Strategic Management Report: Corporate & Business Strategy of Voltalia

This report provides a strategic management analysis of Voltalia, a French company specializing in renewable energy. It examines corporate-level strategies, including market penetration, product development, diversification, and market development, using the Ansoff Matrix. The report recommends market development as the most suitable corporate strategy. It then delves into business-level strategies, specifically cost leadership, and evaluates the chosen strategies using the SAFe framework (Suitability, Acceptability, and Feasibility). The report concludes with recommendations for Voltalia, emphasizing the importance of an innovative team, research, and the implementation of both corporate and business-level strategies for effective expansion and revenue generation. The report highlights the favorable market conditions for renewable energy and suggests that a cost leadership strategy would help Voltalia gain a competitive advantage.

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Strategic Management
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Author’s Note

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Table of Contents
Introduction....................................................................................................................2
Discussion......................................................................................................................2
Corporate Level Strategy...........................................................................................3
Market Penetration.....................................................................................................3
Product Development.................................................................................................4
Diversification............................................................................................................4
Market Development..................................................................................................5
Selection of Strategy..................................................................................................5
Evaluation Strategies..................................................................................................8
Suitability...................................................................................................................8
Acceptability..............................................................................................................8
Feasibility...................................................................................................................9
Recommendation............................................................................................................9
Conclusion....................................................................................................................10
Reference......................................................................................................................11

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Introduction
The main purpose of the assessment is to analyse the strategies which the business
would be adopting at corporate and business level so that the business can enhance the
efficiency of the business and thereby generate more revenue from the operations of the
business. In addition to this, the analysis would also identifying different strategic scenarios
which would be present before the company and how the management can take steps for
making most of the opportunities (Voltalia.com. 2020). In addition to this, the discussion
would also be including recommendations which can be implemented for improving the
operational structure of the business.
Discussion
The company which is considered for the purpose of this assessment is Voltalia which
is a company established in France. The company is known to operate power plants with the
application of renewable energy such as hydro, wind, and biomass and solar. The company
follows a sustainable practice in creating energy for consumption. The market is favourable
for making this form of energy generation available in the market. The strategies which can
be applied by a business at corporate level and business level is discussed in details below:
Corporate Level Strategy
Corporate level strategy refers to the strategy which is formulated by a business for
creating value and attracting more customers to the operations of the business. The corporate
level strategy is directly related to growth and effective management of the operations of the
business. The corporate level strategy for a business is anticipated to affect the market
valuation of the business and also helps a business to create a market image for the products
which is offered by the business (Campbell et al. 2014). In order to set corporate level
strategy Ansoff Matrix is used and the strategies are discussed below:

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Market Penetration
The market penetration Strategy allows the business to expand the market share of the
business and the strategy allows the management to use its products in the existing market.
The practices which can be applied in such a strategy is to reduce the costs of the products
and services so that more and more customers are attracted. The business of Voltalia is trying
to penetrate new markets and thereby expand the range of the business. As per the annual
report of the business, the primary operations of the business are currently situated in Brazil
but the company is looking to penetrate new regions.
The business is also trying to diversify the assets of the business in different region so
that the operations of the business can be set up in different regions of the world. In order to
expand the operations, the management has adopted acquisition policy as the business
recently acquired Martifer Solar which helped the business to diversify the activities of the
business (Adamides 2015). The company also likes to enter into agreements with different
partners so that maximum revenue can be generated by the business (Purce 2014).

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Product Development
In this strategy, the business tries to develop new products in order to make maximum
use of the existing market so that more revenue can be generated. The management of
Voltalia needs to consider whether new products can be brought into the market or not and
therefore needs to conduct extensive research for the same. This strategy can be implemented
by the management when the senior officials have a thorough understanding of the market
conditions and believe that it can provide a proper innovative solution to the market in terms
of new products. The product development strategy requires the senior officials of the
business to understand the market demand and trends and on the basis of the same needs to
develop a product which needs the needs of the market.
Diversification
The diversification strategy requires the management of a company to enter a new
market with a new product which can be regarded as a risky strategy. However, the level of
risks which is associated with this strategy can be lowers with effective diversification
methods which can be related or unrelated. In the case of Voltalia ltd, the products which are
being developed are mostly associated with energy and diversification for such products is
not possible. In addition to this, the business is not looking to unrelated diversification of its
products and therefore it can be said that diversification would not be possible for Voltalia
Ltd.
Market Development
The market development strategy focuses on development of a new market by
introducing existing products in the market. This strategy is applied by the business when it is
trying to expand the operations of the business and thereby generate more revenue from the
activities of the business. The management of a company can appropriately set targets which

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allow the entity to generate more returns in the long run operations. The management of the
company plans to follow a expansion strategy so that the operations of the business can be
expanded on global front.
The global expansion strategy works effectively with cost leadership strategy at
business level and this helps the business to attract more customers and thereby enhance the
revenue generation capacity of the business (Journeault 2016). In addition to this, the
expansion strategy would also enable the business to build a brand name in the global market
and compete at a global level.
Selection of Strategy
On the basis of the nature of operations of Voltalia, the management of the
company is trying to expand the operations and thereby also enhance the revenue which is
generated by the business. The management of the company should select the market
development strategy as the same would go in successfully with the expansion plans which
the business wants to pursue. In addition to this, it would expand the range of the business
and more services can be provided to the customers from different region. On an overall
analysis, it can be said that global expansion strategy is appropriate considering the growth
rate and sustainability in the market which provides an opportunity to achieve growth in the
market.
Business Level Strategy
Business level strategies are formulated by a business with respect to the position of
the business in the industry and with respect to Porter’s Generic Strategies. These strategies
are formulated in order to improve the structure of the business with respect to the industry.
The business of Voltalia aims to follow a business level strategy which would be compatible
with the expansion strategy of the business (Drnevich and Croson 2013). The management of

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Voltalia is looking to follow cost leadership strategy. This strategy would allow the business
to appropriately control the costs of the business and ensure that the business is able to
effectively reduce the price which is charged for the products. This strategy would also
ensure that the management of the company is able to attract more customers to the
operations of the business (Bentley, Omer and Sharp 2013). The market for renewable energy
is anticipated to increase further in the coming years considering the current growth rate
(Verbeke 2013). The generation of electricity is anticipated to be contributed majorly by
renewable sources of energy and a graphical presentation for the same is presented below:
Figure 1: (World Electricity for future period)
Source: ()
The above graph shows that significant opportunities are present in the market for the
company and in order to properly utilize the opportunity in the market, the management of
the company needs to formulate proper strategies so that more growth can be achieved. Cost

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leadership strategy would allow the business to capture the market initially and effectively
compete with other businesses which are providing similar products (Bocken et al. 2016).
Therefore, it can be said that the strategy would help in developing competitive advantage in
the market which would contribute to the revenue generation process of the business. In
addition to this, cost leadership strategy would also attract more clients from the market
thereby giving the business an opportunity to achieve growth in its process.
Evaluation Strategies
The strategies which are to be implemented by the business needs to be evaluated so
that appropriate results can be obtained from the same. In order to assess the viability of the
strategies recommended the following evaluation parameters are considered.
Suitability
The choice regarding appropriate corporate strategy needs to be decided by the senior
officials of the business. The corporate strategy of the business involves the business to
develop new markets by offering existing products. This strategy would allow the
management to expand the operations of the business and thereby enhance the revenue of the
business. The business is offering sustainable energy source which is one of the most
developing form of energy which would assist the business to penetrate new markets
Therefore, it can be said that the market development strategy which is formulated by the
business is appropriate since new markets can be penetrated and the business would be able
to provide its products to new customers. The business level strategy is also appropriate as
the same would allow the management to make maximum use of the expansion strategy and
also control the costs o operations in an appropriate manner.

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Acceptability
The business of Voltalia ltd has a long term of goal of expanding the operations of the
business n thereby generating more revenue from the operators of the business. The senior
management needs to accept n implement the strategies so that development can be brought
about in the activities of the business. The business needs to ensure that cost are properly
controlled by the business so that cost leadership strategy can be properly implemented and
further support can be provided to the operational process of the business. Market
development strategy long with cost leadership strategy would be suitable as the same would
allow the management to generate competitive advantage in the market and also allow the
business to capture the market. New market would also mean that the business can reach out
to more customers and create a brand name for itself in the market. Therefore, the strategies
which are formulated should be accepted.
Feasibility
Market development strategy along with cost leadership strategy would allow the
management to ensure that proper policies and procedures are implemented and it would also
help the business assure that efficiency and transparency is maintained in the operational
process. In addition to this, the strategy would also allow the management to make effective
use of resources and thereby enhance the operational effectiveness. In addition to this, the
market is expected to become more favourable in the long run and therefore following such
strategies would allow the management to penetrate new markets and create a good brand
name in the market. It is to be further noted that proper strategies would allow the
management to remain proactive in the operational process and also maintain the costs of
operations in a systematic manner.

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Recommendation
The business of Voltalia is still in its growing phase and therefore appropriate
strategies are to be formulated so that the business is able to generate maximum revenue from
the activities of the business and further pursue the expansion plan for the business. The
corporate level and business level strategies needs to be implemented as soon as possible and
certain other support activities are required which are covered in the recommendation
provided below. The recommendation which can be suggested to the management of Voltalia
ltd for the period is listed below in details:
 The management of the company needs to set up an innovative team so that proper
research can be conducted and appropriate revenue can be generated from the
operations of the business. The management should also focus on innovative
technology so that a competitive advantage can be generated for the business which
would be very useful in the long run for the business.
 The management of the company needs to work on reducing the operational
efficiency of the business and the same can be done by reducing the costs of
operations and enhancing the profits of the business significantly.
 Another strategy which the business must closely following is diversification strategy
which works well with expansion strategy and this would allow the business to meet
the needs of people and also penetrate different markets in an appropriate manner.
 The management of the company also needs to properly promote the products and
services which are offered by the business and let the world know different products
which is offered by the business.

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Conclusion
The analysis of the performance of Voltalia Ltd appropriate shows that the business is
in the right tracks for expanding the operations of the business and thereby establishing a
global presence in the market. The business level strategy which would be followed by the
business is cost leadership which would allow the management to reduce the cost of
operations and offer its products at a lower price range to the customers. In terms of corporate
strategy, the business would be following expansion strategy which would allow the
management to expand the operations of the business from global perspective. The analysis
above also shows application of strategic models such as balanced scorecard and Porter’s
Five forces model for evaluating if the policies of the business are appropriate or not. The
balanbce scorecard approach includes the four perspectives which need to be considered by
the management of Voltalia before formulating strategic plans for the business. In respect to
Porter’s Five forces model, the factors which can impact the operations highly are identified
and explained. The analysis also includes recommendations as to how the business can
further improve the operations of the business and promote efficiency in the business.

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