Strategic Management and Competitive Advantage Report - Analysis

This report provides a comprehensive analysis of the strategic management and competitive advantages of "Leopard Eco Automobiles." It begins with an introduction outlining the company's goals and key performance indicators (KPIs), including revenue, stock values, and financial balances. The report then delves into business performance, examining market observations, including target market analysis and the company's environmental and pricing strategies. It explores Key Performance Measures (KPMs), such as production efficiency, sales growth, and market share, along with a comparison of actual versus forecasted results. The analysis incorporates frameworks like the Ansoff Matrix and Porter's Generic Forces to assess business development, financial, marketing, operations, and HRM strategies. The report also evaluates product promotion strategies, pricing, distribution channels, and promotional efforts, comparing results from different rounds to highlight the company's financial performance and identifies areas for improvement, such as the discontinuation of the Leo Mini product line. Overall, the report offers a detailed assessment of the company's strategic positioning and recommendations for enhancing its competitive advantage.

STRATEGIC MANAGEMENT AND COMPETITIVE
ADVANTAGE
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Table of Contents
Assignment B:............................................................................................................................3
1. Introduction............................................................................................................................3
2. Business performance............................................................................................................4
2.1 Observations made inside the target market.....................................................................4
2.1.1 KPMs obtained by the company................................................................................4
2.1.2 Comparison made in actual and forecasted results....................................................6
2.1.3 Trending analysis.......................................................................................................8
2.1.4 Ansoff Matrix..........................................................................................................12
2.1.5 Porter’s Generic Forces...........................................................................................13
2.1.6 Plans for business development...............................................................................15
2.1.7 Strategies for finance...............................................................................................16
2.1.8 Strategies of marketing............................................................................................18
2.1.9 Strategies of operations............................................................................................19
2.1.10 HRM......................................................................................................................19
3. Conclusion............................................................................................................................21
Reference List..........................................................................................................................22
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Assignment B:
1. Introduction
The automobile business firm called “Leopard Eco Automobiles” primarily aims to initiate
higher rate of sales for their budget-friendly cars which are also packed with updated and
modernised features. In addition, the company’s customer base has also helped in providing
best price for their incurred services from the company. Leopard automobiles aim to visualise
and obtain advanced rates in the automobile market by effectively focusing on their
environment and financial background. The records collected from the end of each rounds is
going to help in reflecting the company’s value-added services and norms and reflect upon
the primary reason for the increase rate of sales by 100 per cent for the company during four
different rounds.
Rates of
performance
measurement
Values incurred
in round 1 £m
Values
incurred in
Round 2 in £m
Values
incurred in
Round 3 in £m
Values
incurred in
Round 4 in £m
Rate of revenue
balance (Loss)
3000 4427 6248.45 8189.49
Unsold rate of
stocks values
0 0 0 22421 (Leo
Mini products)
Funds obtained
from
shareholders
832.88 1490.25 2245.33 3788.28
Bank rates and
closing balance
569.99 1146.95 1714.88 3276.71
Outstanding
values and loan
balances
271 0 0 0
Table 1: Summarised values of Key performance measures and derivatives
(Source: Self-made)
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The primary objective of the company is reflected upon the rate of sales growth by 100 per
cent, increase in the growth and efficiency rate by 50 per cent, and attaining a definite market
share accounting for more than 6 per cent by expanding the business operations to different
parts of the world. They overall key performance measurements and derivatives effectively
indicates that company is effectively looking to gain an advanced rate in the market share by
attaining reflective growth and attaining advanced customer satisfaction levels in the future
financial years.
2. Business performance
2.1 Observations made inside the target market
The derivative and target market initiated by “Leopard Eco automobile” has been reflected
upon the clients and customers who have a limited and strict line of budget who effectively
wants to enjoy a source of premium feature inside their cars. The automobiles that are
manufactured and produced by the company are effectively reflected to be efficient and
inherit a lesser rate of environmental footprint by 0.5 per cent which is considered to be very
efficient and low in comparison to the other cars and companies who are operating inside the
automobile market in the UK. A customer who values the environment and considers being
the changing factors considers the products of Leo automobile to be well versed and efficient
in tackling the negative norms inside the environment. The prices of the products are also
extremely efficient and come with fewer price in comparison to the other sectors operating
inside the similar automobile market in the UK. On the other hand, the company also looks to
increase their rate of market share inside the automobile sector by 1.5 per cent in the current
year and then an additional 3 per cent in the next financial year for the company. In addition,
the company also aims to reflect upon their “economies of scale” by reducing the rates of cost
and their required beneficiary choices that has been paid by the customers during the
accounting period. Due to fewer rate of pricings, and increased rates in initiation strategy and
penetration strategy the company has incurred a major dip in the revenue and profitability
values during the initial stages of the business.
2.1.1 KPMs obtained by the company
The major derivatives of KPMs that the company looks to initiate are as follows:
 Increase in efficiency or production rates: The Company looks to achieve this
derivative of increasing their incurred business production by 10 to 15 per cent
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despite the increase in inflation rate in the UK by 5 per cent. For achieving this
function, the company is going to initiate building upon the raw materials in
diversified and huge numbers after diverging into their rate of sales. This derivation is
also going to help the company in reducing their “incurred cost of material prices”
which is going to increase their overall business operations during the current
financial year (Mulligan, 2019). The employees of the company are also going to be
managed and trained well as they are the major contributing factors of the company.
Due to the necessary investment made in the production and innovation techniques in
the initial phases the company is then expected to incur lesser financial derivatives
and value during the initial financial years.
 Growth in sales: The Company expects to keep their sales value stable and looks to
increase their growth in revenue values by 5 per cent in every financial year. The
expected sales growth for the company’s Leo mini products have been reflected or 40
per cent and a total value of 100 per cent in total three financial years. The more rate
of sales and financial growth is designated to incur additional profits for the
company’s investors and stakeholders. The increase in the overall sales value are
going to help in bringing innovation rates and required techniques inside the
international and developing markets.
 Growth in markets share: Leopard automobiles aims to increase their rate of market
share by 6 per cent inside the UK’s automobile industry in the three financial years.
The overall rate of sales and valuation is deemed to be high after reflecting upon the
demand of the products and valuations made in the initial financial years.
 Net cash position and reaching new markets: The Company in the later stages will
look to initiate their business operations outside UK and during the initial stages the
company has focused on processing their business in domestic circuit. The long-term
stability and financial plans of this company has been expected to incur an additional
rate of growth, increase in the incurred production facilities and expansion in the
foreign and diversified markets. This derivation is effectively going to help the
company to save their additional values based on import duties, insurance, freights,
and overall transportation costs of the products which makes the business firm more
expensive for their clients and customers in the future financial years. In addition,
after progressing with this derivative the company has effectively been efficient to
increase their overall value of net cash and position. The round 1 balance of bank has
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been estimated to be £569.98 million and after round 4 the values have been exceeded
to £3276.71 million.
 Feature and product development: The qualified and deliverable product is always
expected from the company and it is going to improve with time. Business plans are
going to be effectively improving only after the company effectively focus on the
business innovation products and rates after conducting a thorough market research.
This is also going to help in making the company’s products more desirable and
qualified for the customers and is going to incur a source of definite competitive edge.
 Gross profit margin: The margin of gross profit has incurred very minimal valuation
and the losses have been observed to increase after each round. This is effectively due
to the advanced rate of cost prices and the expenses that are incurred by the company.
On the other hand, it can be reflected that when a company experiences a higher
margin of gross profit margin by reducing their rate of costs or expenses then the
company is effectively regarded as a profitable business firm (CFI, 2022).
 Profit after tax: The balances incurred in profit after tax valuation have experienced a
thorough decline and the surge has been valued at 1 per cent after the tax rates. The
profit that has been experienced after tax has been reflected for £332.87 million in
round 1 and after round four the profit has been reflected for £1542.97 million.
2.1.2 Comparison made in actual and forecasted results
Model outlook and name Type of qualified
Promotion
Incurred budget rates
Leo smart product Roadshows, Journal papers,
magazines and online posters
£1.2 million
Leo mini product Newspapers, radio and
Television
£455,000
Table 2: Budget and promotion of products
(Source: Self-made)
As observed from the above table, the relevant methods that have been utilised by the
company are reflected for reaching out to the incurred consumer base. Four P’s of marketing
have effectively been initiated by the company for increasing its overall sales and derivations
for company’s valuable products that are Leo Mini and Leo Smart.
The marketing strategies initiated by the company are reflected to be:
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 Product design: The company has looked to particularly invest the ironic body and its
specified design. The overall products have also been effectively initiated based on
diversified forms and have been effectively shaped based on old and weary products.
The rolled products are going to be manufactured with differentiated a colour which is
going to help in attracting additional customers to the business plan.
 Strategy of pricing: The Company’s Leo Mini model is an economical product and
the Smart model is more expensive and costly. Mini model of the company effectively
suits the overall needs of the customers as it is priced low and will meet the
derivations of customers whose income range is moderate and low. The smart model
of the company is going to initiate and comprise additional and latest features which
are designated to be suitable for people who are earning more than the moderate
people in the society.
 Channels of distribution: As mentioned above, the distribution channels are going to
be in the UK and are going to be based out on London. In addition, the company will
look to increase their business operations to the international markets after attaining
reflective profits during the initial stages of the business.
 Channels of promotion: Newspapers, magazines, TV commercials, social media
handles and test drive displays are reflected to be the company’s major promotional
channels which are effectively going to help the company to attain additional
customers to their existing business plans
The results obtained in round 1, has incurred differentiated values in comparison to the
results obtained in round 4. The company has experienced a rise in loss after the tax balances
in almost every round. This has been due to the increase in business expenses and tax rates
that has been initiated by the company in every year. In addition, the overall estimated values
and production rates has failed to initiate any form of major growth and the production only
increased by 5 per cent after every round. Company’s Leo Mini and Leo Smart products have
sold 60,000 and 70,000 units respectively. After selling the total products the company
experienced £1056.75 million worth of loss in round 1. The reflective and patent issues that
are surrounding are based on increase rate of business cost and expenses incurred by the
company. From round 1 to round 4, the company has also failed to maintain their regulated
balances of profit and has negatively maintained a “depreciated balance of profit”. I feel the
company is required to initiate in discontinuing their mini products as they are not at all
favoured by the customers as observed from the results in the round 4. There has been a
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leftover stock of Mini products for more than 22422 items out of 124742 produced.
Therefore, it can be reflected that the Mini products are not at all favoured by the customers
due to the increase in income rates and latest innovations. In my opinion, the company is
required to initiate major business changes and underline the key business and functional
areas for reducing their manufacturing and business costs. This derivation is effectively going
to help the company to be profitable and sustainable in the future financial periods.
2.1.3 Trending analysis
Figure 1: Increase in production for Leo Mini and Smart products
(Source: Self-made)
Production
The rate of production has always been enhanced and as reflected in the above figure 1, the
company has managed to double their rate of production for both Leo mini and smart
products after inheriting consistent labour and workforce. Leo Mini products have been
designated to increase from 60,000 in round 1 to 102322 in round 4. The Leo smart products
on the other hand have also experienced a surge in production rate from 70,100 in round 1 to
107724 in round 4.
Sales
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Figure 2: Growth in sales rate for the company
(Source: Self-made)
The sales have also been increased for the company and have reflected to incur profit
balance. The company’s round 1 sale have been observed for £3100 million and has extended
to £8189.48 million by round 4 ends. In addition, it has helped in reflecting that the sales and
production of the company has incurred profitable balances and has been effective for
targeting the designated and qualified markets inside a financial year.
Gross Profit Margin
Figure 3: Decrease in the margin gross profit rates
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(Source: Self-made)
The overall balances as reflected in the above figure, has incurred depreciated derivations
starting from round 1 to round 4 from -£1056.71 to -£3112.33. The increase in loss balances
for the company are due to the increase in production rates and inventory carriages. The Leo
mini items of the company has seen to incur additional stocks during round 4 which means
the company has effectively failed to sell the produced items.
Unsold stocks rate
The unsold stocks have not been observed in round 1 to 3 for the Leo Mini and smart
products. However, there has been a considerable rise in the unsold stocks rate for the
company during the round 4 as the company has failed to sell the designated stocks. The
company has additionally rolled out a new product line called Leo SUV and Leo Star in
round 3 and 4. The multi-channel techniques of marketing have effectively helped the
company to sell their overall stocks and products which has effectively been produced after
the end of each round. During the round 4 stage, the company has also incurred diversified
stocks amounting to 22420 items for Leo mini products. These products went unsold maybe
due to the les preferential choice of the consumers or due to the rise in technological
derivations that are offered by other company’s products in the automobile market in the UK.
Post-profit and tax
Figure 4: Loss after tax for Leo Eco Automobiles
(Source: Self-made)
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As observed from the above figure, this company has incurred definite loss after the payment
of tax for every round. The overall increase in the loss balance for the company has been due
to the rise in issues that the company faced based on the expense rate in every round. The loss
reflected in the round 1 has been amounted for -£332.87 and during the round 4 the losses
were -£1542.97. The rise in loss rates based on the incurred tax balances decrease the overall
count of net profit for a business firm during an accounting period (Bdc.ca, 2020).
Net cash position
Figure 5: Net cash position and balance of the company
(Source: Self-made)
Net cash rates and balances have incurred very few amounts which are reflected to be a major
risk and issue for the company. The overall balances have been accounted for -£569.98
million in round 1 and by the end of round 4 the values exceeds to -£3276.71 million. This
negative valuation of the overall balances in cash rates reflects that company’s cash balances
based on the ledger accounts have incurred definite form of credit balances (AC, 2020). The
negative balance of cash is reflected to be on a higher scale after checking out the initial rates
and valuation during every accounting period.
Market Share
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Figure 6: Increase in the rate of market share
(Source: Self-created)
Market rate of share has been reflected to be the best possible measures that have been
incurred by the company during every round. The figure indicates that the company has
indicated to incur profitable market share based on smart and mini products in every round.
Market share and valuation for every mini product of the company has experienced a lesser
share in the market during the round 4 amounting for 1.6 alternatively. However, Leo Smart’s
share of market has considerably increased from 1.45 to 1.96 after the end of round 4. Hence,
this helps in indicating that the products of Leo Smart are reflected to be the company’s most
valuable and selling products which is also going to help the company in incurring additional
balances of profit during every financial period.
2.1.4 Ansoff Matrix
Competition rates and strategy
The competition that Leo Eco Automobiles is going to face in the UK is from BorgWarner
system and turbo, Optare and Toyota Manufacturing (Automotive.UK, 2022). However, for
surviving inside this perfect competition the company is required to initiate the process of
diversification based on their incurred business operations. On the other hand, after analysing
the oveall inputs from round 4, it has been indicated that the company has efficiently
diversified by incurring relevant and additional line of products for boosting up its rate of
sales inside the UK’s market. A company is recommended to increase its overall “product
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