Unit 32: Business Strategy - Guildford Tyre Company Strategic Report

This report provides a comprehensive analysis of Guildford Tyre Company's business strategy. It begins with an overview of the company's mission, vision, objectives, and core competencies. The report then assesses various external factors affecting the company using PESTLE analysis and evaluat...Read More

BUSINESS STRATEGY

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
SECTION 1. ....................................................................................................................................3
Overviewing Guildford tyre company and analysing mission, vision, objectives and core
competencies of the company......................................................................................................3
Assessing various factors that have been considered while formulating strategy by applying
PESTLE also Evaluating the role of strategy in achieving the relevant strategic direction, by
using stakeholder Power/Interest grid model...............................................................................4
Assessing various factors that have been considered while formulating strategy, also applying
appropriate strategic analytical frameworks to assess the internal environment.........................6
Using Porter’s Five Forces model for evaluating the competitive forces within the market
sector of Guildford tyre company, also using Ansoff matrix to devise your strategy towards
improving competitive edge and market position for your chosen organisation.........................6
SECTION 2......................................................................................................................................8
Evaluating the different types of strategic direction using the model.........................................8
Justifying and recommending the best strategies.......................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Business strategies are being defined as the various approaches which combines plans
for achieving the strategic missions, objectives, mission bing established by the company the
strategies and approaches being applied by the tyre company. The firm strategy will help in
defining about various competitors, its targets market also various approaches can be adopted by
the company for achieving its mission and vision. Medium and small scale enterprises are those
which are maintaining revenues and assets below nominal size. The companies strategies must
be established for giving proper directions. The Guildford tyre company is operating as a tyre
distributor supplying various rage of products to consumers with establishing possible value to
consumers. This report will provide details about the overview of tyre company. Also, assessing
its various macro factors which will affect the company. Further, provide details about
evaluating the role of strategic direction. Also, assessing internal environment and evaluating
competitive forces using Ansoff matrix. Lastly defining various strategic direction by using
bowman and porter model. Also, justifying the appropriate strategy being used in the company
for achieving growth.
MAIN BODY
SECTION 1.
Overviewing Guildford tyre company and analysing mission, vision, objectives and core
competencies of the company
The Guildford tyre company is the whole seller company trading into various parts of
motor vehicles. Selling various products and accessories to consumers. The company is mainly
producing its wide range of products by aiming for providing various services consisting of fast
and efficient users for challenging cars and aids in suiting the efficient cars. The company is also
listed as the member for distributing its tyres globally as it guarantees for distributing various
accessories to consumers by meeting efficient grand standards (Uhlar, Heyder and König, 2021).
Also, various services are being provided by the company by ranging its extensive array of
various services as the company supplies tyres, batteries, also aids in servicing cars, servicing
batteries, also servicing vehicles of various consumers.
Vision of guild ford tyre company is to establish the most trusted bran and supplier and
global tyre brand around the world. Furthermore, the Mission of company is to provide consumer
with satisfies services by offering various range of products as a wholesale, also become the

most profitable company over years by leading the company with the technical premium
products with the high technical edge, also learning to enhance the global experience by
expansing business. Objective of company is to establish as a prominent tyre market leaders for
producing various tyre accessories also quality services for valuing consumers in the market.
Assessing various factors that have been considered while formulating strategy by applying
PESTLE also Evaluating the role of strategy in achieving the relevant strategic direction,
by using stakeholder Power/Interest grid model
By applying the pestle analysis to the company helps in defining the external factors
which influences the business internal as well as external operations for working n the dynamic
environment.
Political factors : the political factors pays very important role which has hinders the
personal growth of the company and aids in establishing for moving towards innovation .
Various factors which influence the operating of company includes taxes policies, restrictions on
various imports, trade agreements will impact the company impacts and exports to other
countries. The laws of the country which are related to the policies can be the reason why the
business had has to faced issues. These laws can also be the reason why the new company's will
faced restrictions in the entry of this market.
Economic factors : As the total production of the tyre products in the economy will
impact the demand of products. Also, due to various economic changes in the country will
impact the sales of the companies products. Further various factors affecting companies
operations includes inflation rates of Country, efficiency level of financial markets and
infrastructure in which the company is operating its business. Depending on the per capita
income of the economy also the business will face impacts on its sales. Poor economical
condition can also result in negative affects on the business of the organization.
Social factors : Various changes occurring into the market will impact the company
operations as it occurs in positive as well as negative way, the preferences for purchasing the
two-wheelers and four wheelers of various consumers will impact the demand of tyre products
(What is a PESTEL Analysis?, 2022). Various people prefer for buying solid tyres which
provides better experiences and less hindrance from road crack, but some individual preferring
the low cost tyres will not be convenient for travelling on the uncomfortable roads. The social

trends regarding the cars has the potential of changing into driver less vehicles. Due to the
increase in the income of the society the sales of this company will also increase.
Technological factors : As various different tyres are being sold by the company as th
Michelin cross tyres, all season tyres, winters tyres 4×4 off-road tyres. Many tyres are being
successful for the company with the latest technical updates and inputs with using new technical
tyres will impact the company production processes. New technology has the power of
influencing innovation in the market of the organization resulting in potential market expansion.
Technology can also be a competitive disadvantage which the competitor has.
Environmental factors : Various carbon footprints after producing tyres will impact the
environment and climatic conditions. The company uses various rubbers which impact the tyres
of forest so the company must use various steps for reducing the carbon footprints. Also, the
climatic changes will impact the company supply chains. The impacts created by the
manufacturing organization on the environment could be the negative influences the business
faces. However sustainable practices towards the environment can also be a way of improving
brand image.
Legal factors : Various legal compliance for bounding the laws for operating the rubber,
and various laws relating environmental policy. The company must operate with the basic
standards for producing the tyres of standards requirements. The laws regarding the employment
pollution and also other factors which affect the organization can be seen as the result of the
changes in the always of the organization. Following certain laws in the market shows integrity
of the business and is also helpful for the organization in maintaining positive image.
Stakeholder grid model mainly emphasis on the four approaches which helps in
determining the power of various categories in the tyre company:
Stakeholders power interest grid model:
power power
(High power , low interest )
Customers for purchasing the tyre
products and acquiring various services
have the high power for regulating the
business operations and low interest fir
(High power , high interest)
Companies stakeholders in operating the small
and medium business have the high power in
regulating the company as they are having
particular part of interest which has invested in
the tyre company operations (Stakeholder

concerning the business as it is earning
profits or suffers losses.
Analysis using the Power Interest Grid, 2022).
Also, the stakeholders have high interest and
concern for earning profits of firm.
(Low interest , low power)
Employees of the company operating in
the tyre company are having low interest
and low power for operating the
business concerns.
(High interest , low power )
In this suppliers come with the high interest and
low power for regulating the tyre business of the
company. These are generally the suppliers of the
tyres products which has low interest in the firm
is earning profit or suffering losses.
Interest interest
Assessing various factors that have been considered while formulating strategy, also applying
appropriate strategic analytical frameworks to assess the internal environment
By applying various models for elocating the companies strategy an formulating its
strategy for aching the objectives and identify the internal environment by using value chain and
MC Kinsey model strategy: the strategy is mainly imposing n the companies for attaining the
competitive advantage. The strategy for the tyre company will be mainly organized and designed
for reinforcing vision, mission and strong values for achieving the goals of the company.
Structure : this will helps in representing the company various division for operating the
business. The structure of the company will helps in design the most feasible structure for
focusing and operating the tyre company. The structure of the businesses is considered to be the
key determinant factor which provides the business with efficiency in the operations which can
be helpful for the business to bring growth of the organization.
Systems : Will helps in defining the areas and determining the business to be conducted
in which way. It specifies the procedure which needs to be best adapted by the company for
operating in the dynamic environment.
Style : This helps in determining which types of employees will be operating the
company operations. The style of the organization is considered to be the factor which influences
the growth of the organization that is considered to be effecting the bushiness negatively if not
managed properly.

Staff skills : These are most important for the firm to be operated in the dynamic
environment. During change of companies structure the company will specifics the killed needed
in employees for operating with the new strategies and technology being adopted for producing
tyres. This is the reason why it is very important for an organization to understand how effective
and hiring talented individuals is considered to be the factor which provides the business with
growth and efficiency in the management of the operations.
shared value : These will helps in determining the values which is being adopted by the
company also the behaviour and the actions which helps in establishing the Guildford tyre
foundation. Sharing of values can be considered to be the cultural factor which influences the
business to bring growth in the organization. It can be seen as the important segment of the
business which is considered to be the factor that provides the business the characteristics which
they are looking for.
Using Porter’s Five Forces model for evaluating the competitive forces within the market sector
of Guildford tyre company, also using Ansoff matrix to devise your strategy towards
improving competitive edge and market position for your chosen organisation
By using the porter five forces model will helps determine the and improving various
strategies being applied to operate tyre business globally
Competitiveness :There is intense level of competitive for the firm as lots of market
layers are operating in this industry field and proving the inexpensive and affordable services to
various consumers. This industry has less competitiveness as the capital requirement for
establishing such firm is very high. The company will be using marketing strategy and looking
after existing market for serving target market for the Guildford company . Setting pricing of
various tyre products will helps in establishing competitive advantage for the company and
providing great services to consumers.
Threat of new entrants : There are numbers of new entrants for the firm. As the small
and medium enterprises of firm are very high in the terms of tyre company. Furthermore, it is
serving the products on the wholesale basis to large consumers which aids in dominating the
image of the company. Using differentiating products strategy will helps in lowering down the
thereat of new entrants , also establishing brand name of company by positioning products in
market also providing consumers various loyalty campaigns for retaining consumers for
Guildford company.

Threat of substitutes : The business is having strong competitors in the dynamic market
and various individuals will shift from the company from the other in terms for buying the
products form the other company. As few of the companies products are not safe for using which
have reduces the sales of company products. Adopting strategy as for By offering products
uniquely as by introducing new range of tyres will helps in retaining consumers and producing
those products which are not available to other businesses.
Bargaining power of supplier: Bargaining power of the company operating in the large
market is low. The company is producing large numbers of products and services to consumers.
The suppliers of this organization has very low bargaining power as they do not have many
organization to negotiate their production with. By adopting the strategy for diversifying
products ranges will helps in reducing bargaining power of supplier. Also doing backwards
integration helps in reducing bargaining power of supplier.
Bargaining power of buyers: high bargaining power for the products being produced by
the company. As the company is serving large consumers and established faithful business in the
eyes of buyers perspectives. The customers also have some sore of bargaining power as there are
different tyre companies which have products of different quality and prices. Offering loyalty
and various campaigns or retaining consumers with the products and better services offered by
Guildford company .
Also, the Ansoff matrix is mainly used by various firms for determining and analysing
various strategies which can be adopted by firm for growing businesses and retaining its market
share in future.
Market development: Market development will mainly specifies for expanding the
products and increasing sales by selling products into new market. as it can be done by
expanding its stores and products globally which can be sold in other global countries and caters
into different consumers segments. This is the strategy in which the business is increasing its
existing operations even more with the help of marketing practices which include promotional
expenses and also utilization of social media marketing.
Diversification : With the respect of diversification of products, the firm will enter into
new markets in order to diversify it's products range and services in order to gain more market
share and earn more revenues. This is the strategy which affects the organization as it is

considered to be the factor which influences the growth of the organization. For this strategy it is
important that the business is having innovative ideas.
Market penetration: This strategy can be used by the company in order to diverse its
products range in the existing market. This will aids the guild ford company for reducing its
prices for selling its products to consumers which will attract new buyers for increasing
promotion and acquiring market place for increasing its promotional activities and distribution
network of providing tyre services Guildford company.
Product development : This strategy will helps the company for producing new
products into market and aids in understanding the current market for providing various solutions
for meeting needs of the market (Strategic Growth with the Ansoff Matrix, 2022). The company
can invest for diversifying its various products and services into R and D department also merge
with different companies for supplying and developing the sales of companies products.
SECTION 2
Evaluating the different types of strategic direction using the model
Porter's strategy model: The company's relative position in the industry helps to
determine the profitability that is high, low or average. This model has four strategy which will
help the company to select the best strategy to have the growth in the market. The four strategies
of the model are as follows:
Cost leadership: In this strategy, the company used to set the low cost producer in the
market. By decreasing the cost of the products it makes the company to produce more and earn
more profits (Ferdinand and Tresyanto, 2020). The cost of the products varies from the business
to business as every business has different type of budgeting. The company who is the low cost
producer must take the cost advantage and enjoys the more profitability.
Differentiation: In this strategy the firm has to produce something attractive and unique
and some factors are valued by the owners and buyers (Baxter, 2019). The organization has to
do something innovative which makes them to have unique position in the market.
Differentiation is a strategy which can be implemented with the help of new and innovative ideas
which bring the organization the growth it needs.
Focus: This strategy is basically used by the big companies by applying the cost or
differentiation strategy. The company used to focus on the target market which increases the
profitability of the company. The focus of this company can be on both cost leadership and

differentiation which depends on how effectively the business can manage changes it desires in
the organization.
Bowman's Strategy Clock : This clock strategy has the 9 positions which are described
below:
1. Low price and low value added: In this strategy, the firm used to keep the low
prices in order to compete in the market. Due to having the low prices the quality
of the product is inferior. But the prices o the products are enough in order to
motivate the customers to buy that product.
2. Low Price: In this position of strategy, the company used to sell their products at
the lower prices and they have low profit margin. By having the low prices and
more selling of the products the firm used to gain good amount of profit (Islami,
Mustafa and Topuzovska Latkovikj, 2020). The firm used to produce the large
quantity at the lower prices.
3. Hybrid: In this position, the strategy makes the company to be more effective and
it clearly makes the firm to add value and offers the products on the continuous
basis. The customers used to offer the products by having some differentiation in
the products.
4. Differentiation: In this strategy position, the aim of the firm is to provide their
customers the maximum level of value. By doing something unique and attractive
it makes the products different from the others (Echchakoui, 2018). The firm must
focus on the quality of the product while doing differentiation. Quality and brand
plays a crucial role in this position of strategy. In this the customers are wiling to
pay high prices for the products because they are so used to that brand.
5. Focused differentiation: In this strategic direction, the firm used to focus on the
products and service. The prices of the products are very high and the firm earn
high profit by targeting the segments of market. The firm can earn the high profit
margin by having the targeted markets, marketing, distribution and having the
segmentation strategies.
6. Risky high margins: This is basically the short- term strategy to reduce the
disequilibrium in the market. In this strategy the firm used to set the high prices
without giving any extra to the customers. The customers have to buy that product

till they did not find any substitutes (Kim, 2020). The consumers will look for the
best quality at the same price for the same or for the substitutes products.
7. Monopoly Pricing: In this position strategy, there is only a single seller in the
market who used to offer the services and products to the customers. The firm
enjoys the monopoly position and charges the high prices from the customers.
Monopoly pricing can be seen as the type of pricing which brings the best out of
the business.
8. Loss of Market Share: In this position of strategic decision, the firm lowers its
perceived value but having the high prices by this it looses the share in the
market. This may be done by the company in order to enter into the newer
markets and earns more profitability. This strategy is effective in the short- term
or in the trending markets.
Justifying and recommending the best strategies
The organization will choose the focused strategic decision. This will help the firm to
have the target market which will maintain the profitability of the organization. This is basically
used the by tyre companies as the organization used to manufacture tyre, so they can have focus
strategic decision.
Structure of organization : the company is operating with the flat organisational
structure where the all the decision-making process and implementation of decision is being
done quickly,which will aids in creating the largest talent pool which aids in better coordinating
all the services with the tyre products being sold by the Guildford company.
vision establishes the most trusted bran and supplier and global tyre brand around the
world.
Mission of company is to provide consumer with satisfies services by offering various
range of products as a wholesale, also become the most profitable company over years by
leading the company with the technical premium products with the high technical edge, also
learning to enhance the global experience by expansing business.
Formulating strategy The company must adopt focused strategic decision for enhancing
growth and achieve the desired position of business.
Implementation The focuses strategy will be implemented in order to implement and
take minor decision instantly on regular basis for growing businesses.

Evaluation The company will evaluate and monitor performance KPI's for the company
in order to have effective sales and marketing for the products being reduced by company which
will results in measuring better revenues and future spending Pattens (Brint and et.al., 2021).
CONCLUSION
From this report it can be concluded that guild ford tyre is a private company operating at
small and medium scale. With the help off external analysis of company aids in identifying
forces which has impacted the company operations . Also by using the stakeholder matrix helps
in achieving strategic decision. Further by implying the mc Kinsey model has helped in
identifying the companies internal structure and framework . Also by using the porter five forces
analysis an Ansoff matrix has helped in defining abut companies competitive edge . Moreover by
evaluating the strategic decisions for the company assist in defining about the company growth
platform.

REFERENCES
Books and Journals
Baxter, G., 2019. A strategic analysis of Cargolux Airlines International position in the global air
cargo supply chain using Porter’s Five Forces Model. Infrastructures. 4(1). p.6.
Brint, A., and et.al., 2021. Reducing data requirements when selecting key performance
indicators for supply chain management: The case of a multinational automotive
component manufacturer. International Journal of Production Economics.233.
p.107967.
Echchakoui, S., 2018. An analytical model that links customer-perceived value and competitive
strategies. Journal of Marketing Analytics. 6(4). pp.138-149.
Ferdinand, D. Y. Y. and Tresyanto, C. A., 2020. Marketing Strategy Using Porters Five Force
Model Approach: A Case Study At The Culinary Center In Sidoarjo
Regency. International Journal of Business and Management Invention (IJBMI). 9(11).
pp.44-48.
Islami, X., Mustafa, N. and Topuzovska Latkovikj, M., 2020. Linking Porter’s generic strategies
to firm performance. Future Business Journal. 6(1). pp.1-15.
Kim, S. K. A., 2020. Advanced Mathematical Business Strategy Formulation
Design. Mathematics. 8(10). p.1642.
Uhlar, S., Heyder, F. and König, T., 2021. Assessment of two physical tyre models in relation to
their NVH performance up to 300 Hz. Vehicle System Dynamics.59(3). pp.331-351.
Online
Porter’s Five Forces of Competitive Position Analysis. 2022.[Online]. Available
through<https://www.cgma.org/resources/tools/essential-tools/porters-five-forces.html>
Stakeholder Analysis using the Power Interest Grid.2022. [Online]. Available
through:<https://www.projectmanagement.com/contentPages/wiki.cfm
Strategic Growth with the Ansoff Matrix. 2022.[Online]. Available through<Strategic Growth
with the Ansoff Matrix<https://www.tractionwise.com/en/magazine/ansoff-matrix-
growth/>
What is a PESTEL Analysis?.2022.[Online]. Available through:
<https://corporatefinanceinstitute.com/resources/knowledge/strategy/pestel-analysis/>