Strategic Analysis of WRSX: Market Opportunities and Growth Strategies

This report provides a comprehensive business strategy analysis of WRSX, a global advertising and marketing communications organization. It begins with an executive summary highlighting the company's challenges and the need for strategic realignment. The report then delves into an internal assessment using the McKinsey 7-S model, evaluating the company's strategy, staff, skills, structure, systems, shared values, and style. An external environment analysis is conducted using the PESTEL framework, focusing on market opportunities in China. The report explores the managerial evaluation of the two growth opportunities using the Ansoff Matrix to determine the best approach for market penetration in China. The report also addresses the need for digital marketing and customer satisfaction. The report concludes with strategic recommendations to enhance WRSX's competitive advantage in the global advertising market.

Running head: BUSINESS STRATEGY 1
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Executive Summary
The WRSX is an international marketing and communication organization which was created 15
years ago after the result of three merging companies. It is one of the leading companies in
selling goods and services globally and the headquarter for global advertising company is in
London, Singapore, New York, and Paris. Although the company is well established, it is
confronted with many strategic difficulties which hinder its financial development and stability.
Currently, the organization has not gained full control of all business environment opportunities.
The operation of WRSX group and the situation currently require the focus of the board of
management to relook various strategic plans that will realign the goals, mission, and vision of
the company. Appropriate strategies are vital in examining the company to eliminate all possible
barriers hindering the competitive advantages of the organization. Thus, the main objective of
this piece is to evaluate internal and external strategic issues of WRSX and examine it
managerial both in digital media advertising and market opportunities in China. Lastly, this
report will provide a managerial insight after analyzing all the strategic plans.
Strategic assessment Internal environment of WRSX
The internal business environment is formed by different aspects illustrated by the McKinsey
model which was established by McKinsey company advisors in 1980s. The McKinsey model
will be vital in evaluating the internal environment of WRSX global advertising organization.
The model is composed of 7s namely; Strategy, staff, skills, structure, systems, shared values and
style. The 7s are linked to each other and the change of one area might impact the other area
(McKinsey &Company 2015).
Strategy

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This stage will analyze the strategic position of WRSX organization. The organization
recognizes itself as one of the leading advertising companies within the advertisement market.
The high position has been facilitated by the efforts made in recruiting and keeping innovative
and good in creativity members of staff. The global advertising company is also able to ensure
all its operations are moving smoothly and this has enhanced reputation, power in buying and
growing a new business (Learning Dynamics, 2015). However, the company should focus on
various elements of weakness in leadership, lacking talented individuals within the team and the
issue of budget and cost with respect to financial status.
The staff
The key members of the board are the executive corporation managers and three out of the
possible eight members coming from the non-executive. WRSX's board of members
participation is very important in directing the influence of gross and revenues and also holds a
high monitoring power and priorities in facilitating various schemes of the company. The board
of directors is required to examine the decisions made by the management to realign them with
the appropriate application of relevant strategies. These strategies overwhelm the creativity and
innovations which supports the factors within the advertising industry necessary in helping the
WRSX to stand out in a competitive market.
Skills

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The WRSX is experiencing the gap in the market due to lack of high developing skills impacted
by the technological and organizational transformations.
Structure of the WRSX
Considering the activities and commitment of resources in WRSX, the company is able to stand
among the largest scale marketing and advertising service organizations. The business
organization has been able to run its activities through different business departments. Some of
these business units include public relation, sports marketing, film production, and editing,
digital media, and sports marketing. However, the company is making various changes to ensure
it is not left behind in the competitive market. For instance, the information must always be
disseminated to the production group to ensure they establish a proper advertisement that will
target its customers. The team must be trained to enhance it's creativity hence adding value and
increasing the effectiveness of their services and products (Mitcham, 2013).
Systems
In WRSX, identity and branding are the first steps in establishing a scheme to meet the objective
of the customers. The management account is tasked to comprehend with customer's needs.
Consumer marketing unit is in charge of making sure the existent of advertisements either out-
source or in-house (Leonidou et al 2017). The media service unit is given the role of purchasing
and researching on the appropriate media with respect to consumer's needs. There are also key
specializers who cover the various niche of customers like the production of films, digital and
athletic sales (Barnard, 2018).

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Shared values
The shared values of every business organization are constituted of a firm substructure based on
the central office (Wheelen el at 2017). The WRSX company will always make a market study to
help them penetrate into customer development. It’s management team add values to the
concerns of the consumers through improving the nature of the advertisement thus, creating a
good relationship to general customers. The management is always behind in building resonance
in the organization with other workers and contrary to levitative consideration that would impact
the WRSX and the consumers. The business organization development takes part in the organic
development of the company like taking charge of every allegation to maintain its reputation
Style
All the agencies operate individually with no close supervision from the WRSX office. In this
case, the company needs restructuring to allow the managers to work on their characters and
influence the attributes of other workers. This can be achieved by creating an added value to
them by growing their knowledge and communications in exchanging the information through
training.
Strategic assessment External environment of WRSX
PESTEL is critical in understanding the environments of a business organization and threats or
opportunities in the organization. Using the PESTEL model will become easy to examine various
aspects in WRSX’s macro surrounding. Five forces technique will be useful in establishing the
power of buyers, suppliers’ power, entry barriers and industry substituted competition goods.
One of the Key objectives of WRSX is having a share in regions of Asia since the other
competing companies have already established a business environment in the region (Appendix

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1). The other upcoming biggest opportunity is one of the largest business industry in China. In
this case the group requires to formulate strategies to help in expanding its market internationally
(Watson, 2015). Establishing a new business in China is one of the opportunities that have been
established by the global advertising business enterprise. The China market is rapidly growing
although the marketing and advertising business is still at the developmental stages. Therefore,
WRSX being one of the foreign companies is essential in the market of China (Aithal, 2016).
The next reason is the fact that as an international company, WRSX has already secured key
global consumers trading in China. Establishing their operations in China will help it to protect
and retain its customers. Thus, the global advertising organization will make use of option C
considering the presence of many competitors in China. This is because the company has not
familiarized with the market and culture of a strategic alliance, hence, it will be in an equal
position with its rivals with regards to China's culture, networks, and market. The WRSX
management has good market tracking records thus they can be trusted by the government of
China (Carnelley, 2015).
According to Learning Dynamics (2011), marketing business organizations must make use of
digital technology in their operations. This because a big number of clients have moved into
digital marketing and advertising while others are IT-savvy to significantly impact their means of
marketing. According to various research conducted recently, it's clear that a bigger number of
adverts shall come from the digital channels hence decreasing the effectiveness of traditional
methods of marketing and advertising. Thus, considering this digital migration potential factor,
WRSX must make efforts of moving to digital marketing and advertising.
The next things which WRSX should consider is satisfying the need of the clients. For example,
customer churns in very serious in New York when compared with other offices. This act leads

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to an increase in costs since the new customers need to be sought the same way as well. Hence,
the organiuzation should rely more on competence services for the purpose of inviting new and
retaining the current clients. This will help in solving the issues of clients and earn the company
a good reputation in customer's satisfaction. The company can achieve good customer relation by
embracing a well-coordinated and cognitive communication in order to meet the dynamic need
of the consumers (Learning Dynamics, 2015). Therefore, WRSX needs to consider the demands
of its clients when developing their communication channels to remain a competitor within the
advertising market. Many customers will require rounded products and services because many of
them are targeting the global market. That means the enterprise needs to carefully monitor its
communication and cognitive exchange of information to arrive at these requirements (Hawi,
Alkhodary & Hashem, 2015). This is with respect to the fact that the recent research indicated
that Qorvic is among the largest international drinks organization and has incorporated it in
search of a proper way of recognizing the data between the offices and companies. Therefore, the
WRSX should establish another way of sharing the knowledge and IT systems to coordinate the
information in all its offices (Waldron, 2015).
The main reason for altering the culture is to standardize the codification when explaining the
appropriate systems, constructions, and procedures among the bureaus. This will play a key role
in increasing the productiveness and efficiency to the whole company. If the WRSX is able to
achieve this, then it will also be able to improve the gross in New York (Liesse, 2006).
Managerial Evaluation of the Two Growth Opportunities

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The market opportunity in China
The approach of market expansion or product grid is as well-known as the Ansoff Matrix and the
technique that will be used in analyzing the plans of WRSX for strategic growth (Dawes, 2018).
The Ansoff matrix is composed of four strategies that will be used by the business organization
like WRSX to facilitate their growth. These strategies are; market development, market
penetration, product development and diversification (Tourre, 2015). Market penetration will be
selected in the case of WRSX.
Specific strategy within the Ansoff’s Matrix can be used by WRSX to exploit this market
opportunity in China
Market penetration
A successful company should consider attracting more potential customers to impact its price
share significantly (Datsyk et al 2016). Recently, there has been a high growth of the new
organization in the same industry in China which should be a big concern to WRSX. If the
WRSX will ignore the initiatives taken by the companies then it will be risking its overall values
of its shareholders (Bravura, 2015). Today, many shareholders are preferring working with an
organization that is offering reduced carbon footprint hence the WRSX should take the issue
seriously to avoid losing its clients. Other than attracting the shareholders, the company should
consider employees and clients’ retention as well. When the WRSX to deal with the factors of
new company's initiatives, then it will have been successfully secured its share in the marketing
environment.

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Strategy and action option fits the current state of the firm, WRSX, and its external
environment
Strategic action Option C is appropriate with this strategy since WRSX will be required to
establish a team in line of filling the gap in this area. The new team should be constituted by both
external and internal sustainable workforce thus boosting the effectiveness of the WRSX. Every
office will be required in customizing own strategy to fit its local area but they shall be giving
reports to the local WRSX board.
The company is in the process of accomplishing the alliance of corporate scheme which will give
a very powerful trade brand. Then the company must ensure the trade name is preferred by when
giving its customers national and international marketing, selling and advertisement services.
Through joint and acquisition ventures, the company has gained additional size to supply selling
and marketing services (Andersson, Forsgren & Holm, 2015). This was possible because WRSX
has a lot of resources to help it make more achievements. Firstly, the company has a team which
well equipped with good innovation skills to create and supply goods and services. Currently,
WRSX has greatly achieved in marketing research to understand its methods and market in the
best way (Madhavaram, Hunt & Bicen., 2017). For example, the setting of the new market in
China. In the last few years, the Chinese market has shown significant development. However,
the new market in China has not grown thus WRSX is required to input more resources in the
Chinese market or create a local agent bod (McMahon, Gay & Carlier 2016).

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A brief comment on how the strategy/action option meets the SAFE criteria for evaluating
strategies from a strategy tripod perspective.
In order to achieve appropriate market penetration, there must be moving from one country to the
other hence significant cost will be needed (Effing & Spil., 2016). The strategic option will assist
the WRSX in making a higher profile new bureau picture thus creating an enabling environment
to better its market. WRSX will as well broaden its complexity in providing services. The
complexity is a good technique for WRSX to act in China the nation of sustainability hence the
reactions of the competitors will not exceed copying the best practices. Thus, the option meets
the best criteria because some of the feedback mechanisms that can be considered by the rivals
are looking at the market places of WRSX. For example, Omnicom and WPP are one of the
rivals of WRSX. The companies make research by looking at the profile of the WRSX to see if
it's improving as a more green-oriented bureau.
Opportunities in Digital Media Advertising
Specific strategy within Porter’s 3 generic strategies used by WRSX to exploit this
opportunity in digital advertising
Michael Porter has explained a technique that has three types of strategies namely; focus,
differentiation and the cost leadership (Bertozzi, Ali & Gul., 2017). The best strategy for the
WRSX is the focus in enabling the company going in-depth in developing the culture of the
advertising business in. With respect to an increase in the number of dollars for the clients using
digital in advertising their business, it's a good decision for WRSX to focus its investment in
digital marketing to acquire more competitive advantages. This is because a big number of

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customers are well versed with digital technology and considering digital marketing as the best
way of advancing their markets.
Strategy and action option fits the current state of the firm, WRSX, and its external
environment
A number of authors Roberts & Koliska (2017) have as well suggested that the biggest
development in marketing will be generated from digital channels. Thus, seeing the potential of
integration of digital in marketing, WRSX is required to focus on digital advertising as one of the
best strategic units. Strategic action option B is appropriate for focus strategy since the WRSX
require a group of Foothold to run digital advertising and marketing. Digital advertising will help
the company to cut-off the risks of investing in high. At the moment WRSX company has a
record of poor management of their financial resources thus allowing every office to run digital
advertising market will facilitate greatly in reducing the risk of wasting resources (Wicker et al
2015).
A brief comment on how the strategy/action option meets the SAFE criteria for evaluating
strategies from a strategy tripod perspective
With small efforts in digital advertising, the WRSX will be able to acquire a significantly higher
position in the sector of advertising. Thus, the focus strategy on digital advertising will
tremendously bolster the industrial position of WRSX and make it an all-round service provider
in the marketing and advertising solutions. This one of the competitive advantage since many
opponents like the WPP are focusing on the same idea and are making a lot of financial
advantages (Learning Dynamics, 2015). As an international company, WRSX has no barriers in
expanding its operation in other areas like Europe. The company has shown its capability by the
fact that its in a position of establishing its market in Asian industries and able to add new clients

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thus increasing its financial benefits (Nichifor, 2014). The low operating costs are one of the
main advantages which has helped WRSX to accumulate more wealth and resources can be used
in opening the market in India and China. The focus of WRSX to develop digital advertising will
be vital in helping the company to cope with the current circumstance that the advertising
business is faced with a high rate of competition. A high significant number of agencies are
within the advertising industry. Their range of the scale is very wide and covers big global
agencies and other small local agencies. Many business opportunities can be found within digital
advertising and the whole economy in the world is raising the background, WRSX should feel
comfortable to invest part of its budget on digital advertising (Barnard, 2018). Generally, digital
advertising or marketing are trending to prosperously and maturely. Nevertheless, a number of
aspects could be impacting the advertising market. One of these factors is developing of the new
channels hence calling for companies like WRSX to stay awake and flexible towards the changes
happening within the advertising industry.
How the strategy/action option meets the SAFE criteria for evaluating strategies from a
strategy tripod perspective.
Advertisers are regarded as a key individual within the advertisement industry. WRSX
organization should focus on digital media elements. This is because the media is the key trend
in the future and will mostly be based on mobile phones and the internet. The decision will be
good in attracting the new consumers mostly the youths (Huang et al 2016). Online media is
developing at a high rate in the past few years thus it can obtain more benefits to WRSX. One of
the key benefits is the low cost when compared to advertisements using traditional channels.
Thus, the strategy will allow the WRSX company to reach a high of audiences. This the reason
why many advertisement companies want to spend a higher percentage of their budgets on