Analysis of Strategy, Operations, and Partnerships at Ghabbour Auto

This report provides a comprehensive analysis of Ghabbour Auto's strategies, operations, and partnerships within the automotive industry. It evaluates the company's vision, organizational characteristics, and performance standards, assessing its strengths and areas for improvement. The report examines the opportunities and threats posed by megatrends such as economic shifts, resource scarcity, technological advancements, and social changes. Furthermore, it critically evaluates Ghabbour Auto's business-to-business relationships, alliances, and partnerships, recommending a focus on emerging economies, human capital development, and electric vehicle technology. The analysis extends to the industry environment, considering political, economic, social, technological, legal, and environmental factors, as well as Porter's Five Forces. The report also outlines a corporate strategy for Ghabbour Auto for the next 10 years and discusses its competitive advantages.

Managing Strategy,
Operations and Partnerships

Table of Contents
Activity 1.........................................................................................................................................3
Vision of the organisation............................................................................................................3
Organisational characteristics and desirable performance standards..........................................3
Activity 2.........................................................................................................................................5
Evaluation of opportunities and threats posed by megatrends....................................................5
Activity 3a.......................................................................................................................................7
Critical evaluation of business to business relationships, alliances and partnerships maintained
by the organisation.......................................................................................................................7
Activity 3b.......................................................................................................................................7
Recommendation for the operation and evaluation of the impact of your recommendation on
stakeholders.................................................................................................................................7
Activity 4.........................................................................................................................................8
Critical analysis of the industry environment..............................................................................8
Component 2..................................................................................................................................12
Corporate strategy for Ghabbour Auto that will apply for the next 10 years............................12
Competitive advantage of Ghabbour Auto................................................................................12
REFERENCES..............................................................................................................................16

Activity 1
Vision of the organisation
Vision of the organisation is leading market where they operate by providing elite
customer experience and becoming brand of choice for all their stakeholders.
Ghabbour Group is focusing on providing best experience to customers so that it can
become market leader and can also become brand that is chosen by all stakeholders.
Organisational characteristics and desirable performance standards
Vision
Quality Evaluation Description & Justification Implications
Volume High Annual output of Ghabbour Auto is
around 150000 units and this
suggests high volume of output by
Ghabbour Group.
In terms of volume practices of
Ghabbour Auto are very
effective and Ghabbour Auto is
also biggest manufacturer of
automobiles in Egypt.
Variety High Ghabbour Auto develops output for
several automobile companies like
Hyundai, Fuso, Mazda vehicles,
Chinese vehicles, Bajaj auto, and
Volvo Trucks. This suggests high
variety of Ghabbour Auto.
In terms of variety Ghabbour
Auto has several offerings for
customers however, it has no
product for luxury and sports car
and it can expand and work on
that.
Variation Low Variation is low because there has
been no evidence of any
considerable contrast between
business model and business
activities.
Businesses are working on
identifying and working on
opportunities available for them
regardless of variation in
business model. There is no such
practice of Ghabbour Auto.
Visibility Low Visibility of Ghabbour Auto is very
less, because its customers are
businesses and this is why end users
does not have much visibility of
Businesses are increasing their
visibility because this is also a
way to increase business
opportunities, so Ghabbour Auto
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Ghabbour Auto. is far away for best industry
practices (Liu, Bauer and Velten,
2019).
Speed High Ghabbour Auto have high output and
this suggests that there is high speed
of work.
In this Ghabbour Auto has
effective practices and speed is
very important.
Quality High Ghabbour Auto is manufacturing
vehicles and automobile products for
very big companies and brands that
has focus on quality. This justify that
Ghabbour Auto has high quality.
Hyundai, Bajaj Auto and Volvo
are some of the automobile
companies having high quality.
However, there is scope for
improvement in technology that
Ghabbour Auto can consider
(Al-Shboul, 2017).
Flexibility Moderate Flexibility is at moderate level
because even though it is working
for different brands, it is predicted in
advance about what products they
need to produce.
Ghabbour Auto can increase its
flexibility because of highly
unpredictable environmental
forces.
Dependability Low Dependability of Ghabbour Auto is
low as supplies are done by
Ghabbour Auto.
Automated supply of Ghabbour
Auto can enhance its supply.
Cost Moderate Cost of Ghabbour Auto is at
moderate level because it produces
products for cars that are not luxury
and premium neither very low cost
and these cars are available at
moderate price. This suggests that
cost of Ghabbour Auto is also at
moderate level.
Ghabbour Auto can reduce its
cost by adopting latest
technology and through research
and development about quality
and reduction in cost (Al-Shboul,
2017).
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Activity 2
Evaluation of opportunities and threats posed by megatrends
Megatrends Key issues affecting organisations Impact and implications
Economic power
shift
 Changing growth and opportunity
market from west to east
 Changes in global demographic
Shift of economic power has also
shifted power from west to east
countries and this is opportunity for
Ghabbour Auto. Ghabbour Auto can
consider east countries for growth of
market for company.
Increase in population is also an
opportunity for Ghabbour Auto. This
is because increase in population
drives increased demand for products
of all kinds and increased demand will
enable increased sales and profit for
Ghabbour Auto (OECD, 2017).
Scarcity of
Resources
 Increased strain on resources of
planet
 Increasing carbon emission
driving global warming
Increased strain on natural resources
requires that production is more
whereas input is less, and this is a
challenge for Ghabbour Auto.
Carbon based mobility is declining
and require Ghabbour Auto to
produce electronic vehicles as demand
of them is likely to grow.
Technological
breakthrough
 Exponential pace of change
 Increasing use and emphasis on
data
 Humanity automation
Exponential pace of change requires
that Ghabbour Auto are always ready
to adopt change and implement
change into practices in almost no
time. As there is possibility that if
they took time for accepting and
adopting changes they will lose their
advantage and can experience loses.
Data has become one of the most
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important elements of decision-
making and is also driving connected
living.
Robotics and AI have improved
standard of living and along with this
have also improved efficiency of
organisations enabling Ghabbour
Auto to generate more output in less
time and with high efficiency
(Jarosławska-Sobór, 2019).
Social changes  Growing demand for personal
vehicles
 Increasing aging population
changes requirement associated
with vehicles
Increasing population requires that
there is increased availability of
products because of increased
demand. This is an opportunity for
Ghabbour Auto as demand for their
products will increase.
Increasing aging population requires
that their demand and their
requirements are well considered for
creating products.
Rapid urbanisation  Migration to cities
 Life is better in urban areas
Migration to cities is leading to
developments like smart cities and
better infrastructure and it is required
that means of mobility are as efficient
as smart cities infrastructure.
Changes in behaviour of consumers
should also be considered and adopted
while developing products. Inability
to do so can create threat for
organisation for its growth and also
for survival.
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Activity 3a
Critical evaluation of business to business relationships, alliances and partnerships maintained by
the organisation
Ghabbour Auto is an automobile manufacturer and instead of selling products directly to
customers, it develops products for several well known brands. Ghabbour Auto deals with
several businesses and this requires that business maintain strong alliances with all those
businesses (Andriof, 2017). Business to business relationships of Ghabbour Auto has enabled it
to gain business from several large organisations. Businesses that Ghabbour Auto produces
automobile vehicles for include Fuso, Hyundai, Mazda Vehicles, Volvo Trucks, and Bajaj Auto.
Without maintaining effective relationship, it is not possible for any business to do business with
such large organisations. In relation with alliances and partnership with Ghabbour Auto has a
joint venture with global giant Macropolo and in this joint venture they have built a state-of-the-
art bus assembly plant in Scez targeting local as well as export markets. This means that
Ghabbour Auto has a strong range of partnership and Ghabbour Auto has efficiently managed its
partnership with different partners of the company. In this it is important to consider that
completion of large scale business of Ghabbour Auto is not possible without support and
assistance of suppliers and Ghabbour Auto have managed strong relations with its suppliers
(McCracken and et.al., 2017). Suppliers of Ghabbour Auto enable it to develop high quality
automotive products for its customers and product range also extends to parts of automotive
vehicles along with automotive vehicles.
Activity 3b
Recommendation for the operation and evaluation of the impact of your recommendation on
stakeholders
Recommendation Focusing on emerging economies as key target market
Justification Ghabbour Auto is a producer of automobile products for different companies around
the world and companies from different countries. However, emerging economies
now offer several opportunities for businesses and companies and this is why
focusing on emerging countries as key target market can be very beneficial for
Ghabbour Auto. Emerging countries have wider market reach and demand and
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increasing middle class customers on emerging countries have a considerable scope
for growth and development of Ghabbour Auto (Kalaitzi and et.al., 2021).
Recommendation Developing human capital of the organisation for upcoming changes and challenges
Justification Environment of the industry is changing at very fast pace and in such environment
human capital of the organisation plays very important role in enabling organisation
to change with external environment demand. Strong and efficient human capital of
the organisation enables it to change with requirement of external environment. This
is why it is recommended that Ghabbour Auto works on developing human capital
within organisation. This involves providing them training for required skills in
future and also equipping employees and workforce with technological knowledge
because technology application is increasing everyday and it is important that
human resources are equipped with strong technological knowledge.
Recommendation Developing strong technology for electric automobile
Justification Sustainability in automobile industry involves lowering carbon emission and
industry is working on lowering carbon emission through developing electric
vehicles. Several companies have developed successful electric vehicles and process
of developing and enhancing technology is continuously increasing. Ghabbour Auto
is recommended to work on developing high quality electric vehicles on the basis of
requirement of customers that are high in quality and also are available at affordable
price (Malik and Janowska, 2018). This is very important for enabling to deal with
challenge that company is likely to face.
Activity 4
Critical analysis of the industry environment
Identification of the
industry in question.
Environmental Factor Issue(s) pertinent to the
industry.
Implications for the industry
Political Emission policies There is a strong and very important
requirement that industry focuses on
developing products that enables to reduce
carbon emission and also enables to
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contribute in environmental sustainability.
Economical
Increasing disposable income This is an opportunity for automobile
industry as demand for automobile product
is likely to increase. Increasing disposable
income also increase demand for high
quality and luxurious product that
Ghabbour Auto can find opportunity in.
Social
Increasing popularity of
electronic vehicles
This is an issue pertinent with industry in
which demand and popularity of electric
vehicles have increased and is increasing.
This is because of their low cost
maintenance and their benefit for
environment in terms of carbon emission
(Manteigas, 2020).
Technological
Self-driving cars getting
popular
This is another issue pertinent to industry
in which self-driving cars have managed to
create their place. Self-driving cars are also
being preferred by customers all around
world and this is why investment in
developing self-driving cars can create
considerable benefit for Ghabbour Auto.
Legal
Copyright and patent issues
are significant in technology
Technology is getting more and more
important and this have contributed in
increasing issues of patent and copyright
infringement and this is an issue that can
affect Ghabbour Auto in both cases if it
infringe copyright of others and also when
copyright and patent of its are infringed by
others.
Environmental
Carbon emission is a key
environmental issues
associated with automobile
industry.
This is one of the most important issues
related to automobile industry in
environmental factor (Chodakowska,
2018). Companies are working on
developing electronic vehicles but at the
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same time improvement in conventional
cars and reduction of carbon emission by
conventional cars is also very important.
Porter’s Force Strength Justifications/Reasons
Threat of new entrance
Largest automobile
manufacturer in Egypt
Ghabbour Auto is biggest automobile
manufacturer in Egypt and this suggests
that it has strong presence and operates
at large scale and level. This is the
reason that it is less likely to get
affected by new entrants.
Threat of substitute
Varied product portfolio This is strength in which Ghabbour
Auto produces products for different
brands and also have varied portfolio of
products including passenger cars, two
and three wheelers and commercial
vehicles. This is why it is less likely to
get affected by substitute.
Bargaining power of
buyers
Several buyers Bargaining power of buyer is strong
when there are limited numbers of
buyers and for Ghabbour Auto there are
several buyers and this is why
bargaining power of buyers is less.
Bargaining power of
suppliers
Multiple suppliers Similar to buyers bargaining power of
suppliers is less when there is limited
number of suppliers and for Ghabbour
Auto there are multiple suppliers and
there is no dependency on supplier
which can increase their power (Bruijl,
2018).
Industry Rivalry Competitive advantage Ghabbour Auto has several buyer
businesses and because of this it has less
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a competitive advantage and this also
strengthens its position in industry
rivalry.
Stage in the industry life
cycle
Growth Stage
Impli
cations
Ghabbour Auto is at growth stage in which it attracts attention of bigger
market segments and on the basis of that its profitability also increases. At
this stage organisation is able to improve its product offering and this
leads to increase in value for customers. Ghabbour Auto is at this stage
and is growing and once Ghabbour Auto passes from this stage, it will
reach to maturity stage in which firms reach to saturation point. Reaching
in maturity stage also indicates that company will not be able grow further
and in maturity stage profits of company starts reducing.
Issue Survival factor Success factor
Increasing carbon emission
driving global warming
Developing electric vehicles for
reducing carbon emission.
Enhancing existing technology
for electric vehicles providing
unexpected features for electric
vehicles and exceeding customer
expectations.
Changing growth and
opportunity market from west to
east
Focusing on western markets and
identifying new western markets.
Identification of new and
emerging eastern markets and
tapping unrecognised markets
Increased strain on resources of
planet
Working on reducing resources
or non-renewable resources of
planet.
This involves that use of non-
renewable resources by
Ghabbour Auto.
Working on promotion of
sustainability of planet and
contributing to planet
sustainability through different
programs.
This involve that Ghabbour Auto
design and implement planet
sustainability programs which
involves more than reducing use
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of non-renewable resources
(Mabhungu and Van Der Poll,
2017).
Humanity automation Using technology instead of
humans and automation of
processes.
Enhancing human capabilities
and complementing human work
with technology.
This means that technology and
human resources work together
and human work is facilitated by
Increasing aging population
changes requirement associated
with vehicles
Developing products according
to requirement of aging
population and facilitating
driving experience for them.
Exceeding requirements and
expectations of aging population
and offering features better than
what they expect.
Component 2
Corporate strategy for Ghabbour Auto that will apply for the next 10 years
Competitive advantage of Ghabbour Auto
Ghabbour Auto uses multiple strategies for competitive advantage and for success and
growth of firm. Ghabbour Auto has key markets in Middle East and North Africa. Operations of
company span multiple market segments. Market segments of Ghabbour Auto include passenger
cars, motorcycles, three-wheelers, commercial vehicle, tires, lubricants and retail and
construction equipments. Competitive advantage for firm can be understood with help of Porter’s
Generic Strategies model (Hales and Mclarney, 2017). This model and application for Ghabbour
Auto is as follows-
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Figure 1 Porter's Generic Strategies
Above model outlines different strategies that allow competitive advantage to the firm. In
this strategic advantage are based on cost and differentiation and another element for these
strategic advantages include scope of strategic application. Scope of strategic application
includes broad scope in which strategy is applied to complete industry and all markets of
organisation. Narrow scope involves of market segments and strategy is applied to only those
particular segments selected by organisation. These generic strategies for a firm are-
Cost leadership- Cost leadership strategy involves that cost of a firm is lowest in industry for a
particular product. This enables firm to gain competitive advantage in form of higher margins
and also becomes able for appealing to price sensitive customers (Abdolshah, Moghimi and
Khatibi, 2018). This requires firm to operate at lower cost than its competitors.
Differentiation- Differentiation is another strategy in which firm needs to create products and
services that offer more value to customers than competitors. Differentiation can be of different
types in which organisation can offer additional features or unique feature than what competitors
of the firm provide. Differentiation also enables firm to attract customers at comparatively higher
price because of additional and unique value provided by firm in its products and services.
Focus strategy- Focus strategy is a competitive strategy in which firm implement either cost
leadership or differentiation strategy but scope for implementation is limited. In cost and
differentiation leadership, these strategies are implemented to complete industry and all market
segments targeted by organisation. On the other hand in focused cost leadership and focused
differentiation, selected segments of market are targeted by company.
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In relation with strategies adopted by Ghabbour Auto for creating competitive advantage,
company have adopted both strategies cost leadership and differentiation. According to this,
ancillary businesses provides high margin and are being developed through cost leadership
strategy (Ouma and Oloko, 2017). On the other hand, for other products and those that are
exported by company, Ghabbour Auto works on creating innovation and quality products.
Collective strategies of Ghabbour Auto allow gaining strong competitive advantage.
Success factors for Ghabbour Auto involve improving existing technology for electric
vehicles. This is because demand for electric vehicles is increasing and this is why customers are
looking for different features on electric vehicles, improving and exceeding expectations of
customers. This means that making electric vehicles as effective and efficient as conventional
cars and motorcycles is one of the success factors and is also a competitive advantage for firm.
Issues related to Ghabbour Auto in this success factor involve technology and human resource
capability required for creating and achieving this success factor.
Identification and tapping new and emerging eastern markets is also a success factor for
Ghabbour Auto in which company is required to identify untapped market and create
opportunities in that market. Issue in this success factor involves that every market does not have
equal opportunity and this is why market selection is a very important issue.
Working on promotion of sustainable environment and planet also has an opportunity for
Ghabbour Auto and can allow competitive advantage to the company. Issue in this involves
identification and development renewable resources that are required for Ghabbour Auto. In
addition to this developing appropriate program for planet sustainability is also an important
issue.
Creating operational system including human resources and automation that can create
competitive advantage for organisation is a success factor and also an issue for firm (Hagiu and
Wright, 2020). This means that when technology is developed and applied in organisation,
preparing human resources for changes and creating a workspace appropriate is very
challenging.
Exceeding requirements according to aging population is a success factor because of
increasing aging population. However, to determine issues for aging population is challenging.
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