Strategic Analysis Report: Evaluating X ORGANIZATION's Business

This report provides a comprehensive strategic analysis of X ORGANIZATION, a leading automobile manufacturer. It delves into the company's business strategies, including strategic alliances, product development, product differentiation, and cost leadership. The report utilizes Porter's Five Forces analysis to assess the competitive landscape and examines the bargaining power of buyers and suppliers, threat of substitution and new entrants, and competitive rivalry. A SWOT analysis is conducted to identify the company's strengths, weaknesses, opportunities, and threats, followed by recommendations for improvement. Furthermore, the report proposes a research study investigating the relationship between Corporate Social Responsibility (CSR) and sales performance, including a literature review, methodology, and expected outcomes. A critical reflection on the models and tools used is also included, providing a holistic view of X ORGANIZATION's strategic position and future prospects.

Running Head: MANAGEMENT CONSULTING
MANAGEMENT CONSULTING
Name of the Student:
Name of University:
Author Note:

1MANAGEMENT CONSULTING
Table of Contents
1.0 Introduction................................................................................................................................4
2.0 Company analysis......................................................................................................................5
2.1 Strategic alliances..................................................................................................................5
2.2 Product development.............................................................................................................6
2.3 Product differentiation...........................................................................................................6
2.4 Cost leadership.......................................................................................................................6
2.5 Porter five forces analysis......................................................................................................7
2.5.1 Bargaining power of the buyers......................................................................................7
2.5.2 Bargaining power of the suppliers..................................................................................8
2.5.3 Threat of substitution......................................................................................................8
2.5.4 Threat of new entrants....................................................................................................9
2.5.5 Competitive rivalry.......................................................................................................10
3.0 SWOT analysis........................................................................................................................10
3.1 Strengths..............................................................................................................................10
3.2 Weaknesses..........................................................................................................................11
3.3 Opportunities.......................................................................................................................12
3.4 Threats.................................................................................................................................12
3.5 Recommendations....................................................................................................................13
4.0 Proposal...................................................................................................................................15
4.1 Introduction..........................................................................................................................15
4.1.1 Overview.......................................................................................................................15
4.1.2 Problem Statement........................................................................................................15
4.1.3 Research rationale.........................................................................................................16
4.1.4 Research aim.................................................................................................................16
4.1.5 Research objectives......................................................................................................16
4.1.6 Research questions........................................................................................................16
4.1.7 Research hypothesis......................................................................................................17
4.1.8 Research structure.........................................................................................................17
4.2 Literature review..................................................................................................................17
4.2.1 Definition of CSR.........................................................................................................17
4.2.2 Definition of Sales performance...................................................................................18
4.2.3 Relationship between CSR and sales performance......................................................19
4.3 Methodology............................................................................................................................20

2MANAGEMENT CONSULTING
4.4 Expected outcome....................................................................................................................21
4.5 Timeframe................................................................................................................................22
5.0 Reflection.................................................................................................................................23
5.0 Conclusion...............................................................................................................................24
6.0 Reference.................................................................................................................................26
7.0 Appendix..................................................................................................................................31

3MANAGEMENT CONSULTING
1.0 Introduction
In the current competitive business scenario, there are number of factors that should be
considered in order to gain success in the market. These factors might pose challenges as well as
provide opportunities for the business entities. Hence, the more effectively these factors can be
dealt with, the more will be the probability of the organizational success. Moreover, with the
emergence of the globalization, the determining factors are also getting diverse for the
contemporary business organizations (Charles Jr 2017). In this report, the critical strategic
analysis of X ORGANIZATION will be done due to the reason that this is one of the leading
automobile manufacturers in the world and is facing a few issues. It is identified that these issues
ranges from ethical to marketing factors. Moreover, X ORGANIZATION should review their
current strategic position in the market because of the fact that it will help to identify the
weaknesses and strengths of them compared to their competitors.
In the current business scenario, determination of the strategic position is important for X
ORGANIZATION as well as for the other contemporary business entities because future
strategies should be based on the factors identified from the strategic positioning process.
Moreover, apart from the strategic positioning analysis, internal analysis is also important due to
the reason that internal effectiveness will determine the competitiveness of the firm against their
market forces. In this report, the internal analysis will also be done. It will help to analyze the
current competitiveness of X ORGANIZATION in doing business in the global market. Based
on the identified factors, a few recommended steps will be discussed and proposal will be made.
Critical reflection will also be done about the models and tools used in this report.

4MANAGEMENT CONSULTING
2.0 Company analysis
As discussed in the previous section, X ORGANIZATION is a leading automobile brand
in the world with having their operations across the world. At one point of time, X
ORGANIZATION was the top most car brand in the world in terms of the sales volume and but
in the recent time, they got trailed against their competitors due to different situations and issues.
However, on the other hand, their market presence also got increased with more regions being
covered. It is also identified that there are differences between the past and current business
strategies of X ORGANIZATION. The following sections with discuss about the different
business level strategies being followed by X ORGANIZATION.
2.1 Strategic alliances
It is identified that X ORGANIZATION is actively participated in number of strategic
alliances with other firms from different sectors. The major strategic alliances of them are with
the automobile components suppliers due to the reason that X ORGANIZATION is the end
product manufacturer and they source the raw materials from the external suppliers. Extensive
strategic alliances with multiple suppliers are helping X ORGANIZATION in gaining the price
competitiveness in their supply chain process (CARTWRIGHT and Cooper 2016). They are
having their business across the world and having suppliers from different regions is helping
them to source from the local entities. On the other hand, it is also identified that X
ORGANIZATION is having their strategic alliance with some of the players in the same sector.
This is due to the reason that they are operating in some countries in the mode of joint venture
with some other car brands (Brouthers, Nakos and Dimitratos 2015). Thus, it can be concluded
that initiation of the strategic alliances is helping them in gaining the expertise and specialized
materials for their production process.

5MANAGEMENT CONSULTING
2.2 Product development
Product development strategy is another business level strategy of X ORGANIZATION
that is being initiated in the later stage. This is due to the reason that at the initial stage of their
operation, X ORGANIZATION was having narrow product line with having fewer vehicle
models. However, with time, the product portfolio of X ORGANIZATION got increased with
more vehicles being introduced in the market. Moreover, they are having different and market
adaptable products in different markets (Drnevich and Croson 2013). For example, they are
having fuel efficient and urban cars for the developing markets and performance cars are offered
in the developed markets. This strategy is helping X ORGANIZATION in gaining the maximum
market penetration in different regions.
2.3 Product differentiation
X ORGANIZATION is also following the product differentiation strategy in their
business operation. This is due to the reason that there are number of vehicles models being
offered in the market and each of these cars is having similar sets of core benefits and utilities.
Thus, in this case, the differentiated approach of X ORGANIZATION helped them in offering
distinctive value propositions for their customers. In addition, the intellectual properties of X
ORGANIZATION also helped in creating the distinctiveness of their car models in the market.
2.4 Cost leadership
It is also identified that X ORGANIZATION is following cost leadership strategy as
well. This is due to the reason that with the help of the cost leadership strategy, the price of the
car models of X ORGANIZATION is kept competitive in the market. In addition, with the help
of these business level strategies, X ORGANIZATION is also adding competitive edge over
their competitors (Saebi and Foss 2015). This is also one of the key behind the leadership of X

6MANAGEMENT CONSULTING
ORGANIZATION across the world in terms of sales. They are catering to large number of
customers with the help of the cost leadership strategy and price competitiveness.
2.5 Porter five forces analysis
Porter of five forces analysis will be used in determining the market competitiveness of
the industry where X ORGANIZATION is currently operating. Each of the forces of the porter
five forces analysis will be beneficial for the determination of the competitiveness of X
ORGANIZATION in their industry. The following sections will discuss about each of these
forces from the perspective of X ORGANIZATION.
2.5.1 Bargaining power of the buyers
Bargaining power of the buyers is high in the global automobile market due to the
presence of the number of alternatives in the market. Thus, customers are having the options of
choosing from wide variety of choices. This is the due to the reason that there are number of car
companies operating in the market. In addition, various car models are being offered across
different price levels. This denotes the fact that X ORGANIZATION is facing the high level of
bargaining power from the side of the buyers (Dobbs 2014). In this case, the major challenge for
X ORGANIZATION is to offer the distinctive value propositions for the customers. The added
value propositions should be based on the auxiliary product level due to the fact that core product
level is the mode of transportation. It is also recommended that X ORGANIZATION should
further initiate the market development process because there are still number of regions left
where the demand for cars is increasing and still untapped by X ORGANIZATION. Entering in
these markets will help X ORGANIZATION in catering to larger section of the customers.
Hence, the bargaining power of the buyers can get mitigated.

7MANAGEMENT CONSULTING
2.5.2 Bargaining power of the suppliers
Bargaining power of the suppliers is moderate for X ORGANIZATION due to the reason
that there are number of suppliers available in the market for the automobile manufacturers. It
should also be noted that X ORGANIZATION is having alliances with number of suppliers,
which is further helping them in preventing the over dependency on a single supplier. Thus, one
supplier is not having the upper hand in bargaining with X ORGANIZATION. Furthermore the
suppliers are not having the forward integration similar to the X ORGANIZATION, which is
also restricting them in posing the direct competition. The external suppliers are depended on the
original equipment manufacturers for their business (Mathooko and Ogutu 2015). However, on
other hand, it should also be noted that suppliers can also pose challenge for X
ORGANIZATION in terms of creating cartel. This is due to the reason that if all the available
suppliers form a cartel, then their collective pricing strategy will affect the business of X
ORGANIZATION. This is due to the fact that if the price of the raw materials gets increased,
then it will increase the cost of operation for X ORGANIZATION, which will ultimately
increase the price of the final products.
2.5.3 Threat of substitution
In the case of X ORGANIZATION, threat of substitution is more due to the presence of
the number of similar sets of organizations. This is due to the fact that each of the car brands
operating in the market is offering similar vehicle models to the customers. For instance,
customers looking out for small and urban cars are having similar vehicles in the market and in
the same price level. The more will be the threat of substitution for X ORGANIZATION, the
more will be the challenges for them in managing their market share. In this case also, product
differentiation will be the most effective mode of policies that should be followed by X

8MANAGEMENT CONSULTING
ORGANIZATION. Initiation of the product differentiation strategy will help them to counter the
threat of substitution in the market and offer unique value propositions for the customers. It can
also be concluded that substitution will be beneficial for X ORGANIZATION in initiating the
innovative process (Porter and Heppelmann 2014). This is due to the fact that innovation will be
the determining factor in staying ahead of the substitution but it is also important for X
ORGANIZATION to ensure that their innovation is way ahead of their competition. Thus have
to incur huge cost for developing new technologies and innovation. The market growth rate is
thus saturated for X ORGANIZATION due to the presence of high level of substitution.
2.5.4 Threat of new entrants
In terms of threat of new entrants, X ORGANIZATION is facing low intensity because
of the fact that huge investment is required in entering in the automobile market. X
ORGANIZATION is already established in the market and they have highly penetrated across
the world. This is helping them in gaining the economies of scale and offering the products in
more competitive prices even after ensuring the profit margin. In the case of the new entrants,
they will find it difficult in gaining the economies of scale considering the limited operation in
the market. In addition, the new entrants should also incur huge cost for capital investment in
developing the infrastructure and market awareness, which will further reduce the opportunity
for them (Van Alstyne, Parker and Choudary 2016). The existing automobile brands already
facing the challenges of saturated market conditions and this will be more in the case of new
entrants. They will not be able to manage their viability in the highly competitive market with
their limited opportunity and operation in the market. In terms of the porter five forces analysis,
this is the only favorable force being identified for X ORGANIZATION. Hence, it can be

9MANAGEMENT CONSULTING
concluded that they should gain more competitive advantages in the market in order to ensure
more barriers for the new entrants.
2.5.5 Competitive rivalry
It is identified that competition in the global automobile sector is high and intense with
the presence of number of players in the same sector. Moreover, considering the saturated market
position, this intensity is more with each of the players in the industry is trying to gain the market
leadership status. There are different strategies and steps being taken by the players in this sector
in order to stay ahead in the competition. This includes aggressive promotional approaches and
seasonal offers. In the case of X ORGANIZATION, they are following holistic approach of
prompting their products in the market and they are also following different marketing
techniques in different markets. This is due to the fact that different markets are having different
sets of competitiveness. In this case also, there are number of shortcomings identified for X
ORGANIZATION. For instance, in order to stay ahead in the competition and achieving the
short term goal, X ORGANIZATION is accused for cheating in emission from their cars a few
years back. This was done in order to quickly acquire the global markets without investing much
in the new product development process. Thus, the accusation caused lawsuits and legal steps
against them and hampered their goodwill in the market.
3.0 SWOT analysis
3.1 Strengths
X Organisation is a very well structured umbrella brand and it is one of the significant
strengths of this company. The company is widely known for this and most of the people are
aware that it produces high engineered super cars and passenger cars along with buses. With the

10MANAGEMENT CONSULTING
same, there are huge number of products in the company portfolio of X Organisation. The
structure of the company is also efficient and smooth, with every strategic business unit that are
responsible for its own success and branding. The company is also engaged with many local
automakers of different nations including the developing nations like China and India. There is a
presence of synergy in between the automobile brands. It is also to mention that this company
follows diversification strategy, which is one of the greatest strength of X organisation as having
diversified portfolio helps in giving the investors a huge number of benefits including allowing
them to make partial investments in the asset classes for which they would not feel comfortable
for committing cent percent of all their savings (Graham 2016). With the same, this strategy
helps X Organisation in increasing the usage of the potentially underused resources. Lastly, the
cars and buses of this company are widely known for having high technology inbuilt.
3.2 Weaknesses
The emission scandal has affected the brand image to a significant extent. The trust of the
people was broken, particularly due to the decision of installing the wrong software.
Anotherissue for the company is that of the competition eating away margins. There are several
competitor brand that are penetrating in the contemporary market. This is making the price
competition very tremendous. Due to this reason, the competition is also proving itself to be
highly advantageous for the customers but is negatively affecting the brand in adverse way.
Furthermore, the other weakness of organisation X is that of the fact that it has poor CSR
(Corporate Social Responsibility) and this is negatively influencing the brand image and
reputation of the company in today’s scenario with increase consciousness of climate change,
global warming etc. (Petrenko et al. 2016). Hence, Organisation X needs to improve its CSR
strategies in order to improve its customers’ trust and its reputation.

11MANAGEMENT CONSULTING
3.3 Opportunities
One of the main opportunities for Volkswagen is that the purchasing power for the
automobiles is rapidly increasing every year. The automobile that were considered to be highly
expensive for the customers just a few years back are now considered to be affordable and they
see them as a necessity because of different changes and schemes that are launched by the
automobile brands and the loan and finance options widely available. The second opportunities
for the Organisation X is that of worldwide expansion. It is to note that the demand is gradually
increasing with the rise in the GDP and in the need for products (Wojciechowski and Hadas
2018). There are several nations that are now been classified as emerging ones. Hence, the more
Organisation X tries for tapping these emerging nations, he more world-wide expansion is
possible for the company. With the same, it is also to note that Organisation X also required to
learn localising the products and then altering them on the basis of the local requirement.
Furthermore, as this company has taken a significant hit in the scandal of emissions, it is
important to ensure that it comes back equally strong.
3.4 Threats
One of the significant threat for this company is that of the fact that the brand reputation
can be hurt very badly because of the emission scandals. Above 5 million cars needs to be
recalled that included the SEAT, Volkswagen and Audi and many others. “Once people need to
return their cars that they were not confident regarding gaining another Volkswagen car once
again”. The company needs to spend a huge sum of money in building its brand for regaining its
brand strength. Other important threat is that of rise in the competition in the contemporary
market (Acemoglu et al 2016). It is to note that this competition is very unlikely to back down
soon. Instead, it will be ever increasing. Furthermore, there is emergence of different government