Strategic Management Report: Corporate and Business Strategy Analysis

This report provides a detailed analysis of strategic management principles as applied to SENTEK Solution, a company specializing in industrial automation and safety products. The report examines both corporate and business-level strategies, including the choice of corporate strategy, with a focus on the Ansoff Matrix for product and market growth. It delves into market penetration, market development, product development, and diversification strategies. The report also explores business strategies, focusing on Porter's Generic Strategies, including cost leadership and differentiation, to achieve a competitive advantage. The analysis includes an evaluation of SENTEK Solution's current strategies, strengths, and weaknesses, and concludes with recommendations for future strategic directions, considering the competitive landscape and the company's goals for product development and market positioning. The report highlights the importance of strategic management in achieving organizational goals and adapting to a changing business environment.

Strategic
Management

Table of Contents
EXECUTIVE SUMMARY ..........................................................................................................3
INTRODUCTION ..........................................................................................................................4
Choice of corporate strategy.......................................................................................................4
Choice of business strategy.........................................................................................................7
Evaluation of strategy and recommendation...............................................................................9
Recommendation.......................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

EXECUTIVE SUMMARY
This report provides an analysis of different tools and techniques of Strategic
management that is essential for an organisation in developing their product and services in
competitive marketplace. In this report an organisation are corporate and business strategic along
with analysing different methods that are beneficial for an organisation. This report investigates
fact about product development and cost of leadership approach for their new product. There are
some of strength and weaknesses about the strategies they are adopted with product development
process. Moreover, this report is analysing the complexity of developing product into
competitive marketplace with appropriate suggestion and recommendation.

INTRODUCTION
Strategic management is concerned with development of strategic vision, setting out
objectives, formulating and implementing strategies, introducing corrective measure for
deviation. It involves in setting out objectives, analysing competitive environment, internal
organisation, evaluating strategies which ensure management rolls out strategic across the
organisation. It helps an organisation to access their company's current situation as well as
analysing the effectiveness of implemented strategies. This strategy is all about identification and
description of different strategies that are carried out by an organisation as to achieve better
performance and competitive advantage in marketplace (Hill, Jones and Schilling, 2014). An
organisation is said to be competitive in marketplace if its productivity and profitability is higher
than the average profitability of its competitors in the same industry line. It is a continuous
process such as planning, monitoring, analysing assessment of all the activities that are necessary
for an organisation to meet up its goals and objectives. Strategic management is necessary as it
is a commitment to strategic planning to see both short and long term gaols which determines the
action that are needed to be taken to reach gaols. It also help an organisation to create a vision by
developing strategies as it help in identifying necessary process and allocation to achieve gaols.
In this way an organisation can strengthen and support their core competencies. If strategies are
determine by an organisation, then a business can make logical decision as well as develop new
gaols within the changing business environment. In this report organisation chosen is SENTEK
Solution, a world leading supplier company of products Hokuyo, PPT and SSZ in order to
provide safety, automation and navigation within an industrial environment to compete with
competitors. This report is going to identify the possible strategies at corporate and at business
level along with proper justification of those possible strategies. Moreover, critically evaluating
different scenarios using strategic models with appropriate suggestion and recommendation.
Choice of corporate strategy
As per the view Morden, 2016, Strategic management is a continuous process that help
an organisation to evaluates and controls the business and industries in which an organisation is
involved. Such as evaluates its competitors and set gaols as well as strategies in order to meet up
all existing potential competitors. It is a continual process in which strategies need to make

changes on regular basis. It also gives a broader perspective to employees of an organisation so
that they can better understand how their jobs fit into entire organisation.
Corporate strategy is defined as hierarchically the highest strategic plan for an
organisation which consist of corporate gaols and direction and way from which strategic
management activities can be achieved (Ginter, Duncan and Swayne, 2018.). It is a long term
process that clearly defines vision and direction of a company. This strategic help SENTEK
Solution to determine its overall value of their organisation, set out strategic gaols as well as
motivate employee or workers to achieve them. It is a continuous process so that an organisation
is able to respond appropriately in changing condition and uncertain surroundings within
marketplace. There are several components of corporate strategy that a leader of an organisation
focus on allocation of resources, organisational design, portfolio management and strategic trade
off.
Allocation of resources: Allocation of resource focuses on people and capital. An effort
is made to maximize value of their entire value of a firm as mangers of an organisation need to
determine how to make use of resources in an effective manner.
Organisational design: Organisational design involves in ensuring that firms have
effective corporate structure with related system in a place to create out maximum amount of
value. It help in integrating business units and business function so that there are no
redundancies.
Portfolio management: Portfolio management looks at the way how business unit
completes with each other’s such as correlation and decides where a firm will play in
competitive marketplace. It helps in managing risk through process of diversification as well as
reducing correlation of results across business.
Strategic Trade-offs: It is one of the most challenging aspect of corporate strategy that
help in balancing trade - off between risk and returns across the firms. In an organisation it is
important to have holistic view of all business which are combined and ensure with desired
levels of risk management and return generation that are being perused.
SENTEK Solution is the only one authorised European distributor of Hokuyo products.
It is also offering high quality of products for German manufacture SSZ and PPT (Percy, 2016).
Now SENTEK solution are coming up with their own product that is Hokuyo products of
electronics in the competitive marketplace. For such purpose a respective organisation is

adopting Ansoff model so that they can which source of this model will be effective for a
respective organisation.
Ansoff Matrix model is a strategic planning tool that help a firms to check out product
and market growth. It is a business analysis techniques which is very much useful in identifying
growth opportunities. It defines that a business attempts to grow in an effective manner as well
as depend weather market is new or existing product in new marketplace. It consist of series of
suggested growth strategies which help out to set direction for the business strategy.
Market Penetration: In market penetration a growth strategy is identified where the
business focus on selling existing product and services into the existing marketplace (Hill, 2017).
If this strategy is adopted by SENTEK Solution then they will be able to maintain or increase
their market share of their current distribution channels. It will help in achieving competitive
pricing strategy, advertising, sales and promotion as well as more resources that are dedicated to
the amount of personal selling. This strategy is useful as it focusses on marketplace and products
that are well known to customers.
Market development: Market development is a growth strategy where the business seeks
to sell its existing product and services into new marketplace. For such purpose mangers of
SENTEK Solution need to geographical marketplace, new ways of distribution channels such as
moving from selling via retail to selling commerce and mail orders. Moreover, adopting different
pricing model in order to attract different customers or creating up new market segmentation.
Though it is a risk strategy than market penetration because of the targeting new markets.
Product development: Product development is a growth strategy in which the business
can aim to introducing new product into existing marketplace (Moutinho,and Vargas-Sanchez,
2018). This strategy consists of developing new competencies as well as required to develop
modified products that can be appeal to existing markets. It is suitable for the SENTEK Solution
so that their products can be differentiated in marketplace in order to remain competitive. For the
success of the product development strategy a respective organisation need to emphasis on
research and development and innovation, examining the customers’ needs and wants so that
customers demand can be fulfilled.
Diversification: Diversification is done where a business markets enter with new product
in marketplace. It is more risky because in this strategy a business is moving from moving one
market into different marketplace where owner have very interest or experience. If a respective

organisation is adopting this process then they need to have clear idea what it expects or gain
from the strategy and an honest assessment of risk factor. If an organisation need balance
between risk and reward a marketing strategic of diversification can be highly rewarding.
From the above mention points SENTEK solution are coming up with the product
development in the competitive marketplace of same industry line. As they are coming up with
their new product and innovation of their own brand that Hokuyo products of electronics in the
competitive marketplace. As product development will help them to come up their new product
in the competitive marketplace so that they have command over it. Moreover, they can
differentiate their product in the competitive marketplace.
As per the views of Fryers and Mellahi 2015, Strategic management is the process of
building capabilities that allows a firms to create value for customers, shareholders and society
while operating in competitive marketplace. It ensure in analysing internal and external
environment of a respective firm to maximising use of resources in relation to objectives
(Lasserre, 2017). It guides an organisation to move from the specific direction as it defines
organisation gaols that fixes a realistic objectives which are alignment with company's vision. In
this manner a firm become proactive rather than reactive in order to make analyse the action of
the competitors so that necessary steps can be taken in order to compete in the marketplace
instead of becoming spectators.
Business Strategy is defined as course of action or set of direction which assist
entrepreneur in achieving specific business gaols objectives. It is also know as master plan that
are used by management in order to secure a competitive position in marketplace. This strategy
is mean out to set objectives and achieve desired ends as it can simply be described as long term
business planning. Mainly concerned with major sources of issues such as raising finance to
build up a new factory or plant. It is concerned with scope of business activities that is what are
where to produce. Business strategy equips with the top management with an integrated
framework to discover analyse and exploit beneficial opportunities to sense and meet potential
threats in order to make optimum use of resources and strengths. Herein, SENTEK Solutions are
using Porter Generic model to know its competitive advantage.
Porter have suggested four generic business strategies that can be adapted by business in
order to gain competitive advantage. This strategy are related with scope of a business activities
which are narrow versus board and the extent to which business seeks to differentiate products. It

is one of the most effective way to find out a sustainable competitive advantage and other
competing products and firms in a marketplace. A business earn competitive advantage over its
strong competitors by offering high class product and services with greater value. It can be done
by offering at lower price or by providing greater benefits and services that usually justify higher
prices. It guides an organisation to move from the specific direction as it defines organisation
gaols that fixes a realistic objectives which are alignment with company's vision. In this manner
a firm become proactive rather than reactive in order to make analyse the action of the
competitors so that necessary steps can be taken in order to compete in the marketplace instead
of becoming spectators.
Cost leadership: In a cost lead It help an organisation to access their company's current
situation as well as analysing the effectiveness of implemented strategies (Morschett Schramm-
Klein and Zentes, 2015). The source of cost structure are advantage that are varied and depend
on the structure of the industry. If SENTEK Solution acquire lost cost production that they must
find all the necessary sources of cost advantage. In this manner an organisation can achieve and
sustain overall cost leadership they only an organisation can improve their performance in
competitive marketplace.
Differentiation: In this strategy a firm seeks to be unique in industry along with some
dimensions that are widely valued by buyers. This help an organisation to select one or more
attributes that many buyers in an industry guides an organisation to move from the specific
direction as it defines organisation gaols that fixes a realistic objectives which are alignment with
company's vision. In this manner a firm become proactive rather than reactive in order to make
analyse the action of the competitors so that necessary steps can be taken in order to compete in
the marketplace instead of becoming spectators as it is important and unique position to see it
self-different from each other. For such purpose a respective organisation need to select very
different offerings for their potential customers so that they can reward their uniqueness with
premium quality of goods and offerings.
Cost focus: In case of cost focus, companies are usually focusing on finding cost
advantage in their intended market segmentation. Herein, the mangers of SENTEK are focusing
on niche marketplace rather than trying to sell out to small portion of the market that are focused
on buying unique product and services. Moreover, with this strategy an organisation can grow
potential that will find out opportunities in wider marketplace. Thus, if an organisation is getting

into niche marketplace that a product sold less than any other product, it will create opportunities
and chance to succeed. It guides an organisation to move from the specific direction as it defines
organisation gaols that fixes a realistic objectives which are alignment with company's vision. In
this manner a firm become proactive rather than reactive in order to make analyse the action of
the competitors so that necessary steps can be taken in order to compete in the marketplace
instead of becoming spectators.
Differentiation focus: In this strategy, a business aims to differentiate with just one or
small number of target segments. In this process a customers need to segment different
opportunities in order to provide products that clearly different from its competitors. If a
respective organisation adopt this strategy than they can go for classic niche marketing strategy.
In this way an organisation can establishing themselves in niche marketplace by using
appropriate strategy which will help in achieving higher price in niche marketplace.
Herein, SENTEK Solution are adopting cost leadership strategy. From this strategy an
organisation can charge low price for their quality of goods and services. With this strategy an It
help an organisation to access their company's current situation as well as analysing the
effectiveness of implemented strategies. As they are coming up with new product in the
competitive marketplace for such purpose they are charging low price so that they can attract
large number of customers towards it.
Evaluation of strategy and recommendation
Strategy in general refers how a given objective can have achieved by an organisation in
competitive marketplace. It is concerned with the relationship between end and means,
convening and carrying out course of action intended to attain particular objectives. It is also
defined as a knowledge of goals, the uncertainty of events that are needed to be taken into
consideration for an effective use (Goetsch and Davis, 2014). It is significant because it is not
possible to foresee the future. For such purpose proper insight are needed so that a firm is ready
to with uncertainty events which constituent the business environment. For such purpose an
organisation is SWOT analysis to evaluate the corporate and business strategy in order to its
strength and weakness of their strategy which are being adopted by them.
Strengths: Strength describe what are the uniqueness in the strategy that are being
adopted by the SENTEK Solution. It may have strong and high effectiveness of their strategy
before coming into the competitive marketplace. The strength of for the organisation is cost of

leadership and product development. As they are already easting in the marketplace for such
purpose they would not face any kind of difficulties. Moreover, they are adopting low cost
leadership for their product so that it will help an organisation to access their company's current
situation as well as analysing the effectiveness of implemented strategies. Strategic management
is necessary as it is a commitment to strategic planning to see both short and long term gaols
which determines the action that are needed to be taken to reach gaols. Corporate strategy is
defined as hierarchically the highest strategic plan for an organisation which consist of
corporate gaols and direction and way from which strategic management activities can be
achieved. Business Strategy is defined as course of action or set of direction which assist
entrepreneur in achieving specific business gaols objectives.
Weaknesses: In this framework weaknesses are describe to those are where an
organisation are lacking behind or those are where they need to improve. Herein, mangers of
SENTEK Solution need to work upon this strategies so that they can bring improvement on
regular basis so that effectiveness can prevail within competitive marketplace. For such purpose,
the first need to evaluate keenly the competitive marketplace before product development so that
they can know what are the exact need and demand of customer in competitive marketplace.
Moreover, they can flexibility in their product and services so that they can deal with the
uncertainty if arise in developing their product into competitive marketplace.
Opportunities: Opportunities are referred to those are where an organisation can acquire
high number of advantages within the competitive marketplace. The effectiveness of both the
strategy is that they are help for an organisation in coming up with new product in competitive
marketplace. Moreover, one both the strategy become successful they an organisation can have
high advantage to charge high price for their product and services one if they have acquired good
position in competitive marketplace with their offerings and services. Thus, in this manner an
organisation will ale to attain sustainability for longer duration of time.
Threats: Threats refers to those factors that can potentially harm business strategies. If an
organisation fails to adopt this strategy in an effective manner then organisation may go into loss.
Such a respective organisation does not have much experience of their product in which they are
going to deal within competitive marketplace. If they fails, with their new product then they can
tie up with their distributor organisation. So that they have knowledge about their product and
services as well over come with the loss they where faced in directly launching their product in

competitive marketplace. Apart from this they can acquire different strategies that could be
beneficial for them so that they can survive in competitive marketplace for longer duration of
time.
Thus, from the SWOT analysis SENTEK Solution can know what are the
effectiveness of its strategies that they have acquire in their product development in
competitive edge. Moreover, from this they can know what are the areas where they are lacking
behind as what strategies can be adopted if they fail to meet up the actual needs and
requirements.
Recommendation
From the above discussion it has been recommend that strategy management play's an
essential role in developing and selecting the appropriate strategies that are beneficial for an
organisation. It guides an organisation to move from the specific direction as it defines
organisation gaols that fixes a realistic objectives which are in alignment with company's vision.
In this manner a firm become proactive rather than reactive in order to make analyse the action
of the competitors so that necessary steps can be taken in order to compete in the marketplace
instead of becoming spectators. Moreover, for having an effectiveness in competitive
marketplace there are some of the recommendation that are described below:
 If an organisation is coming up with new product development than first they need to
evaluate the marketplace in which they are operating very keenly so that they know what
are the needs and wants of customers.
 Effective strategies and flexibility should be there in which strategies they are adopting
so that they can meet up the uncertainty if arising within the competitive marketplace.
 Moreover, they can go for joint venture if they feel like they would not be able to survive
in the competitive marketplace with their new product development.
 Herein, a respective organisation can be proactive rather than reactive in order to make
analyse the action of the competitors so that necessary steps can be taken in order to
compete in the marketplace instead of becoming spectators
 Additionally, they need to become flexible in nature so that they can deal with different
situations in an effective way as well as attain sustainability for longer duration of time.
Thus, the above mention are some of the recommendation that are being suggest for an
organisation. If the mangers adopt those suggestions that mangers of SENTEK solution will bale

to achieve their gaols and objectives within stipulated period of time. Moreover, they will able to
attain sustainability for longer duration of time in the competitive advantages,
CONCLUSION
From the above discussion it has been concluded that strategy management play's an
effective role in organisation. It helps an firm to know its current situations as well as help in
analysing the situation that are necessary for an business in competitive marketplace. Moreover,
Corporate strategy is defined as hierarchically the highest strategic plan for an organisation
which consist of corporate gaols and direction and way from which strategic management
activities can be achieved. Additionally, with the help of business strategy is defined as course of
action or set of direction which assist entrepreneur in achieving specific business gaols
objectives. Thus, strategic management is necessary as it is a commitment to strategic planning
to see both short and long term gaols which determines the action that are needed to be taken to
reach gaols.