Strategic Management Report: A&P Falmouth, UK Ship Repair Complex

This report provides a comprehensive analysis of the strategic management practices of A&P Falmouth, a major UK ship repair complex. The report begins with an introduction to strategic management and then critically assesses the processes used by A&P Falmouth to determine its strategy, including gathering input, defining vision, mission, values, and strategic priorities. It evaluates the critical models and tools, such as Porter's Five Forces and PESTLE analysis, employed by the organization to inform its strategic decisions. Furthermore, the report applies these tools to A&P Falmouth, analyzing its competitive landscape and external environment. The report also appraises the importance of change management, considering the complexities, costs, risks, and sustainability of the company's transformation process. Finally, the report concludes with a summary of the key findings and recommendations for A&P Falmouth's strategic development.

Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................3
A critical assessment of the process used by an organization of your election to determine its
strategy........................................................................................................................................3
An evaluation of the critical models and tools used by organizations to determine their
strategy........................................................................................................................................5
An application of these tool to a real organization of your choice.............................................6
Critically appraise the importance of change management based on the complexity of the
transformation process, its costs, risks and sustainability...........................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Strategic management is considered as the effective process which includes planning,
observing, monitoring, analyzing and assessing whole activities and organizational work which
supports them in attaining organizational goals and objectives in quicker manner. It is mainly
applied in the company when any sort of changes takes place for the main motive of business
performance improvement or growth (Doz, 2017). The present assignment is based on A&P
Falmouth, a largest ship repair complex of UK located in South west England. At current basis
the company has expanded its business in fabrication as well as engineering that belongs to
renewable industry. The current case study deeply evaluates impact of this expansion on its
manufacturing practices towards wave energy devices and vessel conversions. Along with its
impact over the quantity and quality of the jobs. A&P Falmouth is the first and foremost UK
based ship repair company that is entering into renewable market in effective manner.
The project will include discussion on process that is adopted by business associations in
order to determine their own strategies towards it. It further explores various model and tools
adopted by the respective company so that their desired strategy could be identified in effective
manner. Later, application of used tools and models on the selected businesses will be explained.
At last, the project will deeply explore importance of change management in terms of
transformation process, risks, costs and sustainability.
A critical assessment of the process used by an organization of your election to determine its
strategy
It is essential for business manager of A&P Falmouth, to acquire effective process by
which they can easily determine right strategy through which they can execute their business
activities in best possible manner (Grunig, 2013). It can be said that business manager of A&P
Falmouth prefers to go for the below stated process at the time of determining their own strategy
through which they can attain their business goals and objectives in quicker manner. Explanation
of this process is given below in effectively:
Step 1: Gathering Input
It is the first stage at which business manager of the A&P Falmouth is required to gather
detailed information on their own company by using different models like PESTLE and SWOT.
This gathered information aware manager about the actual status of the company at external

market. As a result, it provides them guidance what is happening outside and how they can
manage it by using right strategy.
Step 2: Vision
It is second stage, at which manager develops their own clear vision statement towards
the future. This will work as foundation or base for A&P Falmouth at the time of developing
strategic plan for the same.
Step 3: Mission
The next stage tells business manager about the purpose by which they can easily
accomplish their vision statement (Foss and Saebi, 2018). Here, manager of A&P Falmouth
develops small small mission statements by considering overall vision.
Step 4: Values
In this main focus of A&P Falmouth is to identify most valuable employees for
themselves who are placing their hard work in the organizational work so that their goals and
objectives can be attained in quicker manner. After determining these employees, business
manager of the company later provides value to the specified employees by motivating them
through monetary benefits or appraisals in order to boost up their performance.
Step 5: Competition, risks and road blocks
After providing value to the employees, the next focus business manager is assessing
existing competition for the A&P Falmouth which could create possible risks for them in the
near future.
Step 6: Strategic priorities, goal, strategies and tactics
As the identified business competitiveness in the market, the another step which is
undertaken by business manager of A&P Falmouth to priorities their strategies according to the
goals so that they can be attained in the timely manner.
Step 7: Communication plan
After development of effective strategy, it is the responsibility of business manager of
A&P Falmouth to develop effective communication plan through which they can easily
communicate about the developed plan to its respective team (Hill, Jones and Schilling, 2014).
For communicating plan in effective manner, he manager of this company make use of audio,
video, meetings etc. as the main medium so that every can get aware about developed strategies.
Step 8: Action plan

In order to implement developed strategy, it is essential for the manager of A&P
Falmouth to formulate action plan for the same. This action plan will work as the blueprint for
employees which will help them out in focusing on accomplishing every associated work one by
one.
By following all of the above stated process business manager of A&P Falmouth will be
effectively able to determine their expected strategy through which they can easily execute their
business activities in rightful manner and attain success towards the same.
An evaluation of the critical models and tools used by organizations to determine their strategy
Business association makes use of different models and tools in order to identify best
strategy that will support in becoming successful in the near future (Hahn, 2013). In context of
A&P Falmouth, its business manager have adopted two main framework like Porter's five force
analysis and PESTLE analysis for determining best strategy for the company that will take them
towards the success. Both the frameworks along with its advantages and disadvantages are
described as below in effective manner:
Porter's five force analysis
Porter's five force analysis is basically used by business association in analyzing
competitiveness of their industry in effective manner. This framework is basically consisted of
five force which directly or indirectly places influence over the organizational performance in
positive and negative manner (Hair and et. al., 2012). The respective framework is consisting
five main forces that has their own influence over the business association. Its five main forces
are Threat of new entrants, Threat of substitutes, Bargaining power of buyer, bargaining power
of supplier and competitive rivalry. This framework provides overview to the company about
their competitive position in the industry. The main advantages and disadvantages of this model
are described below in effective manner:
Advantage: Porter's five force analysis is helpful in exploring competition which
provides them satisfactory time to conduct effective planning for the near future (Keupp, Palmié
and Gassmann, 2012). It also provides them guidance about the ways through which they can
easily tackle or deal with the existing buyers and suppliers so that they execute their operational
activities in the near future.
Disadvantage: The main drawback associated with this model is that it ignores other
associated factors which makes the use of porter's valueless. The respective framework is only

helpful for evaluating industry as a whole but when it is talked about individual company then it
does not makes any sense towards it.
PESTLE Analysis
PESTLE analysis is considered as the effective framework that is used by business
associations for analysing external market factors that holds power to influence performance of
whole organisation in deeper manner. This framework is mainly adopted by business enterprises
to develop their understanding over external market especially when they are planning to go for
business expansion in foreign market (Hitt and Duane Ireland, 2017). The respective model is
consist of six main factors like Political, economical, social, technological, legal and
environmental. In depth knowledge on all these factors allows marketers in exploring potential
threat and opportunity for the respective in the chosen marketplace. Advantages and
disadvantages of this framework are described as below:
Advantage: This method is cost effective for company and also helps them in developing
their knowledge on particular topic in deeper manner (Hitt, Ireland and Hoskisson, 2012). The
framework later aware business about the available opportunities in external market that could
support them in attaining higher profits in the near future.
Disadvantage: PESTLE analysis is the time consuming method which consumes crucial
time of business manager. Also, there are probable chances that factors undertaken in this
analysis might change which directly places influence over the functioning of the business in
future.
An application of these tool to a real organization of your choice
Porter's Five Forces Model
In order to analyze the competition within the Ship repair sector, business manager of
A&P Falmouth has conducted Porter's Five Forces Model analysis in order to develop their
knowledge on the same in effective manner. Explanation of this frameworks is provided below
in effective manner:
Threat of new entrants(Low- moderate): Influence of this force for A&P Falmouth is
low to moderate as this industry is having few barriers for the new entrants. This directly
influences individual seeking for enhancing their business in this sector (Hill, 2017). For A&P
Falmouth influence of this force could be seen as lower because the entering into ship repairing
industry is expensive process thus if any company want to enter with this concept will definitely

be requiring higher level of capital to provide similar sort of services to customers in the same
manner. In order to maintain their sustainability for longer period of time, it will be required by
the A&P Falmouth to continuously upgrade their services effectively in order to provide better
experience to customers.
Threat of substitutes (Low to moderate): A&P Falmouth is entering into renewable
market by offering effective products, this concept is quite new. Thus there are probable chances
this business will not be having any sort of substitute at the same marketplace in the near future.
Thus, it develops opportunity for them at the same marketplace because there are lesser chances
that any rival company could introduce similar type of products in renewable market to its
customers in the same manner with similar efficiency (Mudambi and Puck, 2016).
Bargaining power of Buyer: The influence of this force is low for ship repair industry.
This is because; there are very few number of companies in the same industry which are offering
similar sort of services to the customers in this much proficient manner (Sparrow, Hird and
Cooper, 2015). Thus, it can be said buyers does not have much number of options for them
through which they can easily take similar services. As a result, these buyers are not able to
bargain or convince company to change their prices of service. This shows that bargaining power
of buyer is low for A&P Falmouth.
Bargaining power of supplier: There are very few number of suppliers for ship
repairing and maintenance industry. Thus, it enhances bargaining power of suppliers for A&P
Falmouth as the respective company does not have higher number of options in terms of
suppliers. Therefore, it is important for A&P Falmouth to get agreed on the quotation given by
suppliers. This is because; they do not have any sort of option in terms of bargaining for the
same. As a result, it can be said that bargaining power of supplier is higher for the A&P
Falmouth.
Competitive rivalry: Competition within the repairing and maintenance industry is very
high. Main competitors for this company are SHIPSERV, Burgessmarine, DMHI etc. This
clearly depicts that there are A&P Falmouth has higher level of opportunity within the same
industry as there competitors have not yet approached renewable market. This ultimately
develops opportunity for them within the same industry (Meyer, Neck and Meeks, 2017). Thus,
it can be said that what so ever business is generated by them will provide benefit to them only.
Also, it can be said that for attaining competitive edge it is essential this company to provide

high quality of services to its customers at affordable prices in order to influence their interest
towards them longer period of time.
PESTLE Analysis
This analytical framework is being taken into use by the management of A&P Falmouth
in order to ascertain the business environment of UK with reference to ship repairs industry. The
aspects pertaining to this model are described in a brief manner as follows:-
Political:
The political state of United Kingdom is strong as well as stable. This provides assistance
to corporations operating within its territorial boundaries such as A&P Falmouth to capitalise on
the consistent policies of country. The strategy of respective ship repairs firm is to act in the
constraint of legislations and rules passed by multiparty political system of UK. This enables the
company to ensure long term market sustainability (Priem, Li and Carr, 2012).
Economical: The developed economy of United Kingdom provides opportunity to A&P
Falmouth to leverage the hi tech facilities available within the nation. A&P Falmouth has
devised a strategy whereby it aims to give a boost to the overall economy of its domestic market
by providing extensive employment opportunities to locales of UK.
Social: The changing needs and preferences of people belonging to UK is more of a
positive than negative facet for A&P Falmouth. In this regard, the strategy of the respective ship
repairs company is to undergo effective and constant changes that can provide aid to entity in
catering to the ever inflating needs and demands of people.
Technological: Being a technologically advanced country, UK provides opportunities to
organisations such that they can come up with innovations and new technologies at rapid
intervals of time (Tan and Ding, 2015). This strategy is being currently leveraged by A&P
Falmouth to enhance its market share as well as positioning in domestic market, and also to gain
entry into new emerging markets.
Legal: The environment of UK consists of a number of laws as well as legislations to
which every business enterprise has to abide. In this relation, Ballast Water Management
Convention and the 2020 Sulphur Cap are the major legal regulations that are required to be
followed by ship repair companies. In response to this, the management of A&P Falmouth
follows a strategy whereby it complies with all the necessary laws and legislations of
shipbuilding and repair sector in order to survive in market place for a long period of time.

Environmental: Each and every entity is required to operate in the interest of
environment as the people are becoming increasingly aware of the sustainable practices. In
response to this, A&P Falmouth is making use of green business practices. Further, it is giving
its contribution to climatic change mitigation by way of initiatives such as energy conservation.
The respective ship repair firm has substituted the system engaged in provision of its docks with
compressed air with a view to build an energy efficient model (Vogel and Güttel, 2013). Also,
the company installed an energy efficient pump for one out of their 3 dry docks. In addition to
this, the entity intends to reduce the environmental effects of its practices and thereby is certified
to ISO 9001 (Quality Control), 14001 (Environment) & 18001 (Health & Safety) standards.
Critically appraise the importance of change management based on the complexity of the
transformation process, its costs, risks and sustainability.
Change is a vital part of every corporation functioning within the confines of an
economy. This becomes important as it provides aid to an organisation in remaining aligned with
the situations prevailing in micro as well as macro business environment. In this regard, although
change is significant to be executed, it is essential that a company takes into account certain
constraints such as complexity of the transformation procedure, huge cost to be incurred, risks
involved and the sustainability (Vogel and Güttel, 2013). With respect to this, A&P Falmouth is
also introducing a change which is the decision to gain entry into fledging marine renewable
market looking upon the growth prospects of this marketplace as well as to operate in a green
manner. With a view to facilitate the change, the entity has already transformed some of its
vessels in accordance with the requirements of renewable sector.
From the overall analysis, it can be said that there are four main constraints for A&P
Falmouth within the ship repairing and maintenance industry such as transformation process, its
costs, risks and sustainability. All of them directly places negative impact over the the company
performance and affects their profitability in negative manner. But still it is essential for this
company to consider all of these factors while bringing change the company as it supports them
in enhancing their performance and gaining profitability. These change will also support
company in attracting maximum number of customer towards them belonging to the same
industry. This simply states that change management is highly important for the company which
not only supports them in improving their business performance but it also supports in attracting
more number of customers which will later provide them higher business.

CONCLUSION
On the basis of above described report, it is concluded that strategic management is
termed as an effective way by which business associations can easily implement any sort of
change within the company in order to improve their working capabilities in effective manner.
Usage of strategic planning process is helpful for business association in developing their
business activities effectively. Usage of PESTLE framework has supported in identifying
available threat as well as opportunities for them in the same marketplace. Usage of porter's five
force analysis have supported in developing knowledge of the business association in the same
industry so that they can develop effective strategy towards it for succeeding in quicker manner.
Also, it supports them gaining competitive edge in the near future. At last, it has been identified
that business associations are also required to bring change irrespective of the constraints that
intend to hinder the process of change management.

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