational objectives, key performance indicators of strategies, external environment analysis, and more.

Strategy and Change
management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Review of strategic vision and mission.......................................................................................3
Analysis of corporate, business and operational objectives........................................................3
Key performance indicators of strategies....................................................................................4
Analysis of Green Spokes capabilities........................................................................................6
External environment analysis....................................................................................................7
Reflection....................................................................................................................................7
REFERENCES..............................................................................................................................10

INTRODUCTION
Change management is being defined as the planning undertaken in order to implement
some of the changes within the business. the company operates in the external environment and
there are many different changes being taking place in environment which might affect business.
hence, it is necessary for the companies that they must continuously analyse the changes and
implement them. The present study is based on Green Spoke which is a trading company dealing
in road bike market. The current study will analyse the decision and effects of launching new
product ‘StreetSmart’
Review of strategic vision and mission
For success of the business it is very important that they must set a good mission and
vision for the company. The reason underlying this fact is that if the mission of company will not
be clear then they will not be in position to work effectively (Abratt and Mingione, 2017).
Hence, for this Green Spoke has the mission of developing and upgrading the product in the near
future. In addition to this, the vision of the company is to remain competitive within the market
to run the business effectively.
Along with this the vision of the company is to increase sales of StreetSmart by at least 20 % in
the next year so that operations of the company will increase.
Analysis of corporate, business and operational objectives
For attaining the mission and vision of the company it is necessary that other business
objectives are made effectively. Thus the business objectives of Green Spokes are as follows-
To increase sales of company by 30 % till end of 2021.
To increase number of new consumers by 27 % will February 2022.
To increase the investment in marketing activities by 32 % to stimulate consumer to undertake
service of company.
Criteria Performance measure Targets Initiatives
Financial perspective Profit and loss
Balance sheet
Cash flow statement
Improve the
performance by 10 %
from last quarter.
Try to minimise cost
in order to increase
profits.
Focus on increasing
cash inflow and

minimising cash
outflow
Customer perspective Customer research
report (attached in
appendix)
Improve the
performance by 12 %
from last quarter.
Improving quality of
product
Providing good after
sale services
Internal process
perspective
Time to time making
upgradation in
product
Ensuring on time
delivery to the
consumers
Improve the
performance by 17 %
from last quarter.
Improving the
manufacturing
process
Expanding and
investing on
distribution and
supply chain.
Learning and growth
perspective
Satisfaction of
employees
Technology
upgradation
Improve the
performance by 18 %
from last quarter.
Providing bonus and
perks to employees
for improving their
satisfaction.
Time to time
providing of training
Effective market
research
Key performance indicators of strategies
Indicator 1- Revenue
The revenue is the most essential indicator in order to analyse the strategies of the company. the
reason underlying this fact is that in case the company will be working and not earning good
amount of revenue then this will not be good for the company. thus, with the help of simulation
game it is clear that sales of StreetSmart is decreasing. In Y4 it was good but in Y5 the sales
decreased to a great extent (Hayes, 2018). Thus, it can be assumed that company has to decide
for strategies which will improve the working condition of company and as a result of this
profitability will improve.

Indicator 2- Cost of sales
With the analysis of the above cost chart it is clear that cost of sales also provide a similar trend
like the revenue. The reason pertaining to the fact is that when the sales of the company will
reduce then the cost of managing the sales will also reduce.
Indicator 3- Cash flow

From the above cash flow statement it can be said that it has previous declined and reached
negative figure but in present year current it has improved as compared to earlier period.

Analysis of Green Spokes capabilities
With analysis of above features of product, it is clear that the different attributes attract and
stimulate consumer to use StreetSmart. The most important attribute which StreetSmart has is the
speed and this is liked by the consumer to a great extent. In addition to this practicality of the
product is also very nice (Cameron and Green, 2019). This is pertaining to the fact that it has a
good storage space as well to keep some product along with riding. Also another key capability
of StreetSmart is its comfort and weight. This is particularly because of the reason that the
product provides for a good comfort and also weight of cycle is very less. This makes the rider
comfortable and due to this sales of company are increasing.
Green Spoke Company's Industry Threshold capabilities
Human - Its employees have critical thinking power and
better knowledge regarding manufacturing
process
Physical- It has cheaper space with 400 sq. mtrs.
Intangible- Firm has high goodwill in market, its
employees has enough capabilities

Distinctive capabilities
Green Spoke Company's resources Distinctive capabilities
Cheap space as compared to Cameron cycle This is one of the distinctive advantage which
allows it to reduce its cost and increase
profitability.
Good market share as compared to Cameroon
cycle and your bike company (Shown in
appendix)
Firm has higher market share by covering all
targeted audience in effective manner.
Strategic capabilities
Good retail outlets Physical Effective performing retail
outlets are there.
Cash flow improvements
shows improving liquidity
Financial Higher ability to meet
financial requirements
Ability to increase operational
practices
Company has highly skilled
and motivated employees
Human Firm is having higher potential
sharing employees to meet
targets.
SWOT analysis
Strength
The major strength of company is that it tries
to manage and improve the skills of employees
working within the company.
Another strength is that company is very good
and effective in conducting market research
which provides company in analysing and
Weakness
The major weakness of company is that the
expectation of the equity investors is very high.
thus, it is hard to meet the requirement of
investors.
Major reliance over the strategy of ‘Best Price’
in order to promote the product and service of

evaluating the changes and implement relevant
changes.
company.
Opportunities
The major opportunity for Green Spokes is the
to increase the marketing activities in order to
promote the product and services in large
market.
Another major opportunity for Green Spokes is
to continuously research within the market in
order to analyse the latest changes in
technology. Thus, this will increase the
working of company.
Threats
The major threat which company will be facing
is the high competition within the external
environment. The reason underlying the fact is
that in external environment the competition is
very high and this will affect working
condition of company (Ingason and Jonasson,
2018).
In addition to this, another drawback for Green
Spokes is the frequent changes within the need
and preferences of the consumers.
External environment analysis
PESTLE analysis
It is one of the crucial technique that can be used by Green Spoke Company (GSC) for
gaining knowledge regarding factors that can affect processing. It gives emphasis on following
elements:
Political Factors
It includes the government policy and actions prevailing in operating areas of Green
Spoke Company. This includes the policy, trade restrictions, tariffs and bureaucracy which can
highly influence the smooth processing of specified organization.
Economical Factors
These elements play major role in affecting the growth & development of firm which
includes economic growth, interest , exchange, inflation and un employment rate that
contributes largely in gaining success of firm. Green Spoke Company can afce these cahllnegs
while operating in industry.
Social Factors

This component play important role in influencing market forces as organization
largely get affected from the such social circumstances (Kordana and Słyś, 2020). It involves
attitude, perception, buying patter, taste and preference which keeps on changing thus can
affect organization's offering pattern.
Technological Factors
It is one of major factor which required to be taken into consideration by Green
Spoke Company for having smooth manufacturing processing. The reason behind
concentrating on it includes that firm can achieve success by having positive R&D, rate of
change in technology to cope with customer requirements (Casañ, Alier and Llorens, 2021).
Legal Factors
The firm should pay attention on industrial regulations, intellectual property, labour
laws, licenses & permits, etc. in order to have smooth functioning organization should have
larger concentration on complying with these standards.
Environmental factor
For this purpose company require to make sure that its operational, marketing, selling, etc
practices are properly adhering with wealth condition, pollution, temperature,etc so that ist
cycles can effectively fulfil requirement of customers.
Porters Five forces
Competitors
There are various competitors can affect the Green Spoke Company processing which
can influence its profitability & sustainability. In addition to this, it can adopt strategy of
increasing market share as compared to Cameron Cycles and Fit bike (Attached in appendix).
Potential of new entrants into industry
It is one of the important aspects of industry which helps in evaluating significant factor
of recognising the level of potential rivalry that Green Spoke Company can face. In
manufacturing industry it can be articulated that there is few entrants into sector.
Power of suppliers
In the sector in which GSC operates required to has less number of suppliers so driving
up cost can become possible (Raimundo and Domingues,2021.). It can affect the pricing strategy
of organization due to increase higher cost which can outcome in less profitability.
Power of customers

The customers of this company holds large power of bargaining as its customer
segments includes students, single workers, teenage families, young females, etc. The market
share can be easily affected due to change in buying pattern of customers.
Threat of substitute products
There is less number of substitute in present business environment and higher possibility
is there to increase competition which can provide similar products.
Reflection
The reflection is being defined as outlining the personal learning of the person in their own terms
relating to some particular activity. In the present case, reflection will be outlined relating to the
business decisions taken for growth of Green Spokes (Borowski, 2021). This reflection will be
based on Gibbs reflective cycle which involves 6 different stages which are as follows-
Description
The present study was based on simulation game played for the business Green Spokes. In this,
the data was evaluated in order to analyse the decision relating to change management. I learnt
from this case that analysing and managing change is very crucial for the company to get
successful. The decision of business affects the working to a great extent. The major aim of the
study was to identify the results of simulation game and analysing them to take proper and
correct decision for growth and development of the business. this is crucial for the success of the
company (Elephant, 2019). hence, this study was very helpful for me in developing knowledge
relating to the effective working and importance of taking the business decisions.
Feelings
Further with the analysis of study I felt that if the business decisions are not taken in proper and
effective manner then this will negatively affect the company. the reason underlying the fact is
that decisions are taken for benefit of company and if decision is not worth then this will be
affecting the whole business and its profitability. Further I felt that use of simulation game was
helpful in order to evaluate the strategies of business. along with this I also felt that analysing
external environment and the industry analysis with help of PESTLE and Porter is very
important (Suhairi and et.al., 2020). The reason underlying this fact is that when the external
environment will not be studied then this will be impacting the business and its operations to a
great extent. Moreover, I learnt that use of different theories and models is helpful for the

company to effectively manage and monitor the performance of the company. this in turn
provides a good base to the company for taking proper and effective decisions.
Evaluation and analysis
With the further analysis and evaluation of the case study and simulation result I analysed
that use of simulation was very assistive in taking proper decisions. The reason behind this fact is
that when the simulation was conducted then various data was identified like profit and loss,
balance sheet and cash flow. With help of these data, many decisions were taken and this assisted
business in growing and developing. Further I learnt that key performance indicator was also a
helpful tool in order to evaluate the business and take effective decisions. In addition to this,
balanced scorecard was also assistive in managing the working and decision making process in
proper and effective manner. With this further I evaluated that critical skill is low in me as I was
not able to effectively compare the company with that of competitors. in addition to this, I
evaluated the fact that the use of team working skills is very important and crucial for the
business in improving the company. thus, with this case study on Green Spokes I evaluated the
fact that working in team with proper coordination is very important. Hence, for attaining
success it is very necessary that working of the project is being done in proper and coordinated
manner (Bourgoin, Marchessaux and Bencherki, 2018).
Conclusion
In the end I concluded with this study that the effective change management is necessary for the
business to get successful. The reason underlying this fact is that business is operating in external
environment and if these changes will not be managed then this will affect the business and its
operations. Hence, the effective decision making is very crucial for the business as it will result
in effective and successful completion of all the business activities.
Action plan
Further with the overall analysis of the simulation and the case study provided it was analysed
that there is requirement of some action to be taken to improve the business further. Thus, the
action plan involves the improvement of critical analysis skills (Putra and et.al., 2019). This is
essential for the reason that when in case the critical thinking skill will not be good then this will
affect the evaluation of the company and simulation game. Hence, for this major action to be
taken by me is to try to develop comparing skills as it will assist me in comparing the company
with others.

REFERENCES
Books and Journals
Abratt, R. and Mingione, M., 2017. Corporate identity, strategy and change. Journal of Brand
Management, 24(2). pp.129-139.
Borowski, P. F., 2021. Innovation strategy on the example of companies using bamboo. Journal
of innovation and entrepreneurship, 10(1). pp.1-17.
Bourgoin, A., Marchessaux, F. and Bencherki, N., 2018. We need to talk about strategy: How to
conduct effective strategic dialogue. Business Horizons, 61(4). pp.587-597.
Cameron, E. and Green, M., 2019. Making sense of change management: A complete guide to
the models, tools and techniques of organizational change. Kogan Page Publishers.
Casañ, M.J., Alier, M. and Llorens, A., 2021. A Collaborative Learning Activity to Analyze the
Sustainability of an Innovation Using PESTLE. Sustainability, 13(16), p.8756.
Elephant, P., 2019. ITIL process implementation strategy.
Hayes, J., 2018. The theory and practice of change management. Palgrave.
Ingason, H. T. and Jonasson, H. I., 2018. Project: Strategy. Routledge.
Kordana, S. and Słyś, D., 2020. An analysis of important issues impacting the development of
stormwater management systems in Poland. Science of The Total Environment, 727,
p.138711.
Putra, A.H.P.K and et.al., 2019, July. The Determinant of SME’s Performance: The Main Role
of Leadership Strategy, Knowledge, and Business Orientation. In 1st International
Conference on Life, Innovation, Change and Knowledge (ICLICK 2018) (pp. 430-434).
Atlantis Press.
Raimundo, R. and Domingues, N., 2021. The Model of the Five Competitive Forces on
Portuguese Electricity Market. Modern Economy, 12(1), pp.140-153.
Suhairi, S and et.al., 2020. Human Capital Management Strategy And Human Resources
Changing Nature. Journal of Management and Business Innovations, 2(01). pp.33-40.

Appendix
Ratio calculations
Y4, Q1 Y4, Q2 Y4, Q3 Y4, Q4 Y5, Q1 Y5, Q2 Y5, Q3 Y5, Q4
Current Ratio 8.094958449 15.824
30636
13.1199805 - 0.1139
01315
- - 0.05092
Return on equity 0.097645504 0.0879
14975
-0.182086547 -
9.0338
89712
1.1129
70379
0.6855
5342
0.2493
98946
-
Net profit ratio 0.114188327 0.11 -0.183700778 -
1.4533
34588
-
1.4892
81924
-
10.413
29966
-
4.7192
64069
-5.833197648

Gearing ratio 2.351599772 2.8160
06918
2.637496134 0.2762
07506
-
2.7769
13195
-
10.245
28409
-
16.302
91934
-
Return on assets 1.863144652 1.7128
0442
1.483424175 0.7433
21413
4.7369
41398
11.018
51852
10.107
37898
11.68401176
Cash flow

Profit and loss

Balance sheet