Strategic Management for Competitive Advantage: Global Cars Report

This report provides a comprehensive analysis of Global Cars Private Ltd., a new car manufacturing organization aiming to establish itself in the European market. The report delves into the company's mission, vision, objectives, and marketing strategies, focusing on their target market and competitive advantages. It explores the rationale behind design choices, R&D investments, pricing strategies, and production/HRM decisions. The report highlights Global Cars' commitment to quality, customer satisfaction, and growth, examining how these factors contribute to their competitive edge. The analysis includes discussions on market segmentation, advertising strategies, and the importance of employee training and development. Furthermore, the report presents financial data, including revenue, cost of sales, and gross profit, offering a comprehensive overview of Global Cars' performance. The report also mentions the company's approach to production and human resource management, emphasizing the importance of employee training and low labor turnover for achieving competitive advantage. Finally, it concludes by summarizing the key findings and the company's strategic positioning in the market.

Strategic Management for Competitive
Advantage
Table of Contents
About the company – Global cars private ltd..................................................................................1
Logo -...............................................................................................................................................1
Round 1...........................................................................................................................................1
Mission ............................................................................................................................................1
Vision ..............................................................................................................................................1
Out Moto..........................................................................................................................................1
Objectives........................................................................................................................................1
Marketing strategy...........................................................................................................................2
Marketing strategy..........................................................................................................................2
Price.................................................................................................................................................2
Competitive strategy .......................................................................................................................3
Growth.............................................................................................................................................3
Target market and customers...........................................................................................................3
Rationale underlying the choices of designs, options and R&D.....................................................3
R&D.................................................................................................................................................4
Price.................................................................................................................................................5
Rationale for production/HRM decisions........................................................................................6
Training............................................................................................................................................6
Production........................................................................................................................................6
CONCLUSION ...............................................................................................................................6
References........................................................................................................................................8
APPENDIX .....................................................................................................................................9

About the company – Global cars private ltd.
Global cars private ltd. a new emerging car manufacturing organization in the European
market, which attempt
towards developing auto mobiles at affordable prices suiting every day customer needs has
compelled mostly all cars company names, logos and brands list. Global cars private limited,
which is a leading car manufacturer offering high quality cars to its customers. The main aim and
strategy of the company is to provide service on cost relationship, it planned to provide budget
free cars for the customers and aims at providing good as well as attractive features with
reasonable prices.
Logo -
Round 1
Vision
Global cars private ltd has a vision to be the leading and top premium car manufacturing
brand.
Mission
The mission statement of Global cars pvt ltd that can assist the company to achieve its
vision is - “To be market leader in exclusivity and quality in the car manufacturing
industry, by providing super quality and affordable cars to customers who want
exclusive sensations and comfortable experience behind the wheel. The needs of customers are
the driving force behind the Global car brand”.
Out Moto
Customer's Trust is our Wealth.
1

Objectives
Revenue: Global cars is focusing on increasing its revenue by 20% till the end of the financial
year. In addition to this, company is targeting to limit its expenses so that it can earn more net
profits. Increase in sales will increase net profits of the organisation as well (Epstein, 2018). But
concentrating on expenses of the company and reducing can also increase the net profits of the
establishment. .
Market share: Global cars is targeting to earn higher market share by concentrating more on
satisfaction of consumers. It is the objective of organisation to increase the market share in
second year (Jones, Harrison & Felps, 2018) Along with this, 5% market is targeted to be
covered in the first year of launch. And market share will also be categorised on the basis of
luxury and medium cars.
Quality: In every business quality should be the major aspect so that organisational goals and
objectives can easily be achieved. Global cars will also focus on the quality of its cars also that it
can grow more and attain maximum market (Sethi, Ahuja & Singla, 2018). Quality is the
objective of the company through which all other objectives will also be determined. Comfort
will also be a major component that should be kept in mind while designing car. To implement
and let people know about the quality aspect of cars, 3 years warranty will be given to customers.
Along with this, service of car will also be given it the best and quality manner.
Marketing strategy
Global cars is focusing on covering the market where consumer of age between 25 to 35
will be covered. Along with this, upper middle class market is major segment that will be
focused by the organisation. To purchase cars one needs to have higher purchasing power and
that is possible in case of upper middle class families. This is the reason behind choosing these
people as their targeted customers.
These will give benefits to the company as their targeted market is such that they have
good driving skills along with that they seek to have luxury and comfortable cars.
Marketing strategy
These are the strategies which are being planned and formed in order to cover the above
targeted market. The major market can be covered through television and newspaper advertising.
2

Price
Company has a budget for the same and after considering the same newspaper and
television has been chosen for the purpose of advertising. As both are low cost and covers
maximum possible target market. The cost of luxury cars Breeza was 1157 million which is high
as compare to sport model cars Sports 19 that is 6927. 08.
Competitive strategy
In order to gain competitive advantage some strategies are required to be prepared for the
same. Global cars will focus on creating its brand name such that people will buy cars just by the
name of the brand.
Growth
Other than that, training will be given to employees for best possible outcomes so that
organisation can earn competitive advantage. Training will give employee knowledge and skills
will also be enhanced by the same (Hickman & Silva, 2018). It is the best way to make an
organisation different that from the others because companies can be same in all respect but
human resource can never be same.
Employees will be treated in such that way they will feel job satisfaction. This will help
in less retention and achieving growth by the establishment.
Target market and customers
As the people of 25 to 40 are majorly involved with this mode of advertising (Barnett &
Corregan, 2018) Experts have made complete market analysis on this that how to cover the
targeted market. After analysing market, strategies will be formed. The final step is taken after
the complete analysing and making the conclusions from the same and strategies are formed
accordingly.
Rationale underlying the choices of designs, options and R&D
As per the market research company has achieved maximum sales in luxurious cars. This
has been considered by the company while designing the new cars that it should focus majorly
on luxurious cars. In addition to this, speed and average of car will be major choice in designing
the car. Comfort will also be a major component that should be kept in mind while designing car.
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Global cars has major strategy to design such car that it gives comfort and relax to all people
who are sitting in it. Other than that, tyres in cars must be such that it becomes easy for drivers to
drive at every kind of road.
The decision about Extended warranty, 3/5 door hatchback, Face lift, Glass roof,
Dynamic sound pack, Improved build quality, Fuel efficient engine in sport 19 model car for
people below the age of 40 was made considering the sports car and attractive at the same time.
The decision of Anti-theft system, Rain sensors, Parking Sensors, Luxury styling pack in
Breeza for people of age 40-60 was made considering it being a luxury car suitable to fit in a
upper class family where the safety is high. These cars also included with the options of rear
view camera, satellite navigation and USB Car-Net App.
R&D
Design and options Sport 19 model Breeza model
Fuel efficient engine  
Improved build quality  
3/5 door hatchback  
Small petrol engine  
Parking Sensors  
Rain sensors  
Anti-theft system  
Extended warranty  
Tech/safety pack  
Wireless phone charging  
Metallic / Pearlescent paint  
Facelift  
2/3 door coupe  
Large petrol engine  
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Heated front seats  
Navigation/ internet  
Bi-Xenon Auto dip headlight  
Automatic transmission  
Upgraded alloy wheel  
Glass roof  
Heated windscreen  
Blind spot information system  
Sun protect  
Luxury styling pack  
Dynamic sound pack  
Price
The major reason or rationale for charging the prices of car is due to its quality. It is the
cost of the company that it has to charge from consumers. Every company aims to earn profits
and fro the same pricing strategies are formed such that it is cost efficient.
The cost for material for sports 19 is 6927. 08 million and Breeza was 1157 million.
Design and option cost for Sport 19 model was 2094.65 million and Breeza was 9479.17 million.
Global cars has set margin for Sport 19 cars was decided at 22.30% and 26.82% for Breeza
model. It will help the organisation in earning a good brand image due to its high pricing policy.
Premium pricing gives a brand recognition in this sector. This strategy of global cars can only be
implemented when the organisation focuses on quality of its new launches. As no company can
implement premium pricing policies without giving quality products. Consumer pays prices only
when they get satisfied with the product.
5

Rationale for production/HRM decisions.
Human resource activities in the company helps in the growth and attaining competitive
advantage. This is one of the department which focuses on wellbeing of employees. Global cars
Human resource department has set the following objectives.
 Training and development of employee in order to enhance their skills
 Low labour turnover
 better productivity
Training
5 % of the entire wage bill has been invested on training and in future years
this will rise to 2% because training enhances skills and overall quality of products (Mena,
Hoek & Christopher, 2018). Higher investment will be made in training as the business grows,
this warrants loyal workers. Performance based rewards will be founded on productivity levels.
Production
The company produced 49500 Sport 19 model and 85000 Breeza model cars which were
sold in market sector 9 and 6. The workforce used for Sport 19 model was 652 and Breeza was
1157.
Global cars will focus on keeping the low cost so that higher profits can be accomplished. The
employees hired by human resource department will be after keeping in mind the number of
workers required for production of cars. There is separate area
for substantial growth within Global cars factory so that more cars can be produced as required
in future years.
CONCLUSION
Global cars private limited aims to give the best technological cars which is formed after
considering the demand of the customer. Various of objectives of the company such as increased
revenue, market share and quality are discussed in the study with respect to the chosen
organisation. Along with this the report also identified the marketing and competitive strategies
of the company. The importance of training and market segmentation has been also discussed in
this report. The organisation had a total productivity of 75.92% for sport 19 mode cars and
73.475 for the Breeza model cars. The total sales for Global cars was observed at 2378.95
6

million and cost of sales was 1767.84 million The gross profit was observed at 611.11 million.
This simulation concluded that company has generated profit through various changes in their
cars.
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References
Books and journals
Epstein, M. J. (2018). Making sustainability work: Best practices in managing and measuring
corporate social, environmental and economic impacts. Routledge.
Jones, T. M., Harrison, J. S., & Felps, W. (2018). How applying instrumental stakeholder theory
can provide sustainable competitive advantage. Academy of Management Review, (ja).
Sethi, A. P. S., Ahuja, I. P. S., & Singla, A. (2018). Shifts Between Technology Push and Market
Pull Strategies for Sustainable Development in Manufacturing Industries. In Global Value
Chains, Flexibility and Sustainability (pp. 319-331). Springer, Singapore.
Barnett, M. L., Henriques, I., & Husted Corregan, B. (2018). Governing the Void between
Stakeholder Management and Sustainability.
, C., Van , R., & , M. (). Leading procurement strategy: driving value through the supply chain.
Kogan Page Publishers.
Hickman, C. R., & Silva, M. A. (2018). Creating excellence: Managing corporate culture,
strategy, and change in the new age. Routledge.
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APPENDIX
Meeting minutes – Global cars
Total number of meetings – 3
Average duration – 2 to 3 hours
Meeting 1
3rd of November at University campus (2 hours)
Attendance
Topics discussed
 Discussed about Business game
 Collected information and ideas
 Studied brief of the assessment
Discussion of outline per topic
 Discussed the information provided in assessment, team members altogether expressed
ideas to obtain business game goals.
 Initial ideas provided on the basis of organisation and market prices along with the
analysis of European market prices.
Meeting 2
16th November at University campus ( 2 hours)
Attendance
Topics discussed
 Discussed on type of cars
 Promotions
 Raw materials
 Budget
Discussion on type of cars models
 Discussed on type of car models city and medium gathered data & information from
earlier research.
 Importance of promotion was highlighted
 Team members discussed about the raw materials which are being used to produce
sports and Breeza model cars
 One of the team member also took part in the budget planning and described the
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significance of financial details.
Actions & decisions
 Performed research on European market to obtain better proposal and make most
effective decisions.
 In business we selected sport model to customers with 25 to 40 age group and Breeza
for 40 and above age group.
Meeting 3
21st November at University campus( 3 hours )
Attendance
Topics discussed
 Finalising the decisions
 Production target
Discussion of outline per topic
 By this topic we confirmed the value and manufacturing data in business game software.
There was no stock left in the production, the company reduced its profit margin to
increase the sales.
 Once cars was sold out, the company took loan on order to achieve growth and produce
more cars.
Actions and decisions
 The company decided to increase production and reduce profit margin instead of
increasing price of the car.
 The company decided and took load in order to invest in car production.
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