Strategic Management Analysis of Pro-Go Pty Ltd: MGT604 Report

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This report provides a strategic management analysis of Pro-Go Pty Ltd, focusing on the challenges posed by faulty products and their impact on the company's operations. The analysis examines stakeholder meetings, the company's strategic approach, and the need for changes in production processes and employee training. It highlights the negative consequences of the product failures, including loss of contracts and potential liquidation threats. The report explores strategic options such as broad differentiation and emphasizes the importance of research and development. The recommendations include providing employee training, developing alliances, and improving the company's image through advertising and promotional activities to enhance future growth and maintain a competitive position in the industry. The report is designed to aid students in understanding strategic management concepts and applying them to real-world business scenarios.
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Running head: STRATEGIC MANAGEMENT ANALYSIS
STRATEGIC MANAGEMENT ANALYSIS
Name of the Student
Name of the University
Author Note
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1STRATEGIC MANAGEMENT ANALYSIS
Executive Summary
The report is based on the analysis of the operations of an organization named Pro-Go Pty Ltd. in
the industry. The meetings that have been held with the stakeholders of the firm in order to solve
the new issues and disruption that has recently taken place in the industry. The issue that is faced
by the organization is mainly related to the faulty products that have been offered to the clients
or consumers of Pro-Go Pty Ltd. The failure of employees to understand the reasons behind the
faulty products is also a major part of the issue that has been discussed in the report. The changes
that have to be implemented in the strategic approach and operations of the organization have
also been analyzed in the report in detail. The recommendations that are provided are also based
on the future improved operations of the organization in the industry for enhancing the growth
levels.
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2STRATEGIC MANAGEMENT ANALYSIS
Table of Contents
Introduction......................................................................................................................................3
Aim..................................................................................................................................................3
Discussion........................................................................................................................................3
Conclusion.......................................................................................................................................7
Recommendations............................................................................................................................7
References........................................................................................................................................9
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3STRATEGIC MANAGEMENT ANALYSIS
Introduction
The report will be based on the analysis of an organization named Pro-Go Pty Ltd. and
the strategic options that can be implemented by the firm in order to enhance its operations in the
industry. The major issues that have been faced by the organization with respect to faults in the
products offered to consumers will be taken into consideration for the purpose of completing the
analysis. The future operations of stand-alone cameras and the reduction in their market value
due to increased usage of smartphone cameras (Kaltura.com, 2020). The analysis will be thereby
related to the ways by which different strategies can be implemented for the purpose of
enhancing the profits gained in the industry. The strategy implementation will be mainly related
to the ways by which the organization is able to maintain its position in the industry and face the
high levels of competition as well.
Aim
The aim of the project is to develop and implement a particular strategy for the purpose
of enhancing the revenues gained in the industry and to maintain the levels of sales growth as
well. The strategy will be developed with the support that is provided by the opinions of
stakeholders and proper completion of the meetings as well(Kaltura.com, 2020).
Discussion
Pro-Go Pty Ltd is a major organization that is able to manufacture small cameras that are
offered to consumers in order to fulfil their demands and needs. The CEO of Pro-Go Pty Ltd. had
made an announcement that was related to the issues that have been faced by the company with
respect to the faults that were recognized in some of the products. The cameras of the
organization had started bursting into flames and this had led to immense loss of customers of
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4STRATEGIC MANAGEMENT ANALYSIS
Pro-Go Pty Ltd.(Kaltura.com, 2020). The issues with various products had also led to the
reduction in levels of growth and profitability for an organization like Pro Go Pty Ltd. The
organization had faced major threats of liquidation due to failure of the products that are offered
to the consumers in the industry (Aguinis, Edwards & Bradley, 2017).
The company had also sent its technicians in order to analyze the issues that were being
faced by Pro-Go Pty Ltd. in the industry. However, the technicians had also failed to understand
the issues that were being faced by the products and the reasons behind the blasts of cameras.
The major client of Pro-Go Pty Ltd. named Zeong Lee Spot Store Chain that operates in China
had also decided to the cancel the contract with the organization due to delivery of the faulty
products(Kaltura.com, 2020). The faulty products of Pro-Go Pty Ltd. had been able to influence
the ways by which the organization can maintain its position in the industry. The major impact
was mainly related to the reduction of growth in the levels of sales and revenues that have been
gained by Pro-Go Pty Ltd. (Ansoff et al., 2018).
The sales of Pro-Go Pty Ltd. had also reduced to half due to the lack of revenues of the
organization and the lack of effective clients in the organization as well. The contract of the
organization was also ended in the process and this had been able to influence the position that is
gained in the highly competitive industry. The stakeholder meetings were also held in order to
solve the issues that are faced by Pro-Go Pty Ltd. based on its operations in the industry
(Nickols, 2016). The development of strategic plans of the organization will also be based on the
ways by which Pro-Go Pty Ltd. can enhance the operations in an effective manner. The
stakeholder meetings that had been held by the organization had also been able to influence the
strategic planning process implemented by Pro-Go Pty Ltd. (BerishaQehaja,Kutllovci&Shiroka
Pula, 2017).
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5STRATEGIC MANAGEMENT ANALYSIS
The meetings will be mainly based on the ways by which the issues faced by Pro-Go Pty
Ltd. can be addressed in an effective manner for the purpose of maintaining growth levels of the
firm. The enhancement of levels of growth and revenues in the industry will also be helpful for
the organization to provide effective returns to the stakeholders(Kaltura.com, 2020). The
concerns of the stakeholders will also be addressed in the meeting for the purpose of the proper
improvement of the organizational position in the industry. The strategies that can be
implemented by the organization will also prove to be useful for the organization so that it is able
to cater to the needs of the clients and to understand the reasons behind the issues that are being
faced by the firm (Daspit et al., 2017).
The failure of the technicians of the organization to understand reasons behind the failure
of the products will also be analyzed in the meetings. The meetings of stakeholders will also be
able to help the organization so that it is able to develop major processes that can be
implemented for the purpose of enhancing the expertise of students in an effective manner
(Newburry, Deephouse&Gardberg, 2019). The development of strategies in order to enhance the
growth levels of Pro-Go Pty Ltd. will be able to play a major role in solving the issues that are
being faced by the products. The failed products had a major negative impact on the client base
and capital that is developed by an organization Pro-Go Pty Ltd. The threats related to
liquidation is also considered to be a major factor that is able to influence the operations and
employees of Pro-Go Pty Ltd. as well (David & David, 2016).
The stakeholder meetings have been based on the disruptions that have been caused by
the faulty products of Pro-Go Pty Ltd. The disruption is mainly based on the end of contract with
a major Chinese client of the organization that is able to provide around 70% of the total
revenues that are earned by Pro-Go Pty Ltd. in the industry. The stakeholders of the firm that
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6STRATEGIC MANAGEMENT ANALYSIS
include General Manager (GM), General Manager of key supplier, Union official, Operations
manager (OM) and Senior finance manager (SFM). The stakeholders who have taken part in the
meetings are considered to be the most significant part of the operations of an organization like
Pro-Go Pty Ltd. The meeting with stakeholders will be able to provide major levels of support
the organization so that it can develop the strategies in an effective manner (Doz, 2017).
The management team of Pro-Go Pty Ltd. needs to take steps in order implement the
strategies that can help in providing effective levels of training to the employees. The training
that is offered to the employees or technicians can play a major role in the ways by which they
can understand the issues that are being faced by the products and reasons behind their faults as
well. The proper analysis of faulty products can also influence the development of new products
that can enhance the growth levels of the organization in the industry (Phillips &Moutinho,
2018). The concerns related to cancellation of the contract have been raised in the video that is
shared with the employees. The company has started facing threats that can be related to the job
loss of the employees as well. The management of the organization thereby needs to develop the
strategies in such a manner so that they can be implemented in order to solve the various issues
in Pro-Go Pty Ltd. (Gallus & Frey, 2016)
The strategic approach of the organization also needs to be changed in order to maintain
the levels of profitability that can be gained with the help of its operations in the industry. The
implementation of new strategies will also be based on the proper enhancement of production
processes of the organization in order to improve the product development activities. The
disruption that has taken place in the operations of Pro-Go Pty Ltd. can be taken into
consideration for the purpose of proper development of various strategies of the firm (Hitt,
Ireland &Hoskisson, 2016). The changes in production process and training of employees will
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7STRATEGIC MANAGEMENT ANALYSIS
however involve high costs and investments by the management of the firm. Pro-Go Pty Ltd.
also needs to conduct the research and development activities in a thorough manner for the
purpose of improving the products and solving the issues that are being faced by the products as
well (Leiblein&Reuer, 2019). The generic strategy of broad differentiation has to be
implemented by Pro-Go Pty Ltd. for the purpose of maintaining the position of the firm in the
industry. Broad differentiation will be able to play a major role in the ways by which Pro-Go Pty
Ltd. can improve the quality of products that can be offered to the consumers and the clients of
the organization as well (Hanson et al., 2016).
Conclusion
The report can be concluded by stating that an organization like Pro-Go Pty Ltd. has
recently faced major issues that are mainly based on the development and production of faulty
products. The faulty products that are offered to the consumers have a negative impact on the
image that has been formed by Pro-Go Pty Ltd. in the industry. The faulty products has also led
to the loss of major contracts of the organization that in turn has been able to reduce the revenues
and levels of profitability in the industry. The changes in strategic approach will be able to
support the effective operations of Pro-Go Pty Ltd. in the future.
Recommendations
The future operations of Pro-Go Pty Ltd. will be based on the proper implementation of
different strategies and development of the effective products as well. The recommendations can
be mainly provided to the organization based on the ways by which strategic implementation can
lead to the improved operations of the firm in the industry. Pro-Go Pty Ltd. will thereby be
provided with the following recommendations,
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8STRATEGIC MANAGEMENT ANALYSIS
The employees or technicians of the organization will be provided with effective
levels of training that will help them to understand the faults hat have taken place
in the products. The proper understanding of faults in the products will be helpful
for the organization to enhance the quality of products.
Pro-Go Pty Ltd. needs to develop alliances with the other organizations for the
purpose of fulfilling the capital and investment based needs that can help in
proper improvement of the products. The products will thereby be able to support
the growth of Pro-Go Pty Ltd. in the future(Kaltura.com, 2020).
Pro-Go Pty Ltd. can develop different advertising and promotional activities for
the purpose of improving its image in the industry. The enhancement of image of
the firm in the industry is required for the purpose of attracting the consumers and
the potential partners of the organization as well.
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9STRATEGIC MANAGEMENT ANALYSIS
References
Aguinis, H., Edwards, J. R., & Bradley, K. J. (2017). Improving our understanding of
moderation and mediation in strategic management research. Organizational Research
Methods, 20(4), 665-685.
Ansoff, H. I., Kipley, D., Lewis, A. O., Helm-Stevens, R., &Ansoff, R. (2018). Implanting
strategic management. Springer.
BerishaQehaja, A., Kutllovci, E., &Shiroka Pula, J. (2017). Strategic management tools and
techniques usage: A qualitative
review. ActaUniversitatisAgriculturaeetSilviculturaeMendelianaeBrunensis, 65(2).
Daspit, J. J., Chrisman, J. J., Sharma, P., Pearson, A. W., & Long, R. G. (2017). A Strategic
Management Perspective of the Family Firm: Past Trends, New Insights, and Future
Directions. Journal of Managerial Issues, 29(1).
David, F., & David, F. R. (2016). Strategic management: A competitive advantage approach,
concepts and cases. Pearson–Prentice Hall.
Doz, Y. L. (2017). Strategic management in multinational companies. In International
Business (pp. 229-248). Routledge.
Gallus, J., & Frey, B. S. (2016). Awards: A strategic management perspective. Strategic
Management Journal, 37(8), 1699-1714.
Hanson, D., Hitt, M. A., Ireland, R. D., &Hoskisson, R. E. (2016). Strategic management:
Competitiveness and globalisation. Cengage AU.
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10STRATEGIC MANAGEMENT ANALYSIS
Hitt, M. A., Ireland, R. D., &Hoskisson, R. E. (2016). Strategic management: Concepts and
cases: Competitiveness and globalization. Cengage Learning.
Kaltura.com, (2020). MGT604 Disruption 1. [online] Kaltura. Available at:
<https://www.kaltura.com/index.php/extwidget/preview/partner_id/1282131/uiconf_id/
42833962/entry_id/0_cb8h3b4b/embed/iframe?> [Accessed 8 April 2020].
Leiblein, M. J., &Reuer, J. (2019). Foundations and futures of strategic management. Available
at SSRN 3396754.
Newburry, W., Deephouse, D. L., &Gardberg, N. A. (2019). Global aspects of reputation and
strategic management. Global Aspects of Reputation and Strategic Management, 1-20.
Nickols, F. (2016). Strategy, strategic management, strategic planning and strategic
thinking. Management Journal, 1(1), 4-7.
Phillips, P., &Moutinho, L. (2018). Contemporary issues in strategic management. Routledge.
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