Venus Mobile: Strategic Analysis, Evaluation and Recommendation Report

This report provides a comprehensive strategic analysis of Venus Mobile, a company facing financial losses. The analysis begins with an external assessment using PESTLE and Porter's Five Forces to understand the political, economic, social, technological, legal, and environmental factors, as well as competitive dynamics. An internal analysis examines the company's resources, including tangible and intangible assets, and assesses its capabilities and competencies across various functional areas. The report also includes a SWOT analysis to identify strengths, weaknesses, opportunities, and threats. Furthermore, it evaluates strategic options and offers recommendations to improve Venus Mobile's performance, incorporating stakeholder considerations.

STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
External analysis..............................................................................................................................1
Internal analysis of Venus................................................................................................................3
SWOT analysis................................................................................................................................7
Strategic Option evaluation..............................................................................................................8
Strategic Recommendation..............................................................................................................9
PART 2..........................................................................................................................................11
Stakeholder Summary....................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Strategy is defined as a plan of action that is formulated or designed in order to achieve
long term benefits and increasing overall performance. Thus, formulating strategy assist firm in
analysing whether resources available to them are providing competitive advancement or not.
In other terms strategy helps company in delivering a unique mix of values to its customers and
clients of firm as well (Kircher and et. al., 2012). Venus Mobile is the organisation which is
taken in this assignment and according to case study company is going through losses since two
years and therefore, to determine the performance of firm some of the activities like research and
development, competitive positioning are mentioned below so as to have better understanding.
Present report will include external and internal analysis of Venus mobile is included in this
assignment. In addition to this SWOT analysis is also being done so that firm's strengths and
weakness will get to know. Other than this, strategic options evaluation along with strategic
recommendation is mentioned in this report. Apart form this, stakeholder summary is also being
explained in this assignment.
PART 1
External analysis
Venus Mobile during their initial years was one of the leading company but as time
passed performance of firm deteriorated and from last two years company is performing very
badly in the market area. In order to improve performance CEO of the company has set clear
vision, mission and values which will further guide employees in working in a better manner.
For example: Venus Mobile's vision is to connect with people all around the world with the help
of their mobile phones. As per the case scenario, company is going through losses and seniors of
Venus Mobile has planned to work on issues and problems and for this firm has analysed
PESTLE, Porter's 5-Force and life cycle model for having an overviews (Grant, 2016).
Therefore, all these points are explained below for better understanding:
PESTLE analysis
Political: Under this, policies, laws and regulations that are formulated by governmental
bodies are taken into consideration by companies so that while operating its business they do not
find any kind of issues and problems. United States is very good in formulating and
implementing rules and regulations. Venus Mobile has incorporated laws through which they can
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gain maximum benefits. For example: as per the government laws they are using material which
assist mobile phones in emanating less radiation as a results it less harmful as compared to
products that are provided by companies to customers. Other than this, trade war between China
and US by media has played a crucial role as tariffs and shipping cost has increased.
Economic: This is also an important factor that company must take into consideration as
a sudden change in policies or in case of recession there might be a possibility that company
faces loses (Gorrini, Harris and Mak, 2013). Although US comes under the strongest economy in
the world and take proper care of companies who have established their business in their nation.
In relation with Venus mobile, company's performance is diminishing as its sales and revenues is
low as compared to other big firms. Other than this, global recession has affected a lot to
company as many of the employees are leaving jobs which is directly having an impact on
business strategy.
Social: Mobile phones according to the current market trends is one of the beneficial
element. Thus, it must be a social responsibility of Venus mobile for providing best quality
services and facilities it is customers. Other than this, they have separate departments who are
taking care of customer services and responding to every queries which consumers are facing.
Other than this, they are looking out for social conditions as well according to nation situation.
Technological: Venus mobile try to update its software on a regular basis so that they
can attract a large number of customers. Therefore, company is making policies as per latest
trends and interest of customers. Demand of technology has put some effect on business of
Venus Mobile as products that are provided by company are low at rates because of which its
sales are increasing in regional market.
Legal: These are formulated by government so that business can be run in a better
manner, for example: for establishing a new company it is required that company have a license
and sin context with Venus Mobile they are following all legal procedures which is assisting
them in operating its business.
Environmental: Company in today's scenario, are environmental concerns and they are
manufacturing goods by taking this factor into consideration. For example: For manufacturing
mobile phones Venus Mobile is using raw material which are eco-friendly (Elmes and Barry,
2017).
Porter's 5 Forces
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Competitive Rivalry: Every company has its rival firm and enterprise make policies for
gaining competitive advancement. In context with Venus Mobile, rival companies are the main
reason behind the low income and sales because of which they are lacking behind in their
business. Thus, Venus Mobile can make some strategies related to price decrease so that they can
attract large number of customers towards them and maximum benefits can be attained in return.
Supplier Power: As in context with Venus Mobile, suppliers are not so powerful because
company has variety of option in purchasing raw materials from other suppliers if firm is not
satisfied with the services and facilities provided to them. For example: People can buy Venus
Mobile through various sources like online channels and in USA Amazon is dominating market
area and people are using this channel for purchasing goods online.
Buyer Power: This part is majorly concern with customers as in the large market area
they have a variety of choices. If the seller of Venus mobile is charging high prices for the
products then customers can easily switch as there are large number of substitute products
available at market place (Cho and et. al., 2011).
Threat of Substitution: Substitute products refer as the commodities which are same and
giving by other companies. Thus, this enable customers in choosing products of their choices and
preferences. Venus mobile has many competitors because of which price war can be seen and
firms therefore, enterprise is looking for providing low margin price rates in order to attract a
large number of customers. Venus mobile can think of establishing their business to areas where
they have nit explored yet with the help of making some modifications in their products.
Threat of new entry: For already established company there is always a threat of new
entrants as they can give tough fight in order to remain in the market for a longer period of time.
Therefore, Venus mobile for expanding its business can make a fresh start by making
changes in policies and norms. For instance they can think of entering into new market and try to
expand its business at different places. Further more company can think of opening new business
in partnership with other companies so that if any profit or losses are faced than it can be divided
and burden can be reduced in some context.
Internal analysis of Venus
Internal analysis helps company in knowing objectives and strategies through which firm
can evaluate what all policies enterprise can think for increasing its position at market area.
According to the case study it can be analysed that as Venus Mobile are going through losses
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and their performance is getting affected negatively. This is the reason why directors' of firm
with the help of meetings they have discussed about issues and problems through which
company can discuss about stagnating technological development plans, customer value and
factors which are affecting company in gaining competitive benefits. Therefore, with the help of
case scenario, it is being analysed that except Venus company all other firms are doings best
with regards to its performance and amongst them Mercury is delivering best services and
facilities in a speculated period of time and this can further be understood with the help of graph
which is mentioned below:
In terms of resources, company is using both tangible resources which can be easily
evaluated and includes financial resources and physical assets and intangible resources that are
regarded as important because it provides competitive advancement (Berthon and et. al., 2012).
Majorly it includes technical assets. Moreover it can be understood with the help of table given
below:
Resources Main Characteristics Key Indicators
 Tangible
Financial Venus Mobile's sales revenue
is less because of which its
profit is going in negative
Further Venus are using
following key indicators like
debt to equity ratio which is
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term. This is the reason its
market growth is decreasing
and company for increasing its
sales has to take financials
help from different financial
institutions .
going negative in relation to
Venus Mobile as compared to
other rival firms, credit rating
and ration of net cash to capital
expenses etc.,
Physical This is determine as a
resources like technologies
that are present within the
company, assets and raw
material are considered in this.
Resale of value of assets if
company is snot getting
enough profits form the same
(Balasubramanian, Hurley and
Neidle 2011). Other than this,
age of capital equipment are
the key indicators through
which Venus Mobile can
evaluate the physical resources
which are available to
company.
 Intangible
Technological (Software
developed by Venus Mobile
like Gaming Software,
different android software for
their phone for example:
Nougat )
This is the biggest resource
through which company can
gain superior position at
market area. In terms of Venus
Mobile company is using a
latest technologies in order to
manufacture their products.
Human Resource Further for increasing
performance of company
Venus Mobile are must hire
eligible candidates and to them
they should give proper
Education, technical and
professional skills that are
acquired by a candidates.
Other than this, customers
reviews for the services
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training so that they can
deliver their best efforts for
providing company with
maximum benefits (Kircher
and et. al., 2012).
provided by company can be
one of the key indicators.
Capabilities and competencies of Venus Mobile
With the help of resources company cannot gain maximum benefits unless team or
employees work in collaboration in order to achieve a common goal. Further so as to know
about capabilities functional classification approach in which different departments play their
role for providing benefits to company. Some of the examples are given below:
Functional Area Capabilities and Competencies
Corporate Company has effective management
departments who are assisting firm in
managing their resources and other activities.
Venus Mobile have appointed expertises who
are controlling strategic activities (Kozich and
et. al., 2013). Although Venus Mobile is going
through losses and difficult situation but they
are encouraging and motivating business units
which is enabling workers in performing their
task effectively.
Information management As company is dealing with manufacturing
mobile so its their prime role of using
comprehensive and effective information
system which will further assist firm in making
appropriate decision in favour of company.
Research and Development Venus Mobile is using both research and
development strategies along with licensing
technology which is increasing the capacity of
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production to around 550,000 units per year for
Venus Mobile.
Marketing Venus is using all latest tools and technologies
for increasing their promotional and sales
activities (Malterud, 2012). For example:
Social media platform is being used by
company for attracting a large number of
customers that will gradually enhance sales and
profitability.
Approaches to value creation for Venus Mobile:
This is created in order to improve brand image of company in front of its customers.
Further Venus Mobile can think of implementing innovative strategies so as to attract a large
number of customers. For example: company can produce phones where image of caller can be
over the mobile with 3D effect. Other than this company can think of making changes in
software that are inbuilt in mobile phones like Nougat, this will increase the processing speed of
phone really fast. Further Venus Mobile has develop a creation map in which they have
classified things into two categories unique service inventory and standard support processes.
Approaches to Research and Development: Research and development is used by
company in order to get profit immediately. R&D works on five principles like immediacy,
relevancy, inclusiveness, integration and smart growth. There are many approaches which
company can incorporate for getting into a better position at as compared to other rival
companies. For instance Venus mobile is using descriptive approach in which a descriptive study
is being done related to market areas, company's performance and many more. For this, Venus
mobile has conducted survey with the help of questionnaires, observation, interviews etc., other
than this, it is assisting in evaluating usability of products as per targeting customers.
SWOT analysis
This is done in order to know the internal strengths and weakness of an organisation
along with threats and opportunities. In context with Venus mobile, all these criteria are
explained below for having better understanding:
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Strengths: Company is known for providing better services and facilities to its
customers. As company has a brand name in countries like US, UK etc., which is assisting
company in increasing its sales and profitability. Along with this, Venus Mobile has various
distribution channels whose prime role is to sell goods to retail stores so that from there
customers can purchase their products (Neri and Supuran, 2011). Other than this, mobile phones
are very compatible and every age group can handle it without any complications. For example:
for aged people company have implemented basic key which they can easily be understood by
them instead of using complicated processing. Therefore, this feature is available with Venus
Mobile because of which most of the aged person are going to their stores for purchasing.
Henceforth, it is increasing company's sales and profitability. Apart from this, company is taking
help of IT professionals who are skilled enough in developing software and other activities
related to technologies.
Weaknesses: Biggest weaknesses of Venus Mobile is that company is facing
communication gap because of which employees and superiors don't have effective interaction
due to which task are not performed in a better manner. In addition to this, managers are not
being able to guide its workers for executing plan effectively (Santra and Kamat, 2012). Other
than this, some of the tools and technologies which company are using are outdates and for latest
machineries employees are not getting proper training sue to which they are finding difficult in
operating these. Other than this, performance of employees are also declining which is directly
affecting growth of business as workers are not being able to provide better services and
facilities to its clients and customers.
Opportunities: Venus Mobile must think of expanding its business in areas where
company have not expanded yet. This will assist company in increasing its sales and profitability
in a speculated time frame. In addition to this, firm can collaborate with other companies
operating in the same segment so as to achieve better results. In relation to its employees, Venus
Mobile can provide them with better training and developing programmes through which
workers can enhance skills and knowledge for future proceedings. Company can implement new
technologies through which employees can give effective services and facilities which can be
understood by them easily without any problems.
Threats: Each company has some or the other kind of threat in market area as company
biggest threat is political risk as frequent change in policies, rule and regulations formulated by
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government can create problem for firms in regulating its business in an effective manner. Other
than this, offers provided by rival companies like handset at minimum changes can be one of the
threat as people can move to substitutes so as to get products of their choices and preferences.
Strategic Option evaluation
Venus Mobile is having low growth rate and it is happening because management of
company is failing in to grab opportunities that can be gained with the help of applying new and
latest technologies (Scholes, 2015). With the change in course of time demand of technologies
are increasing and it is varying according to regions for example: from the given scenario, it can
be evaluated that USA has high demand of technologies of 16% as compared to other regions.
Therefore, this region is playing apart in generating more and more revenues in a speculated time
frame. Venus mobile in order to get competitive advancement they can formulate different
strategies and action plan which can assist firm in getting maximum benefits after implementing
this in business operation. Competitive positioning defines as a process through which firm can
differentiate what company is offering and how it is assisting them in creating value. For
example: prices that are applied by the company in products should be kept competitive or less
than cost applied by rival companies, Venus Mobile can gain maximum benefits.
Furthermore in order to get a good positioning they can use strategies like market profile that
may include size, competitors stages of growth so that firm can analyses where company's
performance is going whether in a positive direction or in a negative direction ( Vestbo, Hurd
and et. al., 2013).
In addition to this, Venus Mobile for better implementation of action plan company can
evaluate competitive analysis which will help them in knowing strengths, weaknesses,
opportunities and threats. For example: Venus mobile for gaining competitive positioning they
are manufacturing mobile phones that are advanced in technology like use of 3D effects in their
mobile phones and further ease daily life activities. Through Research and Development,
company can easily determine the customers needs and market trends as well. This will help in
improving the chances of attaining higher profitability level. In addition of this, company also
evaluate the customers needs by understanding an effective marketing research in which they ask
them various questions towards their services. By this they get their views and opinion towards
the company products. This will contribute in making better services as per customers needs with
the purpose of providing them better satisfaction.
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With the help of Plant construction they are manufacturing a large number of mobile
phones, as per the case scenario, it has been analysed that from 15 manufacturing plants in USA
the are gaining benefits and further to increase the sales and profitability company can make
proper use of resources which are available to them. In terms of outsourcing, Venus Mobile is
failing in increasing its capacity, which is influencing purchasing decision.
According to the scenario, which is given it can be analysed that during their initial years
company was performing well but from last two year their sales and profitability has decreased,
which has put a bad effect on business operations. Further to increase their performance level
they took help from different financial institutions and other source. Other than this, company
took help of outsourcing which gradually increased global total and assist company in increase
its brand image. Supply global chain also assisted Venus Mobile in improving its relationship
with stakeholder and other distributors. As compared to earlier financial data it can be analysed
that its operating profits which was -360.6 and after implementing various sources and other
elements it has decreased.
Strategic Recommendation
After evaluating all strategic options, it is recommended to Venus mobiles that it needs to
apply effective strategies and policies in order to stay ahead in market competition and gain high
sales revenues. The first one strategy has acquired by Venus Mobiles is to obtain competitive
position at market, in this relation it must focuses upon improving quality of products and
services. Management should also have to cut down the prices of their offerings which enables to
attain and retain customers for long run. In addition to this, for obtaining strong competitive
position Venus Mobiles also have to prepare a marketing plan which signifies how to promote
offerings at marketplace thus many people get know about this. Assessment of internal and
external environment should be also done by doing SWOT and PESTLE analysis; it will help
management to make imperative decisions. Firm should enlarge its research and development
activities thus to upgrade itself from current innovation and technologies. Having latest
technology will improve functional area and operational efficiency of the business. Along with
this, firms can also offer cloud based services to its clients by including features like – Caller Id,
voicemail and conferences bridges. The actual profit of telecom companies is efficiency and
agility; it means to provide information sharing services, i.e. social media, email at low costs.
Venus Mobile can also formulate those mobile which have low radius which will less affect on
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customers' ears. As per the case scenario, it is overviewed that profit graph of the company is
getting lower; in this relation company should focus on its performance level and deliver
effective products that can satisfy customers' needs in the best possible manner (Waddington,
2014).
Venus Mobiles also has to improving and broadening its mobile networks so that people
can communicate anywhere over the world. Other features of a mobile phones should be also
developed, i.e. ram, internal and external storage, camera process, permission to download all
apps and so on.
Following are the steps must be considered by management of Venus Mobiles for gaining
competitive position -
 In order to get high competitive position, there should be increased plant capacity which
implies designing a production system which relies upon conversion process and input
requirements. Then make predictions and long term planning. In this context, a technique
can be acquired that which enables to measure overall capacity of production and helps in
effective strategic planning towards gaining competitive position at marketplace.
 Management of Venus Mobile also emphasised on increasing research and development
activities thus to analyse current market trends and customers needs; helps in identifying
effective and imperative business decisions and grab high competitive edge (Malterud
2012). It helps company to get know about its competitors and firm will improve its plans
linked with competitive position in markets. The business organisation can also do
outsourcing means to give its certain operations to other companies who are expert in that
field. It increases efficiency and credibility of business operations in a certain time
period.
 Cutting down prices of services can be also offered by the company in order to attain and
retain customers for long run. But at this time, it must ensure by company to retain the
quality of its products and services thus to capture customers' eye and retain their interest
for long run. As if Venus Mobiles decreases the prices of its products; it leads attaining
and retaining large group of customers that raise sales revenues and profitability of the
company. Henceforth, the referred firm will easily achieve high competitive position
among all rivals. In addition to this, price index for telecommunication services should
cover wired and wireless telephone services, internet services and bundled telecom
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services. Having lower prices help in attaining and retaining customers for long term
survival. Improving quality of products by adding attractive features into them also can
be a part of competitive positioning strategy of Venus Group.
PART 2
Stakeholder Summary
As a corporation grows, number of people who are involved in it also increases. In
business organisation, stakeholders are those entities which plays a vital role in firm's health and
performance; they also get affected by organisational actions. Stakeholders can be either
individual or a group of person who get affect by its decisions. These people have an interest in
project success and can be within or outside the company's reach. It is essential for business
associations to keep satisfy and happy its stakeholder as well as also involved them in decision
making process of the company. While executing any business strategy it is essential for
Starbucks to consider all stakeholders in decision making process of the firm.
Customers – The prime motive of every company is to generate large client base because
without customers any organisations cannot survive for long run. Customers are market king thus
they are considered as most effectual stakeholder for Starbucks (Scholes, 2015). As the firm
operate over the globe, it may have wide range of target audiences which are main reason of its
growth and success at marketplace. In this modern era, needs and wants of customers are
changing at fast pace so that it is essential for companies to provide higher level of satisfaction to
customers by offerings qualitative and value added products. As a global coffee supplier, it is
essential for Starbucks to identify customers' needs and desires then produce products
accordingly; it also have to add attractive features which makes the brand's Coffee more unique.
Having a large group of target audiences have power as they force companies to cut down prices
and improve quality of products.
Employees – As same as customers, employees also known as one of the important
stakeholder who have a crucial role in delivering products and services. Employees are valuable
resource for any association, thus Starbucks prioritize staff members in its corporate social
responsibilities. As stakeholders, employees' demand for effective working conditions, higher
remuneration and job security. The organisation cultural of Starbucks emphasised on the same
which aids to attain and retain workers' interest for long run. On the other hand, due to diverse
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nature of workforce it is quite difficult to manage interest of employees, in this manner while
formulating any business decision board of directors of Starbucks needs to include and consider
their values, beliefs, morale etc. For example – if Starbucks cannot satisfy needs and wants of its
customers then it will not get high performance and production objectives. Employees have
power to either boost up or eradicate production level which may affect decision making process
of the company. Dissatisfaction level of staff members also increases lack of workforce that is
required to perform all tasks and operations at workplace.
Shareholders – These are the people who have invested certain amount of money in
venture. Shareholders own the company, it is essential for board of directors to include
shareholders while applying any strategy at workplace. As Starbucks is a growing organisation;
thus it may have various shareholders; they have right to take action when things are going
wrong within an association and management cannot deal with this properly. Although, if
companies cannot provide appropriate returns to its shareholders then they would not prefer to
invest within businesses in future. In 2007, Starbucks was suffered from decline in sales , thus
investors help it in to grow up again. Shareholders also have power to participate in company's
major decisions and serve as a source of financial accountability driving company leaders to
make logical decisions.
Government – It is indirect stakeholder of any business organisation by having stake in
their progression. Government renders regulatory insight, ethical practices, legal concerns and
assure accounting procedures of the company. Starbucks needs to address interest of government
of a nation in which it performs. As the firm operate world-wide, it is quite difficult to adhere
rules and regulations of various nations. For example – government has power to allow or ban
any products and services of companies; this situation occurs when a business serve in illegal
way. Government also can shut down the entire business if it is required. Starbucks has acquired
a network of locations among European Countries thus to exploit tax advantages.
(Waddington, 2014)
Therefore, it can be said that Starbucks need to focus on capturing interest of its key
stakeholders and also consider them in decision making process. It will help in obtaining high
profitability and market share in a certain time period. Due to different nature of stakeholders,
sometimes it is not possible for management to fulfil all needs and wants of their stakeholders in
effective manner which may arises various issues for company. In this, Starbucks should
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emphasis on conducting a market research then recognise needs of stakeholders so as to
formulate effective strategy and policies.
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