Answer To: MGT 201 Strategic Management Assessment 1 – Case study 1 (Group Work) ( 2 to 4 members ) Assessment...
Arunavo answered on Apr 15 2021
MGT201: STRATEGIC MANAGEMENT
ASSESSMENT 1 – CASE STUDY 1
Table of Contents
Introduction 3
Balanced Approach for Objective Setting 3
Industry Dynamics 4
Company’s Strengths and Weakness in relation to Future Market Opportunities 7
Conclusion 9
References 10
Introduction
Retail industry is one of the rowing industries and it has now become the latest trend because it is one stop shop for all the leading brands available for the customers to choose from. Many countries have the leading brand of retail chains of business and the more popular this business works in developing and developed countries. As the main customer base for these retail chain business are people belonging to the middle and upper class as the price range of products are there to serve these categories of people. The project is about the retail chain business Myers Industry Inc of Australia, one of the most leading retail chain business and has a good brand establishment. The project will study the future prospect of the company and the analysis will be done based on different methods such as conducting PESTEL analysis and Porter’s Five Force model and further the SWOT analysis will be conducted as to analyse the future prospect of the company.
Balanced Approach for Objective Setting
Any company, which has the target for objective setting, goes for a balanced approach. According to van Driel (2019), a balanced approach is taken by the company to ensure the long-term flexibility and the survival for an organisation, which needs to prepare for the future challenges that they will face. The balanced approaches have a range of benefits that it provides to the company. The balanced approach will ensure that the company effectively forms their strategic planning, improve their strategies and communication and they must know the art of properly executing those strategies. Whenever any balanced approach is taken, they have their particular prospective, which varies from the customer perspective to providing them the satisfaction they are looking for. Myers has the motto to cater the needs and provide the satisfaction to their customers.
Another perspective is that the companies try to have a good amount of market share by providing their excellent products and services. Myers has the perspective to take a significant share and portion of the market. As there are external perspective there are some internal perspectives as well that need to be taken care of such as how the organisational process runs smoothly, how the finances are well manage dare what are the future financial planning of the organisation. These considerations will help the organisation to drive for the future success such as human capital, organisational capital and the informational capital to make use of them properly to meet the organisational goals. Further, as added by Jung (2016), the balanced approach needs a strategy mapping to implement the balanced approaches properly, which the company has decided to implement for the success of their organisational operation. The mapping should be based on the internal and external factors that have a significant impact over the organisational performance improvement.
Finally, there should be measures or the key performance indicators that will help to determine the correct path and accomplishment of purpose. Huang and Renandya (2016) have added that the importance and the need for the balanced approach by any organisation are very crucial as any organisation has their own positive and negative factors. A balanced approach will help the organisation to identify their positive sides or the strengths and the negative side that are the weakness. These identification and analysis will help them further to explore their potential by enhancing their positive traits and mitigating the negative traits, as the organisation can prepare their proper road map to achieve their desired targets. This what Myers had done while analysing through PESTEL analysis and the Porter’s Five Force analysis, which are discussed further to properly analyse the future prospect for the company.
Industry Dynamics
a) PESTEL Analysis
PESTEL analysis is the analysis, which helps a company to make their strategies. Song, Sun and Jin (2017) have discussed that PESTEL analysis helps every business establishment to identify their significant changes in the political, economic, social, technological, environmental and legal factors, which in turn helps the company to make strategic planning to expand their business.
Political Factors: The political factors are the one that have an impact on the profitability or the probability of survival for the company. The risk that lies because politics is a very volatile sector and it cannot be ruled out that situation may change at any moment. The situational changes will lead to the change in policies, which will have a direct impact over the companies. To analyse the possible risks that Myers Industry Inc may involve into because of political changes are the level of political stability the country has in recent years. The integrity of politicians and the likelihoods that determine their commitment towards the work they are doing. Moreover, that will decide the future course of action. The laws that the country follows and the policies that are being set for doing business such as contract law, various types of taxes and the subsidies provided and many more. The political factor also has a great impact over the intellectual property of a company. The high level of government taxation will minimise the profit margins of Meyers, which will demotivate the company.
Economic Factors: The economic aspects that are present in the country such as change of inflation rate, the foreign exchange rate, the interest rate, GDP, the current stage in which the economic cycle is running contributes to the change in the way a company operates and Meyers will also get affected from these changes. The economic system that is presently operational is either monopoly, an oligopoly or a...