Managing Business Strategy: Hong Kong Jockey Club Analysis Report

This report provides a comprehensive analysis of the Hong Kong Jockey Club's business strategy. It begins with an introduction to the company's nature, mission, vision, and core competencies. A balanced scorecard is designed to measure performance across financial, customer, internal business process, and learning and growth perspectives. The report then applies PESTLE analysis to understand the external business environment and Porter's Five Forces to identify competitive forces. Finally, it explores strategy implementation methods for achieving desired growth and success. The report highlights the company's commitment to customer service, employee development, and its significant contributions to the Hong Kong economy. This report uses analytical reports for performance measurement and innovative strategies for growth.

MANAGING BUSINESS
STRATEGY

EXECUTIVE SUMMARY
This report is written in context with Hong Kong Jockey club which is a non-profit firm
offering sporting, horse racing and betting entertainment within Hong Kong. Company was
founded in 1884 and headquartered in Hong Kong. This assignment is going to discuss about
vision and mission of the company which is to became a market leader in offering sporting and
entertainment to people. For designing balanced score card, firm can use its analytical report so
that performance can be measured properly. Beside this, PESTLE analysis will be conducted to
acknowledge external business environment in a deeply manner. Porter's five force model is
applied so that different competitive forces affecting market can be identified easily. At last, by
using strategy implementation method, organisation will apply various innovative strategies
which will benefits the company in achieving their desired growth, results and success.

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Introduction of business nature of organisation along with its mission, vision and core
competencies..........................................................................................................................1
Designing of balance scorecard for firm by highlighting analytical report for performance
matrix......................................................................................................................................3
PESTLE analysis in organizational context...........................................................................5
Porter's five forces to identify competitive forces of market sector.......................................7
Strategy implementation method to implement innovative strategies in organizational context
................................................................................................................................................9
RECOMMENDATION.................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business strategy is referred to the set of actions or decisions that benefits a business
person in attention particular business objectives. It is a master plan which is implemented by the
management of an organisation so that a stable position can be secured within marketplace.
Managing business strategy is defined as different tactics which are adopted by a company so
that required strategies can be implemented in a proper manner (Barberá and et. al., 2012). This
assignment report is written in context with Hong Kong jockey club which is a Hong Kong based
non-profit and charity organisation. This company provides sporting, betting entertainment and
house racing to their customers. Hong Kong Jockey club was founded in 1884 and in 1971,
jockey club is transformed into a professional racing institution for horses. Company is a charity
and non-profit business which have the goal to offer high entertainment and sporting facilities to
the local residents or outside visitors.
Beside this, organisation also provides football betting and lottery activities so that
customers can spend quality time by trying their luck. Jockey club has also started a horse
training hub so that their charity institution can further expand in Hong Kong market. Company
uses major of their earning in community works and projects. Club is sustaining a strong position
in marketplace from last 135 years (Blackburn, Hart and Wainwright, 2013). Company also
contributes high in the economy of country by different ways such as donation, lottery fund,
offering job opportunities, taxes, development of infrastructure etc. Horse racing and associated
sporting in Hong Kong is a smartest and slickest racing product in global context. This sport is
high on integrity and quality, huge in case of turnover and very easy to understand. This report
will include about business nature, mission, vision and core competencies of the company.
Balanced score card for concerned company is designed to acknowledge performance of
company. PESTLE framework and porter's five forces is performed to acknowledge business and
business environment. At last, methods of strategy implementation are used so that innovative
business strategies can be applied in a proper manner.
MAIN BODY
Introduction of business nature of organisation along with its mission, vision and core
competencies
Business nature of company
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Hong Kong jockey club is a globally renowned racing club which is associated with
continuous betterment of the society. Organisation was founded in 1884 so that racing can be
promoted. It is a membership club which operates as a racecourse and world class racing
entertainment. By this, club is able to generate social and economic values. Company is a
charitable organisation and in the year of 2017-2018, this firm has formulated a record by
returning approx HK$22.6 billion in profits and duty tax. Beside this, company has also
contributed around HK$ 1 billion to lottery funds. Around 79.4% of revenue which is collected
via lottery and betting is returned to Hong Kong government. In 2005, concerned organisation
also has founded racing development board so that required business policy can be formulated
and essential training must be provided to the industry personnel (Chang, 2016).
Vision of the company
Main vision of the company is to promote racing as an ultimate lifestyle for members of
young elite and to gain exclusive insight in racing through different programs.
Mission of the organisation
Mission of company is to bring individuals together so that they can live a prestigious
lifestyle by exploring trendy things, which are not generally available in town, like sport parties,
exclusive horse racing and other leisure activities.
Core competencies
Organisation is highly committed to support its employees and other staff to attain
continuous development and growth. In this context, company have some core competencies
which offer different development opportunities to workers and quality service to customers. By
this, employees can deliver their best performance within an organisation. Below are discussed
core competencies of Hong Kong jockey club:
 Company offers exceptional customer service on time and within their budget to sustain
their customer base for longer time period.
 Different leadership programs are initiated with the objective of enhancing capabilities of
manager at various levels so that their career aspirations can be realised properly.
 Company offers sponsorship for external trainings so that employees can unleash their
hidden working potential ( Flouris, Triant and Sharon 2016).
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Designing of balance scorecard for firm by highlighting analytical report for performance matrix
Balance Scorecard is a strategic performance or a management technique or a tool that is
used by the managers to keep the track of the execution of the activities. Its major objective is to
translate organisational vision and mission into actual form so as to attain the goals and
objectives of the organisation in a proper manner. Its main focus is to balance the strategic goals
and overall vision of the organisation by analysing, measuring and managing the major business
perspectives such as customer, financial, internal business process and learning and growth.
Performance metrics helps in measuring organisations behaviour, activities and
performance. It also helps in determining that employees or workers within the business are
performing their respective task in a proper manner towards attaining the goals and objectives of
the company. In addition to this developing and determining performance metrics usually
follows the process of establishing critical process and customer requirements, identifying
quantifiable outputs of work and establishing targets against which the results can be scored.
Therefore, performance metrics are often linked with the corporate strategy that is to measure
performance against the critical success factor (Ghezzi, 2013).
HONG KONG Jockey Club
Strategy
Basis or
Performance
Metrics
Objectives Measures Targets Initiatives
Financial It has no
objective to
have financial
gains it
purpose is to
provide
sporting and
entertainment
facilities to the
Increase in the
number of
target
customers.
To have
maximum
profit and
provide socio
economic
benefits to the
individuals
within the
society.
To attract
larger number
of customers
and thereby
increase
profits.
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customer.
Customer To target new
customers by
providing
them with
attractive
services.
Percent of
high in sales
from the new
services
offered to the
customers.
To provide
maximum
entertainment
benefits to the
customers so
that profit
earned help in
economic
development
of the country.
To provide
new and
innovative
services to the
customers so
as to gain
competitive
advantage
over the rival
companies.
Internal
Business
Process
To adopt to
latest
technology
and proper
resources so
that proper
services can
be offered to
the customers.
To analyse the
satisfaction
level of
customers
towards
adopting
proper internal
process and
practices.
To attain
maximum
efficiency in
the business
practices to
take
competitive
advantage
over the rival
companies.
To adopt to
the latest
technology
and maintains
efficiency in
their
operational
activities so as
to gain
competitively.
Learning and
Growth
To assist in
the continuous
benefit of the
individuals
within the
society.
To analyse the
benefits which
are being
offered to the
customers at a
larger extent.
To help the
maximum
individuals
within the
society and
enhance
goodwill of
the company.
To contribute
economy of
the country by
providing
donation,
lottery fund
and various
job
opportunities.
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As the balance score card is a set of financial and non financial measures which are
adopted by the company regarding the company's success factors. Hence this is the designing of
the proper balance score card which assist the company to measure its performance against the
different variables so that necessary actions can be taken to improve their profitability level and
therefore maintains long term existence of the business for a long time period. Moreover this
business model is usually seen as a strategy map which allows the organisation to think about the
cause and effect relationships. In addition to this it helps in proper strategic planning and helps to
maintain success of the organisation. It allows the company to set proper targets and initiatives
towards maintaining the success and growth of the companies (Madsen and Walker, 2015).
PESTLE analysis in organizational context
PESTLE analysis is a framework which is used by business organisations to identify and
understand external business environment in a deeply manner. With the help of this tool,
different political, social, technological, legal, economical and environmental aspects are
acknowledge in a detailed manner. This benefits the concerned company in taking right decision
due to which it will became easy for a company to achieve competitive advantage. In Context
with Hong Kong jockey club, PESTLE analysis is mentioned below:
 Political factors: These type of business factors are concerned with the stability of
national government, tariff policies and taxation rates. In case of Hong Kong,
government is elected through elections and country has political stability. Even, local
government plays a crucial role in setting policies and business related regulations. In this
context, Hong Kong jockey club is needed to closely monitor changes carried out by
local government and lobby them for effective working of organisation. In recent years,
Country has faced the problems of armed conflict due to which business operations of
Hong Kong jockey club can be impacted in negative manner. Taxation policies in Hong
Kong is lower which will helps the company in saving their revenues (Meskendahl,
2010).
 Economic factors: The economic aspects in PESTLE framework are linked with interest
rate, inflation rate, GDP, growth rate, purchasing power and disposable income of
people. After the great recession of 2018, inflation rate in UK is high due to which
purchasing power of people is reduced considerably. Due to this, people will reduce their
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expenses in leisure activities. Also, GDP of Hong Kong is not very high which implies
that common people living there do not earn very high income. This is the reason they
can't spend high on services which are offered by Hong Kong jockey club. But elite
population in Hong Kong is living a standardised life and leisure activities provided by
company are liked by them. Visitors which came for travelling and business purpose also
prefers to visit club to spend quality time. Due to this, it is beneficial for the concerned
organisation in operating in Hong Kong.
 Social factors :- Social values, norms and trends are directly effect the organisational
culture. Knowing the actual trends and customer spending behaviour helps the Hong
Kong jockey club in higher earning. There are various factors included in social factors
such as demographic trends so it is very important for the Hong Kong jockey club to
choose or select right type of segments with broad growth potential (Kohler, 2015). Each
person have its own values and norms which plays an important part in shaping
individual consumer behaviour. So it is necessary for Hong Kong jockey club to focuses
on the society attitude to offer premium quality products.
 Technological factors :- It is very important to understand the technological factors due
to constant technological advancement. Use of social media has become ordinary in
present days so Hong Kong jockey club used social media marketing to better its
enterprise performance. In present time continuous increasing innovate technology
shortened the product life cycle of brand-new product this become a threat for the Hong
Kong jockey club. So because of technological advancement Hong Kong jockey club
focuses on the new commodity development, innovation in existing commodity and
addition in product range variety and so on.
 Environmental factors :- The continuous increase in consciousness among people
regarding the environment increases the value of economical factors in the pestle
analysis. Hong Kong jockey club also focuses on the Continuous growing pollution.
Change in weather condition directly affect the production and business because of these
changes cost of production increases so Hong Kong jockey club make their value unit
more flexible to change their production process according to the climatic change. This
company also focuses of the ozone-friendly products because this is an opportunity for
the company to win trust of various stakeholders of the company.
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 Legal factors :- Legal environment includes various laws which are formed by the
government. Any organisation need to follow all the laws and regulation that are made by
the organisation so Hong Kong jockey club cannot enter into any new market without the
proper legal knowledge of that marketplace. Any avoidance of such laws and regulation
get organisation into some serious difficulty. Hong Kong jockey club must need to follow
all the health and safety laws which are taken for the welfare of the employees and
company also focuses on the protection of consumer private data which is not secured in
nowadays (Montgomery, 2011).
Porter's five forces to identify competitive forces of market sector
This model is introduced by Michael Porter which is a effective framework for analysing
the attractiveness and competitiveness of the industry in the global market. This model is
basically used for determining the intensity of competition in an industry. It is described as
follows-
 Intensity of competition- It is considered with the existing competition among the
existing players in the market. In the global market, business organisations have to
compete in a proper manner so as to so as to capture the larger market share. There is
rivalry among the existing competitors when products or the service cannot be
differentiated but can be easily substituted. Moreover when the competitors are of equal
nature of providing the effective products and services. Competitors for Hong Kong
Jockey club are phumelela's and betrader which assist the respective organisation to
provide effective services to the customer so as to attract them towards the service and
gains competitive advantage over the rival companies. Therefore intensity of competition
within the specific industry is moderate.
 Bargaining power of suppliers- It is considered to the fact that when there is strong
bargaining power it allows sellers to sell high priced materials or can provide them with
low cost service. This indirectly affects the profits of the buying organisation as they
have to pay higher price for the low cost service or the products. This situation in the
industry occurs when there are few substitutes for the product or the service as well
when there are lot of buyers for the product (Newton and et. al., 2015). In context to
Hong Kong Jockey club which provides horse racing, sporting and betting equipments
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need appropriate resources which bare easily available in the market. This shows that
there low bargaining power of suppliers in the industry.
 Bargaining power of customers- It is considered to the fact that buyers within the
industry has to power to demand lower price for the product when their bargaining
power is strong. This power is exerted by the buyers when they in buy in large quantities
as when the switching cost to other suppliers are low. In context to Hong Kong Jockey
club which provides services to the large number of customers, this shows that
customers have high bargaining power towards the services of the company and will
force company to reduce the prices of their sporting and meting equipments. Therefore
bargaining power of the customers within the industry is moderate. This forces the
chosen organisation to provide services to the customers at a moderate price so as to
provide them with maximum satisfaction.
 Threat of substitutes- This factor is associated with threat of substitute products
towards which the buyer can easily switch and creates impact on profitability and
competitiveness of the industry. Buyer normally switch to the substitute products when
the substitute product is being available at a lower price and thereby meets the demands
and requirement of the customer. In context to the respective industry there is low
switching cost of the buyers as there is no substitute of betting and sporting equipments
which allow the company to attains maximum profitability and productivity. Therefore
switching for the substitute under this industry is moderate (Pawitra, 2016).
 Threat of new entrants- It is considered to the fact that when the industry is profitable
and attractive and then there is a threat of new entrants within the industry. When there is
threat of new entrants within the specific industry it becomes difficult for the existing
company to earn more profitability and maintains its existence in the global market for a
long time period. In context to Hong Kong Jockey Club , if any new entrants is trying to
offer the same service it requires much of investment and cost so as to provide effective
services to the customer. Therefore in context to the specific industry there is low threat
of new entrants. This will allow Hong King Jockey club to provide effective services to
the customers and therefore maintains it sustainability in the complex business
environment.
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This provides a complete analysis of the Porters five forces model for the specific industry and
provides assistance to the Hong Kong Jockey club to frame and implement strategies towards
maintaining the growth and success of the business organisation. This is a effective framework
which helps them the respective organisation to analyse the level of competition and therefore
develops effective strategy for the same so as to gain competitive advantage over the rival
companies (Rahimi, Møller and Hvam, 2016).
Strategy implementation method to implement innovative strategies in organizational context
Strategy implementation is concerned to the execution of the plans and strategies in a
proper manner within the organisation so as to accomplish and attain the long term goals and
objectives of the organisation. It is the appropriate tool or the technique which helps the chosen
organisation to develop, utilise and properly integrates its structure, culture and resources to
follow the strategies and gain competitive advantage over its rival companies. There are various
ways or the methods toward the proper strategy implementation which are discussed as follows-
 Ensure that strategy is aligned with the organisation vision and mission-In order to
ensure that respective organisation works in a proper manner, it is the responsibility of
the manager to properly frame strategies that are in accordance with the company's vision
and mission I.e. to provide services to the customers without depriving for making profit.
Strategy should be framed so as to contribute maximum to the society and enhance their
business (Scherer, Rasche, Palazzo and Spicer, 2016). Therefore innovative strategy
should be implemented in such a way that assign properly within the organisational
vision , this ensures the long term existence of the business.
 Increase employee participation towards framing and implementing strategies- In
order to implement innovative strategies within the organisation it is necessary for the
managers to ensure that there is a proper harmonious culture at the work place so that
employees can easily work according to the new innovative strategies which is
implemented in the organisation and lead to attain positive results out of it. Moreover all
the employee should be involved in decision making so as to have proper concern about
their idea and suggestions towards implementing effective innovative strategies within
the organisation.
 Allocate proper budgetary resources- In order to properly implement the strategies, it
is necessary for the management of the company to allocate proper and accurate
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