Strategic Management Report: Mainfreight's Strategy and Analysis

This report provides a comprehensive strategic management analysis of Mainfreight, a leading logistics and transportation company. Part A examines Mainfreight's strategy, vision, and mission, evaluates its industry environment using Porter's Five Forces model, and analyzes its global perspectives. It suggests two functional strategies—Human Resource strategies and Production and operations management—and identifies communication as a critical problem. Part B explores Mainfreight's external environment through PEST analysis, describes its competitive advantages, organizational structure, and corporate-level strategy. The report also evaluates the mix of capabilities and competencies of the Board of Directors, analyzes structural characteristics, and recommends a cultural environment. It critically assesses Mainfreight's strategic performance and adjusts the strategy accordingly, offering insights into its success and challenges.

Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................3
PART A...........................................................................................................................................3
Organization's strategy...........................................................................................................3
Evaluating industry environment...........................................................................................4
Examining the global perspectives of the company...............................................................5
Critically analysis its success.................................................................................................5
Presenting two functional strategies for Mainfrieght.............................................................6
Critically evaluating the problem that company facing.........................................................7
PART B............................................................................................................................................8
Examine external environment of Mainfreight......................................................................8
Describing organization's competitive advantages and recommending ways for evaluating
success....................................................................................................................................9
Critically evaluating the success of a firm...........................................................................10
Describing the corporate level strategy................................................................................12
Evaluating the mix of capabilities, competencies and personal attributes of BOD.............12
Describing organizational structure......................................................................................14
Analyse some structural characteristics and issues that the organization may face.............14
Recommend cultural environment.......................................................................................14
Critique how the organization reviews its strategic performance and adjusts strategy
accordingly...........................................................................................................................15
CONCLUSION..............................................................................................................................15
References......................................................................................................................................17

INTRODUCTION
Strategic management mainly involves the preparation and implementation of some
major goals. Further, it is a continuous planning, monitoring and analysing the assessment that is
necessary for the firm in order to meet the goals and objectives. Therefore, it is the process that
mainly involves cross functional business decision prior to implementing them. In the same way,
the report main aim is to provide a knowledge about strategic management that helps to run a
business smoothly. Further the chosen firm for this report is Mainfreight which is logistic and
transport company and the company operates its brand at different countries and also consider
one of the largest freight company as well.
The report is divided in two parts such that in Part A- study will describe company's
strategy with its mission and vision, then using Porter five force model in order to evaluate the
industry environment. Further, it also examine the global perspectives of the company that needs
to implement the strategy. Then report suggest two functional strategies and describe one critical
problem as well. In Part B, study, uses PEST analysis in order to examine company's external
environment and recommending some ways that help a business to its success. Further, report
also show mix of capabilities and competencies of Mainfreight and describe its organizational
structure as well. Lastly, it critically analysis its strategic performance and strategy as well.
PART A
Organization's strategy
Mainfreight is one of the leading company and also provide the best logistics and
transportation facilities to their customers. In 2012, the company also receive an award for its
best growth strategy. Such that the company provides a global supply chain solutions and
moreover, company's presence in Australia also continued to expand through acquisition and
branch proliferation across strategic location (Mainfreight company's growth strategy, 2019).
Vision: To provide the best logistic services to their customers and become a top freight
company at international level.
Mission: The company's mission is to reorganized as a best logistic service providers for the
customers and also deliver the tailor made and provides the best sustainable logistic solutions.

Evaluating industry environment.
In order to determine the competitive advantages, Porter Five force model is used which
determine the company's external environment. This is as mentioned below:
Threat of new entrants (low): The Mainfreight faces low threat of new entrant, it is so
because the technology provides new business models and due to sharing some new business
model, the company's suppliers and customers are not use it, while opening new company. That
is why it faces low threat and even it requires high investment for new start up which is not
possible for ever business Cordell & Thompson, (2019). Thus, by utilizing the latest technology
and offer interactive benchmarking for existing shipping company will help to cope with such
situation.
Threat of substitutes (low): As the company is fast growing company and also offer
variety of products to their customers at different prices. In the same way Mainfreight also
provides different ranges from warehousing, supply chain to transport and it has been analysed
that the only substitute are offered to transport but for they have to pay extra cost. Therefore, the
customers did not have much option for the services and at last they choose low budget services
only. In the same way, Mainfreight also offer the services at low and reasonable rates thus it
helps to attract the customers towards it Scholz, (2019).
Rivalry among existing firms (high): Mainfreight faces tough competition and on the
other side, due to low differentiation, firm also competing with their prices and quality of
services. Thus, the high competition also makes it hard in order to increase their market share.
Further, there are many rivals such as FedEx, GAC and the main reason of competition is related
to price and quality and when the customer find some better or reasonable options then they
easily switch.
Bargaining power of suppliers (low): Mainfreight also faces low bargaining power of
suppliers such that the suppliers who provides services in auto mobile industry in which they
offer lightweight vehicles and cranes Abalkhail, (2019). Even it has been also analysed that
suppliers are abundance in market and company chooses on their differentiated prices.
Bargaining Power of customers (low): It has been analysed that minimum
differentiation and low switching cost also gives a lot of bargaining power to customers. But on
the other side, now customers are also expecting to receive fast shipment service with flexibility
and transparency at low price. Apart from this, buyers also have the power to switch because of

the availability of large number of the providers and low cost, further they are not amassed their
power that is reduces to medium as well. This shows that Mainfreight also faces low bargaining
power of customers and they can overcome this by offering the best quality of products or
services with low rates.
Examining the global perspectives of the company
There are some global perspectives which needs to be followed by the company while
implementing the strategy such as:
Strategy and policy: It is the major perspectives, that Mainfrieght should comply, such
that policies refers to guidelines, methods, rules and forms that helps to support and encourages
the work towards stated goals. Therefore, the quotes firm is always adhere with some policies
and strategy while implementing the strategy at global level and it has been analysed that every
country has their own rules and policy that is why it is quite essential firm the firm to adhere all
the laws and policy Diekmann & Franzen (2019).
Technology and globalization: another important perspective that Mainfrieght is
monitor and It is also consider the key factor for strategy process and as a result, due to rapid
change in the technology, it is quite essential for the firm to adopt all new techniques in order to
stay ahead in the competitive edge. On the other side, as Mainfrieght also operates at global
level. Therefore, within a global environment, there are various consideration during strategy
implementation such as political factor, legal and environmental factor Nandan, (2019). Thus, to
fulfil this, the company should aim to capture and sustain the competitive advantages in order to
make sure that strategy implementation process will help to succeed in the global area.
Culture, staff motivation and adaptability to change: Culture refers to the system of
shared belief and also affected the managers and employees which directly influence the strategy
as well. In order to expand the business at international level, the company must motivate the
staff, and they should also understand the need of change in a business. Moreover, Mainfreight
also provide some rewards' system to their employees that helps to boost their morale and to
adapt quickly changes whenever it comes Adekola & Sergi, (2016).
Critically analysis its success
It has been critically analysed that Mainfreight uses all the global perspective while
implementing the strategy into a business at global level. Such that before implementing new

strategy, it critically evaluates the pros and cons such that it analyse the external environment of
the company and then carefully implemented the actions as well. Further, in order to ensure the
success, strategy should also be translated carefully which means that the strategy must comply
with all rules and guidelines for all daily activities and for that, the managers also direct and
control actions so that they can easily adjust their employees with changes. Such that
Mainfreight working culture is quite good and adjustable such that it also motivate the staff
members in order to implement the changes and it has been analysed that culture of the firm
should be compatible with the strategy and It should aspire to succeed that make sure that
strategies are aligned to an organization culture Bocken, Ingemarsdotter & Gonzalez, (2019).
However, it has been critically evaluated that technology and globalization also helps in
the success of a strategy. Such that the firm is also use all technology and this will help to
succeed the strategy implementation as well. On the other side, within the global environment,
Mainfreight also monitor all external factor that helps a business to leads a business towards
success. Even in order to achieve the benefits of globalization, the managers of Mainfreight
needs to recognize when an industry globalization drivers provides an opportunity for
implementing the global strategies.
Therefore, it is also recommended to the firm to determine the political, economical legal
and environment factors of every country that helps to run a business smoothly. In this way, the
firm also implement the strategy in better way and apart from this, the company should also
comply with all the legal laws and policies that will help a business to sustain its brand image
and also stay ahead in the competitive edge as well.
Presenting two functional strategies for Mainfrieght
Functional strategy is the organization plans that is prepared for different functional areas
of a company's organization structure such as marketing strategy, financial strategy and
production strategy. Even it is the part of overall corporate strategy that is implement in every
functional area. The firm also uses some functional strategies, therefore, it is to be suggested to
Mainfreight, to use two functional strategies such as:
Human Resource Strategies: This strategy is mainly concern with HR planning,
recruitment and selection. Further it also deals with training and development, compensation and
rewards and labour relations Gerschewski, Rose & Lindsay, (2015). Apart from this, the
functional strategies in HRM also guide the effective utilization of Human resource of

Mainfreight so that it will help to achieve an objectives of a firm and also provides satisfaction
and development of employees. In the same way, firm should also adopt HR as a functional
activity which supports the strategic initiative and the managers of a firm should also be capable
of implementing strategy and also carry out some activity that further helps to support the
strategic plans as well.
Production and operations management: It is one of the main function of a business
such that it consist of all the activities that transform all the input into goods and services. This
function strategy also provides decisions regarding some technical core and quality, capacity and
technology as well. Further, the operational strategy also allocate the resource that further
support the business and its strategic goals Santiago, Andrade & Dawson, (2017). Apart from
this, the production strategy also defined what Mainfreight is produces and purchases from the
suppliers so that it will help to run the business smoothly and also determine how far the firm has
to worked for the production chain.
Moreover, this functional strategy is also depended upon some basic characteristic such
as cost efficiency, quality, dependability and flexibility. This functional strategy also coordinated
with all other departments and also take review that these strategy helps to attain the objectives
of Mainfreight or not.
Critically evaluating the problem that company facing
Mainfreight faces communication as a critical problem that affect the entire business and
even the operation or production as a functional strategy. Such that in the firm, if there is a
functional strategy exist and communication is the problem which an organization faces, then
business faces many difficulties to understand the task (Production/ operational Functional
strategies, 2018). Even due to lack of communication, the message is not communicated to
others and as a result, the aims and objectives are not attained.
In order to response this problem, it has been critically evaluated that Mainfreight should
check or understand the needs and task on regular basis through staff meetings and there should
be an open discussion of a strategy whichever is implemented in the firm. Therefore, this helps to
overcome the problem and run the operational or production management in smooth way so that
through an open discussion, the company's all departments are easily communicates and they
easily come to know about the aims and objectives that needs to be achieved May, Warner &

Wingler (2017). On the other side, for Mainfreight, should not only simply communicate the
strategy but develop the strategy that helps to convey two way messages with their employees.
PART B
Examine external environment of Mainfreight
Industry: Mainfreight is in logistic and transportation industry
By using PEST analysis, the company easily determine the factor that affect the external
environment, which is as mentioned below:
Political factor  It affect the company's overall performance such that Mainfreigth
operating in logistics and transporting services at different
countries and that is why, firm needs political stability of the
country.
 Apart from this, Mainfrieght also follow the wage legislation as it
is describe by the government of country in which the firm pay
minimum age to their employees and also promises for pay extra
for overtime.
 Apart from this, due to sudden change in tax rates, then price of
products are also change and as a result, the customers are not
spending much amount on the services.
 Further, there is a need to follow all industrial safety and
regulations in service sector Frolova, N. A., (2019).
Economic Factor  The factor generally deals with the inflation rate of the country and
as logistic industry operate at different countries, such that when
there is a high price in the products, then the company has to
manage the prices of the products.
 Apart from this, it has been analysed that it has skill level
workforce who helps to make company successful. But on the
other side, the firm also
Social Factor  Society's culture and the way of doing things also affect the
company's culture and it has been analysed that when the
customers find some new stores who offered the best services with

low rates then they shift towards them.
 It has been analyse that educational level brings more social
development than any other component do.
 In the same way, it is quite necessary for an industry that they have
to provides the best services to their customers so that it will help
to attract them towards a firm Gleiser & Tamarit, (2018).
Technological
Factor
 This factor boost up the business financial performance such that
Mainfreight also uses latest technology in its working area that
helps to boost up the working performance.
 Further, the company should use all the advance technology into
its working place so that it will assist a business to raise its overall
working performance.
Describing organization's competitive advantages and recommending ways for evaluating
success
To determine the company's competitive advantage, company uses Porter generic
strategy which is as mentioned below:
Cost Leadership strategy: It is one of the traditional method that helps to meet the
objectives. Using this strategy, Mainfreight sell their products at low rates in order to earn higher
profit and also gain a market share as well Reid, Gutsman and et.al., (2019). Even this strategy
also helps a business to raise the level of production, high capacity of utilization, lean production
methods as well.
Differentiation: This strategy is used by Mainfreight for development of a products and
services in which the company offer unique attributes from their rivals. By offering unique
products, the company also increases prices of offered products and as a result, it increases the
profitability. On the other side, the risk which is associated with this strategy also includes the
limitation by a competitors and also changes the taste of customers.
Focus: This strategy ore on a narrow segments and with that segments, the company
achieve cost advantage and differentiation. Therefore, there is a need to focus on a particular
products or services so that it will help a business to stay ahead in this competitive world. This

strategy is also used by Mainfreight in which it enjoys high degree of customer loyalty and also
invulnerable loyalty discourages other firm from competing directly.
Among all, the firm uses cost leadership strategy for analysing the competitive
advantages because it helps to meet the objectives. Further, company also sell their products at
low rates in order to earn higher profit and also gain a market share as well. This way, the
competitive advantages can be measures.
There are some ways through which the success can be evaluated such as:
 By checking the customer satisfaction, Mainfreight can be easily measure the success.
Such that it has been analysed that the customers of Mainfreigh are satisfied with services
offered by firm and it is so because it provide the best quality of products with different
discount strategy as compared to its rivals Fainshmidt and et.al., (2019).
 Through its employees working is another ways through which Mainfreight can be
analyse the success. Mainfreight employees has enough knowledge that helps Mainfreiht
to spend less on training sessions. As a result, it helps to increase sales rather that giving
extra time on providing training to their employees.
 Competition Mainfreight provides high quality of products as compared to its rivals
because its competitors mainly work on maximizing the profit while Mainfreight
employees work together in order to increase the network. As a result, it will help to get
the long term growth as well.
 Using Transportation service: Mainfreight uses advance technology and fastest way of
transportation as compared to its rivals. Even its transportation is effective which helps to
deal with hazards as well while on the other side, its rivals did not use the same.
Critically evaluating the success of a firm
The company uses customer satisfaction level as a strategy in order to evaluate the
success of a business and even it keeps checking the financial viability as well that helps to
determine the success of a business for a particular period.
Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Profitabilit
y 2.82 3.23 1.92 4.44 3.5 4.66 4.01 3.84 4.35 4.12

Interpretation: From the above, it has been interpreted that, the company financial
performance is increase such that its profitability is sudden increases in 2011 to 2012 and there
are lot of fluctuation in the respective years. Further, it has been also interpreted that now
company has stable financial situation and it also achieves its aims as well as objectives.
Areas that evaluate the success of an organization:
 Organization performance: the success of Mainfreight can be measures by using
Leading indicators such that it helps to measure the action which will affect the future
organizational effectiveness. These indicators will help to calculate the profitability and
sales that clearly shows the success.
 Employees satisfaction level: If the employees are satisfied and happy, then the
productivity automatically increases and in the same way, as the company deal at global
level, which means that its employees satisfaction level is high and thus success can be
evaluated.
 Level of learning: It has been analysed that the Mainfreight's employees are learn
different things from the customers which further help to shape up the strategy.
Therefore, effective learning and knowledge will help a business to leads towards
success.

Describing the corporate level strategy.
Corporate level strategy is an act that is used to gain the competitive advantage by
selection and management of a mix business in order to compete in different industries. The
firm did not uses any corporate level strategy and that is why, it is recommended to the firm to
use Growth strategy, which could be implemented by expanding the operations both globally
and locally and it is also based upon the internal factors and uses different key metrics such as
sales/revenue and total assets Danso and et.al., (2019). It has been analysed that by using the
strategy, Mainfreight also participate in a value chain of a product by taking help of suppliers as
well. Therefore, firm also uses Vertical growth strategy under growth strategy is quite beneficial
for a firm and it can easily track the growth of one product or services that is offered by the
company.
Corporate level strategy is the strategy that is made by top management for making the
best decision for the welfare of a company. Further, it is also concern with the efficient allocation
and utilization of scarce. The firm is reach towards its success by using growth strategy because
implemented by expanding the operations both globally and locally and it is also based upon the
internal factors and uses different key metrics such as sales/revenue and total assets.
Using this concept, the company also focus on operational process by integrating a key
segments and also analyse that whether, the business is provide the high quality of service to
their customers or not. Thus, it is beneficial for the business to use this strategy for its further
growth.
Google : The corporate level of strategy is to accelerate the innovation and strengthen
brand loyalty by transforming the changes. Further its strategy also includes strategic planning at
corporate level. Therefore, it uses business diversification strategy.
Apple: The quoted firm strategy is to innovate the various products in their internal
process. It uses business stability strategy.
Nokia : The corporate level strategy followed by the firm is business growth strategy.
Evaluating the mix of capabilities, competencies and personal attributes of BOD
The list of BOD of Mainfreight are as mentioned below:
Strategic governance leadership: