Identification and Strategies Description System †MyAssignmenthelp

Question: Discuss about the Identification and Strategies Description System. Answer: Introduction Strategic management is the identification and strategies description that can be used by managers in order to achieve a competitive advantage and better performance for their organization. For an organization to be said to have a competitive advantage, its profitability should be higher than average profitability of other companies in its industry ("Strategic Management - Meaning and Important Concepts," 2017).In this report, a research was carried out using the method of CESIM simulation game. There are different groups divided to carry out same research expecting a different result. Working with group RED, the study was based on a telephone company with markets for its products in Asia, Europe, and the USA.The objective of the research carried out by group Red, was to look at the overall corporate strategy .what does the company plan with a long-term focus. Strength, weakness, opportunity and technology analysis is to be conducted in the various mixes such as production. Another o bjective is to look at how the organization plans to develop and deploy its strategy through development of a policy on each of its strategic units. Strength The company has employed a prosperous low production cost in Asia and hoped to imitate that success in the USA. Weakness With the little production cost in Asia and Europe, this impact on the inflexible production schedule. The success of low cost of approach is dependent on the full utilization of capacity to reduce cost. Across all rounds, there is no production cost in Asia and Europe Opportunities The company opportunity comprises of seizing the market share from Asia and Europe, through the incorporation of cost yet efficient trade strategy in Asia and Europe. The implementation of its low production strategy has brought about so much success in the USA. Threats With the small cost production in Asia and Europe, the company poses a high risk in the USA market share. Strength In round 1 in Asia, the company placed more focus on marketing with a target of reaching a broader audience for the product. In Europe in round 1, the company also emphasized the marketing of the product; the aim was to achieve the targeted market segmentation creating more awareness of the product. Weakness In round 1, there is the low purchase of the product, the sales revenue globally was little, this can be associated with the similar product with our competitors, and lack of marketing expertise. Opportunity With the increase in the money used for marketing. Use of internet for digital marketing is highly targeted. This will create more awareness globally. Threat Superior channels used by a competitor for distribution poses a significant threat. Strength Globally in round 1, the logistic and tariffs are considered low but progress across the rounds whereby, in round 5 it is considered very high. These increases in expenses show the rapid delivery of products across the countries to potential buyers. Weakness In the USA the transport and costs are recorded as zero across all the rounds. This shows the stiff competition faced by the local producers and the market share that is limited. Opportunity With the high presence across all rounds in the global market, this provides the company with a strong base to offer comprehensive services. Threat The complex law stricter of some parts of business market poses a significant threat. The company is likely to suffer from an unpredictable increase in logistic cost with the undetermined rise in fuel rates. Strengths Across all rounds in the USA there is no income tax experienced, this shows that the business working overhead and expense lead to high-profit margin. Weakness N round 5 globally the company suffered high-income tax, its progress in round 1, with the high season for business, this is regarded as weakness. This is because the business requires long working hours, but it has limited working hours, however making the business hard to retain skilled staff within the short notice of tax season. Opportunity The business should embrace the telecommuting opportunity for its staff to cut down the overhead cost. Threat With the growth of technology, the software has emerged to help solve the tax queries without any fault. Strength In the USA the business incurs low production cost; this has a positive impact on the financials of the company. Weakness In Round 1 globally, there is a small sale of products this shows that the financial of the business are low. Opportunity The company should consider reducing on the interest loans from the corporations that it borrows from loans. Threat Products from the competitor of low prices pose a threat to the business. Strength Globally, there is an increase in R$D amount, in Round 2 there is the experience of lowest and round 5 highest cost in R$D.This can be linked to the strong market growth and expertise and technical efficiency. Weakness In Asia and Europe, there is no cost incurred in RD; this shows lack of emerging competitors and rapid advancement of technology in niche markets. Opportunity Globally, in round 5, there is an opportunity for new development in communication technologies. Threat Conflict of interest posed a great threat to the business. Importance interest in the financial that affect the design. Porters generic strategy is a model of five forces that try to define policy as taking the act that creates high position in business to outperform competitors. Cost leadership. It implies having a low per unit cost of a product than the competitors. In this case, the returns will be low, but the business will stay ahead of competitors. Differentiation. It implies that the business comes up with a product that is different from those of the competitors. This can be achieved through the brand image that is unique, the various designs that create a uniqueness of the product in the industry. While carrying out the study, the porter's generic strategy that was used by group red was cost differentiation. In round 2, the company had the least price across its business units, product demand was high, and sales were also high. In round 3 the company had the highest price than competitors. The company recorded least sales. In round 5, the company had the least cost than the competitors; many units were sold as demand was relatively high. The group chose cost differentiation strategy as its objective was to stay ahead in competition although attracting low returns. Long term objectives. The business long-term objectives are to grow annual revenue and increase the marketing and strategy for public relations. Short term objectives. The global market share has increased; from 5.07 in round 1 to 12.59 in round 5.this is with the increase in sales revenue. Short-term financial objective. The short term purposes of the business are to purchase financial resources at a low price hence incrementing the shareholder's returns regarding earning. This can be achieved through reduction of money borrowed from the lenders. This is observed in the shares equity increase in round 5 from round 1 globally. Long-term financial objectives. The long-term objectives of the businesses to increase the shareholder's equity. In round 1 the shareholder equity was low, and upon round 5 the shareholder equity was raised. Selection the right strategy was significant for the business. The approach selected for use was cost leadership and niche strategy. The market in Europe was given a cost leadership, and it experienced high sales of products this is because consumers will purchase products of the low price but satisfy their needs. The niche strategy was used into segment different market share. Globally we experience the increase in market share from 5.03% in round 1 to 21.29% in round 5 Recommendation Recommendation for production. The market in Asia and Europe should not have any production cost, but minimum as this will cause an inflexible production schedule. The market in the USA should have the strategy to counter the risk posed by low production cost in Asia and Europe. Recommendation for marketing. The company should find a suitable way for distribution of products to overcome the significant risk posed by competitors. The brand image and differentiation of product from competitors should well state during marketing. Recommendation for finance. The business should embrace low price but cost leadership for the products Recommendation for RD. The company should embrace technology and new research development. The technology will improve the operation of the business and bring about the competitive advantage for the industry Recommendation for logistics and tariffs. The company in the USA should search for foreign markets and produce products that satisfy customers and increase the need for the product. Recommendation for tax. The company should embrace technology software used to auto compute tax during business operations; this will cut down on some overhead cost and improve the returns. Conclusion Through this learning, I have been able to learn more about business strategy for a successful business operation. The game is more fun to be used as a learning technique. The game has expanded my research skills and broadened my knowledge about different products in different markets, the factors inhibiting sales of various products in some markets. The activity has enabled me to learn more about the short term and long term objectives of the business. I can now clearly differentiate the short term from the long term of the objectives. And the factors to consider. This learning experience has expanded my knowledge on the use of technology software in calculating the tax .the integration of technology in the business process has enabled the reduction of overhead cost. As opposed to the manual calculation of accounting part of business operations, the automated version of accounting is accurate. References Strategic Management - Meaning and Important Concepts. (2017). Managementstudyguide.com. Retrieved 4 November 2017, from https://managementstudyguide.com/strategic-management.htm