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Strategies for Gaining Competitive Advantage - PDF

   

Added on  2021-04-19

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Running head: STRATEGY FOR GAINING COMPETITIVE ADVANTAGESSTRATEGY FOR GAINING COMPETITIVE ADVANTAGESName of the student:Name of University:Author Note:Introduction:

STRATEGY FOR GAINING COMPETITIVE ADVANTAGES1Table of ContentsIntroduction:...............................................................................................................................1Strategic issues:..........................................................................................................................2Allocation of necessary financial and human resources............................................................2Improvement of information system:.........................................................................................5Threat to specific powers:..........................................................................................................8Conclusion:..............................................................................................................................10References:...............................................................................................................................11Appendices:..............................................................................................................................14

STRATEGY FOR GAINING COMPETITIVE ADVANTAGES2Introduction:This coursework analyses the strategies for one of the most popular and successfulorganisation of the United Kingdom, namely Hertfordshire Chamber of Commerce. Thisorganisation has been serving the national and international customers for more than 90 years(Hwchamber.co.uk, 2018). This particular company provides a high class business support tothe local, national and international companies of all sizes. The organisation providesassistance to its clients through a wide range of networking opportunities as well asmembership benefits. the chief operation of Hertfordshire Chamber of Commerce id toinfluence the core decision makers of both the local as well as national government. Theseclients regularly consult with the organisation for feedbacks from all the businesscommunities after any policy is being established. Hertfordshire Chamber of Commerce hasbeen accredited by the British Chamber of Commerce hence the organisation gets benefit ofopening doors for forging new business relationships. It brings together people from diversebusiness sectors and assists them for connecting, collaborating then prosper (Albrecht et al.2015). This particular organisation works to support the members and develop anenvironment where every member can grow. The clients of the organisation can be local orglobal who can be benefitted by the vast knowledge as well as expertise of the organisation(Schaltegger, Hansen and Lüdeke-Freund 2016).Hertfordshire Chamber of Commercecreates an economic environment where the clients can get services such as business benefits,lobbying and policy, events, trainings and other international services like exportdocumentation. Despite the fact that the company has been serving its local clients veryefficiently, there are some problems within the company’s policies as well as changingexternal environments, which are proved to be potential problems for the growth ofHertfordshire Chamber of Commerce

STRATEGY FOR GAINING COMPETITIVE ADVANTAGES3This reports aims to analyse the chief strategic issues that Hertfordshire Chamber ofCommerce need to follow in gaining more competitive advantage. These strategies include,allocation of required financial as well as human resources, threat to specific powers andproper handing and usage of improved information systems.Strategic issues: Allocation of necessary financial and human resourcesBroad environment:Increased inflation rate is one of the major negative economic effect that hasinfluenced the internal ambience of the institution greatly (Sparrow, Brewster and Chung2016). It has been working since 1924, there is a need of change in the financial structure ofthe institution (Chambers 2018). In addition to this, devaluation of money has a great impacton the financial system of the institution. As it deals with the various sizes of companies andaid them for flourishing, these economic changes in the country has an adverse effect on theinstitution. The company is completely privet and runs with the profit acquired from aidingthe small, medium and large companies. These companies include local firms, national andinternational companies of any size. Due to the economic slowdown of the country, thebusinesses with these firms has been creating tremendous pressure on the financial structureof the institution (Stone et al. 2016). In addition to this, the economic problem in the country,has prevented the initiatives of opening new start-ups in the local or national basis because ofwhich the process of having new clients or mission to enhance more market reach has beentotally closed for this institution. Hertfordshire Chamber of Commerce is expected to pay thetax of more than 20% to the government but suffers hugely due to inflation. In one hand thepressure of taxes and lack of new client organisation on the other, have seriously hamperedthe operation of Hertfordshire Chamber of Commerce.

STRATEGY FOR GAINING COMPETITIVE ADVANTAGES4Industry environment: In addition to this, the institution is greatly suffering from human resource problem.Due to financial problem it has not been able to recruit as manty employees as required inthis firm. As the inflation has hit its highest in these last few years, the organisation could notpay incentives to the employees and had a great issue with the supply chains. This institutionhas been trying to adopt cost leadership strategies but facing a tremendous monetary pressure.Due to this reason many of the experienced employees have left the institution and it is notbeing able to recruit fresh people (Zhao et al. 2016). Lack of clients has decreased thepopularity of the firm which has ultimately demoralised the institution’s human resource. Theemployee turnover has been increasing greatly especially the executives. This is mainlybecause of the fact that this institution has been losing its market position as it cannot takeany preventive measures to survive these problems. It has very limited power because theinstitution works under BCC hence cannot form any new policies but depend upon thecommand of the higher authorities.Internal analysis:Hertfordshire Chamber of Commerce is insufficient of its own income due toincreased competition and the loss of assets. Moreover, the employee and other costs haveincreased greatly. Due to financial instability and absence of assurance employee turnoverhas been increasing. The traditional method of guiding the clients have reduced itscompetency and consistency of the firm. With the changing economy, the industry is notbeing able to cope up both from the economic as well as human resource aspects. On theother hand, the competitors of Hertfordshire Chamber of Commerce are autonomous hence

STRATEGY FOR GAINING COMPETITIVE ADVANTAGES5can change their policies with the change of time and need (Anitha 2014). The institution hasbeen High turnover rate of the expert and specialised employees which has affected theoperation of the institution greatly. It is one of the chief reasons why the institution has beenlosing it ground in the competitive market. Discussion:Since the company has been serving the small and medium sector companies for morethan 90 years it has great experience in dealing with the old firms and has been able to build abrand loyalty among its clients. The institution’s competitive advantage can be built throughthe quality of its service which will provide differentiation from the other chamber ofcommerce. It works under the UK’s most popular British chamber of commerce hence it hasa huge scope for developing national as well as international business participation.Moreover, the company has core capabilities of market research which is the need of thissituation. As the country’s economy has been suffering from economic slowdown, it is thebest time to understand the market requirement. Strategic options:Hertfordshire Chamber of Commerce enjoys a great popularity as well as hugeexperience due to the fact that it has been working in this field of guiding the local, nationaland international firms for more than 80 years. It has undergone many rough roads todevelopment hence the institution must find strategies to overcome this economic pressure.There are many scopes for the institution most import of which it the opportunity to influenceand grab new start-ups. The government of the UK has decided to decrease the corporate taxby 17% within 2020 which will definitely create scope for the new small or mediumcompanies to start business. This step by the UK government will act as an incentive for freshinitiatives which will increase the number of client of the institution. In addition to this,

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