Strategic Management Report: Analysis of HFL and SCH Scenarios

This report provides a comprehensive analysis of two case studies, High Flyers Limited (HFL) and SCH, within the context of strategic management. The first part examines HFL, a UK-based company in the sportswear industry, evaluating its business activities, the issues it faces such as high competition and buyer power, and the influence of the external environment, including political and economic factors, on its future strategy. The second part focuses on SCH, exploring its strategic position, strategic options, and key challenges, such as resource constraints and industry support. The report utilizes strategic management concepts to evaluate opportunities, recommend strategic actions, and assess the competitive landscape, offering insights into how both companies can navigate their respective markets and achieve sustainable growth.

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Contents
Scenario 1........................................................................................................................................2
Analysis of Case..........................................................................................................................2
Issues Faced in Industry...............................................................................................................2
Competitive Pressure...................................................................................................................3
Influence of External Environment on Future Strategy of HFL..................................................4
Scenario 2........................................................................................................................................5
Strategic Position of SCH............................................................................................................5
Strategic Options.....................................................................................................................5
Key Strategic Challenges.............................................................................................................6
Opportunities Available for Company.........................................................................................6
Evaluation of Opportunities.....................................................................................................7
Recommendation.........................................................................................................................8
References........................................................................................................................................9

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Scenario 1
Analysis of Case
The case evaluates the business activities of the company HFL (High Flyers Limited) that is a
UK based company working with 150 employees to manufacture high quality gymnastics wear
and associated products. The company provides a diversified range of products in the external
environment including costumes, bags, footwear etc. The products are offered by the company in
whole of UK along with USA and Canada as well. From the total sales, 15% of the sales of HFL
are also initiated through online customers present in the ecommerce environment. In UK, the
company faces high degree of competition with six other companies as well. The competitors of
HFL have specialized in providing products to the customers at a comparative lower rate present
in the market. However, the company aims to promote high quality products due to which it
charge comparatively higher prices from the customers in the market.
Elimination of UK European Union provided opportunity to the company to increase its
efficiency in the environment by increasing sales as well. UK government is also supporting the
sales of gymnastic products in the business environment. It is suggested to the organization by
the government that they should expand the scope of business. Also the business should
implement new supply chain activities so as to increase the satisfaction level of business in the
external environment.
Issues Faced in Industry
Below mentioned are the issues that are faced by the company HFL in the sportswear industry:
High Degree of Competition: the company HFL faces the threat of competition in the UK
sportswear industrial environment. As discussed above that the competitors present in the
industry provide cheap quality products at low prices in the environment due to which the
company faces threat in the industry environment. HFL is the only company that provide high
quality products to the customers in the environment. Thus, it should be noted that high degree of
competition is the biggest threat for HFL as it competitors were providing products as cheap
prices in the business environment.

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Threat of Buyer: The customers present in the environment can change the pricing strategy of the
company in the business environment. As other competitor’s provide products at cheap prices in
the environment due to which the customers seek to bargain at HFL as well. Further, difference
in the taste and preference of the customers can also affect the position of the company in the
target market. A diversified range of gym wear products are provided by the company in the
market. So, change in taste of the customers can affect the demand and supply of the products in
the business environment. Buyers play a lead role in creating image of the company in the
business environment, so if they do not create an optimum image about the product in the
environment, then it can definitely ruin the prospective sales of the company in the business
environment (Tovstiga 2015).
Industry Threat: changing governmental rules and regulation can affect the scope of working of
the HFL Company in the business environment. Along with this, unstable political conditions of
UK can affect the working of the company; it can also reduce the efficiency of the company to
provide quality products to customers in the business environment (Grant 2016).
Competitive Pressure
There is high degree of competitive pressure on the company in the gym wear industry. The
company provides qualitative sportswear and gym wear products to the customers in the target
market. This product offered by the company provides high quality to customers in the target
market. However, looking at the industry profile it should be noted that the companies present in
this industry only provide low quality and low price products to the customers in the target
market. Resulting in which, the company faced difficulty in providing qualitative products to the
customers at high prices in the market. This aspect increased the pressure on HFL as they were
going to target people in the market who were interested in buying low price products in the
market. The customers were already satisfied with the cheap value of the product availed in the
market, therefore this acted as a competitive pressure for the company HFL to provide good
quality products in the market (O'brien 2019).
Further, the fact should be noted that in order to initiative a differential image in the minds of the
customers, it is important for the organization HFL to provide best quality products in the
market, otherwise the customer will not form an adequate image about the company in the target
market. Also, the competitors present in the market have been placed in the market since a long

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time resulting in which the pressure on the company increase to identify themselves in the
crowd.
Influence of External Environment on Future Strategy of HFL
Below mentioned are the external environment aspects of the sportswear industry and UK
environment that can affect the future strategy of the company.
Political Aspects: The political aspects lay a major impact on the future strategy of HFL to grow.
As it should be noted that UK government is supporting the activities of the company to proceed
so this aspect can positively affect the state of the company to initiate sales. Thus, it can be
assumed that this external environment facility can help the company. The government might
provide subsidy and promote export of the goods in the international market like US, Australia,
Canada. The external environmental factor influences the future strategy of the company HFL in
a positive manner (Trigeorgis, and Reuer 2017).
Industry Rivalry: Industry rivalry is an industrial factor that affects the future actions of the
company in the external environment. Industry rivalry refers to the level of competition present
in the industry. As discussed above, the company has high degree of competition in the
sportswear due to which the company faces struggle to maintain their growth in the external
market. Thus, it should be noted that increasing level of competition could lay impact on the
future strategy of the company. The business should implement future strategy in such a way that
it eliminates competition and make HFL market leader as well (Modarres 2016).
Economic Aspects: The economic factors of a country explain about the economic features that
help or negatively affect the growth of an organization. For instance, the GDP of a country of
poor that can negatively affect the state of the company because people of that country would not
have sufficient resources to purchase qualitative products from HFL. Thus, it should be noted
that it is important for the company to consider the economic status of the country while
initiating future strategies in the business environment. This aspect will help the organization to
analyse the prospective countries where they can export their products to grow and succeed as
well.
Bargaining Power of Buyer: This is an external industrial aspect that the business needs to
consider while initiating future strategies in the business environment. The bargaining power of

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buyer refers to the power of buyer to influencing the pricing strategy of the company in the
business environment. The customers present in UK environment are habitual of purchasing lo
quality products at low prices in the market, so they negotiate prices from HFL executives that
make the sales process difficult to operate. Thus, the company should consider the power of
customers present in industry before initiating future strategies in the business market (Wahl
2015).
Scenario 2
Strategic Position of SCH
In the process of strategic management, positioning refers to the process of placing the brand of
the organization in such a way that satisfaction is achieved to the company and the goodwill
represents the activities of the business as well. Strategic position refers to the position where the
company is aiming to keep its brand in the target market so as to attract people and maintain a
reputable position in the market. On the basis of strategic position, the company is placed at a
reputable position in the market. This position reflects that the company provide high quality
products in the market with low prices as well. In the care service industry, the company is
placed at the topmost position on because they provide efficient care service the people to the
elderly people at significant low prices in the market. Further, it should be noted that the
customers have placed the company at the appropriate position in the market based on the
services they provide in the market. Strategic position of the company helps the new customers
to analyse the efficiency level of services provided by the company in the external market. The
customers usually create the strategy position of the company as it is made on the basis of
perception of customers for the brand (Jenkins, and Williamson 2015).
Strategic Options
Strategic options refer to the creative alternative action oriented responses of the company for the
external situations acknowledged by the business. The strategic options take the advantage of the
trends, opportunities, threats etc. present in the outside world. These options help the
organization in maintaining reputable position in the market by innovating the business functions
time to time and growing. Considering the strategic options for the SCH, it should be noted that
the organization has varied option to expand its scope of business and grow. As the company is

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already aiming to take a big step, in the future which seems best suited for them based on the
services that they provide in the market. The business should aim to increase the visit time of
10% in the coming year. This strategic option will increase the reputation of the company and
will also increase the traffic at the organization as well. The company should diversify the scope
of business by expanding the facilities in different parts of nations. According to the survey data,
numbers of elderly people are increasing in UK so this type of facility will help in the reaching to
more and more people and providing them healthcare services as well (Thompson, Strickland,
and Gamble 2015).
Key Strategic Challenges
Below mentioned are the strategic challenges faced by the company SCH in incorporating their
business actions in the target market:
Less Availability of Resources and Pay: Initially it should be noted that as the company is
present in the healthcare industry for serving elderly patients so they need to keep the fees low so
as people belonging to all income levels could easily afford it. In response to which, the fees
alone is unable to provide sufficient liquidity to maintain business process. Resulting in which
the business is facing cash crunch in the organizational environment. Secondly, in order to treat
the patient and provide them different kinds of medical facilities, the management require
attaining several resources and raw material that they are unable to attain. These issues are
hampering the productivity of the company.
No availability of Support from Industry: Many times in case of issues, business take help from
other businesses that are present in the same industry. However, due to less availability of
companies present in this industry, the SCH organization faces difficulty in initiating their
functions effectively.
High Travelling expense: As discussed in the case that the company need to send the employees
to different places so as to treat the elderly patient. Resulting in which, the company faces high
travelling cost that is difficult to manage by them.
Opportunities Available for Company
The opportunities available for the company SCH are discussed below using Ansoff’s strategic
directional growth vector matrix:

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Market Penetration: it refers to the business strategy that initiates growth of the existing product
of the company. According to this strategy, the company should try to reach more and more
people in the business environment. The should not say no to any of the customer, also they
should make the employees log more working hours with them to deviate the workload from few
people. Market penetration will help the company to increase its market value in the industry in
which it is prevailing (Dawes 2018).
Product Development: It refers to the strategy that helps the business to increase its strength by
introducing new products in the target. Increasing population rate is a sign that elderly people
along with number of children is increasing. So, the business can enter in paediatrics services as
well to treat more people in the environment. This can help the organization in increasing sales
and targeting more and more people in the business environment. Further, product development
strategy would require the SCH to introduce a new line of business segment in the internal
environment, as the people treating elderly people cannot treat the children as well.
Market Development: This refers to the process of growing using the same product but targeting
a different market segment. Under this segment, the business can increase the scope of providing
services in the market by diversifying the customer base on the basis of geographic
segmentation. Currently, the company is serving people present South East of England so they
should further aim to expand their services in North East of England as well. This will help them
to serve more people and increase revenue as well.
Diversification: Lastly, diversification refers to the process of growing in the external market by
introducing both products as well as market development strategy in the business environment.
So, according to this strategy, the business SCH should aim to increase the scope of business by
providing paediatrics services to children in the market of North East England. This activity
provides higher degree of risks as well as profitability to the company in the business
environment (Schawel, and Billing 2018).
Evaluation of Opportunities
According to above mentioned four opportunities available for the company SCH to grow, the
best suited opportunity for the company is to use product development strategy in the business
environment. This strategy will help the company to do not its activities in single dimension and

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diversify the scope of business. It will also help the organization expand its business in increase
the level of sales as well. Paediatrics services will also make good income for the business and
there is great customer base for this service as well.
Recommendation
Lastly, it is recommended that the company should take subsidy for initiating the above
mentioned opportunity in the business. The subsidy will help the organization to access more
latest technology at low cost in business environment. The company should more and more
people in business environment so as to serve more and more people. Therefore, it should be
noted that opportunity will incur heavy cost but the business need to cover the expenses using
optimum revenue.

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References
Dawes, J., 2018. The Ansoff Matrix: A Legendary Tool, But with Two Logical Problems. But
with Two Logical Problems (February 27, 2018).
Grant, R.M., 2016. Contemporary strategy analysis: Text and cases edition. US: John Wiley &
Sons.
Jenkins, W. and Williamson, D., 2015. Strategic management and business analysis. UK:
Routledge.
Modarres, M., 2016. Risk analysis in engineering: techniques, tools, and trends. CRC press.
O'brien, J., 2019. Category management in purchasing: a strategic approach to maximize
business profitability. Kogan Page Publishers.
Schawel, C. and Billing, F., 2018. Ansoff-Matrix. In Top 100 Management Tools (pp. 31-33).
Springer Gabler, Wiesbaden.
Thompson, A., Strickland, A.J. and Gamble, J., 2015. Crafting and executing strategy: Concepts
and readings. McGraw-Hill Education.
Tovstiga, G., 2015. Strategy in practice: A practitioner's guide to strategic thinking. US: John
Wiley & Sons.
Trigeorgis, L. and Reuer, J.J., 2017. Real options theory in strategic management. Strategic
Management Journal, 38(1), pp.42-63.
Wahl, M., 2015. STRATEGIC FACTOR ANALYSIS FOR INDUSTRY 4.0. Journal of Security
& Sustainability Issues, 5(2).