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Business strategy is a set of works that enable an organization to achieve long term objectives.

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Unit 7 Business Strategy Assignment Sample - Tata Steel

Introduction

The Unit 7 Business Strategy Assignment Sample Tata Steel has highlighted the business strategy of the Tata steel of UK. The situation is that Tata steel will going to sell its operation in UK and for that the jobs will be at stake. Based on this situation the report will showcase the process and the techniques that are used to overcome the situation. Evaluation of the strategies is also considered in order to understand the best strategy for Tata steel. Based on that substantive growth is considered to strengthen the operation of Tata steel and this can be possible by considering the additional growth of the other countries.

Task: 1 Report

1.1) assess how business missions, visions, objectives, goals and core competencies inform strategic planning.

Business missions, visions, objectives, goals, core competencies are interrelated with the strategic planning in the following way:

• Mission:  As per the mission statement the organization for instance Tata Steel gives emphasis on their performance parameters by creating the value that make the business globally recognized. Apart from that business practices of Tata are followed the principle of business ethics and consider the people as a heart of their business. Thus the strategic planning considers the mission statement by the declaration made by Tata steel for the stakeholders about their business policies and philosophies which will attract them towards the business.
• Vision:  The vision of Tata steel considers the enhanced value and corporate citizenship as a benchmark. For fulfilling the mission, vision statement is mainly done. Strategic sales planning can be related with the vision statement by establishing a standard for achieving the mission. The parameters for achieving the mission are being formulated in the vision statement which gives a framework for the strategic planning. (Tata Steel, 2016).
• Business Objectives:  The business of Tata Steel in Europe considers five dimensions which are Innovation, customer focus, responsibility, people and operational excellence. Tata Steel considers both the customers and employees in a same level where the safety is the first priority for all. Innovation will attract more customers and modernization in the manufacturing and distribution ensures the operational excellence. Thus the strategic planning involves the steps which are necessary to be followed to reach the goal and business objectives made it possible by ensuring the steps. (Norman, 2016).
• Goal:  The goal of the Tata steel is to become a leading steel manufacturer by catering the market like automotive, energy, power and constructions with their steel products. The goal is the important part of the strategic planning which set the target for the organization.
• Core Competencies:  Core competencies are the key resources that are required to achieve the business objectives. For Tata Steel innovation, operational efficiency, competent employees, training and development plans, modernization of the facilities periodically by conducting research and development are the core competencies which emerged Tata as a reputed global brand. The strategic planning also considers the ways to achieve the goal and core competencies are the ways to achieve the goal.

Thus we can observe that the strategic planning is interrelated with the mission, vision, objectives, goals, core competencies by ensuring the goals, steps and activities to be performed.

1.2) Analyse the factors that have to be considered when formulating strategic plans.

The analysis of the factors that plays a major role in formulating the strategic plans can be done in the following way:

• Managers:  It is the top level management that is responsible for developing a strategic plan for the organisations by considering the business objectives, resource allocation and activities to reach the desired goal. But it is the experience and the skills that are required in the top management while developing a strategic plan for the organisation. Otherwise the strategic plan will not support the goal. (Wheelen, 2010)
• Delegation:  When the top management formulate the strategy it is the delegation of duties that is to be shared among the employees based on their experience and specialisation. This will bring productivity in the organisation. But the specialised team is needed to be briefed and trained for giving the performances as per the standard fixed by the top management.
• Targets:  Targets are the benchmark which is fixed by the management as a part of a strategic plan in order to achieve the goal. But the target needs to be realistic and achievable which must not de-motivate the employees in their performances. 
• Resources:  Resources can be the physical, financial or human which are the necessities of a business for achieving the goals. But deficiency in the resources can create a barrier for achieving the targets as per the strategic plans.  (Lynch, 2014).
• Time:  Time is the important part of a strategic plan. Each and every activities of a strategic plan is fixed with a time period in order to achieve the goal at a right time. But fixing the time without considering the volume of the work activities can decrease the employee’s motivation.

Thus we can observe that each and every factors of a strategic plan have their contribution and also issues which are needed to be overcome to make an effective strategic plan for the organization.

1.3) Evaluate the effectiveness of techniques used when developing strategic business plans.

For evaluating the effectiveness of techniques used in the strategic business plans we need to identify the tools and analyse its application in the following way:

1. BCG Matrix:  BCG matrix will help the business to understand its position in the industry they are operating. There are four aspects which are covered by the BCG matrix namely, question mark, stars, cash cows and dogs. These four aspects in the BCG matrix highlights four different picture which we need to analysed. Question mark denotes the introduction of a company where the market share is less with relation to the industry share. Stars are the position where the company has improved their business and they have increased their market share which shows they are in a growth stage. Cash cows are a stage where the growth of the company is high but the industry has become saturated which denotes the maturity. Last is the Dog where the business of the company declines as well as the industry. (Hill, 2012).

But the disadvantage which we can observe from the analysis of a BCG matrix is:

• The high and the low points of the business can be traced in the BCG matrix but when the company will perform in a position that is not so high or low then the BCG matrix will not give a true picture.
• In the BCG matrix only two parameters are taken into considerations which are relative share of a business and industry. But the most important factor profitability is not counted.

2. Mc Kinsey Matrix: In the Mc Kinsey Matrix there are 9 cells where the three aspects of contract law are considered which are high, medium and low. The parameters for analysing the business are industry attractiveness and business unit strength. Industry attractiveness is governed by the factors like market size, market growth rate, profitability of the industry and the level of competition. The business unit strength is governed by market share, brand equity that is the attitude of the people towards the brand etc. (Kotler, 2010).  

From the features of a Mc Kinsey matrix it is clear that the business will be analysed from the high, low and medium perspective which is more relevant from the BCG matrix as the matrix ignores the medium parameter.

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2.1) Analyse the strategic positioning of TATA steel Europe by carrying out an organisational audit

Organisational Audit is the report which is prepared to determine the asset of the organisation. The capacity, work process, competencies of the human resources, work structure, financial situation etc are considered in the organisational audit for formulating the strategic plan. For conducting the organisational audit different tools are there for instance value chain analysis, SWOT analysis, benchmarking etc. Among all the tools value chain analysis can help to get the actual position of the Tata Steel in the following way:

Value Chain analysis can be divided in two categories which are: (Steiner, 2010),

• Primary Activities : Primary activities as per the value chain analysis are the logistics, operations , marketing, servicing activities of the organisation
• Supported Activities : Supported activities involve the human resource, technology, purchase process as per the value chain analysis.

2.3) Assess the significance of stakeholder analysis when formulating a new strategy for TATA steel Europe.

Stakeholders are the people or organisations involved in a business directly or indirectly. The management of the organisation needs to understand the stakeholders and their importance. The business decision of the organisations is totally depend on the stakeholder’s influence and power. In these circumstances it is the stakeholders mapping that can address the level of influence towards the business.

The stakeholder’s associated with the Tata steel UK is as follows: (Friedman, 2011).

• Key Players:  Key players are having high interest high power. For Tata Steel it is the investors who are investing in the projects in respect of a sound return. To manage them, Executive Committee is there who is chaired by Mr. Hans Fischer. The committee holds a meeting periodically with the investors and ensure them about their investment.
• Latents:  High power and less interest can be observed from the latents. They are the customers for which the revenue of the Tata steel is coming. Satisfying their requirements are the major criteria for the organisation. For that Tata steel is driving their business by considering the customers at the heart of their strategy.
• Monitors:  Communities can play the role of a monitor where they are given less preference due to the low interest and power in the business. But Tata Steel UK has also given preference to them by creating employment opportunities, maintaining environment friendly equipment for ensuring the safe guard to the environment and community.
• Defenders:  Defenders are the employees who have a high interest in the business due to their salary, incentives and bonus. Thus they need to be informed about the situation of the company or the upcoming assignment for making them motivated in order to get a productive performance.

The importance of the stakeholder’s analysis can be accessed from the four dimensions of the stakeholders mapping. (Freeman, 2010)

• For instance if Tata steel wants to design a marketing strategy then it is necessary to understand the influence of the customers and the investors. Customers will buy the products and investors will invest in the manufacturing activities. Thus the importance to identify the stakeholders and carefully managing them can only be possible from the stakeholder’s analysis.
• To establish a working environment in the organisation it is needed to understand the influence of the employees. Thus it is needed to keep them informed about the work process or activities in advance for the sake of motivation.
• For maintaining a long term employee relationship with the suppliers of Tata steel it is needed to establish a positive and professional relationship which will ensure win-win situation for both.

3.1) After formulating a new strategy for TATA steel Europe, analyse the appropriateness of the alternative strategies relating to market entry, substantive growth, limited growth or retrenchment for TATA steel Europe.

The new strategy for Tata steel Europe will be focused on the market development in UK. The scenario of the steel industry is not good in UK due to the cheap availability of the steel products from China. The customers of the steel industry namely the aerospace, construction, power are shifted from Tata which has created a critical situation. As a result Tata wants to close the manufacturing site which will make the employment of the employees at a stake. To overcome the situation it is needed to ensure the customers about the quality of the products from Tata steel UK and other than that Tata has to adopt a strong promotion for growing the confidence of the customers towards Tata. The framework for the market development strategy of Tata steel UK will be based on:

• Focusing the needs of the customers. The customers for Tata are shifting towards the Chinese product due to the price they are offering. In that respect Tata need to ensure about their quality value to the customers  
• Innovation and the technology is the part of the strategy where Tata needs to develop the products with comparatively low cost so that they can offer the customers at a reasonable price. For instance the Corus process, himselt process can help in this scenario.
• Integration of the marketing communication is needed to be designed effectively for convincing the customers about the quality of the products in comparison with the Chinese products.

The alternative strategy can be analysed in the following way: (Lymbersky, 2013).

• Market Entry:  Market entry is the strategy which ensures new market for the organisation due to the significant growth in that market. But Tata steel has their presence across the globe and it will not be justified for the present situation. Tata steel has to operate their business in UK by taking challenges with the Chinese steel manufacturers. For that market entry is not relevant with the situation.
• Substantive Growth:  Substantive growth is the strategy which considers the added growth of the other business units of an organisation. For instance if Tata steel is moving significantly in India then they need to utilise the fund in UK by enhancing the functions effectively in order to get an edge over the Chinese and Brazilian competitors. This strategy can be consider to tackle the decision of Tata steel UK to sell the plant.
• Limited Growth:  Limited growth is to stop the growth of some activities in order to maintain the financial health of the organisation. But this strategy is not appropriate for Tata steel to beat the competitors whereas it will give chance to the Chinese competitors for expanding their market in UK.
• Retrenchment:  This is strategy when the organisation restricts the output in order to mitigate the risk. But this will not be right for Tata steel UK in this situation. They need to give focus on the promotion part and should continue their manufacturing in order to beat the Chinese rivals.

3.2) Justify the selection of the strategy you proposed in AC 2.4 in terms of suitability, feasibility and acceptability

The objective of the Tata steel is to foster the market of UK effectively. For that the strategy of the substantive growth is needed to be followed to overcome the critical situation. It is clear that Tata steel finds it difficult to cope up with the Chinese competitors and for that they want to sell the plan which will affect the employment opportunities. In this respect substantive growth can help the Tata steel to counter the competition and to ensure the customers about the quality of their products. The strategy can be justifies in the following way:

• Suitability:  The net sales or the income of Tata steel in India has increased from 8991 crore to 10, 371 crore approximately. This increased profit can be utilized in the UK plant by making an effective promotion and innovation of their technology which can aware the customers of different industry to consider the steel of Tata. (Tata Steel, 2016).
• Feasibility:  The feasibility lies in this strategy as Tata wants to sell their plants for the high competition and cheap resources of China in the steel production. In this respect if Tata can convince the customers based on the quality and the after sales service then it can take the challenge and beat the competition without selling the plant.
• Acceptability:  The strategy will be acceptable as Tata has a diversified business and they can adjust the profit from one business to another. If they can adjust the additional growth from one country and carry forward it in UK then the jobs of the employees will be secure and Tata can also achieve the leading position in Europe. Maintaining high quality in the steel manufacturing will also the customers who are dealing with the Chinese manufacturers. At the end of the day it is the value that both the parties will concern.

4.1) Assess the roles and responsibilities of personnel in TATA steel Europe who are charged with the strategy implementation.

The roles and responsibilities of the personnel in Tata steel Europe are very much important to implement the strategic plan in order to get the desired result. The assessment can be done in the way mentioned below:

• Role of top Management:  The top management of Tata has to deliver the blue print of the strategy by defining the controlling and coordinating factors. The top management of Tata steel should also consider the global team who will be giving the clear picture about the company in different countries. Based on that the top management will design a plan and communicate to the middle management for the sake of implementing. The top management will prepare a budget and based on that the middle management has to divide the activities for getting the desired result. (Bowhill, 2010).
• Role of Middle Management:  The middle management is the connector between the employees at a lower level and the top management. Based on the plan of the top management, the middle management will delegate the duties and responsibilities to the employees and will implement the plan as designed by the top management. The middle management will break the targets on the department wise and communicate the employees for following the same. They will measure the performance and convey the feedback to the employees and also to the top management about the status. The middle management will also have to conduct the training session in order to increase the efficiency level.
• Role of the employees:  The employees have to follow the guidelines given by the middle management in order to achieve the targets. The employees have to understand that without making their job at stake, Tata steel has adopted another strategy to counter with the Chinese competitors.

4.2) Analyse the estimated resource requirements for implementing the strategy proposed in AC 2.4.

For implementing the strategy we need to consider certain resources which are as follows:

• Budgetary resources:  A budget is needed to be prepared by considering the current expected market returns and specific percentage of the fund from different countries. Estimation then market return and including the certain percentage of the substantive growth in another country can give a clear picture. Based on that allocation of the fund to the promotion and technology will be considered. As the main objective is to counter the competition by not selling the plant and for that a budget to include the working capital of other country is needed. (Bryson, 2011)
• Personnel Resources:  One of the major requirements in order to successfully implement the plan. After allocating the fund, the personnel will be responsible to make the plant of UK towards profitability. For that the marketing activities need to be strong for assuring the customers to consider the business with Tata steel UK. R and D team of UK will have to be competent to ensure an effective innovation which will reduce the cost of the manufacturing. Thus motivation towards the employees is needed in order to ensure productive performances.
• Physical Resources : physical resources in the sense after sales service counters will needed to be expanded in Europe to maximize their reach towards the customers. The Chinese manufacturer are taking the customers and in this respect Tata steel have to create a strong brand equity for which the after sales service is needed to be expanded. It will be possible with the substantive growth strategy where the investments will be carried forward from other countries where Tata steel is operating in a sound profit growth. (Proctor, 2014).
• Technology:  Technology is the key business driver in this situation. Tata steel needs to ensure technology in their manufacturing sites in order to reduce the operating cost and for that they can compete with the Chinese manufacturers.

4.3) Evaluate the contribution of SMART targets to the achievement of the strategy implementation you proposed in AC 2.4.

The strategy that has been adopted is related with the SMART targets. SMART targets will give a direction and justification for the strategy that has been formulated for enhancing the growth of Tata steel in UK. The objective of the strategy will be to continue the operations in UK but the additional growth will be consider from the other countries where Tata steel is operating at a signifi8cant profitability. This strategy is related with the Substantive growth and the evaluation for the SMART targets will be done in the following way:

• Specific (S):  Specific part of the strategy is the continuation of the operations in UK and for that substantive growth is the only way to consider. Tata steel of UK can consider the horizontal integration with other steel plants of UK for maximising the operational efficiency and also to beat the Chinese rivals.
• Measurable (M):  The measurable part of the strategy can be the business turnover of the following months after the implementation of the strategy. If the strategy is successful then it will reflect in the sales volume of the quarter and if it is not then it also can be measured. But sometimes it takes time to show the desired result which cannot be measured in the limited time scales. (Harrison, 2002)
• Achievable (A):  The strategy is only achievable if the result is positive and supports Tata to with draw their decision of selling of their plant in UK. But achievable is also questionable if the business environment is critical. As the business is depending on the customer’s acceptance of the steel products from Tata than the Chinese manufacturers. 
• Realistic (R):  Realistic part of the strategy will be the present situation where Tata is facing a critical condition to cope up with the Chinese rivals. Based on that horizontal integration by the substantive growth is the only possible way to overcome the situation.
• Time Bound (T):  Time bound is the time scale that has been fixed in the strategy for measuring the development. In case of Tata the forth coming quarter will be the assessing time for measuring the success of the strategic plan. But fixing the time is to be done carefully otherwise monitoring the success will be difficult.

Task 2: Design posters

2.2) produce an informative poster that presents an environmental audit for tata steel europe, 2.4) produce a creative poster which presents new strategy for tata steel europe.

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Thus we can conclude that Tata steel can continue its operation in UK without selling the plant. The possibility is the substantive growth where Tata can adopt the horizontal integration with other steel plant in order to compete with the Chinese and Brazilian competitors. The Unit 7 Business Strategy Assignment Sample Tata Steel will showcase the effectiveness of techniques used in the strategic business plans like the BCG matrix, GE matrix. Organisational Audit is also there in the report which is prepared to determine the asset of the organisation. The capacity, work process, competencies of the human resources, work structure, financial situation etc are considered in the organisational audit for formulating the strategic plan is done by considering the Value chain analysis.

Bowhill, B (2010). Business Planning and Control: Integrating, Accounting, Strategy and People . WILEY Publications Bryson, J. (2011). Strategic Planning for Public and Non Profit Organizations . WILEY Publications Drejer., A. (2012). Strategic Management and Core Competencies: theory and Application . Greenwood Publishing. Freeman, R (2010), Strategic Management: A Stakeholder Approach , Cambridge University Press. Friedman L., A. (2011). Stakeholders: Theory and Practice. Oxford University Press Harrison J., S. (2002). Strategic Management of Resources and Relationships: Concepts and Cases . John Wiley and Sons Hill L., W. (2012). Strategic Management: An integrated Approach. Cengage Learning Lymbersky., C. (2013). Market Entry Strategies. Management Laboratory Press Norman., l. (2016). What Is the Business Difference Between Objectives & Goals ? [Online] Available: http://smallbusiness.chron.com/business-difference-between-objectives-goals-21972.html , Accessed on 4.7.16 Proctor, T (2014). Strategic Marketing : An Introduction. Routledge Steiner, G (2010), Strategic Planning , Simon and Schuster.

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Table of Contents Executive Summary ......................................................................................................................... i 1.0 Introduction .......................................................................................................................... 1 1.1 Strategic Management ................................................................................................................ 1 1.2 Product Life Cycle ...................................................................................................................... 2 2.0 Corporate Strategic Plan ...................................................................................................... 4 2.1 Corporate Vision Statement ....................................................................................................... 4 2.2 Corporate Mission Statement .................................................................................................... 4 2.3 Corporate Objectives .................................................................................................................. 4 2.4 Mintzberg’s Modes ..................................................................................................................... 5 2.4.1 Entrepreneurial Mode ........................................................................................................ 6 2.4.2 Adaptive Mode .................................................................................................................... 6 2.4.3 Planning Mode .................................................................................................................... 7 2.4.4 Logical Incrementalism ...................................................................................................... 7 3.0 Internal Factor Analysis ....................................................................................................... 8 3.1 Corporate Value Chain Analysis ............................................................................................... 8 3.2.1 Primary Activities ............................................................................................................... 9 3.2.2 Support Activities.............................................................................................................. 11 3.2 4.0 Synthesis of Internal Factors – IFAS ...................................................................................... 12 External Factor Analysis .................................................................................................... 14 4.1 PESTEL Analysis ...................................................................................................................... 14 4.2 Synthesis of External Factors – EFAS .................................................................................... 17 5.0 Corporate Strategy Formulation ........................................................................................ 18 5.1 Directional Strategy .................................................................................................................. 18 5.1.1 Growth Strategies ............................................................................................................. 19 5.1.2 Stability Strategies ............................................................................................................ 19 5.1.3 Retrenchment Strategies .................................................................................................. 20 5.2 6.0 6.1 BCG Growth-Share Matrix ..................................................................................................... 21 Conclusions and Recommendations .................................................................................. 23 Strategy Implementation Issues ............................................................................................... 23 6.2 Stakeholder Measures and Value Analysis ................................................................................... 24 7.0 References .......................................................................................................................... 26 Executive Summary Strategic planning is the process of managing the organizational resources to meet its objectives, with taking the changing market opportinuties into account. PHHP Manufacturing is one of the leading Phyto Fibre manufacturers in Malaysia. Its vision is “To become the market leader with innovation, added creativity and together with empowerment”, and its mission is “To offer the customers with the best product in a more innovative way than the rivals”. The main objectives are profitablility and productivity, employee relation and retention, growth, marketing and customer relations. It uses few planning techniques, which would help organization to plan for strategic decisions. Few methods used such as Mintzberg’s Modes, SWOT analysis, BCG growth-share matrix, and value chain analysis. The environmental scanning is carried out to identify certain important factors that are essential in future. PESTEL analysis is done to brief on political, economic, social, technological, environmental, and legal factors. The important role played by stakeholders is identified as the group of people who are interested or affected by the decisions taken by the organization. PHHP Manufacturing Sdn Bhd is deciding to move into new market and create new market segments. Each functions in organization must has certain roles and responsibilies to face the challenging business environment. It might facing implemention problems when trying to obtain the necessary resources but with careful and effective planning, these strategy objectives could be achieved. i 1.0 Introduction PHHP Manufacturing Sdn Bhd is one of the leading health food product - Phyto Fibre manufacturer in Malaysia. The group of companies is currently holds the 6th position in Malaysia in regard to the market share and the main aim of the company is to become the leading Phyto Fibre manufacturer within the next 2 years. It is clearly understood that the main objective of any organization would be to grow and expand after few years of operations. PHHP Manufacturing Sdn Bhd has identified some core competencies which has helped them to stand out from its competitors. This report explains the corporate vision, mission, objectives, policies, and the core competencies of PHHP Manufacturing Sdn Bhd, the problems they might face while planning strategic direction due to the changing economic condition. The report also shows the number of different planning techniques that an organization could use and it shows how PHHP Manufacturing Sdn Bhd have effectively use of Mintzberg’s Modes, SWOT analysis, BCG growth-share matrix and value chain analysis. The importance of carrying out a PESTEL analysis is given and also the value of stakeholders and the importance of stakeholder analysis are given out effectively. This report also shows that PHHP Manufacturing Sdn Bhd could use a number of methods as growth strategies and they have decided to move into a new market. It is also understood that all the divisions have certain roles and responsibilities in helping PHHP Manufacturing Sdn Bhd to achieve its objectives. 1.1 Strategic Management Strategic management is the ongoing process of PHHP Manufacturing Sdn Bhd uses to form a vision, analyse its external environment and internal environment, and select one or more strategies to use to create value for customers and other stakeholders (Thompson & Martin, 2010). 1 1.2 Product Life Cycle PHHP Manufacturing Sdn Bhd’s new products progress through a sequence of stages from introduction to growth, maturity, and decline. This sequence is known as the product life cycle and it is associated with changes in the marketing situation (Stark, 2015), thus impacting the PHHP Manufacturing Sdn Bhd’s marketing strategy and the marketing mix. The product revenue and profits is plotted as a function of the life-cycle stages as shown in the graph below. Sales Introduction Growth Maturity Decline Time Figure 1: Product Life Cycle Stages Introduction Stage PHHP Manufacturing Sdn Bhd is seeking to build product awareness and develop their market for the product. There are few impacts on the marketing mix as follows: • Product branding and quality level is established, and intellectual property defence such as patents and trademarks are obtained for Phyto Fibre which is the most sellable product. • Pricing of product may be low to increase market share rapidly in short period. • Distribution is monitored until consumers show acceptance of the product. • Promotion is seeking to build product awareness and consumers product learning. 2 Growth Stage PHHP Manufacturing Sdn Bhd is seeking to build brand preference while increase market share. • Product quality is maintained, value-add features and customer support services are established. • Pricing is maintained and enjoys increasing in product demand with minimal competition. • Distribution channels are well established and customers accept the product. • Promotion strategies are rapidly used to aim for large group of customers. Maturity Stage A strong growth in sales will be weaken at maturity stage. There is arising in competition with similar product. The key objective at this stage is to protect market share while capitalize on profits. • Product features are enhanced to differentiate the product from its competitors. • Pricing is low to compete in competitive market. • Distribution becomes more intensive and encourage preference over competing products. • Promotion is rapidly change for product diversity. Decline Stage PHHP Manufacturing Sdn Bhd is having few options in decline stage. • Finding new customers, new design and features. • Reduce costs and maintain the product for a loyal niche segment. • Promotion and continue to offer product and maintain at certain level of market share. 3 2.0 Corporate Strategic Plan 2.1 Corporate Vision Statement The vision is intended to inspire PHHP Manufacturing Sdn Bhd’s employees to understand or “picture” the future ambitions of what the organization can become and to help begin a framework (Hoskisson, Hitt, & Ireland, 2009). The vision statement of PHHP Manufacturing Sdn Bhd is given below: “To become the market leader with innovation, added creativity and together with empowerment” 2.2 Corporate Mission Statement The mission statement defines the organization’s core intending to and the business or businesses in which it intends to work. This will explain the reason of existence of the organization and what it does, who it does for and how it does. The mission statement will help the stakeholders to have an idea on what organization hopes to do and its overall intension (Hoskisson, Hitt, & Ireland, 2009). The mission statement of PHHP Manufacturing Sdn Bhd is given below: “To offer the customers with the best product in a more innovative way than the rivals” 2.3 Corporate Objectives It is important that organization that exits is having its own objectives. It is essential to identify its own objectives and the purpose of why they are going to carry out operations (Hoskisson, Hitt, & Ireland, 2009). The objectives of PHHP Manufacturing Sdn Bhd are given below: • Profitability and productivity – the ultimate objective of any business is to obtain profits and to increase its productivity over time. Profit maximizing becomes one of the most important objectives for PHHP Manufacturing Sdn Bhd and they aim to obtain 25% increment of profits within the next 2 years. The management should take necessary 4 actions to increase the labour productivity by providing them with more and better training, a better and happy environment to work and all the necessary resources to achieve their targets (Spender, 2015). • Employee relation and retention – one theory adopted at PHHP Manufacturing Sdn Bhd is that more the employees are kept happy and motivated, the easier for the organization to achieve its objectives. Both the vision and mission states about empowerment and the organization have been empowering its employees (Strickland, Gamble, & Thompson, 2001). PHHP Manufacturing Sdn Bhd is needs to build up a good relationship between the management and the employees and to retain them. • Growth – the organization is planning to expand its operation in the coming two years. Few plans have been laid down and the decision needs to be implemented properly. The management is planning to set up new manufacturing plant and also planning to introduce new products. • Marketing and customer relations – one main objective of PHHP Manufacturing Sdn Bhd is to market their products by giving an important message to its customers. Marketing is about understanding consumer buying trends, being able to get ahead product distribution needs and developing business partnerships that help organization to improve market share (Williams, 2002). 2.4 Mintzberg’s Modes According to Henry Mintzberg, the organization's structure begins from the interaction of the organization's strategy, the environmental forces it experiences, and the organizational structure itself. When these come together, the organizations can perform well. In reverse, then the organization is likely to experience severe problems (Thompson & Martin, 2010). Different structures arise from the different characteristics of these organizations, and from the different forces that shape them. By understanding the organizational types that Mintzberg defines, PHHP Manufacturing Sdn Bhd can think about whether its structure is well suited to its conditions. If it isn't, it must think about what is needed to change things. 5 Mintzberg’s Modes of Strategic Decision Making Entrepreneurial Mode Planning Mode Adaptive Mode Logical Incrementalism Figure 2: Mintzberg’s Modes of Strategic Decision Making 2.4.1 Entrepreneurial Mode In entrepreneurial mode, PHHP Manufacturing Sdn Bhd’s strategic planning is done by its Chief Executive Officer (CEO) or Top Management. He takes the full responsibility of business planning, focus and creates business opportunities. He has entrepreneurial skills. That is, he is good in planning, organizing, motivating people by having strong vision of direction for the growth of organization. He is a strong and bold leader. 2.4.2 Adaptive Mode In adaptive mode, the CEO is changing his plans according to the changes in the business environment. He first makes a big plan, then he breaks it into smaller plans. This is done to adjust with the dynamic business environment. Then, he is combining all these plans to make a strategic business plan. In this method, the CEO works in a disorganized business environment with the objective to get the best business plan for PHHP Manufacturing Sdn Bhd. 6 2.4.3 Planning Mode In planning mode, the Top Management makes the plan after analyzing the objectives and resources of PHHP Manufacturing Sdn Bhd. It is carefully considering all the factors before making the plan. In this method, its approach is very rational and gives prime importance to management processes in order to get logical business plan. 2.4.4 Logical Incrementalism In this mode, Top Management has a rationally ideas of the business’s mission and objectives. In its business strategies, it selects to use an collaborative process in which the organization probes the future and learns from a some commitments rather than over comprehensive constructions of total strategies in PHHP Manufacturing Sdn Bhd. Thus, although the mission and objectives are set, the strategy can emerge out of argument, debate, and experimentation by business operations. This approach appears to be useful when the business environment is moving fast and when it is important to compromise and develop needed resources before obligating an entire corporation to a specific strategy (Thompson & Martin, 2010). 7 3.0 Internal Factor Analysis This internal factor must be first understood before one goes about understanding the external factor in PHHP Manufacturing Sdn Bhd. When internal factor is understood, the points that emerge include its strengths, weaknesses, resources needed and competencies that must be built. An understanding of a firm’s resources is a prerequisite to formulation of business strategy. Internal factor analysis is usually done around traditional functions: production, marketing, finance, human resources, technology and so on. Each of these functions is further broken down to identify critical sub-functions, and their strength is also determined in terms of their contribution to organizational goals (Pahl & Richter, 2007). 3.1 Corporate Value Chain Analysis It is a common fact that the businesses add value to their products at each stage of production. The production or the manufacturing process is divided into various segments and at each stage a certain value should be added to the products. For example, when the raw materials are transported for manufacturing, a value is added during packaging process and when the final product is transported, another value is added (Ensign, 2001). This is where the value chain developed by Michael Porter comes into picture. A value chain is a set of activities that an organization carries out to create value for its customers. Porter proposed a general-purpose value chain that companies can use to examine all their organization activities and examine how they have connected each other (Ensign, 2001). It helps PHHP Manufacturing Sdn Bhd to understand the sources of value in an organization. The following diagram clearly explains how a value chain would look like. 8 Human Resource Management (recruiting, training, development) Technology Development (R&D, product and process improvement) Procurement (purchasing of raw materials, machines, supplies) Inbound Logistics Operations (raw materials handling and warehousing) (machining, assembling, testing) Outbound Logistics Marketing and Sales (warehousing and distribution of finished products) (advertising, promotion, pricing, channel relations) Service Profit Margin Support Activities Firm Infrastructure (general management, accounting, finance, strategic planning) (installation, repair, parts) Primary Activities SOURCE: Competitive Advantage: Creating and Sustaining Superior Performance by Michael Porter. Copyright © 1985, 1988 by Michael E. Porter. All rights reserved. Figure 3: Michael Porter’s Value Chain Model 3.2.1 Primary Activities Primary activities are directly involved in the conversion process of basic raw materials into final products including the receipt of raw materials from suppliers and marketing of products to customers. They are grouped into two types of activities related to product and market. Product related activities are the inbound logistics and operations, performed by the organization to add value to the product and services itself. Market related activities are outbound logistics, marketing and sales and services, performed by the organization to transfer the finished product or services to the customers (Porter, 1998). 9 Inbound Logistics These include receiving the raw materials required for the PHHP Manufacturing Sdn Bhd’s health food products making process, stacking and reclaiming the materials, and distribution of materials to production departments. Warehousing activities and supports are vital to product quality, balancing supply and demand, and create value-add to products and customers. Inbound Logistics activities can be included to primary activities (Dawar, 2013). Operations Management These include raw material handling and processing which involving receiving and handling of major raw materials like plant fibre including oat, roselle, psyllium husk and hawthorn berries. Raw materials are carefully examined to ensure its high-quality supplies. Manufacturing of products must meet the plant requirements, carrying out the major repairs of equipment in plant units, maintenance of equipment; repair of machineries and electronics equipment etc. Planning and monitoring of production also a vital activity (Dawar, 2013). Operation Management activities can be included to primary activities of PHHP Manufacturing Sdn Bhd. Outbound Logistics These include planning and despatch of products, distribution management intra and inter plants, transportation monitoring and control, warehousing and space availability, and customer order fulfilment by PHHP Manufacturing Sdn Bhd. Outbound Logistics activities can be included to primary activities. Marketing and Sales These include product management, price management, order placement management, product promotion management, product sales planning and control, planning and despatch, pricing and policy, customer contracts and relations management etc. Marketing and Sales activities can be included to primary activities of PHHP Manufacturing Sdn Bhd. 10 Service After Sales PHHP Manufacturing Sdn Bhd provides services such as product warranty, commercial terms, quality aspects, delivery aspects, post sales contact handling, and customer complaint settlement procedure. Service after sales activities can be included to primary activities. 3.2.2 Support Activities Material Management These include identifying sources for various materials, selection of suppliers, taking requests from plant units, procurement of raw materials, components and parts, machinery and spares, consumables, stationery, servicing, transport contract management, discrepancy receipt, inventory control, and ensure the continuity supply of materials for production in PHHP Manufacturing Sdn Bhd. Technology Development PHHP Manufacturing Sdn Bhd is investing in bringing in modern technology to support and improve its operation which include quality assurance, engineering, production processes, and logistics operations. Key focus is toward processes automation to increase output and improve efficiency. The activities involved in improving the technology and the process used in the manufacture of products and their improvement, and the service procedures constitute Technology Development. Redesigning of processes, basic research, new product development process, use of information technology in service and distribution and the like are the different forms of technology development. Technology, a source of value, affords the competitive edge; a constant and successful pursuit of acquiring or developing technology differentiates a star performer from its rivals (Williams, 2002). Human Resource Management These include corporate coordination in manpower planning, recruitment, executive establishment, rules and policies, and welfare. The activities in human resources such as human 11 resource development, management services such as quality circles, suggestion schemes, awards, and incentive schemes. Other activities such as corporate social responsibility, medical support, general administration, training and development (T&D), and HR information systems (Kotter, 2014). Finance Management These include treasury management, budgeting, costing, corporate accounts, raw material accounts, sales finance, operations & general accounts and works accounts, insurance, pay sections, stores accounts, purchase bills, project accounts, internal audit and stock verification. 3.2 Synthesis of Internal Factors – IFAS Internal Factor Analysis Summary (IFAS) is to evaluate the worth of each identified strength to determine which strength is more critical than others. This tool furnishes both an enumeration of strengths and weaknesses in the functional areas of PHHP Manufacturing Sdn Bhd, and the value of each of them, thus the weighted score of strengths and weaknesses is calculated. This can be compared with those of the rival firms or industry standard. This tool also facilitates the understanding of the relationship among functional areas, and the degree of such relationship (Wheelen & Hunger, 2015). More specifically, a thorough understanding of the factors included in the IFAS is highly important to identified correct resources for PHHP Manufacturing Sdn Bhd. 12 Table 1: Internal Factor Analysis Summary (IFAS Table) Internal Factors Strengths Competent and experienced staff Innovative ideas High products quality High capacity production facility Weaknesses Marketing expertise Raw materials from oversea Lack of an effective middle management Total Scores Notes: 1. 2. 3. 4. Weight Rating Weighted Score 0.25 4.2 1.05 Strong in strategic planning 0.20 0.15 0.10 3.6 3.0 2.5 0.72 0.45 0.25 Competitive advantage Recognized and stand out Capable of reducing production cost 0.15 3.8 0.57 0.05 1.8 0.09 0.10 4.1 0.41 Weak marketing and business development function Dependence and subject to exchange rate fluctuations New recruitment and training policy 1.00 Comments 3.54 Each factor is weighted from 1.0 (most important) to 0.0 (not important). The total weights are sum to 1.00. Each factor is rated from 5.0 (outstanding) to 1.0 (poor), based on the company’s response to that factor. Multiply each factor’s weight and its rating to obtain each factor’s weighted score. Add up all the weighted scores usually works out between 1 (at its low) and 4 (at its highest). A score of less than 3.0 indicates a weak internal organization whereas that above 3.0 represents a stronger one. The sum of the IFAS weighted scores of PHHP Manufacturing Sdn Bhd works out to 3.54 which is above the average of 3.0. It can be inferred that its internal factors are strong enough. 13 4.0 External Factor Analysis External factor analysis is a strategic management tool which allows the management of organization to examine the cultural, social, economic, demographic, political, legal, and competitive information. It indicates whether the organization can effectively take advantage of existing opportunities along with minimizing the external threats (Wheelen & Hunger, 2015). Similarly, it will help PHHP Manufacturing Sdn Bhd to formulate new strategies and policies on the basis of existing position of the organization. 4.1 PESTEL Analysis It is a common fact that the organization carry out external environmental audit to identify their strengths and capabilities within the organization and to have an understanding about what is happening in the outside world. External environmental audit or scanning a PESTEL analysis could be carried out by detecting early signs of opportunities and threats that may influence its current and plans. There are six factors in PESTEL analysis which stand for Political, Economic, Social, Technological, Environmental and Legal (Porter, 1998). Political Economic The Organization Legal Environmental Social Technological Figure 4: PESTEL Analysis Factors 14 4.1.1 Political Political factors play a huge role for an organization and it influence on its decisions. It might place obligations and duties on an organization. Some factors are tax policies, safety regulations issued by government and international regulations. PHHP Manufacturing Sdn Bhd must produce products per given standards and adhere to trade agreements, tariffs or restrictions. 4.1.2 Economic The market condition or the economy of the country is bound to change from time to time. The economy might be in a boom, in a recession or in a growing inflation problem. These can influence an organization and it will change the plans set up by PHHP Manufacturing Sdn Bhd. They must cope up anything because depending on the economic condition, they might not get to market their products well and sales may not increase. It is clearly understood that if an economy is in a recession, then it will have high unemployment levels, low spending power and lower stakeholder confidence. 4.1.3 Social This mainly considers people’s lifestyles and behaviour. Different people have different choices and their taste and preferences differ. PHHP Manufacturing Sdn Bhd should always try to produce a product and market it effectively which can capture a wider customer range. Factors such as mood and demographics should be considered. The company should always consider the population changes in the country. Changes in the structure of a population will affect the demand and supply of goods and services. PHHP Manufacturing Sdn Bhd must produce products that will suit to different segments in the market. 15 4.1.4 Technological An organization use modern technology to manufacture products and market their products. By moving on technology, it exchange of information faster and help the business to react quickly to changes. To be more competitive in the market, PHHP Manufacturing Sdn Bhd use machineries in modern technology to produce its products and use modern techniques in production of products. With modern technology in production, PHHP Manufacturing Sdn Bhd is able to increase its output and produce high quality products which able to compete in the competitive market. 4.1.5 Environmental Organization should always pay high concern to the environment impact. Products should be produced, that will minimize the environment pollution. To keep the environment clean, it should comply with government’s policies and legislations. Other factors such as floods, should be considered as it will disrupt production and supply operations. 4.1.6 Legal Organization should always adhere to certain rules and regulations which are set up by government. Labour laws is important and must consider to ensure the effectiveness of human resource management. It is also important to produce products per certain standards, and implemented legally. 16 4.2 Synthesis of External Factors – EFAS Table 2: External Factor Analysis Summary (EFAS Table) External Factors Opportunities Expansion into regional markets Technological advancements Strategic partnership with vendors Threats High competition Changes in customer demands and preferences Government policies and legislations Total Scores Notes: 1. 2. 3. 4. Weight Rating Weighted Score 0.25 4.0 1.00 0.20 3.0 0.60 0.10 2.5 0.25 0.25 4.0 1.00 Increasing in new competitors 0.10 3.2 0.32 0.10 3.0 0.30 Service comparative and high customization Impact on foreign workers’ costs and GST 1.00 Comments Increase sales volume and improve market share High output and efficient production A reduction in raw materials price and lead time 3.47 Each factor is weighted from 1.0 (most important) to 0.0 (not important). The total weights are sum to 1.00. Each factor is rated from 5.0 (outstanding) to 1.0 (poor), based on the company’s response to that factor. Multiply each factor’s weight and its rating to obtain each factor’s weighted score. Add up all the weighted scores usually works out between 1 (at its low) and 4 (at its highest). A score of less than 3.0 indicates a weak internal organization whereas that above 3.0 represents a stronger one. The sum of the EFAS weighted scores of PHHP Manufacturing Sdn Bhd works out to 3.47 which is above the average of 3.0. It can be inferred that the organization is taking advantage of existing opportunities along with minimizing the potential adverse effects of external threats. 17 5.0 Corporate Strategy Formulation Strategy formulation is a continuing process to develop and review forthcoming strategies that allow PHHP Manufacturing Sdn Bhd to achieve its objectives, seeing its competences, limitations, and the environment in its operation. In the strategy formulation process, produces a clear set of recommendations, with supportive reasoning, that review as essential the mission and objectives of the organization, and supply the strategies for realising them (Lehmann, 2012). Thus, PHHP Manufacturing Sdn Bhd is trying to adjust the current objectives and strategies in the ways to make the organization more effective. 5.1 Directional Strategy PHHP Manufacturing Sdn Bhd’s vision and mission are the most fundamental forms of directional strategy. A mission statement defines its business purpose and sets the overall tone for business strategic direction. A vision statement outlines what they hope to achieve as work toward its mission and helps to focus on strategy toward reaching specific business goals (Hoskisson, Hitt, & Ireland, 2009). GROWTH Concentration - Vertical Growth - Horizontal Growth STABILITY Pause/Proceed with Caution No Change Profit Diversification RETRENCHMENT Turnaround Captive Company Sell-Out/Divestment Bankruptcy/Liquidation - Concentric - Conglomerate Figure 5: Corporate Directional Strategies 18 5.1.1 Growth Strategies PHHP Manufacturing Sdn Bhd’s growth strategies can be classified into two categories: • Concentration within existing industry: vertical and horizontal growth • Diversification into other lines of business or industries: concentric and conglomerate Vertical Growth The strategy taken by PHHP Manufacturing Sdn Bhd is taking over functions earlier in the value chain that were previously provided by suppliers. Some outsourced processes are returned to internal production that have advantages like in cost, stability and quality of products, that making operations more difficult for competitors. Horizontal Growth PHHP Manufacturing Sdn Bhd is involving in expanding existing products into East Malaysia to extend its market segments. The product range is increase to support new market segments with different demand and needs. Concentric Diversification PHHP Manufacturing Sdn Bhd is venture into packaging production which is having synergy with the organization’s existing lines of business. It is creating a situation to gain special advantages from commonalities such as technology, customers, distribution, and location. Conglomerate Diversification There are no strategy alternatives for PHHP Manufacturing Sdn Bhd for growth involves diversifying into a line of business unrelated to the current ones. 5.1.2 Stability Strategies There are several circumstances in which the most appropriate growth stance for a company is stability, rather than growth. Three alternatives as below, in which the actual strategy actions are 19 similar, but differing primarily in the circumstances motivating the choice of a stability strategy and in the intentions for future strategic actions (Strickland, Gamble, & Thompson, 2001). Pause and Then Proceed PHHP Manufacturing Sdn Bhd is wait and look at the market conditions before launching the full-fledged grand strategy. Also, the organization that has intensely followed the expansion strategy would wait till the time the new strategies seeps down the organizational levels and look at the changes in the organizational structure before taking the next step. No Change There are certain market segments in low sales that may require to remain as to compete with few competitors. This is happening in few small towns in West Malaysia. Grab Profits PHHP Manufacturing Sdn Bhd is aim to maintain the business profit by whatever means possible. When the profitability is low, it may cut costs, reduce investments, raise prices, increase productivity or adopt any methods to overcome the temporary difficulties. The profit strategy can be followed when the problems are temporary or short-lived and will go away with time. 5.1.3 Retrenchment Strategies The retrenchment strategy is adopted when PHHP Manufacturing Sdn Bhd is aim at reducing its business operations with the view to cut expenses and reach to a more stable financial position. Turnaround The need for a turnaround strategy arises because of the changes in the external environment, change in the government policies, saturated demand for the product, a threat from the substitute products, changes in the tastes and preferences of the customers, etc (Kaplan & Norton, 2001). In 20 2006, PHHP Manufacturing Sdn Bhd announced the cost-cutting measures by downsizing its production facility and capacity, but unfortunately, it suffered huge losses in market share. Then in 2007, PHHP Manufacturing Sdn Bhd come back with centralized production and warehousing strategy. Today, it is one of the largest Phyto Fibre manufacturers in Malaysia. Liquidation The liquidation strategy is the most unpleasant strategy adopted by the organization that includes selling off its assets and the final closure or winding up of the business operations. It is the most crucial and the last resort to retrenchment since it involves serious consequences such as a sense of failure, loss of future opportunities, spoiled market image, loss of employment for employees, etc (Kaplan & Norton, 2001). PHHP Manufacturing Sdn Bhd is doing their very best to avoid such strategy become reality in its organization. 5.2 BCG Growth-Share Matrix An organization is most likely to engage in the production of large number of products and it is the duty and the responsibility of PHHP Manufacturing Sdn Bhd to identify and decide which products should focus more on investment. Simply this means that the business needs to allocate its investment on each product to make things easier for the organization a BCG growth-share Market Growth Rate High matrix could be prepared (Marren, 2007). STARS QUESTION MARKS Rapid growth & expansion New ventures, few become stars CASH COWS DOGS Ability to fund the Question Marks & Stars Low market share & growth High Market Share Figure 6: BCG Growth-Share Matrix 21 Low As shown in Figure 6, two key terms used in BCG growth-share matrix is ‘Market Growth’ and ‘Market Share’. Products in PHHP Manufacturing Sdn Bhd can be categorized as Stars, Question Marks, Cash Cows and Dogs. The number of products could be categorized into these four segments are: • Stars – Phyto Fibre • Question Marks – Phyto Aloe Vera, IG-Rich Colostrum • Cash Cows – Phyto Greens, Ophira Collagen • Dogs – Alijaga Coffee, Green Tea The following diagram clearly shows the characteristics of BCG growth-share matrix in PHHP Manufacturing Sdn Bhd. STARS High market growth High market share Cash neutral QUESTION MARKS High market growth Low market share Cash absorbing CASH COWS Low market growth High market share Cash generating DOGS Low market growth Low market share Cash neutral Figure 7: Characteristics of the Segments of BCG Growth-Share Matrix 22 6.0 Conclusions and Recommendations It is important that the main motive of any organization is to achieve the goals and objectives which are set up before operations and to grow over time, but the question is whether this is always possible. Will PHHP Manufacturing Sdn Bhd end up in its desired place? Some strategy might work out but some might decline. 6.1 Strategy Implementation Issues Some strategies must be avoided or use with caution in organization. There are few concerns described as follows. Follow the Leader The Top Management decision making may be a good idea, but it must careful consider PHHP Manufacturing Sdn Bhd’s strengths and weaknesses. Example the Indonesia market penetration within 3 months. Hit Another Home Run It is very expensive and massive cost should spend to develop another star product like Phyto Fibre. It might not successful in market and create losses to organization. Arms Race Certain market segments or products may have to aggressively compete with competitors to maintain or increase market share. Example Alijaga Coffee for Malay market. With the increase in advertising, promotion, R&D costs may reduce its revenue. Do Everything It is more competitive advantage to have more products in the market and increase market segments, but as time goes by, more and more resources are needed and exhausted. The focus shall on few strong ones. 23 6.2 Stakeholder Measures and Value Analysis Stakeholders could be recognised as the group of people who are interested or affected by the decisions taken by PHHP Manufacturing Sdn Bhd. Stakeholder analysis is the review and consideration of the impact of stakeholders in businesses. This is becoming increasingly important as non-shareholder entities, including customers, employees, communities and business partners, have become more key to business success (Westland, 2017). PHHP Manufacturing Sdn Bhd need to understand the interest of each stakeholder and strategize on how to address them in business practices. Organization should understand that it is not all about generating sales and obtaining higher profits, they should also operate or take actions in the way that could or should satisfy many people, which keeping all the stakeholders satisfied at once and their needs (Marren, 2007). PHHP Manufacturing Sdn Bhd have identified many stakeholders who are interested or affected by their decisions. The following table shows possible stakeholders and their concerns. Table 3: Stakeholder and Stakeholder Concerns Stakeholder Stakeholder Concerns Shareholders Return on investments, income and profits, strategic plans Employees Wages and salaries, job security, compensation, respect Customers Value-add, quality, customer care, ethical products Suppliers Business opportunities, fair and equitable treatment Community Jobs, environmental protection, truthful communication Government Taxation, GST, legislation, employment, truthful reporting, diversity, legalities, externalities 24 PHHP Manufacturing Sdn Bhd is prioritize the stakeholders into four parts as high influence low interest, high influence high interest, low influence low interest, and low influence high interest. The following diagram clearly shows the method of prioritize its stakeholders. Manage Closely Apathetics Defenders Power Keep Satisfied Interest Figure 8: Prioritization of Stakeholders The four groups of stakeholders identified by management of PHHP Manufacturing Sdn Bhd as follows: • • • • Keep satisfied – High influence and low interest ▪ Government, major customers, and media Manage closely – High influence and high interest ▪ Shareholders, existing and potential investors Apathetics – Monitor ▪ Small customers, small shareholders Defenders – Keep informed ▪ Employees, local community, suppliers 25 7.0 References Dawar, N. (2013). Tilt: Shifting Your Strategy from Products to Customers. Boston, MA: Harvard Business Review Press. Ensign, P. C. (2001). Value Chain Analysis and Competitive Advantage: Assessing Strategic Linkages and Interrelationships. Journal of General Management, 27(1), 18-42. Hitt, M. A., Duane, I. R., & Hoskisson, R. E. (2015). Strategic Management: Competitiveness and Globalization. Canada: Cengage Learning Editores. Hoskisson, R. E., Hitt, M. A., & Ireland, R. D. (2009). Business Strategy: Theory and Cases (2nd ed.). Mason, OH: South-Western Cengage Learning. Kaplan, R. S., & Norton, D. P. (2001). The Strategy-Focused Organization: How Balanced Scorecard Companies Thrive in the New Business Environment. Boston: Harvard Business School Press. Kotter, J. P. (2014). Accelerate: Building Strategic Agility for a Faster Moving World. Boston, MA: Harvard Business Review Press. Lehmann, C. F. (2012). Strategy and Business Process Management: Techniques for Improving Execution, Adaptability, and Consistency. Boca Raton, FL: CRC Press. Marren, P. (2007). High‐functioning Business Strategy. Journal of Business Strategy, 28(6), 37-39. Pahl, N., & Richter, A. (2007). SWOT Analysis: Idea, Methodology and a Practical Approach. Munchen: GRIN Verlag. Pearce, J. A., & Robinson, R. B. (2015). Strategic Management: Planning for Domestic & Global Competition (14th ed.). New York: McGraw-Hill. Porter, M. E. (1998). Competitive Strategy: Techniques for Analyzing Industries and Competitors. New York: Free Press. Spender, J.-C. (2015). Business Strategy: Managing Uncertainty, Opportunity, and Enterprise. Oxford: Oxford University Press. Stark, J. (2015). Product Lifecycle Management. Decision Engineering, 2, 37-45. Strickland, A. J., Gamble, J., & Thompson, J. A. (2001). Cases in Strategic Management (12th ed.). Boston, Mass.: Irwin/McGraw-Hill. Thompson, J. L., & Martin, F. (2010). Strategic Management: Awareness and Change (6th ed.). Andover: Cengage Learning. Westland, J. C. (2017). Business Models and Strategy. Global Innovation Management , 54-79. 26 Wheelen, T. L., & Hunger, J. D. (2015). Strategic Management and Business Policy: Globalization, Innovation, and Sustainability. Boston: Pearson. Williams, S. W. (2002). Making Better Business Decisions: Understanding and Improving Critical Thinking and Problem Solving Skills. Thousand Oaks, CA: Sage Publications. 27

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