Assignment Sample on Managing Strategy, Operations and Partnerships
Activity 4
Strategic management is helpful for effectively controlling and monitoring organizational performance. It provides effective strategies to the managers to successfully running an organization and achieving their desire goals. This study is based on environmental factors of the Atelier Chiang Mai firm and the strength and weaknesses of the firm have been presented here.
| Environmental factors | Issues found | Implications for the industry |
| Political | The political factor plays an important fact in the Atelier Chiang Mai business and it can manipulate the performance of the firm. There are two groups found in Thailand that are creating political barriers for all these industries. One of them is the red-shirt group and the other one is the yellow shirt group. These two groups have lots of power and shout many businesses before. | The government of Thailand needs to be stricter in controlling these two groups. The government needs to implement some strict laws for maintaining this manufacturing industry and needs to reduce the influence of the red-shirt group and the yellow shirt group. |
| Economical | The economical factors in a country like inflations, recessions can heavily impact any business. Atelier Chiang Mai business is situated in Thailand and Thailand is facing the problem of recessions for many years. During the time of Baht currency, the economy of Thailand and the exchanged rate get suffered. The inflation rate in Thailand in 2020 shows -0.43 percent and in 2021 it shows 1.81 percent. Therefore, there are fluctuations that happened in the country’s inflation rate and it impacts the Atelier Chiang Mai business. | The Atelier Chiang Mai firm needs to reserve funds in the starting of their business for reducing the effects of inflation rate changes and by taking the previous precautions, they maintain a stable economic condition in the business. |
Table 1: Environmental factors
(Source: Asuncion et al. 2018, p.110)
| Porter’s forces | Strengths | justification |
| Competitive rivalry | The Atelier Chiang Mai firm is very competitive in the industry and they also want to be competitive with their competitors. It helps to increase their brand image in the market. | In a competitive industry, a firm needs to know about the present competitors in the market, it will help them to improve their competitiveness. They need to do well research about their competitors like what they produce, how the quality of the product, and how they provide service to their customers. It will help the Atelier Chiang Mai firm to improve their product price and keep their product price low from their competitors. It will attract more customers and increase the goodwill in the market. |
| buyer power | The Atelier Chiang Mai firm knows its customer’s choices very well. They also do a market survey before launching any new product in the market. | Before stepping into a new industry a firm needs to understand the market trends, customer choice very well. It will help them to know about their customers very well and for that, they can make effective strategies according to situations. |
Table 2: Porter’s forces
(Source: Hook, 2017, p.610)
| Industrial questions | Several Questions has risen in the growth and the maturity of the business. |
| Industry stage | In the middle |
| Implications | The Atelier Chiang Mai firm is one of the biggest garment manufacturers in Thailand. The market capitalization of the firm increasing bay by day and the brand value also increases. The firm increases the relationship with their customers it helps them to attract more customers towards the business and the costumes also get free for giving their valuable feedback to the organization. They also build a good working environment in their organization therefore; it helps them to maintain a safe environment at the workplace. It increases the efficiency level of the workers and the workers get more confidence in the workplace. |
Table 3: Industrial questions
(Source: Asuncion et al. 2018, p.110)
| Issue | Survival factors | Success factors |
| The firm recently faced quality problems regarding their clothes and get bad feedbacks from their customers. It can cause a negative impact on the firm reputation and the customers and inventors of the firm can lose their interest in this business. Therefore, the profitability of the firm will decrease and the other competitors will leave this business behind in the competitive race. | The quality issue of the firm can raise a question on the survival of the Atelier Chiang Mai firm. The needs to check their product quality while production and need to be ensured about the product quality before sending them in the market for selling. | The Atelier Chiang Mai is very competitive in its market reputation therefore; they are working on improvement of product quality. |
Table 4: Survival factors
(Source: Hook, 2017, p.610)
The study is based on the environmental factors of Atelier Chiang Mai firm. Political factors can it can manipulate the performance of the firm. The economical factors in a country like inflations, recessions can heavily impact any business. There are some issues found in this business like the quality issue that can raise a question on the survival of the Atelier Chiang Mai firm.
References
Asuncion, A., de Guzman, F.G., Luto, F.M. and Sedilla, K., 2018, July. Manual Handling in Fish Port: An Ergonomic Assessment on the Porters “Kargadors” in Navotas Fishing Port Complex. In International Conference on Applied Human Factors and Ergonomics (pp. 111-119). Springer, Cham.
Hook, D., 2017. What is “enjoyment as a political factor”?. Political Psychology, 38(4), pp.605-620.
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