Strategic Analysis of SENTEK Solutions: Industry and Internal Review

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This report provides a comprehensive strategic management analysis of SENTEK Solutions. It begins with an executive summary, followed by an introduction to strategic management and its importance. The report then delves into an in-depth analysis of the industry, utilizing PESTEL analysis to examine political, economic, social, technological, environmental, and legal factors impacting SENTEK. Porter's Five Forces model is applied to assess the competitive landscape. Furthermore, the report conducts an internal analysis of the firm, exploring core competencies, resources, skills, and the value chain. The VRIN framework is employed to evaluate resources and capabilities for competitive advantage. The analysis aims to identify SENTEK's strengths, weaknesses, opportunities, and threats, providing insights into its strategic positioning and potential for growth in the industrial automation, robotics, and safety technology markets. The report concludes with a summary of findings and recommendations.
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Strategic Management
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EXECUTIVE SUMMARY
Strategic management is very much important for an organisation to deal and manage the
works and activities in proper manner. Strategic management is an important organisational
resource for achieving their goals and objectives. In Strategic management consist of
competitive environment, internal environment and evaluating strategies are major part. In that
report consist of internal and external analysis of an organisation to deal with any situations. It
can be possible by accessing own capabilities and weaknesses are very much potential to gain
competitive advantage in proper way with the help of SWOT, PESTEL and internal capabilities
of an organisation. With these tools and techniques an organisation can easily evaluate their
current opportunities and the ways by which they can easily beat their competitors and enlarge
business opportunities. With the help of VRIO analysis an organisation can easily evaluate their
resources that are rare and valuable in nature and helps to distinguish in competitive
marketplace. By using all that important tools an organisation can easily products and services as
per the requirement of their consumers in better way.
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Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION ..........................................................................................................................4
Analysis of the industry:..................................................................................................................4
Internal analysis of the firm:............................................................................................................7
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................11
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INTRODUCTION
Strategic management denoted towards branch of management that relate with
development of organisational vision, objectives and formulating and implementing strategies to
gain competitive advantage in better way. Strategic planing and implementation is very much
important for an organisation in taking important decisions by analysing their internal as well as
external strengths and weaknesses to capture large market share. It helps in evaluating internal
and external capabilities and weaknesses of an organisation to formulate actions. This report is
based on SENTEK solutions which is an supplier of world leading products of Hokuyo, PPT and
SSZ to provide safety, automation and navigation within an industrial environment to compete
with competitors.
The main objective and aim of this report is to find out major internal and external capabilities
of an organisation by focusing on PESTEL analysis, porter five force model and VRIO analysis
which states about their key strength and capabilities in better way (Ansoff and et.al ., 2018. ). It
also based on accessing the attractiveness of an industry with the helps of various models and
frameworks in which their major trends, competitors analysis and porter's five force to access
opportunities and threats to reach at desirable goals and objectives. Further it elaborates about
the internal strategic analysis with the help of various tools and technology that are Core
competences, VRIN analysis and skills with capabilities of an organisation with value chain that
gives major insights about internal capabilities of it (Eden and Ackermann, 2013.). In any
organisation, to reach at desirable goals and enhance business opportunities they have to analyse
each and every factor before enlarge business opportunities and beat their competitors to lead in
market.
Analysis of the industry:
External analysis consist of industry environment of an organisation in which consist of
competitive structure, their competitive position and dynamics in an industry with history to
evaluate each and every factor in an organisation to reach at organisational goals and objectives.
With the help of external analysis it helps in identification of strength and weaknesses of an
particular organisation ( rynas and Mellahi, 2015..). In that report focuses on identifying the
internal analysis of an organisation they have to use PESTEL with that organisation can be able
to reach at trends and key drivers of change. Along with by accessing Porter's five force model
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organisation can be able to access their potential power with their fierce competitors. With the
help of opportunities and threats they can be accessible towards attractiveness of an organisation
to get accurate results in organisational growth and enhancement.
PESTEL analysis:
A PESTEL analysis is an framework or tool used by marketers to analyse macro
environment that impact on an organisation. There are some major attributes consist in it that are
as follows:
Political:
In political factor consist of rules and regulations that majorly impacts on organisation
works and procedures. In case of European market they requires reforms because their
government system relatively weak and tax requires high social contribution to give stability to
the economy in proper way. Along with the government sometimes slow in registering to a new
business so all these factors are very much important for SENTEK solutions because all these
impacts in both negative and positive way for that organisation adopts many tax regimes to deal
with dynamic environment.
Economical:
In economic factor consist of various factors such as interest rates, credit terms and
exchange rates with inflation rates and many more. In case of European market since the
economic crash and global crisis that are major factors that closely impacts on financial system
and better coordination for EU. With the advent of financial crisis organisation need to reform
and need of more effective regulations to further growth in economy. In case of SENTEK
solutions they focus on reforming their financial structure to lead in market and adjust in
dynamic environment.
Social:
In social factors consist of norms, beliefs and conditions to deal in better manner to give
products and services according to their self interest in proper manner. In Europe people are very
much trending and demands technological advancement. In that case SENTEK solutions
provides an extensive range of E84 compliant products and services which should be provide
manufacture supply chain. All these changes in needs and wants in consumer impacts on
formulating products and services.
Technological:
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Technological advancement consist of adaptation of new and trending tools and
techniques. In the modern age the pace of technology changes at accelerating pace such as
advent of internet, data protection, new product and research expenditure. In that case SENTEK
solutions find out the best ways to deal with technological innovation by adopting advance
techniques.
Environmental:
In environment consist of climate changes is a risk for all society as increase in emissions
of greenhouse gases which is an important factor to lead in market. In case of SENTEK solutions
they majorly focus on giving best products by saving environment.
Legal factors:
In legal factors consist of the competition policies that encourage in competition level by
eliminating restrictions in practices and in other anti competitive works and activities. In legal
factors consist of high tax rates and labour cost with importing products and services that is an
long process. In that case SENTEK solutions adopts new tax regimes that matches with their
organisational works and procedures.
From the above discussion it has been summarised that there are some major
opportunities before SENTEK solutions that they deals in products and services that are rare in
nature that are industrial automation,robotics and featured products and service with radar
technology that are very important for organisational development and enhancement (Hitt,
Ireland and Hoskisson, 2012.). On other hand sometimes they are unable to give right kind of
safety and security to their employees which is an major concern in that industry and they are
small organisation so they are unable to changing needs and demands of their consumer base
rapidly. With the help of there opportunities that they are rare in marketplace so it enhance the
attractiveness of that industry because in it talented and specific skilled people are required to
remain always competitive in marketplace.
Porter's five force model:
In five forces consist of many factors in which supplier power, buyer power and barriers
to enter with threat of substitution with threat of rivals (Hill, Jones and Schilling, 2014.). In
case of SENTEK solutions
Supplier power:
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Supplier power is high for SENTEK solutions because products in which they are deal
are highly technical and innovative so there are less no. of suppliers for them.
Potential of new entrants:
New entrants power should be less for SENTEK solutions because it needs technical
knowledge with high investment to enter into marketplace.
Threat of substitute products:
Threat of substitution is less in market because no one replace that products and services
because requires highly technical products that are not replaceable.
Power of buyers:
Buyer power is also low in market because they have no option to purchase products and
services and at last rivalry are high in that industry the main rivals of SENTEK solutions are
Acclima, spectrum technologies Inc. RMT ltd and TORO etc..
Hence from the above mentioned model of porter it should be analysed that there are vast
opportunities for an organisation by evaluating various factor such as competitiveness in market,
viability of a project and many more.
Internal analysis of the firm:
An internal analysis consist of organisational internal environment to access through
resources, core competencies and gain competitive advantage. By evaluating internal analysis
and organisation can easily access towards their potential weaknesses and strength. In internal
environment resources, core competencies and skills with their value chain to find out core
competence of an organisation. In addition to with help of VRIN analysis and competitive
advantage to enlarge business opportunities.
Core competencies:
Core competency is an harmonized combination of various resources and skills that
distinguish an organisation in the marketplace and become the foundation stone of companies
competitiveness.
SENTEK solutions deals in industrial automation, semiconductor, robotics and Radar obstacle
detectors, safety with port technology which is an important to give full chain of products to give
delighted experience to consumer base ( Hubbard, Rice and Galvin, 2014.). Their products
provide solution by increase efficiency, productivity and safety to them. They are the only
authorised European distributor of Hokuyo Automatic and also proficient in SSZ and PPT which
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are their major competency that helps in gaining competitive advantage into marketplace. Their
major products comes into category of rare in which are safety laser scanners, Data transmission
devices and LIDAR with Radar solutions for the port application in a better way with safety
mats, bumpers and rails etc.. they sell their products direct to the users and by a specialist
network to get one of largest value added resellers to give best attributes to their consumer base
in marketplace. In case of SENTEK solutions an consumer whether purchase from one of
authorised resellers that provide high range of consumer services, proficiency and support from
them that is an important part of their business portfolio of products and services.
Resources:
To achieve organisational goals and objectives, SENTEK solutions have some major
resources that they make major acquisitions and strategic alliances with their partner companies
to overcome from their weak areas and strengthen their own capabilities to develop major tools
and techniques in an competitive marketplace ( Lasserre, 2017. ). With the help of strategic
alliances SENTEK and their co partners give values to their mutual consumers by offering
efficient products by technological effective tools and techniques. They deals with many clients
of different nations such as North America, Asia and Europe that can be quickly access to the
products of SENTEK solutions and their technical support. That all transactions proved valuable
for their partners and customers also. While deal in different nations they require tools and
techniques which helps to distinguish from them to their fierce competitors majorly. (rden,
2016. ). SENTEK solutions significantly focus on increase automation in an industrial
environment that should be made safe.
Skills:
Skills are the ability to carry out an task for an pre determined results in a prescribed time
limit, energy and resources. In case of SENTEK solutions to achieve some goals and objectives
organisation have to require some skills and capabilities that majorly contributes in achieving in
proper way.
Value chain:
Value chain is an chain of activities in which industry specifically perform to deliver
right kind of value and products into marketplace (Moutinho and Vargas-Sanchez, 2018). In
SENTEK solutions they follow an systematic path to deliver right kind of value to their potential
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consumers in a right way. They deals in highly advance tools and techniques in which they have
to organised every step to deliver right products and services.
VRIN analysis:
In VRIN analysis of SENTEK solutions consist of
Value:
In Value consist of products that give value and helps in gain competitive advantage, in
case of SENTEK solutions they deals in products which are most valuable to enhance living
standard of people and organisation (Noe and et.al ., 2017.). Such as Radar, robotics and safety
and many more that are very much valuable for an organisation. In an organisation to lead in
market place they require some major resources in which Safety laser scanners, safety mats and
safety bumpers and safety rails that are important for an organisation to give proper safe and
secure environment to their employees so that they can give their best in organisational
development and enhancement
Rareness:
Resources that are available to all major competitors rarely provides competitive
advantage. In case of SENTEK solutions their products are rare in nature that there products are
industrial automation, semiconductor and robotics in which some firms or industries deal in it. In
their applications consist of overhead cranes, high bay warehouse systems with AGVs, AGCs
and OHTs. In addition to their machineries includes Door entrances, danger area and machine
protection that helps in deliver right kind of value to their consumer base.
Imitability:
In case of SENTEK solutions that deals in products which are very much technological
advance and need lot of funds and investment to produce that products. So that product hardly
imitable in nature. SENTEK solutions is an technical organisation and deals in robotics, radar
and safety products and services. In that case they require people who are enough competitive
and proficient in technology and can be enough flexible to easily adopt changes in positive way
so their human resource are not imitable.
Non substitutable:
Products and services in which SENTEK solutions deals are non substitutable because
they need lot of investment and time to capture their market share.
Competitive advantage:
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From the above attributes it has been summarised that SENTEK solutions are very much
competitive into marketplace and helps to beat their competitors in better way. Organisation is
very much concern about giving in best attribute to achieve goals and objectives.
CONCLUSION
From the above report it has been summarised that Strategic management is one of
important aspect to deal with changes that occurs in an organisation and their environment. The
main objectives of that report is to find out main attributes that helps in find out internal and
external factors to find out major areas in which organisation efficient and areas in which
relevant improvements are crucial. PESTEL and SWOT analysis in an report helps in find out
both internal and external capabilities and strengths to compete in dynamic environment. From
that report it has been understood that while an organisation aimed to expand its market base
they have to conduct through research in every sphere so that important insights should be drawn
out of it and crucial decisions should be taken from it. From the research report it has been
learned that organisation have to thoroughly understand that organisation have to access their
own capabilities and strengths that are very much potential to lead in competitive marketplace.
On other hand weaknesses also be very much important to reach at areas in which necessary
improvements are very significant. From the above study it has been found that sometimes
results are not as much accurate as require due to the not proper evaluation of results and
ignoring some part of it which proved hazardous for organisation to deal in proper way. It has
been evaluated that organisation and an individual have to contribute a lot in giving their best to
find out major spheres in which major changes are crucial to deal in competitive environment.
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REFERENCES
Books and journals:
Ansoff, H.I., and et.al ., 2018. Implanting strategic management. Springer.
Eden, C. and Ackermann, F., 2013. Making strategy: The journey of strategic management.
Sage.
Frynas, J.G. and Mellahi, K., 2015. Global strategic management. Oxford University Press,
USA.
Ginter, P.M., Duncan, W.J. and Swayne, L.E., 2018. The strategic management of health care
organizations. John Wiley & Sons.
Goetsch, D.L. and Davis, S.B., 2014. Quality management for organizational excellence. Upper
Saddle River, NJ: pearson.
Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: Theory & cases: An
integrated approach. Cengage Learning.
Hitt, M.A., Ireland, R.D. and Hoskisson, R.E., 2012. Strategic management cases:
competitiveness and globalization. Cengage Learning.
Hubbard, G., Rice, J. and Galvin, P., 2014. Strategic management. Pearson Australia.
Lasserre, P., 2017. Global strategic management. Macmillan International Higher Education.
Morden, T., 2016. Principles of strategic management. Routledge.
Moutinho, L. and Vargas-Sanchez, A. eds., 2018. Strategic Management in Tourism, CABI
Tourism Texts. Cabi.
Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M., 2017. Human resource management:
Gaining a competitive advantage. New York, NY: McGraw-Hill Education.
Stead, J.G. and Stead, W.E., 2014. Sustainable strategic management. Routledge.
Ward, K., 2012. Strategic management accounting. Routledge.
Wheelen, T.L., Hunger, J.D., Hoffman, A.N. and Bamford, C.E., 2017. Strategic management
and business policy (p. 55). Boston: pearson.
Online:
Pestel Analysis Of Various Factors Eu Matters Economics Essay 2019 [Online] Available
through<https://www.ukessays.com/essays/economics/pestel-analysis-of-various-
factors-eu-matters-economics-essay.php>.
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