Strategic Analysis and Recommendation for Venus Mobile

This report provides a comprehensive strategic assessment of Venus Mobile. It begins with an introduction to strategy and its importance for business organizations, followed by an external analysis using PESTLE and Porter's Five Forces to understand the market environment and competitive landscape. The internal analysis evaluates Venus Mobile's capabilities, competencies, and value creation approaches, highlighting its strengths and weaknesses. A SWOT analysis synthesizes the internal and external findings, identifying opportunities and threats. The report then evaluates strategic options and offers specific recommendations for Venus Mobile to improve its performance, including a stakeholder summary. The report aims to provide insights into the company's current position and offer actionable strategies for future success.

Strategy Assessment

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
External analysis.........................................................................................................................1
Internal analysis..........................................................................................................................4
SWOT analysis............................................................................................................................8
Strategic options evaluation........................................................................................................9
Strategic recommendation.........................................................................................................10
PART 2..........................................................................................................................................11
Stakeholder Summary...............................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
.......................................................................................................................................................13

INTRODUCTION
Strategy is one of the important aspect for business organization to formulate an effective
plan of action. Formulation of action plan can help this firm into improving their performance
level and at the same time also increase the chances of attain long term benefits. company
should effectively formulate strategies in which they easily evaluate their current performance
also ensure whether firm attain competitive advantage . Furthermore, strategy is more beneficial
for company as it provide various ways to improve their performance by delivering quality
services to its customers (Balasubramanian, Hurley and Neidle, 2011). Present report is based on
Venus Mobile organization. . This report also includes internal and external analysis of Venus
mobile. Along with this, SWOT analysis is also discussed in this project with the purpose of
determining the actual strength and weakness of this company. Strategic options evaluation and
strategic recommendation is also covered in this project. At last stakeholder summary is also
discussed in this report.
PART 1
External analysis
External analysis is consider as a strategic tool which directly affect the entire activities
of the company like change in market trends, customers demand and so on. Thus, it is vital for
manager of the firm is to evaluate and understand external environment for improve overall
performance of the firm at market place (Berthon and et. al., 2012).. In the initial year, Venus
mobile was one of the biggest company in market but from last two years performance of firm is
very low and company going through losses. For improving the performance level, CEO of the
firm tries to set clear vision and mission through they easily provide better guidance to their
workforce. In context of Venus, company set their vision is to serve as well as connect with
number of people in over the world.
PESTLE analysis
Political: Government bodies formulate some laws and regulations which is important
for business organization to implement within their operational activities (Bharadwaj and et. al.,
2013). In context of Venus Mobile includes all the regulations as laws which support them in
enhancing their performance level. With the help of this, company can easily maximize their
profitability at market place. For example, Venus mobile use material which are help their
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mobile phones in emanating less radiation which conform with the standards established by the
government leading to minimal disruption to operations of the company.
Economic: Mainly, it is relate with sudden change in policies such as recession in which
company going through loses. As the Venus mobile performance is very low and sales of the
company is also less as compare to another organizations. Due to global recession, number of
employees are leave jobs from companies which highly effect the business activities in negative
manner.
Social: It is relate with customers needs and market trends as well. In context of Venus
Mobile, it is important for them to includes social responsibility in which they provide quality
products and services to its customers as per customers needs and wants. Along with this,
customers culture, lifestyle, trends are also important factors which is important for the company
to implement within their activities before delivering quality products and services.
Technological: For improving competitive performance, Venus mobile needs to use
updates and advanced technologies such as developing new software like Nougat android, Kitkat
for their mobile phones within their business activities. This will contribute in attaining larger
number of customers towards its products and services. Due to new technology demand, Venus
Mobile products are low at rates (Cho and et. al., 2011). Which may increase the sales of the
company in market place.
Legal: This type of factors are formulate by the government bodies in which business
organization can easily improve their perfomance. Many countries have different norms for
telecommunication and mobile manufacturing firms. For example: network towers that are being
launched are low in radiation so that it does not harm human body. Thus, company have to
follow all the legal procedures within their business activities to increase the chances of attaining
success at market place.
Environment: As per current scenario, it is important for every companies to take scare
about environment. This will help in improving the overall performance of the company. In
context of Venus Mobile, they are using material that are eco-frinedly while manufacturing
mobile phones for example: reducing plastic content for developing body of phones which
contribute in keeping environment safe.
In addition of this, Porter's 5 forces is also an effective tool which help company to
determine their competitive performance at market place.
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Competitive Rivalry: In market place, competition is high because each and every
companies has its competitors. Thus, it is important for business organization to make their
specific strategies to attain competitive advantage from its rivals. As Venus Mobile has number
of competitors as it is the big reason behind it low income and profitability. For improve their
performance level, company needs to formulate effective strategies towards its price,
advertisement and many more (Gorrini, Harris and Mak, 2013).
Supplier Power: In market place, suppliers of Venus Mobile are not much strong due to
company have number of options to buy raw materials from other suppliers. In context of Venus
Mobile needs to make alternative products so that customers can easily attracted from company
products.
Buyer Power: Mainly, buying power of customers are high in market place. It is relate
with the customers which are present in the marketplace. As consumers has number of number of
alternatives and choice to purchase products ad services (Grant, 2016). In context of Venus
Mobile, high products price is the reason behind switching the customers to another company
because in market place number of substitute products are easily available.
Threat of Substitution: Number of substitute products are there in market place as same
commodities are provide by another companies(Porter’s Five Forces Model of Competition,
2018). For inviting buyers, Venus needs to set their products price appropriate and low so that
customers are easily attracted towards company services.
Threat of new entry: In market place, number of new entrants are always there which
give high and strong competition to sustain in market place for longer period of time. Thus
company needs to make their quality products for attaining long term sustainability at market
place.
Internal analysis
It is important for business organisation to understand about their internal performance.
In this, they evaluate their strategies, objectives and policies to improve the chances of attaining
competitive position at market place. By analysing the internal aspects, firm can easily improve
their performance level by modifying their business activities. As per case scenario, Venus
Mobile facing loses from last two years as it directly affect the overall performance of the
company in negative manner. Thus, CEO of the company determine the issues and problems for
finding better solution. In this, company also discussed about technological department,
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customers values in order to attain the competitive advantage in market place. With the
assistance of this, Venus put their best efforts to deliver their quality products and services tow
its customers on right time. This will enhance the profitability level at market place as compare
to its rivals.
As per above table, the profit of Venus is continuously down as compare to another
companies. Thus, it is important for company to make their specific strategies and plans within
their business activities. This will help in improving their performance level at market place and
at the same time also make increase the chances of capturing larger market share form its rivals.
Capabilities and competencies of Venus Mobile:
By making optimal and effective utilisation of available resources, companies enable to
obtain various advantages unless all employees work in proper collaboration thus to obtain firm's
goals and objectives (Kircher and et. al., 2012). In order to know more about organisation's core
competencies and capabilities there can be applied functional classification approach in which all
department have its own core competency.
Functional areas Capabilities and competencies
Corporate Every business association has distinct managerial
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departments who helps firm to manage and utilise their
resources in more effective and efficient manner. The referred
firm, Venus mobile has appointed specialists or expertise who
put control over strategic activities of the firm (Kozich and et.
al., 2013). As per the case scenario, the company is going into
losses so that it need to boost up managerial skills and
knowledge among people as they enable to take imperative
business decisions and grab better future opportunities.
Information management As Venus mobiles deals in telecom sector thus numerous
changes are coming up in this sector day by day. It is the prime
responsibility of information management department is to
keep updated with all market trends and changes in mobile
technology. It helps company to attain its goals and objectives
in a certain time period.
Marketing In order to promote its products and services, Venus mobiles
use innovative tool and technique. Is is observed that social
media sites are being adopted by the firm in order to capture
interest of large number of target audiences and it turns
enhancement of sales and profitability (Malterud, 2012).
Research and development The firm is highly focusing upon research and development
activities which helps it in recognising needs and wants of
customers. For example – using licensing technology has
increased capacity of production which has arrived 550,000
units per year.
Approaches to value creation for Venus Mobile:
Value creation refers with performance of actions that increase the worth of goods,
services as well as a business. Its primary aim of of any business organisation as it will aid to sell
products and services to customers. Whereas in context of stakeholders, value creation relates
with increasing stock prices thus to ensure availability of investment capital in future to fund
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operations. Therefore, value creation helps in boosting up brand image of Venus Mobiles at
marketplace. In order to create something great for customer, the firm can apply new technology
and produce innovative products and services. For example- firm can produce phones which
gives strong networking connectivity at all areas. It can also upgrade its mobile software, i.e.
Oreo 8.1, Pie 9.1 etc. which raise speed of phone processor.
Approaches to Research and Development:
Research and development is acquired by Venus Mobiles with a motive to maximise
profitability in a certain time period. The R & D department of the company works follow five
main principles, such as – smart growth, inclusiveness, immediacy, relevancy and integration; by
using them Venus Mobiles can easily obtain high market growth and success. Several research
approaches incorporate a firm to get higher position among rivals. For instance – Venus Mobiles
is using descriptive research approach which implies to make brief study of market areas,
customers needs, competitors and company's performance.
SWOT analysis
It is one of the important aspect for the business organization to determine their actual
performance at market place. Mainly, it help company to evaluate the internal strength and
weakness with its opportunities and threats as well. This will contribute in measuring the actual
performance of the company at market place (McCabe and et. al., 2012). In this context, Venus
Mobile also conduct SWOT analysis which understood by following points:
Strengths: Venus Mobile deliver better services to its customers, it consider as a strength
of the company. Along with this company also has brand name in various countries such as UK,
US and many more. By this company can easily enhance level of the profitability. In addition of
this, firm also includes various distribution channels such as wholesales, retailers, distributors
and internet as well through which Venus Mobile sell their goods and services to retail stores.
Along with this, competition in mobile market is also easily handle by the company in which
firm can easily established their positive brand image. For attaining success, company also take
help from IT specialists to develop their software and another technologies. This will contribute
in making positive brand image at market place.
Weaknesses: One of the biggest weaknesses of Venus Mobile is that employees are not
able to interact with their manager and superiors. As communication gap negatively affect the
overall performance of the firm because employees are not effectively perform their task. On the
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other side, manager also fail in guiding their workers at the time of perform task and plan as
well. This will reduce the productivity level of the workers at workplace. Tools and technologies
are also outdated as it increase the cost of the company (Neri and Supuran, 2011). Inappropriate
training is also a main weaknesses as it negatively affect the overall performance of the
company. All these are the main reason behind declining sales revenue of the company.
Opportunities: Expanding business activities in new areas is main opportunity for Venus
Mobile to increase sales and profitability level at market place. In addition of this, collaborate
with another companies also may beneficial for Venus Mobile to make better relation in market
place. As it help in increasing the chances of attaining higher success as compare to another
companies. By providing training and development programmes to their new and potential
workers with the purpose of enhancing their skills and knowledge. Company also implement
new and innovative technologies within the business activities is also contribute in delivering
quality products and services to its final customers. All these will support Venus Mobile to
established competitive position at marketplace.
Threats: Political risk is consider as a biggest threats for Venus Mobile. As policies,
regulations and rules are change as per continuous basis. In 2008, economic recession in UK
highly affected sales and profitability of companies because at this time customers were not able
to spend high amount on purchasing products and services. It directly affect on overall
performance of the company in negative manner. On the other side, high competition in market
is also a big threat for Venus Mobile as rivals are offer quality substitute products to customers.
Strategic options evaluation
At present, Venus Mobile is facing low market growth rate and the reason behind this
management has failed to seize opportunities which can be obtain by applying new and
innovative technologies. Due to changing course of time, customers also want latest technologies
and their desires are relies upon region and values. According to the case study, in USA demand
of technology is more than 16% in comparison with other countries. Thus, region plays a wide
role in increasing sales revenues. In order to gain competitive edge, Venus Mobile developing
different strategies and policies which are enable it to perform effectively at marketplace. The
firm has acquire strategy of competitive position as its a process through which firm will
differentiate its products and services (Santra and Kamat, 2012).
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To do this, the firm has formulated an effective action plan thus company can make
competitive analysis to recognise strength, weaknesses, opportunities and threats in future
market. For instance – to obtain high competitive position, Venus Mobile is producing mobile
phones carrying out latest technology, i.e. use of 3D effects in mobile screen and strong network
connection which may ease individuals life. Along with this, by research and development
activities managements will easily recognise needs and wants of customers; it enables firm to
get view and feedbacks of target audiences and in turn making effective services as per the needs
and wants of customers.
With the assistance of construction Plant Venus Mobile will produce an ample range of
mobile phones. By considering case study, the firm is having 15 manufacturing plants in USA; it
shows Venus Mobile has capture wide range of market share. In respect of Outsourcing the
company is failing to raise its capacity due to some external affects that may influence
purchasing decisions of customers. As per the scenario, which is provided it is evaluated that in
its initial years the business organisation were performed well but since past two decades sales
and proficiency of Venus Mobile goes down which adversely affect brand image of the
company. Further to raise its performance level, management can set out key performance
indicators and also can help from various financial institutes thus to expand business in other
areas (Scholes, 2015). Apart from this, outsourcing will also gradually increases global total
revenues and profit ratio. As compared with financial data of past years, it is overviewed that
operating of the company was -360.6 and after applying various strategies it has reduced. Along
with this for evaluating strategic option, Venus mobile needs to include research and
development option to analysis their actual performance at market place.
Research and development is one of the effective strategy which help in determining the
overall success. It also define how an organization prepare a plan to produce new and innovative
products and services. Mainly, it is an effective process to improve existing products with the
purpose of attaining positive response of the customers towards its services. In this context,
Venus mobile also use R&D strategy for improving their products line in which they take people
taste and preferences towards its products. With the help of this, company improve the chances
of making their customers base strong and also sustain them at market place for longer period of
time. By implementing this, company can obtain new knowledge to create new and innovative
technologies to improve their performance level by offering quality services. For this, Venus
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mobile undertake an effective research for identifying the market trends and customers response
towards its products through which they modify their products and its quality as well. This will
enhance the productivity level of the company at market place and at the same time also capture
customers attention towards its products.
Strategic recommendation
After evaluation of these strategic options, it is advised to Venus Mobile that
management should acquire strategies and plan as per the nature of market competition and
customers' needs. While applying new strategy, firm should analyse market areas in which it will
be performed and help the brand to stay ahead in market competition. Therefore, one of the
effective strategy that can be applied by the company is to sell qualitative products and services
at minimal prices in order to gain competitive edge within target market; in this sense firm
should focuses on boost up capability of their products and services. Management can also
eradicate prices of its products and raise quality standards; it turns out attaining and retaining
large group of customers for long run.
Along with this, it is also fundamental for Venus Mobile to provide training and
development assistance to staff members as they use their skills and knowledge level while
producing products; it lead firms will meet their quality standards in more effective and
innovative manner. To survive for long run and grab high competitive position, management
should develop a marketing plan that entails how to promote upcoming offerings of the company
whereas operation plan dictate how firm will operate its all activities and functions (Vestbo,
Hurd and et. al., 2013).
Venus mobile can also acquire latest technology in manufacturing process and mobile
software, i.e. 3D effects on mobile screens, putting latest software, voicemail, conference bridges
and cloud services. Company can also provide information transferring services like – emails,
social media, text messages at low prices. Therefore, to accomplish its business strategy Venus
Mobile will followed an approach, i.e. greatly functioning in market by adhering lower pricing of
products, having deepen understanding of global market as well as needs of mobile phone users.
On the other hand, management should also conduct a market research thus to attain and retain
customers for long run. It supports management to know more and more about external rivals
and then implicate production system accordingly. Increasing plant capacity by making optimal
utilisation of available resources, the make predictions regarding long term planning.
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Apart from this, Venus mobile should use research and development to make their
products innovative. By implementing R&D activities, company determine modification within
the existing products by understanding customers needs and wants towards the Venus mobile
products. This will help company at the time of producing its products. Along with this,
company needs to make effective plans and procedures to accomplished their strategic goals
such as connecting with customers by providing better services as per their needs and wants.
Mainly, research and development is important aspect for attaining future growth and also
maintain their image at market place by offering new and innovative products to its target
customers. This will increase the chances of attaining growth in market place by capturing larger
market share form its rivals.
PART 2
Stakeholder Summary
Stakeholders of a business organisation consists with the people who played a vital role
in decision making process of management and put a vast impact working activities or
operations. Although, stakeholders can be a person and a group of people who may have an
interest in project growth and success. As Starbucks has developed a strategy to obtain largest
competitive position over the world thus it needs to consider interest of all stakeholders; if it is
not done then these people may retrieve their interest to other company and this turn out huge
losses to company. Following is defined various stakeholders of the company with their impact
upon Starbucks, such as -
 Customers – These are the people who have power to reduce or build up market image of
a company. In order to keep customers satisfied it is essential for Starbucks to recognise
customers' needs and produce products accordingly thus to obtain competitive position at
marketplace. The firm is having wide range of client base as they have ability to reduce
prices of its offerings which may influence sales and profitability of the company.
 Employees – These people are liable for accomplishing working activities and tasks of
the firm. Thus, if employees needs will be not fulfilled in effective manner thus they
cannot attain and retain at workplace for long run. Staff members have power to affect
production process of the company and affect business decisions as well (Waddington,
2014).
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 Shareholders – They have an interest in company's profits and sales revenues.
Shareholders have power to take actions when an organisation goes wrong and
management is not able to deal with them effectively. They also right to know about
financial accountability of the company and may affect decision making process as well.
Along with this, stakeholder analysis matrix is also important which influence he
stakeholder with the purpose of improving overall performance of the Starbucks. It includes
categories such as:
(Source: Mendelow's matrix. 2012)
 Box A: These type of stakeholders have high degree of influence as they are consider as
important for business organization to attain positive support.
 Box B: These type of stakeholders are relate with high performance of organizational
success but they are not so much influence.
 Box C: They having a high influence as they directly affect the entire process of the
business organization. But on the other side, the overall goals are not relate with the
interests of stakeholders.
 Box D: These type of stakeholders are low priority and at the same time does not require
much monitoring of the company.
Furthermore, it is useful for Starbucks because it directly affect the overall performance
of the company. With the help of this, company can analyse the stakeholders needs in order to
provide them better results. This will contribute in accomplishing the positive brand image of the
firm at market place.
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Illustration 1: Mendelow's matrix

CONCLUSION
From the above mentioned report, it get overviewed that strategy formulation is one of
the critical task for business association, while doing this management should consider certain
major aspects that enables it to grab better future opportunities. The report has stated internal and
external factors which must consider while formulating business strategies; it can be analysed
through SWOT and PESTLE analysis. Customers, employees etc. are the main stakeholder of
companies by having vast impact on their decision making process.
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