Strategic Management in Global Context: ABS London Market Entry Report

This report provides a strategic management analysis for Armani Business Solutions (ABS) Limited, focusing on its expansion into the London market. The report begins with an introduction to strategic management, emphasizing its importance for achieving organizational goals. The main body includes an internal and external analysis using SWOT and PESTLE frameworks to assess ABS's strengths, weaknesses, opportunities, and threats, as well as the political, economic, social, technological, legal, and environmental factors influencing its business. It then critically assesses market entry modes, including licensing, partnership, and acquisitions, recommending licensing as the most suitable approach. The report discusses standardization versus adaptation strategies and applies Porter's generic strategies to identify competitive advantages. Finally, it produces a strategic business plan outlining measures for market success and future improvement. The report's conclusion summarizes the key findings and recommendations, supported by references to relevant literature.

Strategic Management in Global Context

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
1. Internal and external analysis..................................................................................................3
2. Critical assessment of market entry modes.............................................................................6
3. Standardisation or adaption.....................................................................................................7
4. Applying Porter’s Generic Strategy on how client could gain competitive advantage...........8
5. Produce strategic business plan to access success in the market and improve the future.....10
CONCLUSION..............................................................................................................................12
REFRENCES.................................................................................................................................13

INTRODUCTION
Strategic management refers to a process which includes, planning, monitoring, analysis and
assessment of all the activities in an organisation. It is important to make plans or strategies so
that goals and objectives can be achieved. It will help in generating more profit by satisfying
needs of company (Altukhova and Semko, 2018). Armani Business Solutions Limited is one of
the famous consultancy firm which provides services in many countries across the world. In
report, internal and external analysis is discussed, challenges face by company while expanding
their business. Critical analysis is being done of market entry modes. Porter’s generic strategy is
described and strategic business plan and measures for success is discussed.
MAIN BODY
1. Internal and external analysis
It is important to analyse internal and external environment because there are some factors
which can affect performance of a company. There are internal and external factors which will
affect working of employees because external factors are not controllable and managers of
company should make proper plans so that work can be completed on time (Trigeorgis and
Reuer, 2017). Armani business solution want to expand their business in London and for that
they have to make strategies or plans to face challenges and also fight with competitors to
accomplish goals and objectives. Internal factors refer to factors which are present within an
organisation and it can be control by managers. They have to take correct actions so that internal
factors will not affect working of company (Bergh and et.al., 2017). External factors are cannot
be control by managers because these factors are not present within the company, they are
outside organisation. Plans should be made by managers of Armani business solutions limited
want to expand their business in international market and it will help in generating more revenue.
SWOT Analysis
SWOT analysis refer to as identifying strength, weakness, opportunity and threat of a
company. It is important for managers to analyse market situation and determine positive and
negative points before expanding business in international market. This will help in identifying
what are the strengths of Armani business solutions and they should use it when expanding
business.
Strength

Strength can be referring to as positive points which will help a company in expanding
business in other countries and it will also help in performing better than competitors. It will be
easy in building good image in market and better plans can be made so that it will help in earning
more revenue. Armani business solution is planning to expand their business in international
market (Fahriana and Huda, 2019). They are providing good services to customers and it is one
of famous company. People like products or services provide by company and this will help in
generating more profit. Armani business solutions is best consultancy firm and there are no close
substitute companies. So, it is easy for managers of organisation to expand business in
international market.
Weakness
Weakness of Armani business solution is that they are not taking suggestions from
employees and they are not having right to share their views. When teams are made by managers
then they make leaders of every team so that work can be done properly. Leaders are applying
autocratic leadership style in which employees are not having right to speak or share their views.
There is also lack of proper communication between workers. Due to this reason relevant
information does not reaches to correct person and it lead to delay in work. If they want to
expand their business then they should make proper plans or strategies so that they can perform
better than competitors and goals can be achieved.
Opportunity
Opportunity for company is that they can expand their business in international market
because they are providing good quality products or services to customers. This help them in
generating more revenue and they have to take necessary steps for growth of company.
Managers of Armani business solution should identify market situation and according to that
make plans or strategies for expansion. After covid 19 they are having many opportunities for
development of organisation (Abdel-Basset, Mohamed and Smarandache, 2018). They are
providing good services in existing market so they have build good image in local market and
now they can expand their business in international market.
Threats
Threat for Armani business solution is increasing competition as nowadays, every firm
want to earn profit and for that they are making good plans. At present there are less competitors
of organisation but if they will expand their business then may be there are many competitors

and they have to face all challenges for growth of company (Leiber, Stensaker and Harvey,
2018).
PESTLE
 Political – Political factor refer to change in tax policy, tariff barriers, trade restriction
and many other restrictions. This is controlled and managed by government, they can
make changes according to market situation. So, if managers of Armani business solution
want to expand their business in international market, then they have to identify tax
policy, tariff barriers and other which are applied by government (Masih and et.al., 2019).
 Economic – Economic factor can be defined as inflation rate, interest rate, economic
growth patterns, foreign exchange rates, foreign direct investment etc. It will affect
working of a company because if they want to expand their business. Managers of
Armani business solution want to open their branch in London, so if they want to take
loan for expansion then they will get loan at high interest rate. If inflation rate is high
then they have to sell their product or services at high rate. So, according to country
inflation rate, interest rate differs and managers has to identify this.
 Social – It includes, cultural trends, population, demographics, choice of customers.
When a company plans to expand their business in international market then they have to
determine choice and latest trends, culture is different in all countries. So, managers of
Armani business solution have to identify culture and choice of customers, after
analysing make plans for expansion (Perera, 2017).
 Technological – It refers to use of new machines so that products can be made properly
and it will help in improving efficiency of employees. When new machines are used by
an organisation then it helps in entering into new market and more profit can be
generated. So, if managers of Armani business solution will not use the latest technology
then they will face problem in expanding business in other country.
 Legal – Legal factors can be referring to as applying rules and regulations which should
be applied by managers so that all employees can work properly and there will be no
confusion. Managers have to make rules and regulations according to country in which
they want to open their branch (Bismark and et.al., 2018).
 Environmental – It means climate condition, geographical location, weather and other
factors which will affect working of company. When an organisation is doing business in

local market then if they plan to expand their business in other country then there will be
difference in weather, climate and mangers have to face all challenges.
2. Critical assessment of market entry modes
To enter into international market, it is important that necessary steps should be taken so
that there will be no confusion and it will help in identifying challenges which are faced by an
organisation so that they can enter into new market. Three modes of entry into international
market are:
Licensing
Licensing refers to an agreement in which one company gives permission to other
company so that they can make products and payment should be done for using products. This is
the best way to enter into international market, by using licensing, patents, trademarks,
copyrights managers can expand their business (Darling and et.al., 2019). Licensing will help in
creating an opportunity for passive income, it will create new opportunity for growth of company
and better decisions can be taken by managers which will help in growth of company. It will
reduce risk for parties as payment is being made by a person for using products or machines of
another person. It has negative impact as sometimes it does not work properly and company has
to suffer loss.
Partnership
Partnership is another way which can be used by managers of Armani business solution
so that they can enter into new market. If they want to open new branch in London then they
have to form a partnership because it will help in entering into new market and save money.
Working in partnership will help in getting better opportunities and both partners will get tax
benefits. It is important to do business in partnership because an organisation which is already
working in international market and they are having knowledge about what are the rules and
regulations which are applied (Frenkel and Walter, 2017). This will be beneficial for managers of
Armani business solution to expand their business. It will help in making better plans or
strategies so that they can attract more people and it will lead to accomplishing goals and
objectives. It is beneficial for an organisation to form partnership with similar type of company
so that they will not face any problem and run business smoothly. It has negative impact such as,

there may be conflicts between partners related to profit or any other work. So, it is not
appropriate for expanding business in international market.
Acquisitions
Acquisition refers to acquiring a company, using machines and this is used by companies
to expand their business. When a company is not earning profit from 2 years then another
organisation acquires it and this will help in generating profit. Advantages of acquisition are, it
increases market power, help in facing challenges or barriers to enter into new market, it requires
less investment and involves less risk (Savović, 2017). When managers will acquire any small
company then resources or employees can be used in new firm so that better products can be
made. It will help in building good image in market and when workers will get good wages then
they will work efficiently. Different products can be made by a firm so that they can satisfy
needs of customers and provide them good quality products. Acquisition has some negative
points such as, it requires creative and innovative products, if barriers are not identified then
wrong decisions will be taken.
From the above three modes of market entry best method which can be used by managers
of Armani business solution is to use licensing. It is appropriate way to expand business in
international market because in this already a company is set up and they will give permission to
use their tools and techniques for making products (Teece, 2019). In licensing less investment is
required and better products can be made so that more customers will be attracted and more
profit will be earned. Mangers have to make some changes or improvements according to
situation and try to satisfy needs of consumers.
3. Standardisation or adaption
Standard business unit refer to as a profit centre whose aim is to focus on product and satisfy
needs of customers. It is marketing plan which includes, analysis of competition in new market
and how to face challenges when entering into new market. It is difficult to satisfy needs of
consumers so standard business unit helps in making good quality product and focus on market
segment. They want to attract customers by dividing them on the basis of age, location, income,
area or any other basis (Pfarrer and et.al., 2019). Armani business solution want to expand their
business in international market so it is important that they should identify key points which is
beneficial and also determine competition. This will help in making good quality products and
also identify that how much consumers can spend to buy goods. Armani business solutions

should conduct proper research which will help in growth of company and they must get better
opportunities in future.
Adaptation means to modify a product or make changes in existing product so that better
goods can be provided and it will help in generating more profit. Adaptions is demanding for use
of marketing strategy so that sales can be increased. This is an approach which should be used by
companies for increasing their sales and if marketing will be done properly then it will help in
attracting more people. When a firm enters into new market then it is important that they should
firstly identify needs of customers and also decide consumers to whom they want to target. This
will help them in building positive image in minds of consumers and easy for an organisation to
enter into international market (Durand, Grant and Madsen, 2017). So, before taking any step
managers should determine elements which are important and also determine market situation.
After analysing market condition plans should be made so that in future there will be no
problem.
4. Applying Porter’s Generic Strategy on how client could gain competitive advantage
Porter’s generic strategies are described how company pursues competitive advantage across its
chosen market scope. There are three basic Porter’s Generic Strategy which described as follows
–
The Cost Leadership Strategy – The cost leadership strategy is the best way to gain
competitive advantage within the market. The main aspect through which cost leadership
strategy is defined is by increasing the profits by reducing the costs which charges the industry
prices and the second way is by increasing the market share which makes the profit gain on the
effective and efficient terms of growth of Armani Business Solutions Limited (Islami and et.al.,
2020). Being the leader in terms of cost is the main thing which the cost leadership strategy
denotes. In this, the low cost producers are given preference and they themselves handle the
market. This makes the purpose of the market and the aim of market to capture it on low scale
which increases the market share. Armani Business Solutions Limited is the company which
handles the success and the market position on effective note and this ensures that company is
able to handle the market share on that basis.
The Differentiation Strategy - In this strategy, the differentiation denotes that the services and
products of the Armani Business Solutions Limited have engaged more of the customers which
have benefitted the company on large grounds. The services and products of the company have

attracted the most of the customers making it different from the other competitors in the market
(Omsa and et.al., 2017). For making the differentiation strategy most effective, the company
should imbibe into having the good research, innovation and development aspects, efficient
marketing and sales so that the market is being understood by what are the requirements and
needs of the customers in the market. Armani Business Solutions Limited is providing various
opportunities to make their product different by expanding it in the London, UK. This will
initiate on making the products and services which are required by the customers in the market.
Therefore, the differentiation strategy is the best strategy which is to be made significant for the
purpose.
The Focus Strategy – By following the focus strategy, Armani Business Solutions Limited
focuses on the niche and the big market and through that only the company is expanding its
business in London. This strategy has helped the company in understanding dynamics of market
and has made the source through which customers are to be reached in market structure on large
scale (Anwar and et.al., 2021). Through this strategy, the company will be able to serve
customers according to their needs and requirements which make the most of the market grow in
profits and develop on the scales of how company is analyzing it on large basis. This makes the
market segment attractive to the customers which focuses not only on one market segment but is
expanding its scale on large areas wherever necessary. Therefore, with help of this strategy
company will be able to make gain customers’ attention through different market segments
located in different areas like it has done in London, UK.
Therefore, Armani Business Solutions Limited should focus on the strategy which helps
in gaining the competitive advantage by the client and thus, the advantage of choosing one of the
generic strategies for the recommended market should be the focus strategy which will help the
company in knowing what is to be done with the processes and how to make the products and
services reach the customers in the market on large scale (Desai, 2019). This is the best means
through which the company will be able to gain competitive advantages over the other
companies in line with the same business. Focus strategy is the best strategy which is company

should utilize as this will also help in its expansion of market in London, UK. This makes the
best is the services and products to be made available to customers and this will initiate the
process of how the company is growing and developing on scale of new changes and
innovations.
5. Produce strategic business plan to access success in the market and improve the future
The strategic business plan is described as below –
Mission – To expand the market of Armani Business Solutions Limited in London, UK.
Vision – The vision is to create better services and delivering the products effectively on large
scale.
Objectives – To enhance business in the market and improving the future.
SWOT Analysis – The SWOT analysis of the Armani Business Solutions Limited is described
as below –
Strength – The strength which the Armani Business Solutions Limited imbibes is that the
company’s internal processes are of great strength which includes the financial and customers’
growth for the company. This helps the company both in analyzing the status and customers in
the target market effectively and efficiently (Gürel and et.al., 2017).
Weakness – The Company incurs the weakness which demonstrates that the internal processes of
the company affect the business and this makes the great impact on the whole working and the
procedure that is being followed by the company.
Opportunity – Opportunity for the company is that the company is expanding its market in
London, UK which makes it grab the aspect that there is diversity of the products and the
services which are diversified in the market. The expansion of the market scale provides the
opportunity on large scale (Vlados, 2019).
Threat – Armani Business Solutions Limited has the major threat from its other competitors in
the same industry which increases chances of how the company will operate on the grounds of
competing with the other companies in the market on difficult terms.
Marketing Mix – The marketing mix consist of the 4P’s which is described as below –

Product – Armani Business Solutions Limited provides the services to the customers by giving
their consultancy services so that the customers are working effectively on the scale of how the
services are being rendered to the customers (Thabit and et.al., 2018).
Price – The pricing of the products and the services of the company is based on the market
structure which is neither high nor low. By pricing of the products and services the company is
able to make the decisions effectively on the financial basis.
Promotion – Armani Business Solutions Limited promotes the services and products by
analyzing the customers’ needs and requirements through the social media platforms and by
promoting the brand through digital channels (Mintz and et.al., 2021). Promotion helps in
making the effective scales of how the company is able to make the most of the promotion
through effective techniques.
Place – The products and services of the Armani Business Solutions Limited is expanded in
London, UK which initiates the purpose of how the company is able to expand the market scale
of business.
Therefore, company is able to make most of process and procedures work effectively.
Key performance Indicators (KPI’s) - The key performance indicators is defined as the
measure which helps in evaluating the marketing objectives, employees, organization and the
performance overall on the basis to be achieved effectively and efficiently on large scale. The
key performance indicators are the tools and techniques which help in evaluating the
performance of the Armani Business Solutions Limited in the external business environment and
this makes sure of how the company can deal with the services which are to be taken for the
perspective of how the scales are to be measured which depicts the success factors and the
growth of the company on overall basis (Hristov and et.al., 2019). The key performance indicator
is the tool which initiates the purpose of the improvements and changes which are being done in
the company. This also assists in the expansion of business and the market in London, UK and
analyses the profits and the success factors on the quantifiable terms. KPI provides the target
which makes the work more effective on scale that it seeks the most of what is known as
processes and the procedures of the company in an effective and efficient manner.

CONCLUSION
From the above discussion it can be concluded that, there are internal and external factors
which will affect working of organisation if they are planning for expansion. Critical assessment
is being done of modes by which company can enter in new market and it will help in achieving
goals and objectives. There are various methods to enter into market such as, licensing,
franchising etc. Standardisation or adaptation of business unit has been discussed and it will help
in expansion of business in other country. Porter’s five forces has been discussed which will help
in gaining competitive advantage. Further, business strategic plan has been described and
measures for success.