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Strategic Management Analysis of Holden

   

Added on  2020-03-01

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Running head: MANAGEMENT THEORY AND PRACTICEManagement Theory and PracticeName of the Student:Name of the University:Author Note:
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1MANAGEMENT THEORY AND PRACTICEIntroductionThe current competitiveness in the business world is persuading the business marketers toparticipate in a challenging scenario. The unique values of the products and services are themajor focus of the business marketers to ensuring the sustainable position (Hill, Jones &Schilling, 2014). Each of the companies tries to develop the strategic ideas for managing theentire organisational functionalities. However, in current business world, it has been observedthat the customers’ demands are changing drastically (Peppard & Ward, 2016). Theadvancements of the technicalities and business functions are the major reason behind suchchanging demands. In order to remain competitive, the business marketers are concentrating ondeveloping more effective strategic approaches. With the evaluation of such strategicmovements, it becomes easy to reach the target market and fulfill the expectation level of thecustomers. The study would follow the strategic management issues faced by Holden Car, therenowned automobile company located in Australia. The company has been facing the negativeconsequences due to strategic failure. The study would develop the insightful ideas about thetheoretical background of the strategic management. The observation of the strategicmanagement theoretical concept, the study would present some of the preferablerecommendation for the future sustainability of the company. DiscussionThe top executives of the organisation ponder the strategic missions and objectives.Holden Car is the renowned brand of General Motors that has been operating business muchsuccessfully. However, in current state, the company has been facing some of the significant
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2MANAGEMENT THEORY AND PRACTICEissues due to the mismanagement of the strategic functionalities. The company used the TVcommercials for communicating the post-announcement. This move was quite insignificant inthis volatile business market (Themotorreport.com.au., 2017). However, the announcementthrough the advertisement was not revealing the higher quality of the car, rather focused on theranges of customers, sportspeople, individuals, and employees. In this competitive scenario, thecompanies are trying to gather the attention of the customers with high quality products andservices. In fact, it is even necessary to keep focus on the customers’ demands to improve brandposition (Epubs.scu.edu.au, 2017). Therefore, such issues with the promotional advertisingprocess were the determinant in establishing the strategic position in this competitive market. Itwas necessary to derive the adequate knowledge about the strategic positioning process. Thefurther study would focus on the theoretical concept of thee strategic management. The obtainedideas would present the suitable recommendation for the future progress. The continuous and increasing pressure of the competitive business markets is persuadingthe companies to improve the management system and organisational functionalities. However,such pressures from the external market competitiveness are making these functionalities morecomplicated (Barney, 2014). However, the development of the theoretical concept is quitenecessary for organizing the business functionalities and strengthening the competitive position.One of the most effective strategic theories is Resource Based View. This strategic approachfocuses on the competitive position of the firm. It is notable that the resources are the major assetof structuring the strategic functionalities. The resource based view is focusing on achieving thecompetitive advantage by supporting the core competency skills of the company (Wheelen &Hunger, 2017). The RBV model specifies the proponents that are much feasible in availing theopportunities from the external market. However, the model concentrates on developing the
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3MANAGEMENT THEORY AND PRACTICEinnovative ways of using the existing resources rather than focusing on the new skills fordifferent opportunities. According to Rothaermel (2015), the resource management of thecompany plays the most significant role in increasing the competency level. There are twodifferent types of the resources found, such as tangible and intangible. The physical resources,such as, lands, buildings, equipment, machinery, and capitals are the tangible resources. It is tobe indicated that the resources can be brought to the market for conferring advantage for a firm.Similarly, Holden car has the automobile technologies and the manufacturing location where thebusiness can become more productive (Peteraf, Gamble & Thompson Jr (2014). Quality is one ofthe most demanding factors that influence the purchasing decisions of the customers. Holden carrequires adopting more advanced technologies that can eventually improve the production houseactivities. Moreover, implementation of these technological tools can be more helpful inimproving the distribution channels as well as the logistic process (Lin & Wu, 2014). Moreover,the company requires focusing on the advertising technologies for promoting the business withmore efficiency. However, the rivals keep focus on the identical assets and often try to imitatethe same. ‘On the other hand, the intangible resources do not have the physical presence but areowned by the company. For example, the reputation of the brand, intellectual property, andtrademarks are all considered as the intangible factors or assets of the company. It has beenobserved that the automobile industry usually offer the similar kind of products (Kull, Mena &Korschun, 2016). These companies generally focus on manufacturing cars and automobileservices. It would be helpful for the company to earn profit if the company can introduce moreproduct variations. It is to be mentioned that along with the tangible resources, the intangibleresources also determine the long term sustainability of the firm. Holden Car is the brand of
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