University Report: Strategic Management of ABC Company's Expansion

This report analyzes ABC Company, a London-based online electronic goods retailer, and its strategic management approach to expand its distribution centers and make online sales available in all EU countries. The report explores the strategic environment, emphasizing the importance of a shared understanding of business priorities for positive organizational performance. It delves into classifying information for management, strategic planning, and achieving competitive advantage. The analysis includes the strategic use of information systems, change management, and the application of tools like PESTEL analysis to identify market threats. The report highlights the need for financial and change management strategies, discussing the competitive landscape and the importance of considering factors like political and economic scenarios for successful expansion. It emphasizes that strategic planning helps define strategies, allocate resources, and control mechanisms. The report underscores the significance of strategic priorities and change management in achieving business objectives and competitive advantage.

Running head: MANAGEMENT
Management
Name of the student
Name of the university
Author Note

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Table of Contents
Description of the scenario.........................................................................................................2
Strategic environment................................................................................................................2
Classifying information for management purposes...................................................................4
Strategic planning.......................................................................................................................6
Competitive advantage...............................................................................................................8
Managing for competitive advantage.......................................................................................10
Understanding and causing consensus.....................................................................................12
An analysis and constant view of change................................................................................14
Outsourcing and privacy..........................................................................................................15
Information as an asset in itself................................................................................................16
Reference..................................................................................................................................18

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Description of the scenario
ABC Company is a London based company that is known for selling electronic goods
online. The mission of the company is to expand its distribution centre in Manchester as well
as Edinburgh. The aim of the company for the current year is to make the availability of
online sales possible for all the countries involved in the European Union. The strategic use
of the information system as well as the information available is taken into account so that it
can strive for competitive advantage in the market. The scenario is to demonstrate the
importance of strategic priorities of the business organisation so that positive contribution can
be made to the performance of the organisation. The possibility and effectiveness of change
as a constant feature for the development of a proper organisational environment can be taken
into account so that association with undertaking risk mitigation initiatives can be taken into
account. The strategic management of change in an organisation can be associated with
achieving the performance objectives and competitive advantage of the business.
Strategic environment
The assessment of the strategic environment can be considered as a systematic
decision process, which aims to ensure environmental sustainability as well as aspects, which
are considered effective for the formulation of strategic policy. As stated by Kaplan and
Atkinson (2015) it helps in making plans and programs keeping in mind a structured and
rigorous approach towards a participative as well as open and transparent environmental
impact. Ansoff et al. (2018) is of the opinion that the application of the strategic environment
can be made can be used by public planning authorities so that a participative and an able-
bodied EIA based process can be taken into account. In this regard, from the words of
Laudon and Laudon (2016) it can be said that the application of the strategic environment

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analysis can be made towards policies that consists of flexibility as well as legitimate
legislative proposals for planning.
Therefore, from the evidence provided by Noe et al. (2017) it can be said that the
application of the strategic environment can be used to understand the factors involved in
trying to gain evidence for proper sustainable development and an improved governance for
providing substantive focus with respect to questioning and issues regarding policy making
policies. Thus, as stated by Holling (2017) for a strategic environment to work in an effective
manner, it is necessary that it take place in a structured and tiered organisational setting so
that decision-making assessment can be made properly.
In the case of ABC Company, it is necessary that the strategic environment be taken
into consideration based on the competitive advantage that may be derived. As pointed out by
Fayol (2016) the strategic environment is considered as one of the most important aspects,
which can help in the expansion of a company. It has already been seen that the company
aims to expand its online sales corporation towards the European Union. Therefore, the
application of the strategic environment can help ABC Company gain an assessment of the
European Union and its progress towards the expansion of the sales. As observed by
Christopher (2016) with most of the members of the European Union countries implementing
a directive approach towards the strategic environment factors, it is necessary to consider the
implementation of the directive principals as stated by the European Union.
In this regard, it can be said that for ABC Company to compete in a competitive
environment, the necessity can be to develop an environmental impact that can help in
cascading down the decision making impact in the business. At the same time, as observed by
Meredith, Mantel Jr, and Shafer (2017) the changes implemented can help in reducing the
amount of work required so that a handover procedure of the business can be overseen. Thus

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for ABC Company, the application of the strategic environment assessment can be based on
identifying every factor which can be involved in the decision making of the business.
In this regard, from the evidence gathered by Kerzner (2017) it can be said that
assessment of the environment need to be done so that the aim and structure of the
organisation can be taken into account. For ABC Company, the strategic environment
directive can be applied for planning and formulating policies directed at expansion. As
stated by Fleisher and Bensoussan (2015) for instance, the analysis of the political assessment
of each of the European Union countries needs to be taken into consideration so that impact
of the environment along with the economic and social factors are made available in the
market. Thus, for becoming a successful organisation, it is necessary that ABC Company
include the sustainability programmes on its electronic products before gaining an expansion
into the market.
Classifying information for management purposes
Information gathering, sharing as well as communicating with colleagues and
managers need to be considered as important for the success of an organisation. Therefore,
from the words of Laseter et al. (2017) it can be said that classification of information need to
be done so that proper managerial consideration can be taken and thus, it can lead to the
development of a proper standard or process for success in an organisation. Chen et al.
(2017) stated that some of the information that is required to be maintained by an
organisation includes the time standards, design standards, nature and utilisation of important
processes as well as the competitive advantage that can be gained. Thus, Jia et al. (2017) is of
the opinion that it can be said that classified information are usually the top-secret
information that is required to be kept confidential on most occasions.

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Information
Characteristics Management hierarchy Application
Action vs non-action
Recurring vs non
recurring
Internal vs External
Superior level
Middle level
Top-level
Planning
Control
Knowledge
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As stated by Liu and Tyagi (2017) the classification is made so that interest of the
managers can be maintained and employees do not get to be involved in undertaking any
decisions regarding the classification of the information. Therefore, from the evidence
collected by Grant (2016) an analysis can be made about the manner in which information
classification can take place so that categorisation of the important and non-important
information can be undertaken. Xu et al. (2017) is of the opinion that this can provide a
business with facilitation that can aid in the sharing of information for purposes required for
an organisation. The various categories by which classification of information is made are
provided in the figure.
Figure 1: Classification of information
(Source: Oshri, Kotlarsky and Willcocks 2015)
From the above figure, it can be seen that information classification can be done on
three levels. As stated by Globerman and Vining (2017) these levels have extensive
importance in an organisation and thus need to be taken into consideration on a serious
manner. In the case of ABC Company, it can be said that such classification can be useful for

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the company to align with its goal and strategies. For example, from the words of Oshri,
Kotlarsky and Willcocks (2015) it can be said that classification of information via
management hierarchy can be marked as confidential or top secret since it involves all three
managers associated with an organisation. For ABC Company, the top-level manager needs
to be made aware of the strategies that are being undertaken so that expansion into the
European Union can be made simple.
At the same time, any strategies related to implementation of changes in an
organisation need to be shared and classified with the managers so that proper strategies can
take place. ABC Company also needs to ensure that the application of the information
required for its strategic growth and development needs to maintain information regarding
knowledge, control as well as planning. However, for ABC, it is necessary that the company
maintain and classify information that relate to the external as well as internal business
environment. This can help in the strategic planning of its actions.
Strategic planning
The strategic planning of an organisation helps it to define its strategies and actions
undertaken. According to White and James (2017), the strategies define the allocated
resources, which are required for pursuing a successful career in strategic management. The
expansion of strategic planning can be made to control mechanisms that are required for
guiding the implementation of the strategy. As stated by Schniederjans, Schniederjans and
Schniederjans (2015) the prominence of the application of strategic planning can be traced
back in the 1960s, and since then it has managed to remain an asset for organisations and
strategy planners.
The implementation of the strategic planning is done keeping in mind the relationship
that an organisation possesses with its external sources. In the words of Willcocks and Lacity

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(2016), formulation processes can be involved in strategic planning that can help in the
coordination of maintained strategies as well as synthesis in strategic thinking. In this regard,
Lan et al. (2016) stated that it could be said that strategic planning can be considered as one
of the most important activity that is required to be done so that an analysis of the structure as
well as goal setting activity can be taken into account. Kuek et al. (2015) stated that the input
of a company, its activities undertaken and the output of a company need to be analysed so
that outcomes can be manipulated for strategic implementation.
In the case of ABC Company, it can be said that the strategic planning need to be
based on the manner in which expansion and changes can take place. As observed from the
overview of the company, the aim is to expand in the European Union and distribute its
electronic products in markets outside the United Kingdom. Thus, strategic planning is
considered as one of the most important aspect that can help ABC Company to manage its
expansion. One of the strategies that can be implemented by the company is the manner in
which it can control its finances.
The financial management of ABC Company is important as it can help in
determining the monetary involvement required for success. At the same time, as identified
by Khan (2018) for the expansion to take place, it is necessary that change management be
implemented as it can help in bringing about an identified strategy that is required for
analysis. The changes that is required to be made need to be based on the manner in which
ABC Company can comprehend its existence in the market. Therefore, Abadi et al. (2016)
stated that the application of tools and techniques such as PESTEL analysis could be
implemented in order to understand the techniques that are required for market development.
Therefore, based on this it can be said that for ABC Company, the PESTEL analysis
of the company can help in identifying the competitive threats that exist in the market and the

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manner in which it can be solved. For example, as pointed out by Acquisti, Taylor and
Wagman (2016) the political scenario in most countries in the European Union can be
considered as unstable and thus, it can be difficult for ABC Company to continue and adjust
to the selling of electronic goods product without proper license. At the same time, according
to Benn (2017) economic condition of a country such as France is different from that in Italy.
Thus, Zyskind and Nathan (2015) is of the opinion that this is another consideration that is
required to be undertaken for the expansion and promotion in the across the European Union.
Competitive advantage
The competitive advantage can be considered as an attribute, which allow
organisations to gain an advantage by outperforming its competitors. According to Shokri
and Shmatikov (2015), a competitive advantage can include accessibility to natural resources,
which includes understanding low cost power sources as well as high skilled labour and
geographic location. As stated by Hayes (2018) in general, three types of generic competitive
strategies exist in order to gain a competitive advantage in the market. The three types
include cost leadership strategy, differential strategy and focus strategy. Doppelt (2017)
observed that the competitive advantage could be gained by underlying the internal factors,
which includes gaining a corporate identity and identifying core competencies in business.
In this regard, from the evidence provided by Lozano, Nummert and Ceulemans
(2016) it can be said that the application of the three competitive strategies can provide an
organisation with an opportunity to develop itself in the market and remain involved with the
use and application of current and future resources. Thus, in the words of Cameron and Green
(2015) competitive advantage can be considered as an advantage that a business possesses
over its competitors. Hence, as stated by Donnelly and Kirk (2015) the value proposition of a
business can be considered as effective so that expectation of customers can improve and

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with it, the choices made over an organisation. For ABC Company, the application of the
three generic competitive strategies can be considered as a mode of implementing its
existence in the European Union.
The application of the cost leadership strategy can provide ABC Company with an
opportunity and ability to produce goods and services that can be lower than its competitors
can. ABC Company, can reduce the prices of the electronic supplied and thus can gain an
advantage in the European Union during its expansion. However, as countered by Cook
(2015) the quality of the electronic products need to be maintained so that complaints
regarding the quality of the products can be avoided and at the same time, large profit can be
gained in the business. According to Kaplan and Atkinson (2015), the application of the
differentiation strategy can help ABC Company to ensure that its products are different from
the competitors.
This can help to provide a unique quality to the services and the electronic products
that are sold. As stated by Ansoff et al. (2018) the key to success using the differentiation
strategy is that it needs to make the product look attractive to the customers. Noe et al. (2017)
opines that the focus strategy can be utilised to enhance the business aim. In the case of ABC
Company, the aim is to ensure that it expands in the business market and develop appropriate
resources so that it can gain the ability to improve its current conditions in the market.
Therefore, in the words of Laudon and Laudon (2016) it is necessary that segmentation of the
target market be done so that needs of the customers are met.
For ABC Company, the countries within the European Union need to be analysed so
that an assessment can be made based on the target market. It is necessary that ABC
Company target small business association so that it can gain popularity in the business.
Along with this, Holling (2017) is of the opinion that underlying internal factors such as

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positioning of the company to develop market concept along with the right perceptions are
needed to be taken into consideration. Thus, it can be said that overall, for ABC Company to
maintain its successful strategy in business maintaining a corporate identity is necessary.
Managing for competitive advantage
The competitive advantage of an organisation can be maintained by identifying a
suitable model that can be used. According to Meredith, Mantel Jr, and Shafer (2017), the
application of the model can help in the development of a competitive advantage in an
organisation so that external and internal changes can be made part of organisational success.
Therefore, as said by Christopher (2016) an assessment of the organisational development as
well as uniqueness of the competition need to be taken into account so that competitive
advantage can be managed and maintained in a proper manner. In this regard, as stated by
Kerzner (2017) an assessment of the mode can be identified in order to understand the
impending competitive advantage that can be derived due to the core competencies
possessed.
Competitive advantage can be managed in order to identify the manner in which
target of the organisations can be interrelated to one another. In this regard, from the evidence
gathered from Fleisher and Bensoussan (2015) it can be said that for an effective
development of an organisation in a competitive market, it is necessary that management of
the advantages that are intended be maintained. In this regard, as observed by Laseter et al.
(2017) it can be said that for ABC Company, it is necessary that the company identifies
mechanisms based on which a competitive advantage can be maintained by applying the
generic model as stated earlier.
The competitive advantage model that can be applied by ABC Company includes:

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External changes Internal changes
Making changes
in PESTEL
factors
Ability to respond
to fast changes
VRIO Resources
Unique competencies
Innovative capabilities
Cost advantage Differentiation advantage
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Figure 2: Competitive advantage model
(Source: Fayol 2016)
Based on the analysis of the figure, it can be seen that in order to gain a competitive
advantage in the market, it is necessary for an organisation to understand the differentiation
strategies that are to be implemented. According to Chen et al. (2017), in order to understand
the competitive advantage that can be gained from analysis the external factors, it is
necessary that cost advantage via PESTEL be recorded. At the same time, Jia et al. (2017) is
of the opinion that for the internal changes, differentiation strategies can be taken into
consideration via the use of VRIO or other innovative capabilities.
Thus, in the case of ABC Company, it is necessary that the company identify and
implement the various techniques required for competitive advantage so that management of
the competencies can be maintained. From the analysis, it can be seen that ABC Company
need to implement external changes so that the company can maintain its stability with the
countries in the European Union.