Extended Analysis and Report on Radic8™'s Strategic Management

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Extended Analysis & Report
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Table of Contents
Introduction......................................................................................................................................3
Part 1:...............................................................................................................................................4
Key challenges faced by managers in developing strategy within the industry..........................4
Theories and models suitable for informing an organisation planning and positioning relative
to key competitors and within its competitive environment........................................................4
Part 2................................................................................................................................................6
1. An introduction setting out your understanding of the task, your planned approach...........6
2. A short section is outlining the organisational context selected for the report and key
milestones in its development......................................................................................................7
3. Literature Review.................................................................................................................8
4. Application of theory in the Radic8™ context, as directed above, and using insights and
examples from your literature review to provide support for any observations and arguments.
...................................................................................................................................................14
5.A short concluding section is drawing conclusions about the relevance of Strategy as
Practice theory in informing organisational strategy.................................................................17
6. Please include a short ‘Reflective Assessment’ of your key learning from undertaking the
assignment.................................................................................................................................18
Conclusion.....................................................................................................................................19
References:....................................................................................................................................20
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Introduction
Strategic management is the science of management in which policies are formulated that
responsible for the success of the organisation by the top’s level management. High authorities
of the management form policies by considering the resources and opportunities an organisation
has. These plans and policies succour the organisation in accomplishing its common purpose.
Team managers and members execute the decision taken by the top level management, if they
face any challenges that hinder their performance then they consult with the high authorities.
Radic8 provides technology for providing filtered and clean air by using various techniques. This
is the United Kingdom-based company. Radic8's air and water filtration solution removed every
particle that is harmful to health. In this study, theory by the strategic management that makes
developing planning will be discussed.
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Part 1:
Key challenges faced by managers in developing strategy within the industry
According to Bisbe and Malagueno (2012), strategic management and planning have to face
major challenges that hinder the growth of an organisation. Global competition is the major
challenge where the management of Radic8 is facing a major challenge because nowadays e-
commerce is changing and management have to generate methods which include intelligence and
can predict the future scenario (Bisbe and Malagueno, 2012).
Diversification is also hinder the growth of management because the rapid changing business
environment is developing uncertainty among the business house. They need to focus on more
areas for business for generating profitability. However, while talking about the protection acts,
Radic8 also have to make boundaries to follow the environmental ethics and protection policies
for the consumer. Major challenges are that in every step they have to be focused on the right
and laws which protect the consumers (Dalkir, 2013).
Theories and models suitable for informing an organisation planning and
positioning relative to key competitors and within its competitive environment
There are tools also available with the management of Radic8 that succor them in accomplishing
their goals. A vision statement is important that management of Radic8 can use. In this, they
make the vision statement, or this is the company’s declaration about the objectives. This act as a
guide for the organization and provides appropriate directions. PESTLE analysis is done for
external environment factors analysis give an overview of the ongoing market and economies
condition. This is the major tool for understanding the potential, directions, market signals, etc.
At last, benchmarking is the process where business performance and techniques compared with
the best techniques available in the market. Benchmarking has mainly used for analysis the
performance with the specific indicator that succour the objective of the organization.
As per the views of Johnsen (2015), Situational Leadership is the leadership style where the
leader motivates their team member to do work up to their maximum efficiency. Team leader
encourages his/her employee to complete the common goal and help the organisation. Another
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theory is Hierarchy of needs –"A theory of Human Motivation". This is the motivational theory
that believes one satisfied employee performs 1000 time better than anyone. If the needs of the
employee are fulfilled than he/she can work effectively and efficiently for the organisation.
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Part 2
1. An introduction setting out your understanding of the task, your planned approach
This study will use below approaches of strategic management use to support the Radic8.
Feasibility includes all the resources which Radic8 requires to carry their operations. Resources
include our financial funds, investment for purchasing the asset, employee, supervisions,
adequate information and technology, and time duration (Rothaermel, 2015).
Sustainability is the field that is extremely critical for the business like internal environment
sustainability, external environment sustainability, capability sustainability, and expectation
sustainability.
Acceptability approach, the expectation of the shareholders, stakeholders, employees, clients,
customers, etc. is considered. They keep expectation with the business; they can expect a return,
stakeholder reactions, and risk (Schaltegger, et al., 2016).
A shareholder can expect an increase in their shareholding prices; the employee can expect an
increase in their wages and clients can expect great quality and after-sales services in return.
Risk involves the mental fear state which deals with the profitability and consequences of failure.
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2. A short section is outlining the organisational context selected for the report and key
milestones in its development.
Business outline of Radic8 defines the mission that they want to cover in the long duration.
Radic8 designs and innovate the technology which purifies the air because air is now days much
polluted thus innovated technology can help in cleaning the air. Clean and fresh air have
enormous benefits to the lungs. Radic8 is in the partnership with the INBair; they believe that
this technology has the potential to make a safer environment for domestic and commercial user
worldwide. Radic8 offers a wide range to products in the market. Like: Hextio, Virus
killer(VK)blue, VK 002, VK 102, VK Medi, VK Medi XL, Airwasher and INbair O2. Radic8
claims that their market of the United Kingdom and Europe will cross more than $59billion in
the year 2021 because air pollution is continuously raising and awareness of people of air
pollution is also rising. Among all the markets, the United States of America is the biggest
market of Radic8 which is valued $11.2 billion (approx) in 2015.
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3. Literature Review
Strategic management includes the initiatives which company management plans and follows for
achieving the prior set goals. Strategic management is the process of those initiatives and their
proper implementation of them. It provides the direction to the company so that they can achieve
their set goals with efficiency. It includes the company's objectives, plans and strategies for
making the company's targets. Strategic management includes three primary stages of the smooth
process; those are, strategy formulation, strategy implementation and strategy evaluation. It has a
direct impact on external and internal factors on it. Company’s strategic capability often depends
on its resources and competencies which are available (Scroggins, 2015). Radic8 is a well-
renowned organisation of UK who provides technology-based clear air to the customers. Their
services help people with the sick and weak immune system against airborne, different bacteria
and fungi. The company made a tie-up with INB air group as their strategic partner in South
Korea. Strategic management has a few different theories which are the following:
According to (Barney, 2017) the resource-based theory helps to understand about the economic
profits. The economy plays a vital role in the strategic management of the organisation because
many things related to company's strategic management depend on the factor of economics when
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it comes to finalising one strategic theory (especially resources based approach). A profit is
always considered as the difference between revenue and costs they are earning. It helps to work
under immense pressure full working environment. It helps to make better strategies and
implement them in the world which is full of competition. Competitors are the most significant
important factor for selecting any policy for the organisation. Radic8 is planning to expand its
business into new places. They did a tie-up with South Korean air Purifier Company (INB air) to
expand its business into South Korea. Modern home and new entrants would always be like a
threat to the company's business expansion plan. The company have to be ready for the
competitors at the original place of the world. This air-purification industry is fast growing
industry because people from all over the world are getting an infection from the poor quality of
the air. The primary critical concepts for resource-based strategy are the profits, stakeholders
and fixed and residual claims. In this theory, it is an observation that helps to identify the sell and
purchase access to the resources according to the revenue of those revenues is earning in the
organisation earlier in comparison to the new place. If the company can take control over the
valuable resources which are available in the organisation will able to earn more revenue by
then. It helps to make a comparison of both the situations (expect and real) using the same
available resources. It is very required of supply based theory that it easily explains the model of
profit and its relations with consist model of profit generation in the organisation. This difference
helps us to understand the importance of using all the available resources of the company. It
increases the value of making appropriate uses of the products and services in the organisation.
According to Abatecola, 2012 the world is full of competition which makes it more challenging
to stay in the market for a longer run without making and following any survival theory for the
company. Survival theory is one of the essential parts of the strategic management concept. It
helps to survive the organisation with the help of its unique strategies or methods when it comes
to survival in hard times of the company. Organisational survival theories and its adaptation in
the organisation help to develop the interdependence relationship between the organisation and
its tasks or the primary working environment. It makes a significant impact on the decision
making the power of the management. Survival theory helps to make a proper and effective
decision according to the requirement of those decisions. It helps to understand the problems
associated with the issues of the survival of the newborn organisation or continuation of the
organisation at new places. It includes the organisation's whole life cycle overall.
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Radic8 just made a tie-up with an air purifier company named IBN air. They are now planning to
expand its business in South Korea, that's why they made a deal with its strategic partner IBN
air. South Korea is a new place for the company, and the company will inevitably face some of
the difficulties in a new market place. A survival plan would be beneficial for the company to
overcome this situation. This approach helps to refinements for the improvement. It helps the
company to choose the right goal according to its available resources and its planning and
implantation also included in the process which makes the whole process easier. Company is
planning to expand its business with its new strategic partner in South Korea. The new place
would be full of difficulties related to the organisation. It helps to understand a better look at the
issues, and that would be helpful to find some proper and practical solutions for the organisation.
An impactful survival plan is required to survive in the new place. It is a part of the company's
strategic management plan. If a company can follow its survival plan which would be made
according to the requirement of the company, it would be decidedly more comfortable for the
organisation to develop the need of the products of the company in the new market.
According to the (Mansour, 2015) human resources theory play an essential role in the success
rate of the organisation. The workforce of any of the organisation is the most critical factor of the
company which made a direct impact on the company competitive advantage and its
profitability. Employees are one of those factors which can't be ignored if a company wants to
complete its target on time with effectiveness in already set timings and especially at this time
when the company is collaborating with its new strategic partner for expanding its business in
the new market place. It is considered a belief of people management is working for the
organisation with passion. It includes the proper administration of HRM practices that are job
design, training, employee attitude, employee motivation and the skills of the employees. A
decent human resources management helps a company to achieve its targets in this full-on the
competitive world. Competition advantage is one more additional benefit of it.
Company is expanding its business to South Korea which is a new place for the company. The
company have first to understand the need of the market there so that they can fulfil the
requirement of the prospective customers which are new to the company. The company can't
complete this without the help of the backbone of the company that is the workforce of the
company. Globalisation and harsh competitive environment could be considered as one big
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problem of the expansion which company is planning. The biggest challenge is to maintain the
cost low but work with efficiency to stay in this competitive world. Companies now understand
the importance of effective implementation of HR practices. Highly committed and skilled
workforce is acting as a treasure in the organisation especially in hard times. Human resources
management strategic theory helps to understand the relationship between human resources
effective management and company's performances. The company should continue to try to
make their employees learn new things and skills so that they can contribute them to achieving
companies targets. This theory advised choosing the right, appropriate human resources
strategies which will be the best fit for the available HR pool in the organisation.
According to the Panda &Leepsa, 2017 Agency theory explains the issues and their solution
related to the agency concept. The agency problem is not a new problem for them, but with time,
it changed shapes and forms accordingly. It is tough to neglect its impact on the organisation
because it made an impact on the organisation in different kinds of issues. The components of
this issue could be found in the sector of accounting, finance, marketing and organisational
behaviour in an organisation. There must be some reasons for the problem of agency theory such
as the separation of owners and managers. That conflict can create issues for the organisation.
Especially for those companies which operate by a team of managing directors or board
members. These problems create a toxic environment for the company and its employees as well.
It is considered as one of the most positive and genuine theories among all the methods of
strategic management, but there are some factors which would not in favour of calling it the most
positive theory because according to them, it has some negative aspects on the organisational and
the employees and environment of the company. Often people only pay attention to the principle
side in ‘principal and agent problem' thing, but sometimes the problem must be from the
principal's parties. The principles help to evade the agents which dragged them into the dynamic
working environment and laws often act very opportunistic at this time which creates problems
from principles sides. According to this theory, humans are noble and more work ethically for
the firm. The principle is considered as a person who owns the company and agents are those
who manage the work on behalf of the owner. Managers and team members often include in the
agents' zone according to this theory. The agency problem is just not related to the agent and
principles when it comes to a more significant level, creditors, and major-minor shareholders
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also been included. The major issues for the agency problem are a separation of the ownership,
risk preferences and the duration of involvement of managers into the organisation.
According to the Wadongo, 2014 Contingency theory has made a significant impact on
performance management and organisational effectiveness in all sectors. Contingency theory has
some variables which affect the performance of the company. It is one of the most important and
interrelates theories of the strategic management of any company. It helps to identify the level of
performance level and the weaknesses of the organisation. It helps to understand the issues
related to the organisational work in the organisation which has a direct connection with the
employees' satisfaction rate and success rate of the strategies of the company. It indicates the
performance of the company. This theory has essential characteristics in both public and private
working sectors those are revenue sources, significant transactions, cost efficiency, multiple
stakeholders, social capital and voluntarism. These all are important factors which directly or
indirectly made an effect on the performances of the company. Radic8 has formed a
collaboration with its new strategic partner firm which will be going to help the firm in
expanding its business in new places. Company is planning to develop the requirement of its
products into new country South Korea. IBN air is the firm who is now responsible for the
strategic management of the company in that new country. Above mentioned factors will be
helpful to the company to make better decisions or strategies which will be beneficial to the
organisation. It will be related to the other theories of the strategic management which will be
helpful in the current scenario of the company when the company is trying to expand it's
business and need contingency theory which will be extremely helpful for the organization to
make better, impactful and effective decisions according to the requirement of the company.
According to the (Kwat, 2015) profit maximisation and competition based theory is one of
the leading methods in strategic management for the organisation. The main objective of the
business is to earn profit and keep maximise them according to the company's already set targets.
The company can only make a maximum profit when they follow the right strategic plans. In this
particular theory of strategic management, the strategies include are often related to the aim of
earning the maximum profit with its action plan according to the needs of the company. This
theory is based on a few following assumptions:
 The production techniques have been given.
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