Fusion: Management Practices in the Fourth Industrial Revolution

This report provides a comprehensive analysis of Fusion Retail's management practices, focusing on its operations in the context of the Fourth Industrial Revolution. The analysis begins with an overview of Fusion's business, which offers creative solutions for retail partners, including merchandising systems, design innovation, and shop fitting. The report then delves into the external macro environment using ESTEMPLE, VUCA, and Porter's five forces frameworks. It examines economic, social, technological, environmental, media, political, legal, and ethical factors, along with volatility, uncertainty, complexity, and ambiguity. The internal environment is analyzed through VRIO and value chain frameworks, followed by an industry analysis focusing on customers, employees, competitors, media, shareholders, and suppliers. The report concludes with a SWOT analysis, redefining the management challenges faced by Fusion and highlighting the impacts of the Fourth Industrial Revolution on its operations and strategic decision-making.

Running head: MANAGEMENT BASED PRACTICES
MANAGEMENT BASED PRACTICES
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction......................................................................................................................................2
Discussion and analysis...................................................................................................................3
1. External macro environment analysis -.......................................................................................3
ESTEMPLE Analysis of Fusion..................................................................................................3
VUCA Analysis of Fusion...........................................................................................................5
Porters 5 forces analysis of Fusion..............................................................................................6
Industry analysis/ external micro environment analysis..............................................................7
2. Internal environment analysis......................................................................................................8
VRIO Analysis of Fusion............................................................................................................8
Value chain analysis of Fusion....................................................................................................9
3. The management challenge-......................................................................................................11
SWOT analysis of Fusion..........................................................................................................11
Redefining the management challenge of Fusion......................................................................12
Conclusion.....................................................................................................................................12
References......................................................................................................................................14

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Introduction
The Fourth Industrial Revolution is mainly based on the technological revolution that has
taken place in the modern business environment. The revolution has been able to provide major
levels of challenges to the organizations that operate in various industries. These changes also
had the potential to enhance the global incomes and also improve quality of life of the
individuals. The organization that has been considered for analysis in the report is Fusion that
provides creative solutions to the industry partners (Abs.gov.au 2019). The different activities
that are related to the development of creative solutions by Fusion include, merchandising
systems, retail displays, design innovation, shop fitting, cross culture based branding, shop
fitting, digital, installation and retail services. Fusion has its offices in Sydney, China, Hong
Kong, Japan and in Port Melbourne and the organization also believes in high levels of creativity
as well (Fusioncorp.co 2019).
The report will provide a detailed analysis based on the external environment of the
organization with the different frameworks like, VUCA, ESTEMPLE, Porter’s five forces
framework. Internal environment of Fusion will be examined with the implementation of VRIO
and Valued chain frameworks. The analysis will depict the management challenge that is based
on the implementation of SWOT framework. The challenge will be mainly related to the ways by
which Fusion has been able to develop its operations at the time of Fourth Industrial Revolution
that has taken place.

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Discussion and analysis
1. External macro environment analysis -
ESTEMPLE Analysis of Fusion
Economic factors – The economic condition of different countries have been influenced
in a huge manner by the Fourth Industrial Revolution that has taken place recently. Expectations
of the customers have increased as a result of the global expansion that had taken place due to
Industrial Revolution. Fusion Retail is influenced by various changes which have occurred in
economies of various countries where the company operates. The value that is offered to
customers is also affected by economic growth (Asci.org.in 2019).
Social factors – The various cultural and social influences can be an important factor that
has been able to affect Fusion Group. Personalization of products and services have also been
affected by changes that have taken place due to the Industrial Revolution. The behavior of
customers and services that are offered to them are influenced by social changes in a huge
manner (Cleverism.com 2019).
Technological factors – The changes in technological trends have a major impact on the
proper enhancement and improvement of usage of technology. The technologies of AI and
automation have been implemented as a result of the Fourth Industrial Revolution. The
application of technology has different effects on various ethical aspects and the innovations that
can have an impact on the professional lives (Deloitte.com 2019).
Environmental factors – The factors related to the environment are significant for the
ways by which international organizations are to operate after Fourth Industrial Revolution. The

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external environment of various countries can have an impact on the international operations that
are developed by Fusion Retail (Deloitte.com 2019). Sustainability in the operations are a major
part of the effects of the Fourth Industrial Revolution. Retail organizations thereby need to
develop the operations in such a way so that the impact on the environment can be reduced. The
environment based regulations that are formed by governments of different countries can affect
operating processes of Fusion (Emerald.com 2019).
Media factors – The role that is played by media in the improvement of retail
organizations is considered to be highly significant in nature. The awareness of products and
services that are offered to consumers can be increased with the support of media. Industrial
revolution has further enhanced the importance of levels of communication in various companies
that operate in Australian retail industry (Hbr.org 2019).
Political factors – The retail stores can enhance the profitability levels by support that is
offered by governments of different countries. The levels of industrialization have increased
influence that political stability in countries can have on the international organizations. The
policies of the government have an impact on the solutions and services which are provided to
the clients (Ibisworld.com.au 2019).
Legal factors – The global or international firms need to consider the legislative
conditions for gaining profit in their operations. The labor laws and taxation based policies in
various countries are influenced globalization and revolution. Legal troubles faced by various
companies are related to conditions which are formed in the regions or countries (Koizumi
2019).

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Ethical factors – The industrial revolution has also led to the importance that has been
provided to ethics that are followed by the organizations. Artificial intelligence and its usage has
been successful in enhancement of the international operations. The labor reduction is also a key
issue that can influence the solutions that are provided by Fusion Retail (Liao et al. 2017).
VUCA Analysis of Fusion
Volatility – The levels of the volatility that exist in retail market are quite high and the
changes in business environment have further increased this aspect. The turbulence levels and
fluctuations in retail market have also been caused due to the industrial revolution. The
operations of Fusion in the volatile retail market can influence the revenues (Lu 2017).
Uncertainty – The retail market also faces major levels of uncertainty and operations of
the company in the future is not predicted easily. Uncertainty levels in the industry have also
increased due to revolution. Revenues and sales of international organizations are affected in a
negative way by the uncertain business environments. Fusion aims at the development of
innovative solutions to fulfil needs of the consumers (Müller, Buliga and Voigt 2018).
Complexity – Complexity levels that exist in business environment can have a major
impact on the companies that operate in various industries. The fourth industrial revolution has
also enhanced various complexities in the business environment. The support offered by
communication and connections among various countries is considered to be important factors
that increase the complexity in environments. Fusion is influenced in a huge way by the increase
in complexity levels in the business environment (Müller, Kiel and Voigt 2018).
Ambiguity – The levels of clarity are considered to be quite important for the modern
business environment. International operations have been able to enhance the transparency levels

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of the companies. Fusion Retail is also offered with various opportunities related to growth and
improvement of transparency levels as well. The trust of the clients can also be enhanced with
the proper development of transparent operations (Parviainen et al. 2017).
Porters 5 forces analysis of Fusion
Threats from new entry – The entry of new firms in the competitive retail environment
provides major threats to the existing organizations. The new services and products which are
offered by the organizations also have an impact on the existing firms. Competition has
increased in the last few years after revolution in the industry. Fusion Retail faces major
competition from the innovative products that are offered by new companies (Pwc.com.au 2019).
Threats from substitutes – The existence of various substitute products have increased
after the implementation of globalization in retail industry. The demands of various customers
can be fulfilled by the international expansion of the countries. Fusion has been affected by the
levels of availability of the substitute products that are provided to clients by the other
organizations in retail industry (Santos et al. 2017).
Bargaining power of the buyers – The fourth industrial revolution has increased use of
different modern technologies by the companies. The industries have also adopted various
technologies and methods for the purpose of improving the operations and processes in an
effective manner. The customer expectations have enhanced in last few years and the needs and
demands of clients have influenced the operations of Fusion Retail (Strange and Zucchella
2017).
Bargaining power of the suppliers – The changes that have taken place in global
business environment have an impact on the suppliers in various countries. The raw materials

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based prices have been influenced by revolution and globalization which is taking place in
various industries (Weforum.org 2019). The changes after industrial revolution and the global
prices can influence collaboration of organizations with the suppliers. Partnerships formed by
Fusion by various suppliers are influenced by the communications among various countries
(Ustundag and Cevikcan 2017).
Intensity of competitive rivalry – The competitive rivalry levels that exist between the
firms or organizations have increased after fourth industrial revolution. Major levels of
challenges have also been faced by Fusion Retail from different competitors after the increase in
number of organizations that have expanded their operations (Xu et al. 2016).
Industry analysis/ external micro environment analysis
The factors related to the micro environment are close the operations of the business and
the operations and success of the organization have been affected as well. Corporate strategy that
is developed by the companies is mainly related to the effective analysis of micro environment
(Ustundag and Cevikcan 2017). Different factors that can be analyzed based on micro
environment are,
Customers – The clients or the customers are considered to be the most important part of
the revenues that are gained. The effective client base which is formed by Fusion Retail have the
ability to offer their contribution to revenues earned in the industry. The customer base of Fusion
is maintained with the help of innovative solutions that are provided (Yao and Lin 2016).
Employees – The human resources or the employees are important for the development
of functions of the firms. The diversity and knowledge levels are important aspects that an
influence on services that are offered to customers. Fusion Retail has been successful in the

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development of global reach based on proper enhancement of solutions that can be given to the
customers (Yin and Kaynak 2015).
Competitors – The competition levels that are encountered by an organization like Fusion
Retail are related to the enhancement of number of firms which provide similar types of
solutions to the customers. The most significant competitors of Fusion in the industry include
Brand Exclusive Australia, TOBI, SurfStitch, Everlane and ICONIC. Competition which is faced
by the firm the can affect the profit based margins that are gained by Fusion (Zhou, Liu and
Zhou 2015).
Media – The attention that is provided by different media are significant aspects that have
an impact on proper promotion of the solutions or services offered by Fusion Retail the
customers. The development of communication is considered to be an important aspect that helps
in increasing awareness related to solutions the Fusion Retail offers. The image and reputation
that is developed by the firm is also considered to be an important aspect related to the usage of
media (Yin and Kaynak 2015).
Shareholders – The shareholders of Fusion Retail can influence the profitability and
revenues that have been gained. The firm has been successful in the formation of an effective
stakeholder group who can support its operations in various countries. Fusion Retail is also
influenced by the levels of revolution in the industry (Ustundag and Cevikcan 2017).
Suppliers – Fusion Retail is able to the enhance the service levels that are offered to
clients of the organization. The required services are offered by Fusion Retail to the clients with
the proper collaboration with suppliers of the firm. The prices of raw materials have a major
impact on the suppliers (Ibisworld.com.au 2019).

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2. Internal environment analysis
VRIO Analysis of Fusion
V – Valuable R – Rare I – Imitability O - Organization
Yes No Yes Yes Competitive
advantage
Yes No Yes Yes Sustainability
Yes No Yes Yes Global presence
Yes Yes Moderate Yes Unique services
Value chain analysis of Fusion
Primary activities
Inbound logistics – The relationships which are formed by Fusion Retail with suppliers
can play a key role in offering support to enhancement of the functions. Inbound logistics formed
by Fusion Retail are related to the process of retrieving the raw materials and inputs which have
been stores by the firms (Parviainen et al. 2017).
Operations – The activities related to effective operations of firms and acquiring the raw
materials have been helpful in development of end products. Operational activities that are
developed by Fusion Retail have the ability to improve the productivity levels of firms and
maximizing the efficiency as well. Fusion Retail has gained success with support gained by these
operational activities (Cleverism.com 2019).
Outbound logistics – The different activities that are related to the ways by which
products can reach the customers are considered to be a part of the outbound logistics. Outbound

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logistics are mainly related to implementation of different processes that include, warehousing,
order processing, transporting and material handling. The outbound logistics have helped in
maintaining the operations and reaching the customers of Fusion Retail (Yao and Lin 2016).
Marketing and sales – The activities related to marketing and sales have been developed
by Fusion Retail and they are able to improve profitability and revenues. Awareness based on
services provided by Fusion Retail to clients can be increased with proper formation of
promotions and advertisements. The brand image can also be enhanced with proper promotional
activities and advertisements as well (Xu et al. 2016).
Service – Fusion Retail offers integrated and innovative solutions to the clients that have
increased the organizational image. The firm has been successful in attracting clients by the
support provided by word of mouth based promotions and advertisements. The relationships that
have been formed with the clients have been affected in negative way by reviews that have been
provided by previous customers (Strange and Zucchella 2017).
Support activities
Firm infrastructure – Fusion Retail has formed the infrastructure of the firm in order to
provide best services or solutions to clients. The effective planning of the finances can play the
most significant part in the proper formation of value chain that is an important part of Fusion
Retail (Xu et al. 2016).
Human resource management – The employees or human resources can have a major
impact on the proper operations and enhancement of the modern organizations as well. The
industrial revolution that had occurred few years ago had a major influence on the employees of
the organization. The multi-talented employees of Fusion Retail have been considered to be

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highly important for the enhancement of the services or solutions that are provided to the
customers (Yin and Kaynak 2015).
Procurement – The process of procurement can play a significant role in proper
formation of the solutions that are offered to clients. Raw materials which are offered by
suppliers are also important for Fusion Retail to satisfy consumers or clients (Strange and
Zucchella 2017).
Technology – The developments that have taken place in the technologies are able to
affect Fusion Retail. The application of various modern technologies has been able to influence
improvements that are implemented in the service levels. Fusion Retail can satisfy the clients
with the implementation of innovative solutions and technologies (Cleverism.com 2019).
3. The management challenge-
SWOT analysis of Fusion
Strengths – Fusion Retail is able to offer effective and innovative solutions in order to
fulfill the needs of the consumers. The creativity of solutions and improvement of the retail
displays are also a major part of strength of Fusion Retail. The supply chain improvement is an
effective strength of the firm (Yin and Kaynak 2015).
Weaknesses – A significant weakness of the firm is mainly related to lack of a huge
brand name of Fusion Retail. The Revolution that had taken place in the industry is able to
influence the levels of services and the strategy based on growth as well (Pwc.com.au 2019).
Opportunities – Fusion Retail is offered huge number of opportunities due to changes
that have taken place in the modern business environment after Fourth Industrial Revolution. The

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technological improvements have also offered growth based opportunities to the company
(Müller, Kiel and Voigt 2018).
Threats – Fusion Retail also faces major threats that are related to the increase in
competition levels after industrial revolution. The systematic and cultural integration is also
major threat that can provide threats to the development of a operating environment in the
organization (Liao et al. 2017).
Redefining the management challenge of Fusion
The major management challenge that is being faced by Fusion in the industry is based
on the development of a proper organizational culture. Fusion operates in the industry with the
help of acquisitions and mergers and this is able to increase the levels of differences between the
cultures that are followed by the employees. The different cultures that are a part of the
organization can have a major impact on the internal environment within the firm. After the
Fourth Industrial Revolution cultural challenges are faced by many organizations Fusion will
also face major management challenge related to the organizational culture (Parviainen et al.
2017).
The development of an effective culture is considered to be highly important for the ways
by which an international organization is able to maintain its operations. The solution that can be
implemented by Fusion in order to solve the management challenge is mainly related to the
training that can be provided to the managers and employees based on the proper understanding
of culture. The cultural intelligence that is developed by the managers and the employees is
considered to be the most important aspect of the operations of Fusion (Strange and Zucchella
2017).

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Conclusion
The report can be concluded by stating that the Fourth Industrial Revolution had been
able to affect business environment in a huge manner. The modern organizations thereby need to
develop the operations in such a manner that can help in mitigating the risks that are faced due to
changes that have taken place after industrial revolution. Fusion has also faced challenges in the
international operations after the Fourth Industrial Revolution that had taken place. The
acquisitions that are completed by the organization are able to increase the cultural challenges
that are faced by the managers and the employees of Fusion. The development of a positive work
culture is possible with the help of training that is offered to the managers.

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