Managing Strategy: Pestel Analysis Of The Firm’s Macro Environment (Term Paper Sample)
State clearly what the report is about and the sequence of key tasks/events to follow.
2. Competitive Strategy
This section requires the description of the (Generic) Competitive Strategy your company has pursued in its attempt to gain real competitive advantage
3. Industry Overview
This section requires the analysis of the Macro environment (through the PESTEL model); the analysis of the Industry (through the Five Forces of Competition framework); and the identification of the main opportunities and threats.
4. Company Overview
This section requires a brief Background to the Company to provide a context for the report. You are expected to describe: the mission and vision of the company; the markets/regions it operates in; the number of firms competing in the industry; the company's competitive positioning (per product type) for respective geographic regions; and the main potential strengths and weaknesses of company.
5. Decisions Made
This section requires a detailed description of the KEY DECISIONS MADE each year (from Year 11 to Year 15 inclusive). For each year, you are expected to describe: What key decisions did your company make? Why did you make these decisions? What results were you hoping for? Where did the company place in the industry? Did demand increase; by how much; in which markets? Did market share increase; by how much; in which markets? Did retail coverage increase; by how much; in which markets? Did you meet investors' expectations? How did you perform in relation to competitors? You need to provide evidence of the decisions taken and results achieved every year by including the screenshots from the game in Appendix.
6. Final Results
This section requires to provide an assessment of how your company performed overall. You are expected to: discuss the retail coverage and market share for each of the markets you operated in; discuss your overall competitive positioning in your industry;
7. Reflection Discuss
how well or how poorly you performed. Your reflections and self-appraisal of either business success or failure is the key aspect of this section. The actual success or failure in the game is not the key issue: the most important aspect of this section of your ability to reflect and learn from the results achieved.
8. Underlying Strategic Principles
In this section you can provide some discussion and analysis on the need for strategic thinking, strategic visioning and strategic management of the company. BUSI 1324, Managing Strategy 2017-18 14
9. Key Learning Points about Strategy
Provide some discussion/analysis which might include the following: • Importance of assessing the macro-environment. • Importance of assessing the industry and competitors. • Complexities of running a company. • Importance of having a clear and shared focus for the company. • Strategic analysis and planning required for maintaining competitive position. • Complexities of meeting different stakeholder expectations.
In this section you are expected to reflect on the main issues uncovered and lessons learned through the simulation exercise as they relate to: the actual strategic decision making process; the interaction among team members; and your own personal performance and experience. Reference List (Alphabetical order and Harvard style. It is not included in the word count) Appendices (not included in the word count) 5.3.2 How to structure your Second Assignment: F
Strategy is integral to businesses of all types and sizes. This report covers the competitive strategy of our company, industry overview, company overview, and decisions made. Our company is Company E. Also, the report describes the final results and my reflection of the exercise. The underlying strategic principles and key learning points about strategy are also discussed.
In attempting to achieve real competitive advantage, the generic competitive strategy that our company has pursued is cost leadership strategy, also known as a low cost strategy. This generic strategy generally entails reducing the cost to the company of delivering products (Morgan 2014, p. 1013). The firm offers a comparatively low price for its footwear products with the aim of stimulating demand across the regions in which it operates and gain market share. Our company has adopted attractive pricing in order to be competitive against its rivals and enhance sales volume. Through the cost leadership generic strategy, our company strives to pursue a competitive advantage which is keyed to operating in a more cost-efficient manner compared to its competitors and seek to earn attractive profits by selling its footwear products at prices that are below those of its rivals. Charging a wholesale price that is lower than a region’s all-company average serves to put the firm at a price-based advantage as it competes against its rivals.
The PESTEL analysis was utilized in analyzing the firm’s macro-environment.
Political: our company’s operations are greatly influenced by the political environment of the countries in which it operates. A stable political environment and an open-minded government present better opportunities for the firm and allow the business to thrive. Political instability in some parts of the world is unfavorable to business performance. Also, our company is impacted by manufacturing regulations and rules, as well as taxation in the markets in which it operates (Dockalikova & Klozikova 2014, p. 419). Export and import laws of the countries could affect how it distributes footwear products in different regions.
Economic: our company is affected by changes in exchange rates and tariffs. Economic growth in different countries around the globe means that people’s incomes are increasing which may result in an increase in demand for the firm’s footwear products as disposable incomes increase (GregoriД‡ 2014, p. 556). At the moment, the economic environment is booming which enabled our company to post huge revenues of $238 million last year and profits of $25 million. Our company has located its footwear factories in Latin American and Asian-Pacific nations due to the availability of cheap labor there considering that the compensation levels of workers in these regions are roughly twenty percent of the yearly compensation levels in North America and Europe-Africa regions. However, the wages of workers in Asia-Pacific and Latin-America is gradually increasing, which may compel our company to increase the prices of its footwear products.
Social: all over the globe, people are becoming increasingly health conscious and are shifting gradually toward better lifestyles. These people would certainly purchase lots of sports shoes and leisure footwear for engaging in activities such as jogging and exercises. This will make our company happy. Also, different countries have different cultures, meaning that the firm will have to develop different ads for different countries taking into account their unique cultures.
Technological: technology is of great importance as it enables ...
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