MPM703: Business Strategy and Analysis T2 2020 Assessment 1 Solution

This document presents a comprehensive solution to MPM703 Business Strategy and Analysis Assessment 1, addressing key aspects of the assignment. The solution begins by identifying two critical learnings from a business simulation using the Balanced Scorecard, detailing specific events that triggered these insights and providing examples of their application in real-world business scenarios, including Kogan's strategic implementations. The analysis further explores two significant learnings derived from case studies, focusing on international expansion strategies and the importance of location strategy, using examples such as Starbucks and Xbox. The solution also covers the SWOT/TOWS analysis tool, explaining its significance in strategic planning. Additionally, it examines various international entry modes, such as joint ventures, mergers and acquisitions, and franchising, suggesting joint ventures as a suitable entry mode for Kogan in the Indian market. Finally, the document explores Kogan's diversification strategy, highlighting its benefits and the role of technological capabilities and economies of scale.

Assessment
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Table of Contents
Question 1........................................................................................................................................3
Identify 2 learnings from simulation and events that triggered these learnings..........................3
Provide example of application of these learning........................................................................3
Question 2........................................................................................................................................4
Identify 2 learning from cases.....................................................................................................4
QUESTION 3..................................................................................................................................5
Analysis tool covered in this unit and importance of the tool.....................................................5
QUESTION 4..................................................................................................................................6
Various international entry mode................................................................................................6
Suggestion for mode of entry......................................................................................................7
QUESTION 4..................................................................................................................................7
Diversification of Kogan.............................................................................................................7
REFERENCES................................................................................................................................8
APPENDIX....................................................................................................................................10
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Question 1
Identify 2 learnings from simulation and events that triggered these learnings
By doing the simulation there were many learning which I gained. I know that the
business game was a long process and it included many things and events from which I learned
various things and gained knowledge as well. So, the main two learning which I gained from
simulation game is as follows:
Use of BSC- It is the major learning which I learned from simulation game (Gatti, Ulrich. and
Seele, 2019). Here, I found that how in simulation game company uses BSC to develop strategy
and implement them. Besides that, I learned how with help of it strategic planning is done and
goals are attained. In addition to that, I got insight about 4 perspective of BSC that is finance,
customer, internal process and learning and growth. These all enable in taking strategic decisions
in simulation game and then on basis of that goals are formed. Thus, overall success of company
in game is depends on development of BSC and how it is implemented. Hence, mission, goals,
etc. are formed on basis of it. here, event from which I got to learn is forming of objective and
doing strategic planning
Location strategy- this is also learning which I gained from playing simulation game. Here, I
got to know that how firm do break even analysis and then on basis of it location strategy is
developed (Alstete, and Beutell, 2019). Therefore, it is a complex process in which lot of
calculation is required. Moreover, planning is needed to set strategic goals and then location
strategy is examined. The event in simulation game in which I learned this is doing internal and
external analysis. Here, I did swot and tows to evaluate how business can expand in location that
is suitable.
Provide example of application of these learning
This can be identified from above learning in simulation that it can be applied in both
real life an hypothetical way. Here, BSC was applied by Kogan company to implement their
strategic goals. They examined strategic assessment of firm with help of swot and vrio. With that
it was easy for company to analyse their strategic resources and on basis of it BSC was formed.
In addition to it, pestle was done to evaluate external factor and thus it was stated how strategic
is firm resources. Hence, on basis of that goals were developed and then it led to formation of
BSC. Along with that, Kogan executed this to identify who are its competitors, to what extent
strategy can be successful, etc. (Goi, 2019)
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Similarly, location strategy was also applied by Kogan in which they did break even
analysis. For that they calculated profit and on basis of that break even was done. However,
Kogan did identified various location where they can expand. For these all location they did
break even. It provided an insight to them that what location will be suitable. Besides that, pestle
was done to examine factors of those location. Furthermore, for future prediction as well break
even analysis was done. So, in this way overall application was applied by Kogan.
Question 2
Identify 2 learning from cases
I also learned many things by analysing the cases. First is I learned that for international
expansion there is need to select appropriate strategy so that firm can enter in it. Besides that,
there are various other elements that need to be considered. So, there were many companies who
failed during expansion. I got to know that Starbucks failed in Australia due to many reasons. It
is identified that there might not be great demand of product. Also, location strategy used by firm
might not be effective enough. There is improper selection of strategy by them. Timing strategy
also play vital role in global expansion. therefore, Starbucks strategy may not be proper. This has
impacted on their time to enter in Australia (Pratt, and Hahn, 2016). At last I learned from it
that entry mode strategy can be reason of failure.
Also, another learning from case is I found that location strategy is necessary to identify
location strategy so that firm does not fail in other country. This can be seen in case of Xbox
failure is Japan, Walmart in Brazil , etc. here, company did not determined location strategy and
this lead to failure. They did not conducted break even analysis that resulted in ineffective
implementation of BSC and forming of goals. Hence, I learned role of location strategy is both
success and failure of firm in global expansion.
Justify why these are important and help in professional career
These are important learning because it gives an overview about how company success is
dependent on strategic evaluation, goals, etc. furthermore, it helps in doing proper analysis of
resources, factors, etc. on basis of which location is selected. With these learning it can be
applied in simulation games and developing of strategy.
The learning will help me in my professional career as I will be able to play simulation
games in effective way. Moreover, I will get idea of doing BSC and analyinsg resources from it.
this will be used in taking effective decision during simulation and how it can be applied by
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business in forming of goals and selection of location strategy. Also, as I have gained knowledge
about role of strategy and BSC in success and failure of business I can pursue my career and
become a manager of firm (Buil, Catalán, and Martínez, 2018). Hence, this will sharpen my
decision making skills and I can also become strategic analyst. With that I can determine firm
needs to provide direction to succeed. So, I will gain experience as well from these learnings in
my professional life.
QUESTION 3
Analysis tool covered in this unit and importance of the tool
Analysis tool which is covered in this unit is SWOT/TOWS analysis. This tool can be used
by company in order to analyse their internal strength and weakness. It is also being used to
identify external opportunities and threats. This tool is really useful as by it organisation have an
idea about where they are lacking and what they need to improve in order to remain in market
and also to gain competitive advantage. SWOT analysis is being used by various companies to
know about potential of their ideas (Schellenberg, Harker and Jafari, 2018). By this they can
know whether their idea will be successful or not. This tool assists organisation in doing strategic
planning so that they can easily be able to meet out their goals as well as target. For example, An
Australian super market chain known as Woolworths is making use of SWOT analysis so that
they can give an upper hand over its competitors. This strategic analysis is also being undertaken
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by firm so that they can have knowledge about areas where brand needs improvement. By
making use of this tool organisation has also able to grab various opportunities.
QUESTION 4
Various international entry mode
In order to grow internationally various mode of entry can be used by organisation. This
includes the following:
(Indian market outlook: In appendix)
Joint venture: It is basically a form of partnership where two companies tend to work
together so that they can form one. In this companies agree to work together in either same
geographical location or they work on same product. Profits and risk are usually shared by them
equally (Tulung, 2017). This can be one of the easiest way of entering into new market as it
assists business in grow faster and also it generates better profit. There are various benefits of
joint venture like organisation can get access to better and new market and also they can have
effective distribution centre. They can share risk and costs with other organisation. But joint
ventures can also implement significant risks like there are chances that there is an ineffective
communication between partners because of different culture.
Mergers and Acquisition: In this process one company can merge with other firm or even
they can acquire it. It is fastest mode of entry to a new market. In this mode power and control of
organisation merges and because of this their efficiency increases. It also overcomes the barriers
related to It is an appropriate method as financial risk can be managed by both organisation and
also risk related to bringing out innovative products also reduces down. They can also have
larger access to consumer’s market and also they are merging with an organisation who is
already established they will able to know more about market situation. This can support
company in growing and also their efficiency can be increased because of this. If firm is opting
this method then there are chances that they can lose their experience workers in this process.
Also employees might not be able to adjust to new environment.
Franchising: It is a marketing concept which can be used by company in order to expand
their business. Franchisor has the original business and they can provide it to franchisee in
different area or market condition. Organisation can have different benefits of this method like
there are chances that franchisee has more expertise and talent in growing up the business. By
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this company can easily able to gain success in comparison to start-up. The weakness of this
method is that franchisee earn more profit and this can be a possible reason of conflict.
Suggestion for mode of entry
From the case study it can be said that Kogan is focusing on entering market of India. For
this they can make use of Joint venture as international mode of entry. It can be considered as
one of the best and fastest mode of entry (Xu, Hitt and Miller, 2020). This method is suggested
because risk related to failure can be shared by them with different firm and also they can have
adequate resources and funds which is really necessary for success of organisation. Kogan can
also learn from the experiences of other company.
QUESTION 4
Diversification of Kogan
From the case study it has been analysed that Kogan has diversify their market into many
different industries. Organisation has diversified its business into various industries like retail,
insurance, health, pet and many more. There are various reasons which proves that diversifying
in so many directions are essential for long run. Through this option Kogan is been able to get
more product variety. By expanding their market in new areas, they tend to do keen market
research and invest their money in different services. This has assisted them in grabbing attention
from consumers and has helped Kogan in increasing their brand awareness. They have also been
able to increase their profitability by investing in different market segments. Kogan is able to
trap more markets as they have so many products to sell, they require new areas so this has
enhanced their overall revenue and because of this company has able to increase their brand
reputation as well as value. It has also been analysed that organisation because of this strategy
has also been able to enhance their technological capabilities as more and more R&D
expenditure has assisted them in techniques, now they have made use of more automation and
artificial intelligence. This has assisted firm in increasing their productivity and also they have
become more effective (Gyan, Brahmana and Bakri, 2017). Diversification strategy has also
provided Kogan with economies of scale. There cost of manufacturing has come down and
margin of profit has come up. This has assisted Kogan in gaining more success and competitive
advantage. They have also been able to increase their brand awareness by making use of
diversification strategy. This has also assisted them in growing and attracting more potential
consumers towards them.
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REFERENCES
Books and journals
Alstete, J.W. and Beutell, N.J., 2019. Business simulation and assurance of learning. Quality
Assurance in Education.
Buil, I., Catalán, S. and Martínez, E., 2018. Exploring students' flow experiences in business
simulation games. Journal of Computer Assisted Learning, 34(2), pp.183-192.
Gatti, L., Ulrich, M. and Seele, P., 2019. Education for sustainable development through
business simulation games: An exploratory study of sustainability gamification and its
effects on students' learning outcomes. Journal of cleaner production, 207, pp.667-678.
Goi, C.L., 2019. The use of business simulation games in teaching and learning. Journal of
Education for Business, 94(5), pp.342-349.
Gyan, A.K., Brahmana, R. and Bakri, A.K., 2017. Diversification strategy, efficiency, and firm
performance: Insight from emerging market. Research in International Business and
Finance.42. pp.1103-1114.
Pratt, M.A. and Hahn, S., 2016. Enhancing hospitality student learning through the use of a
business simulation. Journal of Hospitality, Leisure, Sport & Tourism Education, 19,
pp.10-18.
Schellenberg, M., Harker, M.J. and Jafari, A., 2018. International market entry mode–a
systematic literature review. Journal of Strategic Marketing, 26(7), pp.601-627.
Tulung, J.E., 2017. Resource Availability and Firm’s International Strategy as Key Determinants
Of Entry Mode Choice. Jurnal Aplikasi Manajemen, 15(1), pp.160-168.
Xu, K., Hitt, M.A. and Miller, S.R., 2020. The ownership structure contingency in the sequential
international entry mode decision process: Family owners and institutional investors in
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family-dominant versus family-influenced firms. Journal of International Business
Studies, 51(2), pp.151-171.
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APPENDIX
Indian market outlook
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