Strategic Management Report: Trends, Risks, and Strategic Options

This comprehensive strategic management report delves into various aspects crucial for an organization's growth and sustainability, focusing on Coca-Cola. It examines both internal and external environments, resource capabilities, and potential market challenges. The report includes detailed trend and sensitivity analyses, risk assessments, and strategic options, with a particular emphasis on customer feedback. It explores strategic direction, assessing suitability, acceptability, and feasibility across multiple dimensions. The report also covers internal development, e-commerce considerations, implementation, and control mechanisms, including alignment of company structure, project monitoring, and change management strategies. References are provided to support the analysis and recommendations, offering a holistic view of strategic management principles applied to the case study. The report available on Desklib, provides valuable insights for students studying business development.

Running head: STRATEGIC MANAGEMENT
STRATEGIC MANAGEMENT
Name of the student
Name of the university
Author note

1STRATEGIC MANAGEMENT
Executive summary
The report is aimed at the understanding the various aspects of the internal and the external
environments which determines the growth and sustainability of the organization in the market.
The report helps in understanding the resource capability of the organization in the market and
the competencies that might be faced while operating in the international markets. The report
also enumerates certain recommendations and an action plan for defining the actions that the
organization might take in order to bring in improvements in the market situation.

2STRATEGIC MANAGEMENT
Table of Contents
Task 2...............................................................................................................................................4
Recommendations............................................................................................................................4
5. Trend and Sensitivity Analysis................................................................................................4
6. Risk Assessment......................................................................................................................6
7. Strategic options......................................................................................................................8
8. Strategic Direction.................................................................................................................10
8.1 Suitability.........................................................................................................................10
8.1.1 Suitability to Resource Base.........................................................................................11
8.1.2 Suitability to Culture.....................................................................................................12
8.1.3 Suitability to Purpose of the Company.........................................................................13
8.1.4 Suitability to Stakeholders............................................................................................13
8.1.5 Summary of Suitability.................................................................................................13
8.2 Acceptability....................................................................................................................14
8.2.1 Acceptability of Business Model.............................................................................14
8.2.2 Acceptability to Ethics and Social Responsibility...................................................15
8.2.3 Acceptability to Knowledge Management...................................................................16
8.2.4 Acceptability to Technology....................................................................................17
8.2.5 Acceptability using Blue Ocean Strategy................................................................18
8.2.6 Summary of Acceptability Analysis........................................................................19

3STRATEGIC MANAGEMENT
8.3 Feasibility....................................................................................................................20
8.3.1 Internal Feasibility Checklist...................................................................................20
8.3.2 External Feasibility Checklist..................................................................................22
8.3.3 Financial Feasibility Checklist................................................................................23
8.3.4 Break Even Point..........................................................................................................23
8.3.5 Summary of Feasibility............................................................................................24
9. Internal Development..................................................................................................24
10. E-Commerce...................................................................................................................25
11. Implementation and Control...........................................................................................25
11.1 Alignment of Company Structure............................................................................25
11.2 Elements of the Implementation Process.................................................................25
11.3 Project Monitoring and Control...............................................................................26
11.4 Green Strategy.........................................................................................................26
11.6 Managing Change....................................................................................................27
11.7 Managing Strategic Leadership.....................................................................................27
11.8 Business Plan.................................................................................................................27
11.9 Implementation plan......................................................................................................27
References......................................................................................................................................28

4STRATEGIC MANAGEMENT
Task 2
Recommendations
5. Trend and Sensitivity Analysis
Elemen
t
Particulars Sensitivity Issues Opportunity/
Threat
Rating
P The coca cola products are
maintained based on the rules and
the standards that are being laid by
the legislations.
The change in the
established rules and
legislations of the nations
where the company operates
and distributes affects the
functioning of the
organization in the market
It acts as a
threat for the
company’s
growth
2
E The huge financial and economic
resources have helped the
company in entering the
construction industry.
Acquiring the plots and the
spaces from the people
through the implementation
of huge financial resources
without proper negotiation
It acts as an
opportunity
7
S The company is facing
competency in the international
markets based on the preference
and the tastes of the customers.
The lack of awareness
among the people due to the
evolving industrial
background of the
organization
It acts as a
threat for the
organization
5
T Machinery that is being used by
the company ensured the
productivity of the organization in
the market. It has helped in
increasing the productivity with a
keen eye on redeeming the quality
of the Construction.
Obsolete machinery might
affect the structure of the
buildings which might affect
the wellbeing of the
customers of the
organization.
It can be taken
as a threat
2
E Water accessibility is one of the
major aspects that affect the
productivity of the organization in
the market. On the other hand, the
proper supply of the raw materials
that are required for construction is
to be managed in order to ensure
the smooth functioning.
The abrupt functioning of
the organization will be
affecting the trust and the
loyalty of the customers.
It is a threat for
the organization
4
L The company reserves all rights
relating to the constructions
undertaken by the same. The
patent and the legislation of the
company are based on the strict
adherence to the decisions that are
The rights and the patents
that are held by the
organization might bring in
discontent among the other
builders and the society.
It is again a
threat for the
organization
6

5STRATEGIC MANAGEMENT
taken by the management of the
organization.
6. Risk Assessment

6STRATEGIC MANAGEMENT
Risk Effect on the
company
Mitigating
factors
through
PRAM
Rating
Sourcing of the raw
materials
Lower productivity Immediate
response- In
order to
facilitate the
smooth
functioning of
the
organization,
the company
might
undertake a
survey and
thereby collect
the responses
from the
suppliers
relating to the
inconvenience.
5
Indirect
competitors in the
market
Tough competition Forming a
contingency
report and
evaluation of
the
competitive
and the
capability
analysis of the
organization
for sustaining
in the market
3
Financial capabilities The lag in the
financial capabilities
might drown the
cause of the project
in the market
Undertaking
internal and the
external audits
helps in
determining the
costs that might
be incurred by
the organization
while
undertaking the
change
7
Power of outsourcing The lack in the
power of outsourcing
of the functions
affects the smooth
functioning of the
organization in the
market
Determining the
different scopes
of getting the
processes
outsourced in the
market and the
different
channels of
getting the task
6

7STRATEGIC MANAGEMENT
7. Strategic options
Creating
brand
awareness
Quality
management
Customer
service
Customer
feedback
JUSTIFICATION
Protection 4 0 0 0 It helps in
maintaining the
sustainability of
the organization in
the market
Effective
Financial
Structure
0 0 7 0 Financial structure
of the organization
facilitates it in
providing the best
services to the
clients
Asset
Quality
0 8 0 0 The quality of the
asset helps in
determining the
quality of the
products and their
management that
is being
undertaken by the
organization.
Rates of
Return and
Cost
0 5 0 0 The profitability
of the organization
is based on the
proper
management of
the quality of the
constructions and
the customer
satisfaction.
Liquidity 0 0 6 0 The liquidity of
the assets and the
other elements
helps the
organization in
providing the
customers with the
desired services.
Sings of
Growth
0 0 0 9 The growth of the
organization is
based on the
customer
feedbacks through
which the

8STRATEGIC MANAGEMENT
company can
bring in
improvements in
the structure and
the functioning of
the organization.
8. Strategic Direction
The selected option is Customer feedback.
8.1 Suitability
Elements Observations Suitable/ Not suitable Rating
Resources and capabilities Financial, technological assets
and human resource
Suitable 6
Importance of resources It helps in ensuring the proper
functioning of the organization
Suitable 7
Importance of the resources in
the strategy formation
The resources helps in
understanding the capabilities of
the organization
Suitable 5
Improvement in the competitive
advantage
The proper allocation of the
resources helps in determining
the progress of the organization
Suitable 3
Other company resources An evaluation of the resources
of the other companies helps the
concerned company in bringing
in modifications in the usage of
the resources
Suitable 7
8.1.1 Suitability to Resource Base
Elements Observations Suitable/ Not suitable Rating
Innovative capability Huge financial resources Suitable 2
Truly competitive Huge competitors in the market Not Suitable 7
Substitutability Substitute constructors are
available in the market
Suitable 6
Appropriability Based on the needs of the
people
Suitable 8
Durability The quality of the construction
helps in determining the durable
nature
Suitable 3
Imitability The competitors might imitate
the product
Suitable 9

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Prior or acquired resources Huge acquisition of the
resources
Suitable 7

10STRATEGIC MANAGEMENT
8.1.2 Suitability to Culture
Elements Observations Suitable/ Not suitable Rating
Stories People are made aware of the
new venture that the coca cola
company is undertaking
Suitable 5
Symbols The logo of the organization
and the other possible symbols
for making the people aware of
their venture
Suitable 6
Power structures Management board and the
CEO of the company
undertakes the decision for
growth of the organization
Suitable 3
Organizational structure The hierarchy of the corporate
culture is being followed by the
organization for maintaining the
proper functions
Suitable 8
Control systems Autocratic governance in the
systems
Suitable 7
Routines and rituals Sales achievement and the
prolonged customer service
adhering to the feedbacks
Suitable 9
8.1.3 Suitability to Purpose of the Company
Elements Observations Suitable/ Not suitable Rating
Providing low budget buildings Helps in attracting the attention
of the customers
Suitable 6
Ensuring the quality of the
constructions
Retention of the customers Suitable 5
8.1.4 Suitability to Stakeholders
Elements Observations Suitable/ Not suitable Rating
Employees Motivated workforce of the
organization and retention
Suitable 5
Shareholders Returns on the investments Suitable 7
Banks Increase in the financial activities Suitable 10
Customers Proper services Suitable 8
Suppliers Engagement of the huge supplies Suitable 9
Government Improvement in the standard of
living
Suitable 6
Managers Financial and non-financial
rewards
Suitable 2

11STRATEGIC MANAGEMENT
8.1.5 Summary of Suitability
The steps that are being take by the organization has helped in the understanding of the
various aspects of the improvements in the culture and the functioning of the organization. In
terms of capabilities the company can always afford the change with a financial capital of US$
60.7 billion. The change in the line of product that is being manufactured by the organization
will be supported by the return on the investments.
8.2 Acceptability
8.2.1 Acceptability of Business Model
Elements Observations Suitable/ Not suitable Rating
Customer driven strategy of the
organization
The customer driven strategy of
the organization has helped in the
understanding the needs of the
customers and thereby frame the
policies of the organization
(Schiederig, Tietze and Herstatt
2012)
Suitable 5
Market positioning The market positioning of the
organization has helped in
improving their brand equity
Suitable 4
Customer relationships Creating good customer
relationship while marketing
their new product launch will be
helping the organization in
enhancing the scope of their
business
Suitable 7
Company reputation and
branding
The company reputation is based
on the customer satisfaction and
the retention of the same
Suitable 6
Organizational culture The organizational culture helps
the organization in maintaining
the market orientation.
Suitable 3