MGT604 Strategic Management Report: Pro Go Case Study Analysis

This report provides a comprehensive analysis of Pro Go's strategic management, addressing challenges such as declining sales and product issues. It begins with an executive summary and an introduction that outlines the company's issues and aims to develop an effective strategic plan. The report discusses the background of the disruption, including the loss of a major retail contract due to product failures. It includes a SWOT analysis to assess strengths, weaknesses, opportunities, and threats. The recommended strategy is cost leadership. The report evaluates key performance indicators (KPIs), focusing on privacy laws, technological advancements, connected devices, and adjacent markets. The report concludes with recommendations for Pro Go to regain its market position and achieve its goals. The report highlights the importance of adapting to market changes and leveraging technological advancements to enhance customer satisfaction and drive sales. The report emphasizes the need for a strategic plan that includes a focus on mission, vision, and values, and incorporates cost leadership strategies and the use of KPIs to ensure business success.

Running head: STRATEGIC MANAGEMENT
Strategic management
Name of student
Name of University
Author note

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Executive summary
The report was prepared to discuss about the strategic management concepts at Pro
Go, which was facing several issues related to sales decline and loss experienced in business.
Due to this, a contractual agreement was stopped, which made the company focus on the
development of a strategic plan based on the meeting conducted with the stakeholders
involved in business. The strategic plan included the analysis of strengths, weaknesses,
opportunities and threats, based on which the key performance indicators had been evaluated,
which could allow for better management of business functioning and regain the existing
status of the company too. Incorporating cost leadership strategy would be an effective
approach for ProGo towards achieving higher competitive advantage.

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Table of Contents
Executive summary....................................................................................................................1
Introduction................................................................................................................................3
Aim.............................................................................................................................................3
Discussion..................................................................................................................................3
Background of the disruption.................................................................................................4
Strategic plan..........................................................................................................................5
SWOT analysis.......................................................................................................................5
Recommended strategy..............................................................................................................7
Evaluation of Key performance indicators or KPIs...............................................................8
Conclusion..................................................................................................................................9
Recommendations....................................................................................................................10

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Introduction
The report has been prepared to discuss about the various aspects of strategic
management considering the business organisation named Pro Go in Australia. The report
will highlight the importance of strategic plan to ensure overcoming the major issues and
complexities, furthermore gain high profit and competitive advantage in business. The aim of
the company has been to increase the production level and at the same time, increase the level
of satisfaction among the customers within the Australian technology industry. From the first
assignment, it is understood that the company has been facing some major issues after few of
the products, especially, the Pro Go cameras have burst into flames and as such no cause of
such explosion has been found yet (Ansoff et al., 2018). The company also has some good
relation with the customers of China and even managed a major retail chain throughout
China, but soon with the inconsistency and ineffectiveness of the products, the agreement
between the retail chain in China and Pro Go has been stopped as well. This has resulted in
disruption and thus a stakeholder meeting has to be conducted for the purpose of analysing
the root causes of this issues and find ways to overcome these with appropriateness and
within quick time.
Aim
The main aim of this report is to discuss about the various aspects of strategic
management considering the business organisation named Pro Go and develop am effective
white paper or strategic plan to resolve the issues faced by the company due to poor
functioning of the products delivered in the market (David & David, 2013).
Discussion
The aim of the organisation, i.e., Pro Go is to maximize the production level of the
company and at the same time, enhance the level of satisfaction among the customers,

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furthermore and ensure gaining higher profit and competitive advantage. The company faced
some major issues such as sales decline, lesser profit and disagreement with the major retail
chain established throughout China stoppage of agreement with the Chinese retail chain
managed by the company within the tech market, due to the poor quality and ineffectiveness
of the Pro Go cameras that suddenly burst into flames without any major explanation found
till now (Hill et al., 2014). The immediate result was cancelled with Pro Go according to the
sales agreement, which further resulted in huge decline of sales along with necessity for
undertaking immediate actions and adjust the strategic approach accordingly as well (Noe et
al., 2017). The report will present us about an idea that will be managed to develop an
effective strategic plan to address the privacy legislation, technological advancements,
connected devices and also about the adjacent markets and related products to ensure that the
company regains its structure and efficiency within the tech market within quick time and
with much ease and efficiency (Eden& Ackermann, 2013).
Background of the disruption
It was found that technicians were handed over the case to identify the cause of such
issues but as such, no reasons or causes had been found. The Zeong Lee Spot Store chain
used to take nearly 70 percent of the entire production, because of which, it was considered as
vital source of revenue generation and also major customers of Pro Go. With the blast of the
cameras, the head of the retail chain mentioned about exercising the right and according to
the sales agreement, the retail chain had moved on to discontinue the contract with the
company and make sure not to acquire ay products in the upcoming days (Hill, 2017). A
threat of liquidation has been experienced by the company, which needs to be closely looked
down upon with the development and implementation of an effective strategic plan,
furthermore, ensure rectify the mistakes as soon as possible (Lasserre, 2017).

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Strategic plan
An effective strategic plan is the roadmap to the success and growth of business and
thus focusing on the mission, vision and values of the organisation must be the first priority
of the organisation. One of the most important aspects of the strategic plan is to analyse the
strengths, weaknesses, opportunities and threats faced by the company. This could allow the
company to assess the scopes and opportunities for pursuing the achievement of growth
objectives and at the same time, evolve from the existing business functioning to a change
that can be effective and noteworthy to sustain in the competitive marketplace (Cassidy,
2016). The SWOT analysis should be done for the assessment of strengths, weaknesses,
opportunities and threats experienced by the company. The three major elements of a
strategic plan include the present state of business, where the owners want to take it and how
can it be done.
SWOT analysis
Strengths
 One of the major strengths is the
automated activities, which has not
only brought consistent quality, but
also has enhanced the production of
action cameras
 This has enabled the company to
scale up and scale down based on
the demands and expectations in the
marketplace
 Good rate of return on investments
has been derived , which creates
Weaknesses
 The financial planning was not done
properly, due to which, the
budgetary aspects were not effective
and this further resulted in
liquidation
 The quality of products is not
exceptional and there have been
evidences of few of the action
cameras blasting off in flames
without identification of any root
causes for such issues

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good opportunity for generating
more streams of revenue (Dibrell et
al., 2014)
 A strong brand portfolio is possessed
by Pro Go with extensive skills and
talent management acquired with the
help of training and development of
employees
 Though the marketing of products
has been managed successfully, still
the unique selling proposition and
positioning were not up to the mark
 There is lack of investments and no
investments have been done for the
purpose of research and
development for facilitating the
innovation
Opportunities
 The increase in spending of
consumers has enabled Pro Go to
capture new market and enhance the
market share too
 The lower rate of inflation has
resulted in bringing more stability to
the market
 The stable flow of cash has further
created opportunities for the
business to invest in new
technologies and bring drones that
can also be effective
 The reduction in cost of shipping has
created opportunities for decreasing
the transportation costs as well
Threats
 The change in buying behaviours of
customers has been a major threat to
manage online purchase of the
action cameras
 The laws regarding liability are
different or different countries,
which also resulted in exposure to
different kinds of liability claims
considering the change in policies in
those markets
 Various product category of the
company might face threats due to
the various environmental laws,
rules and regulations (Kerzner,
2019)

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 The threats of competitors could also
result in sales decline and reduced
level of profit attained in business
The present state of the company has already been analysed and the next step would
be to manage transformation and become what the company has expected to be in the
upcoming days. Due to the various issues and complexities emerging due to the failure of
some of the products the company lost a contract agreement with the Chinese retail chain.
The company aims at retaining the existing brand image and ensure drawing in more
customers so that a healthy relationship is re-established with the retail chain (Wolf & Floyd,
2017). The goals and objectives are set by making adjustments to the strategic approach and
ensure meeting the business goals and objectives effectively too.
Recommended strategy
Based on the conducted SWOT analysis, it can be said that ProGo needs to
incorporate Cost leadership Strategies into the operations. For this, forecasting is needed for
the issues like sales growth, sustainability, stability and retrenchment collaboratively, which
would break new grounds, creating new scopes and opportunities for Pro Go in terms of
reducing the operational costs. Hill, (2017) proposes that production of innovative drone
cameras with GPRS sensors and missiles would be one of the means for achieving higher
competitive advantage than the contemporary brands. As these cameras have been the latest
demands in the marketplace, therefore, research and development activities are needed for
improving the quality of the camera. Assistance of the mass media would be effective in
achieving higher profit margin (Rothaermel, 2013).

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Evaluation of Key performance indicators or KPIs
Pro Go needs to evaluate the metrics and key performance indicators or KPIs for
ensuring that the business performs properly and also make adjustments that are necessary for
developing proper strategic approach too. The privacy laws are the various legislations, laws,
rules and regulations that the company must address to ensure proper regulation, storage and
use of information and data related to the individuals, furthermore, ensure validity and
reliability of data and information too. During the stakeholder meetings, the information
about the individuals must be kept confidential and not disclosed, so that the information
discussed during the meetings are not exposed to others, which can prevent the authenticity
of data as well as hinder privacy of data and information too (Parmenter, 2015). During the
meeting, the concerns are addressed prepare the strategic plan and so the Privacy Act has
been implemented for promoting the privacy and secrecy of individuals and also the data and
information associated with them.
The technological advancements have largely helped the company to keep up pace
with the changing demands and expectations in the marketplace. The technological advances
have not only helped in making the company attain new heights of success, but also has
facilitated the delivery of customers’ services, which has resulted in higher level of customer
satisfaction too. The marketing activities have also been facilitated with the help of these
technological advances and due to thus, the products and services have gained popularity in
the market and the newly launched product, i.e., the drones have influenced customers’
buying behaviours too. The introduction of these drone cameras has been considered as a
major aspect that can create opportunity for the business to excel in its performance and gain
increase in sales too (Harbour, 2017).
The connected devices are considered to be major KPIs as well because of the Internet
of things, which has helped in better communications’ management and networking along

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with managing mobile devices capable of accessing websites and even facilitate the buying
behaviours largely too. The company must manage a proper website which can be accessed
by the people to look for the product line and then make decisions regarding purchases. The
connected devices has been facilitated with the management of social networks, which could
also help in acquiring the feedbacks of clients and made sure to analyse the latest trends,
furthermore, deliver services accordingly to meet the demands in marketplace (Rodrigue,
Magnan& Boulianne, 2013).
The adjacent markets and the products must be targeted by Pro Go Pty Ltd to ensure
that the surrounding areas consisting of the customers are offered with something new and
unique, which could be the right opportunity to re-establish the good relation with the retail
chain in China again. The drone cameras have been introduced to target the customer
segment who are interested in photography and those who are interested in trying new
gadgets that can give them an edge over others. The market segments are to be targeted
though by ensuring that product differentiation strategy is being followed along with cost
leadership strategy too (Schaltegger et al., 2014). The introduction of drone cameras is a huge
transformation and with the introduction of some unique features in the product, the targeted
market segments would be easily attracted and the buying behaviours of customers would
also be influenced to make purchases from Pro Go consistently.
Conclusion
The report was prepared to discuss about a strategic plan that should be developed for
the purpose of regaining the existing stature of Pro Go and ensure making higher sales with
increased amount of profit in business as well. The company had experienced some major
issues such as sales decline due to the failure of some of the products and to ensure
sustenance in the marketplace again, the company must introduce drone cameras and prepare

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a proper strategic plan to ensure delivery of the product and services appropriately to the
clients.
Recommendations
 The company should foster the development of a good culture within the workplace to
facilitate teamwork and coordination at work, furthermore promote open ended
communication and collaborative workforce too. For this, emergency meetings must
be held with the stakeholders involved with the business and then discuss about the
issues and concerns revolving around the explosion of the cameras delivered by Pro
Go.
 It is recommended to make financial projections before introducing the drone cameras
and make sure to target the right market segments
 Pro Go is recommended to prioritise on the marketing techniques to ensure that the
products and services are marketed wisely to create awareness among the customers
 The Total Quality management procedures must be implemented for ensuring that the
new product does not fail like the previous products delivered, which should also
strengthen the brand image and name, furthermore raise awareness among the
customers to influence their buying behaviours
 It is also recommended to conduct the industry analysis and also analyse the
competitors before implementing the cost leadership strategy for ensuring that the
customers remain incline to the brand and do not go to purchase form any other brand,
whatever the cause of failure might be
 Establishing trust and loyalty is essential for success in long term, and thus
engagement of social media platforms is recommended to enrich the customer
services and experiences too
References

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