Management in Practice: External and Internal Analysis of Fusion

This report provides a comprehensive analysis of Fusion, a company specializing in creative retail solutions. It begins with an introduction to the Fourth Industrial Revolution and its impact on businesses, setting the context for the analysis of Fusion's operations. The report delves into the external macro environment using ESTEMPLE, VUCA, and Porter's Five Forces frameworks to assess the economic, social, technological, environmental, media, political, legal, and ethical factors influencing Fusion. It then examines the internal environment through Value Chain and VRIO analyses, evaluating the company's resources and capabilities. Finally, the report addresses the management challenges faced by Fusion, utilizing a SWOT analysis and redefining these challenges in light of the evolving business environment. The analysis covers various aspects, including economic conditions, social and cultural influences, technological trends, environmental factors, media's role, political and legal factors, and ethical considerations. The report also assesses the company's position in the retail industry and its competitive landscape. The report concludes with a discussion of Fusion's strategic challenges and potential solutions for adapting to the changing business landscape.

Running head: MANAGEMENT IN PRACTICE
MANAGEMENT IN PRACTICE
Name of the Student
Name of the University
Author Note

1MANAGEMENT IN PRACTICE
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......................................................................................................9
VRIO Analysis of Fusion............................................................................................................9
Value chain analysis of Fusion....................................................................................................9
3. The management challenge-......................................................................................................12
SWOT analysis of Fusion..........................................................................................................12
Redefining the management challenge of Fusion......................................................................12
Conclusion.....................................................................................................................................13
References......................................................................................................................................14

2MANAGEMENT IN PRACTICE
Introduction
The technological changes that have currently taken place in the business environment
currently are mainly related to the Fourth Industrial Revolution. The challenges which are faced
by the companies are also a result of the industrial revolution. The changes that have occurred
due to industrial revolution have influenced global incomes and the quality of life of the people
has also been enhanced (Abs.gov.au 2019). The company which is chosen for analysis in the
report is Fusion that is responsible to provide creative types of solutions to partners in the
industry (Fusioncorp.co 2019). The various activities are mainly based on proper development of
the solutions by Fusion are, retail displays, merchandising systems, shop fittings, cross cultural
branding, retail services, design innovation and the digital installations. The offices of Fusion
have been developed in different countries like, China, Sydney, Japan, Hong Kong and Port
Melbourne (Asci.org.in 2019).
The report will mainly offer detailed picture related to the analysis of external
environment with the help of VUCA, Porter’s five forces and ESTEMPLE frameworks. The
internal operating environment of the company on the other hand will be analyzed by using
Value chain and VRIO frameworks. The management challenge that is being faced by Fusion
due to the changes in business environment will also be discussed in the report by using SWOT
analysis framework. The redefining of management challenge will be based on processes
implemented by Fusion in order to develop the operations after changes which have taken place
in the environment (Chung and Kim 2016).

3MANAGEMENT IN PRACTICE
Discussion and analysis
1. External macro environment analysis
ESTEMPLE Analysis of FusionEconomic factors – The Fourth Industrial Revolution has many different impacts on the
economic growth of various countries due to the major shifts that have taken place on demand
side. The expectations of customers have also started increasing due to global expansion of the
organizations. Fusion is also affected by the changes that have taken place in the economies of
the countries the organization operates due to increasing demands of customers for low prices for
services. The economic conditions have an impact on the expectations of the customers and
value that is provided to the clients as well (Cleverism.com 2019).
Social factors – The social and cultural influences are considered to be a major factor
that has affected the Fusion Group. The Fourth Industrial Revolution has increased transparency
and engagement of customers in development of solutions that are provided to them. Changes
have also taken place in the societies of various countries that can influence the ways by which
customers behave (Deloitte.com 2019).
Technological factors – The technological trends have faced major levels of changes
with the support that is provided by the enhancement of technology usage. The implementation
of technologies like automation and AI are considered to be the most important aspects of fourth
industrial revolution. Technology implementation has many effects on the ethical implications
and the innovations have also been able to affect the professional lives of people as well
(Deloitte.com 2019).

4MANAGEMENT IN PRACTICE
Environmental factors – The environmental factors are also considered to be highly
important for the operations of the global organizations after the Fourth Industrial Revolution has
taken place. Environments of different countries are also able to affect the operations of global
organizations like Fusion Retail. Sustainable operations have also become an important part of
the impacts of Fourth Industrial Revolution that had taken place (Ferretti and Pedret 2018). The
manufacturing processes of retail organizations have to be developed in such a manner so that
the environment is not influenced in a huge manner. The regulations based on environment that
are set by the governments of various countries are also able to affect the operations of Fusion
(Emerald.com 2019).
Media factors – Media has been able to play a significant role in the ways by which
retail organizations can increase the levels of awareness based on the products that are offered to
the customers. The industrial revolution has been able to increase the importance of
communication and media in development of the organizations in retail industry of Australia.
The expectations of customers have increased and media is able to play a major role in
development of the image of Fusion (Hbr.org 2019).
Political factors – The profitability and revenues of retail stores are influenced by
policies that are developed by the governments of various countries. The industrialization levels
have been able to increase the impact of political stability on operations of global organizations.
Fusion Retail has been affected by the government policies and supervision of the public
authorities in development of solutions that are offered to customers (Hofmann and Rüsch 2017).
Legal factors – The legislative conditions have to be taken into consideration in order to
develop the ways by which global organizations are able to operate with high levels of profit.

5MANAGEMENT IN PRACTICE
The taxation and labor based laws in different countries are affected by the revolution and
globalization that has taken place. The legal troubles that can be faced by the organizations are
mainly based on conditions that have been developed in various countries. Legal issues can have
an impact on the image of a service organization like Fusion (Ibisworld.com.au 2019).
Ethical factors – The ethical conditions based on revolutions that have taken place in the
industry are highly important. The use of AI and other technologies have increased the speed of
operations of global organizations. However, the reduction of labor can be considered to be a
major ethical issue that has an impact on the services that are provided by Fusion (Lee et al.
2018).
VUCA Analysis of FusionVolatility – Volatility levels in the retail industry have increased in a huge manner in the
last few years. The industrial revolution has been able to affect fluctuations and turbulence that
has taken place in the retail market. Fusion operates in a highly volatile industry and the
turbulence has an immense effect on the revenues (Li, Hou and Wu 2017).
Uncertainty – Uncertainty levels in the retail market are also quite high and the future
operations cannot be predicted easily. The revolution in the industry have also increased the
uncertainty levels in a huge manner. Uncertain environments that are developed due to increase
in international expansion of firms have influenced the business processes and ways of
developing competitive edge. Fusion has to develop the services based on changing needs of
customers in the various countries (Morrar, Arman and Mousa 2017).
Complexity – The levels of complexity are based on different aspects that are a part of
the business environment. The factors or aspects that play a major role in increasing complexity

6MANAGEMENT IN PRACTICE
of business operations in different countries are based on changing business environments. The
industrial revolution has been able to increase complexities in business environment with the
support that is provided by the communication between various countries. Fusion Retail has been
affected by complexities that have taken place in the business environment (Pereira and Romero
2017). Ambiguity – The clarity in different business environments have reduced due to entry of
different organizations in various countries. The transparency of operations of global
organizations have also started increasing in the last few years. Fusion Retail has been provided
with major opportunities to improve the levels of transparency in order to improve the revenue
levels and gain trust of clients as well (Peters 2017).
Porters 5 forces analysis of FusionThreats from new entry – The threats that are provided by the entry of new
organizations in the retail industry are quite high and the existing organizations are influenced in
a huge manner by new products and services. The competition levels have also started increasing
due to revolution that has taken place in the industry. The intensity of competition from new
firms is considered to be an important part of the industrial revolution (Philbeck and Davis
2018). Threats from substitutes – The levels of existence of substitute products have started
increasing after globalization and industrial revolution had taken place. The entry of
organizations in different countries have been able to play a major role in increasing the demands
of consumers. The availability of substitutes of various services and products has also increased
due to implementation of new technologies. Fusion retail is an organization that influenced in a

7MANAGEMENT IN PRACTICE
huge manner by the availability of substitutes of the services that offered to the clients or
customers (Piccarozzi, Aquilani and Gatti 2018).
Bargaining power of the buyers – Fourth industrial revolution has been able to increase
the usage of modern technologies in the different organizations. Various industries have adopted
different methods and technologies in order to improve the levels of operations. The number of
organizations providing similar products have increased and this has been able to enhance the
power of bargaining of the consumers of Fusion as well (Prisecaru 2016).
Bargaining power of the suppliers – The suppliers of global organizations have also
been influenced in a huge manner by the changes that have taken place in different countries.
The prices of various raw materials are also affected by the industrial revolution and increase in
number of suppliers. Power of suppliers have reduced in the last few years as the organizations
are developing huge supplier bases in different countries. The partnerships developed by Fusion
in different are also affected by the communication between different countries (Pwc.com.au
2019). Intensity of competitive rivalry – The levels of competitive rivalry among existing
organizations have started increasing in the last few years due to high industrial revolution.
Fusion Retail has also started facing major challenges from the competitors due to the increase in
number of organizations that have started expanding internationally (Roblek, Meško and Krapež
2016).
Industry analysis/ external micro environment analysis
The micro environment based factors are considered to be quite close to the business and
also have an impact on the operations and levels of success as well. The corporate strategy of

8MANAGEMENT IN PRACTICE
organizations is based on the proper analysis of the micro environment. The various factors that
have are considered to be a major part of micro environment are as follows,
Customers – The customers or clients of an organization are able to play the most
significant role in development of proper revenues. Fusion Retail has a strong client base who
are able to provide their contribution to the revenues of the company. The various services that
are provided to the customers by Fusion is considered to be an important aspect of maintaining
the customer base (Weforum.org 2019).
Employees – The employees or human resources of Fusion Retail are major part of the
operations that have been developed by the organization. The levels of knowledge and diversity
that have been gained by the organization is important for the development of services offered to
the clients. The global reach of Fusion Retail has also been increasing due to the enhancement of
services that are offered to the clients (Xu, David and Kim 2018).
Competitors – The levels of competition that have been faced by Fusion Retail are
mainly based on the increase in number of organizations that are able to provide similar services.
The major competitors of Fusion Retail in Australia include ICONIC, Brands Exclusive
Australia, Lorna Jane, TOBI, SurfStitch, Everlane. The competition that is provided by the
organizations have a major impact on the profit margins of Fusion Retail (Weforum.org 2019).
Media – The media attention is considered to be important for the promotion of services
that are provided by Fusion Retail to the clients. The communication that is developed with
different organizations is important for the proper development of reputation and image in the
market. Fusion Retail has developed promotional activities in order to increase the awareness
based on services that are provided by the organization (Pwc.com.au 2019).

9MANAGEMENT IN PRACTICE
Shareholders – The shareholders of organizations are able to play the most significant
part in the ways by which revenues and profitability can be increased. Fusion Retail has
developed a group of shareholders who are able to support the operations of the organization in
different countries. The revolution in the industry has affected Fusion Retail in a huge manner
(Xu, David and Kim 2018).
Suppliers – The suppliers of Fusion Retail have the ability to improve the levels of
services that are provided to the clients. The clients of Fusion Retail are provided with the
demanded services with the support that is provided by the suppliers of the company. The raw
materials and their prices are also influenced by the suppliers of the organization (Pwc.com.au
2019).
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

10MANAGEMENT IN PRACTICE
The development of a competitive edge is considered to be a valuable aspect of
operations of Fusion. However, sustainability in operations is also considered to be a major
factor that can support Fusion and the solutions that are provided by the company. The global
presence and unique services of Fusion will provide the company with a firm position in the
international market (Xu, David and Kim 2018).
Value chain analysis of FusionPrimary activities
Inbound logistics – The strong relationships that have been developed by Fusion Retail
with the suppliers has been able to play a major role in providing support to the improvement of
the operations. The inbound logistics of Fusion Retail is based on the ways by which raw
materials are retrieved and the inputs are stored by the organization as well (Philbeck and Davis
2018). Operations – The operational activities are based on the ways by which raw materials
have arrived and they are processed in order to develop the end products. Fusion Retail has
developed the operational activities in order to improve the productivity of the organization and
maximize the levels of efficiency. The success of Fusion Retail has been ensured with the
support that is provided by the effective operational activities (Li, Hou and Wu 2017).
Outbound logistics – The outbound logistics mainly include activities that are able to
deliver the products to various customers with the help of various intermediaries. Different
outbound logistics are based on the material handling process, warehousing, scheduling,
processing of orders, transporting and also delivering to various destinations. Fusion Retail has

11MANAGEMENT IN PRACTICE
been able to maintain the outbound logistics in order to reach the clients within short periods of
time (Xu, David and Kim 2018).
Marketing and sales – The sales and marketing based activities that are performed by
Fusion Retail have the ability to the improve its revenue levels and profitability as well. The
increase of awareness related to the services offered by Fusion Retail to the clients can be
achieved with the help of effective promotions. The image of the brand can also be improved
with the development of proper advertisements and promotional activities as well (Li, Hou and
Wu 2017).
Service – The services that are offered by Fusion Retail to the clients are able to enhance
the image of the organization. The organization has attracted the clients with the help of word of
mouth based advertisements and promotions that are developed. The relationship with clients are
influenced in a negative manner by the negative reviews that are formed by the previous
customers (Prisecaru 2016).
Support activities
Firm infrastructure – The infrastructure that has been developed by Fusion Retail is
mainly based on the ways by which the company can maintain the service levels. The proper
planning of finances is able to play the most significant role in development of the value chain of
Fusion Retail (Piccarozzi, Aquilani and Gatti 2018).
Human resource management – The human resources or employees play the most
significant role in the enhancement of operations of the modern organizations. After the
industrial revolution had taken place importance of the employees have started increasing in a
huge manner. The employees of Fusion Retail are multi-talented in nature and they are able to

12MANAGEMENT IN PRACTICE
provide highest levels of contribution to the organization and services that are offered to clients
as well (Morrar, Arman and Mousa 2017).
Procurement – The procurement process is able to play a major role in formation of
services provide to clients. The raw materials that are provided by the suppliers are considered to
be highly important for the ways by which Fusion Retail is able to satisfy the customers
(Philbeck and Davis 2018).
Technology – The technological developments that have taken place in the industry or
markets have influenced Fusion Retail. The implementation of modern technologies has played a
key part in improvement of the service levels. The clients of Fusion Retail can be satisfied in an
effective way by the modern technology based and innovative solutions that are provided to them
(Li, Hou and Wu 2017).
3. The management challenge-
Organizational culture is considered to be a major management challenge that is faced by
Fusion Retail in its operations in the industry.
SWOT analysis of FusionStrengths – The solutions that are offered by Fusion Retail to the clients are highly
innovative in nature and have an impact on the operations of the organization. The creative
solutions that are offered by Fusion Retail have improved the retail displays. Fusion has formed
many partnerships and acquisitions in order to develop innovative solutions (Morrar, Arman and
Mousa 2017).

13MANAGEMENT IN PRACTICE
Weaknesses – The major weakness of the organization is based on the lack of a proper
brand name of Fusion Retail in the industry. The Industrial Revolution has an impact on the
service levels of the organization and the growth strategy as well. The culture of Fusion Retail is
always not supportive of the various cultures.
Opportunities – Fusion Retail has been provided with major levels of opportunities after
the Fourth Industrial Revolution that had taken place. Fusion has an opportunity to develop a
collaborative culture in order to improve profitability and performance of employees as well
(Weforum.org 2019).
Threats – The threats that are faced by Fusion Retail are mainly based on the increase in
levels of competition due to industrial revolution that has taken place. The cultural and
systematic integration is considered to be an important aspect that relates to the ways by which
Fusion Retail can maintain its operations (Chung and Kim 2016).
Redefining the management challenge of Fusion
The acquisitions that have been performed by Fusion have a major impact on the
development of an effective culture within the organization (Weforum.org 2019). The
acquisitions are able to increase the levels of differences that exist in the cultures of various
organizations. The multiple cultures have been able to provide major challenges to the
organizations after the Industrial Revolution had taken place. The management challenge can be
solved by providing training to the managers and the employees in order to improve their
cultural intelligence (Hofmann and Rüsch 2017).

14MANAGEMENT IN PRACTICE
Conclusion
The report can be concluded by stating that the Fourth Industrial Revolution has a major
impact on the operations of various global organizations. Fusion Retail has developed the
services with the help of support that is provided by the various organizations. The competition
levels have also increased in the last few years due to changes that have taken place in the
external environment. The management challenge that is faced by the organization can also be
solved with the help of proper training that can be offered to the employees based on various
cultures.

15MANAGEMENT IN PRACTICE
References
Abs.gov.au 2019. 8501.0 - Retail Trade, Australia, May 2019. [online] Abs.gov.au. Available at:
https://www.abs.gov.au/AUSSTATS/abs@.nsf/Lookup/8501.0Main+Features1May%202019?
OpenDocument [Accessed 14 Aug. 2019].
Asci.org.in 2019. [online] Asci.org.in. Available at:
https://asci.org.in/images/MDP2017-18/mng_creat_inno.pdf [Accessed 14 Aug. 2019].
Chung, M. and Kim, J., 2016. The Internet Information and Technology Research Directions
based on the Fourth Industrial Revolution. KSII Transactions on Internet & Information
Systems, 10(3).
Cleverism.com 2019. 7 Business Growth Strategies for Small Businesses. [online] Cleverism.
Available at: https://www.cleverism.com/7-business-growth-strategies-for-small-businesses/
[Accessed 14 Aug. 2019].
Deloitte.com 2019. Digital influences 40% of retail bricks-and-mortar store visits | Deloitte
Australia | Consumer Business. [online] Deloitte Australia. Available at:
https://www2.deloitte.com/au/en/pages/media-releases/articles/digital-influences-40-percent-
retail-bricks-and-mortar-store-visits-170715.html [Accessed 14 Aug. 2019].
Deloitte.com 2019. Retail Forecasts June 2019: Post-election sugar hit to help retailers |
Deloitte Australia | Deloitte Access Economics. [online] Deloitte. Available at:
https://www2.deloitte.com/au/en/pages/media-releases/articles/retail-forecasts.html [Accessed 14
Aug. 2019].

16MANAGEMENT IN PRACTICE
Emerald.com 2019. Determinants of organisational creativity: a literature review | Emerald
Insight. [online] Emerald.com. Available at:
https://www.emerald.com/insight/content/doi/10.1108/00251740110402328/full/html [Accessed
14 Aug. 2019].
Ferretti, F.C. and Pedret, A., 2018. Critical Design: A Tool to Challenge the Implicit Values
behind the Fourth Industrial Revolution. IDEALOGY, 3(3), pp.161-170.
Fusioncorp.co 2019. About – THE INTERNATIONAL FUSION CORPORATION. [online]
Fusioncorp.co. Available at: https://fusioncorp.co/about-the-international-fusion-group/
[Accessed 14 Aug. 2019].
Hbr.org 2019. The Mindset Your Company Needs to Grow Organically. [online] Harvard
Business Review. Available at: https://hbr.org/2018/05/the-mindset-your-company-needs-to-
grow-organically [Accessed 14 Aug. 2019].
Hofmann, E. and Rüsch, M., 2017. Industry 4.0 and the current status as well as future prospects
on logistics. Computers in Industry, 89, pp.23-34.
Ibisworld.com.au 2019. Retail Trade – Australia Industry Research Reports | IBISWorld.
[online] Ibisworld.com.au. Available at: https://www.ibisworld.com.au/industry-trends/market-
research-reports/retail-trade [Accessed 14 Aug. 2019].
Lee, M., Yun, J., Pyka, A., Won, D., Kodama, F., Schiuma, G., Park, H., Jeon, J., Park, K., Jung,
K. and Yan, M.R., 2018. How to respond to the Fourth Industrial Revolution, or the Second
Information Technology Revolution? Dynamic new combinations between technology, market,

17MANAGEMENT IN PRACTICE
and society through open innovation. Journal of Open Innovation: Technology, Market, and
Complexity, 4(3), p.21.
Li, G., Hou, Y. and Wu, A., 2017. Fourth Industrial Revolution: technological drivers, impacts
and coping methods. Chinese Geographical Science, 27(4), pp.626-637.
Morrar, R., Arman, H. and Mousa, S., 2017. The fourth industrial revolution (Industry 4.0): A
social innovation perspective. Technology Innovation Management Review, 7(11), pp.12-20.
Pereira, A.C. and Romero, F., 2017. A review of the meanings and the implications of the
Industry 4.0 concept. Procedia Manufacturing, 13, pp.1206-1214.
Peters, M.A., 2017. Technological unemployment: Educating for the fourth industrial
revolution. Journal of Self-Governance and Management Economics, 5(1), pp.25-33.
Philbeck, T. and Davis, N., 2018. The Fourth Industrial Revolution: Shaping a New Era. Journal
Of International Affairs, 72(1), p.17.
Piccarozzi, M., Aquilani, B. and Gatti, C., 2018. Industry 4.0 in management studies: A
systematic literature review. Sustainability, 10(10), p.3821.
Prisecaru, P., 2016. Challenges of the fourth industrial revolution. Knowledge Horizons.
Economics, 8(1), p.57.
Pwc.com.au 2019. Australian Entertainment & Media Outlook 2019-2023. [online] PwC.
Available at: https://www.pwc.com.au/industry/entertainment-and-media-trends-analysis/
outlook.html [Accessed 14 Aug. 2019].

18MANAGEMENT IN PRACTICE
Roblek, V., Meško, M. and Krapež, A., 2016. A complex view of industry 4.0. Sage Open, 6(2),
p.2158244016653987.
Weforum.org 2019. [online] Available at: https://www.weforum.org/about/the-fourth-industrial-
revolution-by-klaus-schwab Industrie 4.0 - The Fourth Industrial Revolution [Accessed 14 Aug.
2019].
Xu, M., David, J.M. and Kim, S.H., 2018. The fourth industrial revolution: opportunities and
challenges. International journal of financial research, 9(2), pp.90-95.