Comprehensive Business Strategy Analysis Report for XCon Company

This report provides a comprehensive analysis of the business strategy of XCon, an event management company. It begins with an introduction to business strategy, its nature, scope, and importance, followed by a literature review. The main body of the report delves into the nature of business strategy at corporate, business, and functional levels. It also covers the goals identification process, including vision, mission, and values, and then applies strategic tools such as PESTLE and SWOT analyses to understand the external and internal environments. Furthermore, it utilizes Porter's Five Forces model for competitive analysis and discusses forecasting challenges. The report concludes with recommendations and a conclusion summarizing the key findings and insights, providing a strategic plan for XCon's future growth and success in the event management industry. It also includes references to relevant literature and journals.

Business Strategy

Table of Contents
INTRODUCTION.................................................................................................................................3
LITERATURE REVIEW......................................................................................................................3
MAIN BODY........................................................................................................................................3
Nature, scope and importance of business strategy............................................................................3
Nature of business strategy............................................................................................................3
Importance of business strategy.....................................................................................................4
Goals identification process...............................................................................................................5
Pestle.................................................................................................................................................6
SWOT Analysis.................................................................................................................................8
Porter's Five Forces model for identifying competitive analysis of the market................................10
Forecasting challenges effecting business strategies........................................................................11
RECOMMENDATION.......................................................................................................................12
CONCLUSION...................................................................................................................................13
REFERENCES....................................................................................................................................14
Books and journals..........................................................................................................................14

INTRODUCTION
Business strategy is that tool of management which includes several sets of activity
and will use to reach goals and objectives of firm, it consists of those plans which help the
firm to reach paramount of its operation and become global leader. Strategy is important to
organization because it helps them to identify the path on which firm have it walk and reach
to its targets. Planning is that process which helps the manager in exploration of future events
and manger firms resources according to uncertainties which can be arise in future. This is
that management function which help firm to plan for its goals and objective to achieve them
in a strategic way (Holotiuk, F. and Beimborn, D., 2017).
In this context of report chosen company is XCon, it is dealing in event management
and planning (Ritter and Gemünden, 2004). Company have perfect management system
which help firm in getting best out of there employee and execute business strategy perfectly
on firm, company have its existence from 1986 [online]. In this report all the aspect of
business strategy will be discussed that how firm can use this to gain competitive advantages.
This report will consist of different tools which are Anoff matrix, Pestle analysis, and SWOT
analysis to formulate business strategy of firm.
LITERATURE REVIEW
According to view point of Chesbrough and Appleyard, (2007) business strategy can
be describe as a set of tools which are used to identify business opportunity and competitive
advantage in business environment. In this report a business strategy will be formed which
can help firm to reach at the peak of global business market. All factors which are helpful in
making this will also be evaluated, a perfect business plan will also formed in this
programme. Impact of external factors which includes political, environmental, legal and
many more factors are also studded in this report . The impact of internal factors will also be
evaluated for formation of good business strategy which leads in success of organtional.

MAIN BODY
Nature, scope and importance of business strategy
Nature of business strategy
Nature of business strategy can be divided in three stages or parts which will explain what
business strategy are:
Corporate Level: This is that area of strategy where firm is operating.it includes
those resources which stay with firm operation either directly or indirectly. Here the
strategies are formed on the basis of energy and pattern which flow inside in firm this also
includes diverse set of business area (Verbeke, A., Coeurderoy, R. and Matt, T., 2018). For
Xcon this is important part of firm as it have to use this for management of event and
formulate cooperate strategies in firm. This help firm in identifying major profitable are
where firm can invest in future for good returns.
Business Level: These are those strategies which are formed at business level where
firm have to combine the resources and have to achieve its objective. This is form for
achievement of cost leadership in firm by which firm can achieve competitive advantage in
long run. This can also use by Xcon this in functioning of their process and can establish
good relation in firm (Bird and Beechler, 1995).
Functional Level: In this strategies are formed which are related to diafferent areas of
working such as marketing, finance, production and many more. These strategies are formed
by head of department and have nature to fulfil the requirement at department level (Su and
Hatton, 2017). There have their main focus to involve short term objectives in firm planning
and have to reach those objective in given time. For instance, Xcon is helps different types of
event management. Where there are different requirement according to task and event it can
formulate business strategy where it can fulfil requirement of employee.
Importance of business strategy
Creates a measure for success: This also help firm in measuring performance
in context of desire goals which firm want to achieve this help firm in answering question
that what are the desire of firm, where is it standing and which path is suitable for
achievement of gaols and profitability on firm.it helps in identifying the areas where firm is
losing and aim to improve them.

Increases adaptability: Business strategies are those which enable firm in
identification innovation which is currently running in society where Xcon is operating. This
will help firm in adopting this innovation in firm for smooth flow of work. This can be
achieved by analysing and reviewing customer’s expectations and needs, businesses can
better identify new market trends and adapt their strategy as required (Stephen, 2001).
Drives decisions: Strategies are formed to make decision process easier for firms
as it help firm in identifying strengths and weakness of firm and also identify efforts and
resources. These decisions are crucial in ensuring your business has a profitable and
sustainable future.
Gives direction: Main importance of business strategies is that it provides
direction to employees, and this direction helps them to achieve firm’s goals and
objectives by using resources in planned way
Goals identification process
Strategic management plan
A company is required to make a flexible and competitive strategic plan in order to
improve its standard and management. A strategic plan helps a business to achieve its
objectives and aims within a given time frame. It consists of vision, mission, aims, objectives,
tactics, values as well as market research required by a company. A strategic plan sets a path
for a company to move ahead in future. Following is a strategic plan including all these
factors:
Aim- Aim of organtional can be defining as set of objectives which firm try to
achieve in particular time period while performing business operations in particular area.
Company aims at increasing its productivity, profits and functional as well as operational
activities in order to sustain in market for a longer period of time.
Vision Statement- It can be define as that tag line of organtional which is related to
visionary statement which help organtional in informing about its thinking in target. Xcon
has a long-term vision in which it states that it needs to increase its market reach. It is looking
into expansion of its business in both domestic as well as international market.

Mission statement- Mission statements in an organisation are created for short terms.
Mission of Xcon limited is to organise more and more events in order to build brand
awareness as well as brand image among marketplace and stay in competition in its industry.
Values- Values that Xcon follows is to conduct its business with ethical ways.
Company focuses on developing a positive and healthy working environment for its
employees. They focus on providing maximum employees satisfaction as well as customer
satisfaction.
Strategies and tactics- There are a number of strategies which are adopted by Xcon.
Two majors of them being market penetration and market development, Company provides
event management services, so instead of varying its services company is trying to expand its
market as well as grab a hold on its already present markets. Company is doing this through
increasing quality of services provided and setting competitive prices for them.
Market research- Xcon follows primary research method in its markets.
Organisation do not depend on any secondary data. Company is collecting first hand data
from market in order to formulate strategies. Company personally takes interest to identify
hidden needs of its customer and fulfil them with various services it is offering.
Following strategic plan is developed for Xcon undertaking all the analysis and
framework conducted in this report. This will provide company with a road map which it
required to follow in order to reach all its objectives in given time frame. This consists of all
the objectives as well as aims to be fulfilled by company along with measures to be taken to
fulfil it. This works as a backbone of company and guides management.
Pestle
PESTLE analysis of Xcon
PESTLE analysis is a framework conducted in a company in order to analyse all
those external factors which directly or indirectly hamper functioning and operations of a
business organisation. It stands for political, economic, social, technological, legal and
environmental factors. Below mentioned is PESTLE conducted on Xcon.
Political Factors: All those factors which affect businesses due to any governmental
intervention are included in political factors. Taxes, government policies, foreign trade
policies, exchange rates etc. are usually included in this factor. In context of Xcon political
factors which are affecting con limited consists of taxes and government policies. Any

change in political parties lead to change in policies as well. Company needs to make its
strategies flexible enough to deal with such changes in future. Political factors related to
nations Xcon is dealing with may affect profitability of company. It needs to critically
examine tax systems and custom duties of those countries.
Economic Factors: All the factors affecting profits for a business directly are
considered in economic factors. Some of major factors related to this are gross domestic
product, growth rate, inflation, demand and supply, inflation, interest rates etc. In context of
Xcon economic factors which are affecting Xcon limited consists of interest rates and
foreign exchange rates. These two factors are majorly effecting Xcon on which focus is
needed by this organisation while creating its strategic plans for increasing productivity and
earning profits. Xcon needs to examine economic status of foreign countries in order to
make a strategy to earn maximum.
Social Factors: Social factors refer to the belief and value followed in a society in
which business operates. This refers to norms of society and behaviour of people in certain
geographical regions. Major factors business needs to take care in this are sex ratio, literacy
rate, buying behaviour of consumers, changing needs and demands in a marketplace etc. In
context of Xcon social factors which are affecting con limited consists of the changing
demands and perception of people. Lifestyle in various communities is also changing which
Xcon needs to focus on for smooth working. It becomes necessary to study social cultures,
buying behaviours as well as changing trends in market to avoid any conflict with social
norms.
Technological Factors: Technological factors include a number of ways in which a
business usually produces, distributes as well as promotes its product or services. There are a
number of technological advancements taking place in world these days. Company needs to
take care of this factor to stay in competitive market and compete in industry. In context of
Xcon technological factors which are affecting con limited consists of the ways in which it
communicates its services. Recent up gradation in technologies here businesses use online
portals to advertise their services are in trend which Xcon is following. Company also needs
to keep a check on various technologies introduce by competitors in order to sustain in
market for longer period of time.
Environmental Factors: All those factors which refer to environment and
surrounding in which a business survives are considered under this. There are a number of

policies created by government in order to make sure that environment is not damaged due
to business activities. They need to control pollutants released by them, carbon footprints
and amount of resources extracted from environment. In context of Xcon environmental
factors which are affecting con limited consists of land pollution as well as resources it is
extracting from environment.
Legal Factors: There are a number of legal rules and preceding which a business
needs to take care of. These rules are if not followed by company may lead to legal
proceedings against business. These usually results in huge losses for business. Labour laws,
consumer protection rights, advertising standards etc. are included in it. In context of Xcon
legal factors which are affecting con limited consists of various factors such as consumer
rights and advertising standards. Company needs to make sure no laws are broke while it
executes it work in a market place. There might be various legal actions against company if
they do not take care of legal factors effectively.
These were various factors which are concerning functioning of Xcon. Xcon needs to
consider all these while creating its strategies. This will let company know about all its
external threats which are needed to be avoided in future. This also lets them know about
future opportunities company have and how can they utilise them to earn maximum profit
and gain benefits.
SWOT Analysis
SWOT analysis is the key part of any business and strategic plan. SWOT stands for Strength,
Weaknesses, Opportunities and Threats. Strengths and Weaknesses are the internal factors a
company can change them over time with some work. Opportunities and Threat are the
external factors a company not able to change external factors. SWOT analysis help in
developing the strong business strategies by making sure that company covers all the
business strengths and weaknesses as well as all opportunities and threats in the market place.
XCON is an event management company done SWOT analysis of the company to analyze
internal and external factors and market condition to increase profitability of the company.
Strengths Weaknesses
XCON build good brand image in the
market. They perform well and generating
XCON profitability ratio is average as
compare to their competitors. Company does

revenue in the market by using good
marketing skills. By offering specialized
event management services to the clients.
Company also has well trained and
enthusiastic employees. XCON maintain
good relationship with their suppliers and
complimentary service providers which make
event successful. Company manages and
maintains good reputation among customers.
Company also good in developing strategies
and plans to hold a successful event. XCON
cover broad market because they offer total
event management services to turn
customer’s idea into live activities. XCON
good at customer relationship management
which increases level of customer
satisfaction.
less investment in new technologies.
Company financial planning is Ineffective
and improper. XCON need to develop or plan
strategies for expansion of the business as
they stuck in the same market. XCON spend
more on workforce, training and
development rather than this they need to
spend on event planning, suppliers, caters
and other service provider. Company
maintains high cost structure which affects
their other costs. Cost control system of the
company is inappropriate. Company also
need to change structure of an organization
according to the changes taking place in the
market (Astrachan, 2010).
Opportunities Threats
There are various opportunities in the market
if the company expands their business.
Arrival of new technologies also creates good
opportunities. If company operates in a niche
market, they have the chance to strengthen
their position and prepare for the times when
the competitors become strong. Company has
the opportunity to cooperate with local
governments or local respected NGO’s it is
great! Company can use this chance to work
on the image of both, the event and the
company. Company increasing the number of
customer through their online platform.
Company tries to create opportunities to get
Increase in the number of competitors could
be a threat for the company. Development of
new technologies. Laws, rules and
regulations of government also affect the
expansion of the business. Bad weather is a
particularly serious threat when company
organizing an outdoor event. Changes taking
place in the economic factors also create
threat for the company. Shift or change in the
customers liking and preferences also affect
the company cost and create threat. The
inability to find qualified, high quality
employees for the company (Doeringer and
Terkla, 1995)

entered in the new market to increase the
level of competition. XCON spending money
on marketing, channels, products only for
customer satisfaction.
.
Porter's Five Forces model for identifying competitive analysis of the market
There is critical needs to identify the competitive environment in factors which help
firm in getting advantage in it, the manager of Xcon can use Porter five force models in such
a way for getting competitive advantage in global market. These will also fortunate company
in increasing profitably and productivity in firm. Manager will also get working start and this
is also a part of business strategy which is basic for success of firm in market. There are
number of factors which can be used to identify, they are divide in five stages which are as
new entrants, threat of substitutes, bargaining power of customers, bargaining power of
suppliers and competitive rivalry. These are those which are classified below:
Threat of new entrants: New entrants are always a threat for every business as they
have their direct impact on firm’s profits and sale of goods and services. This is done because
of they have innovative product which attract more customer towards them and can cause
damage to demand of existing firm. Market of Xcon is full of new entrant where there is
large number of competitor from which firm have to deal by improving its services and
maximising customer satisfaction (Harris, Martinez and Ward, 1994).. This will not work as
competitive advantage for Xcon. Economies of scale which could achieve to the new entrants
in the market
Threat of substitutes: This is that threat which is arises when there are similar
products in market which have equal or in many aspects with firm’s product and services.
The more number of substitute will lead in less competitive advantage to firm, in event
management sector this threat is low as all firms have same uniqueness in there service which
make difficult for competitor to make substitute of that. Xcon is saved from this as firm is
dealing in event management market where it have its unique as well as huge range of
services which different type of innovation. This help firm in getting what firm want to
achieve and also provide assistance to achieve competitive advantage in dynamic
environment.

Bargaining power of customers: Bargaining power of customer is also important
factor which help firm in getting customer advantages. When there is large number of
customer of firm than firm is able to get advantage of this as customers bargaining power will
decrease and firm can get advantage of higher profit margin. If there is small amount of
bargaining power in firm than firm is unable to get advantage as customer have more power
here. In context of Xcon this power is in hand of customer as there is small amount of
customer. But nature of customer is not rational here which help firm to get small advantage
in maximising profits and maintain small competition in environment (Arthur, 1992).
Bargaining power of supplier: This pint is related to bargain power of suppliers in
market. If there is large number of supplier in market than firm have more competitive
advantage and vice versa. In market of Xcon, it have huge number of advantage as marketed
of firm have huge amount of supplier where it can bargain on prices and credit facility of raw
material. This will also leads in getting advantage in long run.
Competitive rivalry: It refers to competition which is developed in market and can
be used to work for firm and will get the maximum benefits out of it. If there is large number
of committers in market than it can impact advisedly on firm as there have firm have to use
low margin and have to scale up its operation, but if there is low competitor in market then
firm can use high level of profitability. The market for Xcon has low level of competitors
which is make this point a good advantage for company.
Forecasting challenges effecting business strategies
Organizational Misalignment: When firms is focusing on business strategy it have to
focus on planning of firm which is great miss managing in firm this also leads to understand
finical issues which are arise when firm perform any activity. Finance allocation is important
for smooth implementation of business strategy which is formed for achievement of firm’s
goals (Holbeche, 2009)
Lack of Data Credibility: Firm have also come accrues data creditability as there is
no primary research in market which can help firm in this. The data size and sample is also a
major concern which also reduces the creditability of data. Without creditable data it is
impossible to make effective plan.
Uncertainty about the future: Business strategies are not able to change easily
because they incurred huge cost on them and trends of customer and market changes

continually. Even atmosphere changes like change in climate have huge impact on business
strategies. Future uncertain events like change in government polices and will also impact
negatively on business strategy and can decrease the share of firm.
Regulation and compliance: As marketplaces and technologies shift which also
change rules and regulations. Depending on Xcon industry, it can make much more
intelligence to bring in a adviser to aid with these parts rather than annoying to understand the
complexities in firms and risk fines or worse for non-compliance (Blackburn, Hart and
Wainwright, 2013)
Competencies and recruiting the right talent: business might not need full-time
human resources or employing man, but throughout peak development periods, finding the
correct people and rising the right skills and capabilities is the key to a maintainable future.
Bringing in adviser with the know-how to find exactly the workers you need would be a
intelligent stock. Talented people are always working for firm benefits which help firm in
implementation of strategy and reach to its goal in definite time.
RECOMMENDATION
It is recommended to organtional that it can Porter’s generic strategies to achieve its vision,
missions and objectives. These are discussed below:
Porter’s generic strategies
Porter’s generic strategies are those strategies which can be used by the organisation
to identify the competitive advantage within the market by choosing the market scope. it
includes strategies related to lowering the cost product differentiation and focus. All the
strategies in relation to organisation are discussed below:
Cost leadership strategy: Cost leadership strategy organisation can use to minimise
it cost of products so that it can achieve a competitive edge within the market in comparison
to its competitors. In relation to Xcon, organisation is performing its function in within the
event managing industry where it is important for the firm to achieve the cost-effectiveness
by reducing different cost on various expenses. This will help company in promoting the cost
effective techniques which can help company in offering low budget to different event
organizers and get a competitive edge within the market.
Differentiation strategy: In relation to differentiation strategy or organisation has to
make a product differentiation so that it can achieve a competitive advantage within the
market by selling the different product in comparison to its competitor. In relation to Xcon, it
is operating within the event management industry where it is important for the organisation