7BSP0355 Case Analysis Companion Assignment Sample
Company Name: Evergrande (China)
Question
Using both the outside-in and inside-out analytical frameworks, critically analyse your selected company’s external and internal environment, and identify the strategic issues it needs to address in the short, medium and long term. From your analysis what are your company’s major opportunities, threats, strengths and weaknesses? Use module theory to generate strategies your company can draw upon in addressing the strategic issues you have identified, and recommend a way forward for its strategic direction in the short, medium and long term. Support your arguments with academic theory.
Choice of companies to select from for coursework2:
Select one company per student in a group of not more than five students in the same tutorial.
(Select one company per member in a group): Tesla(USA), AstraZeneca (UK), Sabic (Saudi Arabia), AB InBev (Belgium), MTN (South Africa), Evergrande(China), Nubank (Brazil).
Assignment Instructions:
Case Analysis Companion is meant to help support your preparation for the summative group discussion. The Companion will be assessed for completion, but your responses will not receive feedback.
- Select one of the 7 companies provided to for coursework 2, research and critically analyse its global strategy, by addressing the question above.
- This document does not have suggested word counts. Write as much as you need to analyze the case and be prepared for your group discussion.
- In Part I, consider and complete the questions above to guide your analysis of the case.
- When you complete this document, upload the file on the Canvas Assignment page. Note the deadline at the end of Week 8.
- Complete your assignment before your group meeting and have it on hand while you meet
You are researching and analyzing the company you have selected to help you address the question provided above as you engage in the weekly sessions. Please bring your companion to each session so you can use to engage in informed class discussions as well as refine your ideas in preparation for your group discussion. Your overall task is to apply module frameworks in order to identify the organisations’ key opportunities, threats, strengths and weaknesses and to come up with recommendations. It is expected this analysis will inform your assessed group discussion.
Unit 1: Introduction to International Business Strategy
Wk1. How has what you have learned today from the lecture, tutorial, discussion with classmates and own research helped you to understand your chosen company’s strategy?
| The company’s business strategy focuses more on their price flexibility as their target consumers include middle class and upper-middle-class customers in the markets of China (Fortune, 2021). |
Unit 2: Mega/ Macro environmental Analysis (outside- in perspective 1)
Drawing from what you have learned this week and your own analysis of your chosen company’s industry context, what are the key threats and opportunities to your company? Apply atleast one of the theories covered in class such as megatrend trends, PESTEL or CAGE. Show engagement with material covered in class this week.
| Based on the CAGE framework, it has been identified that the differences in culture and geographies can lead to changes in consumer behaviour, preferences and economic capabilities (Ghemawat, 2001). The markets that have a significantly higher economic capability offer better opportunities. Similarly, markets with similar cultures compared to the domestic market also turn out to be favourable markets for expansion (NYTimes, 2021). Similarly, other factors like administrative differences are necessary to be studied properly to avoid regulation issues in future. |
Unit 3: An analysis of the industry environment (outside- in perspective 2)
A critical analysis of your company’s industry context: From your analysis what are the key threats and opportunities to your company? Why? (Spend a few minutes writing down your thoughts in this section during the lecture and then discuss your thoughts with your classmates in the breakout rooms.
| Based on the key threats of the company it can be identified that the bargaining power of consumers is quite high. Due to this, the organisation needs to continuously maintain a flexible pricing strategy, which has ultimately led to the increasing Debt of Evergrande (SupChina, 2020). Not only that, but the organization has also failed to incorporate technology in the company’s operations which needs to be addressed as soon as possible to gain its position back in the market. |
Unit 4: An analysis of the firm’s internal environment (inside-out perspective)
Use this space to write down key insights from this week’s lecture, discussion with classmates and own research. From your analysis what are your chosen company’s key strengths and weaknesses? Provide some evidence to support your arguments.
| Based on the firm’s internal environment it can be stated that it maintains a positive relationship with its suppliers, which has helped the company to operate multiple projects (ESPN, 2021). However, there is a significant gap in terms of employee skills and talent, which has turned out to be a major weakness of Evergrande. |
Unit 5: A critical analysis of your company’s shareholders and stakeholders:
Spend a few minutes writing down your thoughts in this section during the lecture and then discuss your thoughts with your classmates in the breakout rooms. From your analysis what are your chosen company’s key opportunities, threats, strengths and weaknesses? (Apply at least one framework you have learned in class).
| According to the SWOT analysis conducted on behalf of the organisation, it can be stated that the potential strengths of the company highlight strong supplier relationship and brand awareness that has eventually contributed to ensuring a strong position in the domestic market (Wall Street Journal, 2021). The weaknesses highlight the low return on investment along with a lack of critical talent. Potential opportunities for the company highlights technology development in future along with distinctive business growth in the Chinese real estate market (Chen et al. 2019). The probable threats highlight the lack of price flexibility and degraded trade relationship between US and China. |
Unit 6: Strategic options (e.g innovation, HQ/ Sub relationship, International operational/ strategic choices etc)
Spend a few minutes writing down your thoughts in this section during the lecture and then discussing your thoughts with your classmates in the breakout rooms. What are your chosen company’s strategic options
| The strategic option in this context reflects cost leadership and market penetration. Based on the cost leadership strategy, the company might be able to encourage innovation in the future with the implications of advanced technologies (Chelanga et al. 2017). These aspects can eventually enlarge the unique selling proposition on behalf of Evergrande. |
Unit 7: Strategy Implementation (Managing change)
Recommend a way forward for your company in the short, medium and long term. Support your arguments with academic theory.
| In accordance with the Ansoff matrix, Evergrande can be recommended to undertake a market penetration strategy on a short-term basis in order to efficiently operate across the Chinese real estate sector with their existing products and offerings. The medium and long-term strategy of the company may include market development where subsequent opportunities of the new market entrance can be recognised from the organisational perspective with existing products (Szalavetz, 2019). |
Unit 8: What are your key recommendations in the short, medium and long term? Why?
| Recommendations
Short term Consideration of employee training for ensuring a skilled workforce. This recommendation is considered for improving the workforce skills of the company and thereby enlarging their service efficiency. Medium-term The company should consider technological advancement for increasing innovation. The reason is to enlarge competitive advantage by empowering unique selling propositions. Long term The organisation is suggested to ensure market expansion in future (LEVITT, 1983). The reason highlights the achievement of extended financial feasibility by serving the global market. |
References
Chelanga, K.E., Rono, L. and Boit, R., 2017. Effect of Product Innovation and cost leadership Strategy on the Financial Performance of Small and Medium Enterprises. Journal of Strategic Management, 1(1), pp.1-12.
Chen, J., Zhang, K., Zhou, Y., Liu, Y., Li, L., Chen, Z. and Yin, L., 2019. Exploring the development of research, technology and business of machine tool domain in new-generation information technology environment based on machine learning. Sustainability, 11(12), p.3316.
ESPN, 2021. Chinese club Guangzhou Evergrande building world’s biggest stadium for $1.7bn. [Online]. Available at: <https://www.espn.in/football/guangzhou-evergrande/story/4086363/chinese-club-guangzhou-evergrande-building-worlds-biggest-stadium-for-$17bn> [Accessed on 25 November 2021]
Fortune, 2021. China Evergrande Group. [Online]. Available at: <https://fortune.com/company/china-evergrande-group/global500/> Accessed on 25 November 2021]
Ghemawat, P (2001) Distance still matters, Harvard Business Review, September, vol 79,issue, pp 137-147.
LEVITT, Theodore (1983) The Globalization of Markets. Harvard Business Review vol 61, issue 3, pp. 92-102.
NYTimes, 2021. Evergrande Went From China’s Biggest Developer to One of Its Worst Debtors. [Online]. Available at: <https://www.nytimes.com/2021/08/10/business/economy/china-evergrande-debt-property.html> [Accessed on 25 November 2021]
SupChina, 2020. Is indebted real estate developer Evergrande Group seeking government support? [Online]. Available at: <https://supchina.com/2020/09/24/is-indebted-real-estate-developer-evergrande-group-seeking-government-support/> [Accessed on 25 November 2021]
Szalavetz, A., 2019. Artificial intelligence-based development strategy in dependent market economies–Any room amidst big power rivalry?. Central European Business Review, 8(4), pp.40-54.
Wall Street Journal, 2021. China’s Plan to Manage Evergrande: Take It Apart, Slowly. [Online]. Available at: <https://www.wsj.com/articles/evergrande-china-crisis-real-estate-developers-11636552507> [Accessed on 25 November 2021]
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