Strategic Management Report: Value Creation of Two Companies

This report delves into the strategic management principles of value creation, using Oldfield's, a manufacturer of painting products, and Thrive, a nonprofit organization supporting refugee entrepreneurs, as case studies. It examines how each organization establishes its value proposition, considering factors like structure, people management, marketing, and financial management. The report analyzes the key aspects of each company, including their internal and external stakeholders and the ways in which they provide value to their consumers and the community. For Oldfield's, the focus is on quality products, efficient operations, and customer satisfaction, while Thrive emphasizes financial support and guidance for refugee entrepreneurs, fostering their independence and contributing to the economy. The report highlights how both organizations create value through distinct strategies, emphasizing the importance of stakeholder engagement, effective management, and financial responsibility in achieving their respective goals. The analysis includes a structuralist approach for Oldfield's and an emphasis on accountability for Thrive, reflecting the different natures of the two organizations and their value creation processes.

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Introduction
The value proposition of a business organization promises to deliver value to the business
organization. It also involves declaration or the statement informing the customers regarding
what the company stands for. The business organizations must implement appropriate business
practices and policies adhering to the corporate governance and ethics of the business
organization. The CSR of the company is essential for the business organization to maintain its
reputation and brand image. Oldfield’s is an innovative manufacturer and marketer of various
range of painting products and painting accessories (Oldfields 2020). The organization mainly
focuses on creating quality products and services and focuses on growth strategy. The company
provides quality workmanship, space, and innovation. On the other hand, Thrive is a nonprofit
business organization, the main role of the organization is to offer micro financial, and business
related support and guidance to refugee people who plans to start a new business venture
(Thriverefugeeenterprise.org.au. 2020). The purpose of this report is to analyze the ways in
which the selected companies create values. It identifies the key aspects of the business
organization and determines the ways in which the companies create values. Further, it identifies
the internal and external stakeholders of the business organization and the ways in which the
companies provide values to the consumers.

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Discussion and analysis
How these organizations create value
Thrive is a nonprofit business organization which is established to provide financial help
and support to the refugee entrepreneurs and grow itself into new viable business. It has been
identified that there are many asylum seekers and refugees who prefer to start a new business
venture and empower them to become financial independent (Payne Frow and Eggert 2017).
They also provide jobs and ensure faster growth and success of the business organization as
active contributors to our economy and society. They mainly focus on providing information
regarding the Australian market and knowledge and expand into a new business venture. They
create value by providing refugees and asylum seeker with financial loans for their new business
venture (Kiel, Arnold and Voigt 2017). The overall vision of the business organization is to
transform the lives of the refugees and the asylum seekers in a positive way by enabling them to
start a new business venture and fulfill the lives of the consumers. They also make meaningful
contributions to the society and the community in which they work for. According to Thrive,
they do not consider their clients as refugees and asylum seekers. Thrive considers them as the
next entrepreneurs of Australia. These clients arrive empty handed, with immense skills and
experience. Thrive helps them to fulfill their dreams and support them to grow and expand. They
actively contribute to the economy and community life of the Australians (Baldassarre et al.
2017).
On the other hand, Oldfield’s is an innovative marketer and manufacturer of high quality
products and crafted paint brushes. Oldfield’s manufacture facilities and focus on creating
quality products and customer focused growth strategy both in international and domestic

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market. The business organization creates value by providing engineering, technical and safety
support to the consumers (Lenssen et al. 2013). The paint ranges provides by the business
organization, are of superior quality and perfectly suits to all commercial applications where the
professional finish is required. The company ensures that painting is made easier thereby saving
time and effort through performance and quality (Lee and Nowell 2015). The core values of the
business organization are quality, workmanship, and service. They are committed in providing
high quality services and products to the customers. The business organization enables its
consumers to transform their residential or commercial property is adding beauty and color. They
believe is revitalizing the property and life of the consumers (Osterwalder et al. 2014). The
painting experts offered perform work efficiently and carefully to enhance the property in a
timely and efficient manner. The provide value by delivering the best painting service to the
consumers. They are highly trustworthy and reliable as stated in their mission and vision
statement.
Key aspects of each dimension
Structure
The structure of the overall business organization shapes its strategy. Oldfield Company
undertakes a “structuralist approach” rooting to structure conduct performance paradigm
(Osterwalder et al. 2014). The overall performance of the business organization depends on the
conduct and basic structural factors such as barriers to entry, number of suppliers in the market
and the number of buyers in the market. It is considered to be a deterministic worldview
approach in which causality is flowed from external conditions of the business organization to
the corporate decisions within the business organization in order to exploit the opportunities and

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external conditions (Covin et al. 2015). This enables the business organization to create value
propositions. On the other hand, Thrive Company Australia is accountable to the donors,
volunteers, and founders. The members of the business organization work under the managers
supported by the board of directors.
People management
The key aspect of Thrive Australia includes trustworthiness, openness, and honesty with
the employees, donors, volunteers and other members of the business organization who have
invested their time, money, and effort in the business organization (Witesman and Fernandez
2013). Thrive Australia is highly accountable to the investors, volunteers, donors and other
public community in which the business organization operates in. Henceforth it can be said that
the business organization increases its value proposition by gaining public confidence. They
focus on the mission and vision of the business organization, in order to gain more public
confidence to continue to support the refugees and asylum seekers (Chew, Semmelrock-Picej
and Novak 2013). On the other hand, Oldfield Company incorporates an effective
communication strategy with the employees, society and the community in which it services.
The clear stated mission and vision of the business organization provides direction to the
employees and the staffs. They have associated recruitment, staffing, hiring, and developing a
succession plan for the people (Bhalla, Dyrchs and Strack 2017). The human resource
department of the business organization undertakes the responsibility to control the people and
staff of the business. The effective management by the HR department enables the company to
create value.
Marketing

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Thrive Australia business organization takes initiatives to spread the message of the
business organization along with solicited donations and calls for the volunteers. The marketing
department of the non-profit organization is to create unique slogans, logos, and campaign to
export the activities and operations of the organization to the audience (Witesman and Fernandez
2013). The overall goal of the NGO is to promotion the ideals, causes of the business
organization to gain attention from the donors, and volunteers. This contributes to their value
propositions. On the other hand, Oldfield’s focuses on WebPages and advertisements to capture
the attention of the consumers and dissuades them from the competitor’s products and services
(Chew, Semmelrock-Picej and Novak 2013). The marketing initiatives are mainly done
influence people to purchase their products instead of the competitor’s products and services.
The marketing strategies are unique and attractive so that they gain the interest of the consumers.
Financial management
It is believed that financial management is crucial for the success of nonprofit business
organization. It is essential that the organization must effectively manage the financial resources
of the organization to support the cause and purpose of the organization. Thrive organization,
undertakes right financial decisions at right time to ensure success and attain its objectives and
goals (Bhalla, Dyrchs and Strack 2017). Financial management is major priority of the business
organization unlike other nonprofit organizations. They work effortlessly towards
implementation of projects and catering to the needs of the refugees and asylum seekers. On the
other hand, Oldfield’s believes that financial and operations aspects of the business organization
must be balanced in order to a attain growth and profitability (Bovée and Thill 2014). However,
the company might extend beyond their financial capitates while executing its marketing
activities. Therefore, in order to avoid the dilemma, the company must devise polices to balance

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its operations and functions ensuring growth and success. The business organization takes
advantage of the financial resources (Fineman, Gabriel and Sims 2010). The business
organization focuses on balances valuable techniques and concepts in order to avoid problems.
The dept position of the business organization is to maintain a balance between asset and
liability. The operational efficiency of Oldfield’s enables the business organization to create
value propositions and provides low cost products and services of the customers at a superior
quality (Kuhn 2009). The mainly focus on the business process and its improvements, while
emphasizing on cost minimization.
Internal and external stakeholders and value proposition of the business organization
The internal stakeholders of Oldfield business organization are employees, managers and
owners while the external stakeholders of the business organization are the shareholders,
customers, creditors and community to whom the organization provides its goods and services.
The efficient financial management of the business organization provides value to the external
and internal stakeholders of the business organization (Fineman, Gabriel and Sims 2010). It
ensures credibility and trust to the external stakeholders such as the investors, government, and
customers. The financial stability and efficiency provides value to the employees. The marketing
initiatives undertaken by the business organization provides information and other details to the
customers regarding the products and services offered to them (Witesman and Fernandez 2013).
The people management of the business organization ensures satisfaction among the customers,
who are major stakeholders of the business organization such as the employees. They ensure that
the employees are involved in various decision making process which makes them involved and
satisfied (Payne Frow and Eggert 2017). The painters, staffs, and employees of the business

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organization are provided with training and development facilities which enables them to create
value among the internal stakeholders that is the employees, managers and owners. They
consider the needs, values, and opinions of the customers in offering their products and services,
which enables them to create value among the customers and other external stakeholders of the
business organization (Kiel, Arnold and Voigt 2017). They adhere to the governmental laws and
regulations thereby ensuring value to the government. The structure of the business is mostly
hierarchical which enables smooth and efficient operations in the business organization. This in
turn enables the business organization to provide timely service to the customers (Baldassarre et
al. 2017). The employees and the staffs also benefits from the present organizational structure.
The upper level management and executives provide guidelines to the employees and they have
clearly defined roles and responsibilities. This ensures clarity and efficiency among both the
internal and external stakeholders of the business organization (Payne Frow and Eggert 2017).
The internal stakeholders of Thrive Company Australia are the people are committed to
serve the community and serve a social purpose to the community (Kiel, Arnold and Voigt
2017). The internal stakeholders of Thrive are the board members, staffs, donors, and volunteers.
While the external stakeholders of the organization are the people who are impacted by the
operations and functions of the business organization, they are the clients, community partners
and the refuge groups (Bhalla, Dyrchs and Strack 2017). The overall purpose and cause of the
organization creates value for both the internal and external stakeholders of the organization. The
nonprofit organization manages the financial resources of the company in a very responsible
manner as they are accountable to the investors and donors of the business organization (Bovée
and Thill 2014). The company is highly responsible towards the clients to serve the overall
purpose of the organization.

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Conclusion
Therefore, from the above analysis, it can be concluded that both the companies
Oldfield’s and Thrive has efficient functioning and operations to create value propositions
among the internal and external stakeholders of the business organization. Thrive focuses on
provides financial loans and support to the refugee entrepreneurs and asylum seekers for their
new business venture. The make meaningful contributions to the community in which they serve.
Oldfield’s on the other hand, provides painting products and accessories to the customers and by
providing effective services they create value to both the internal and external stakeholders of the
business organization. The report has analyzed the key aspects of both the organizations that is
the structure, people management of the companies, marketing and financial management of the
companies. Considering the key aspects of the companies, the report has determined the aspects
of the companies and the ways in which they relate to the value propositions of the business
organization. Furthermore, the report has identified the internal and external stakeholders of the
organizations and the value propositions. Both the companies ensure credibility and trust along
the internal and external stakeholders of the business organization.

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