SG7001 Managing Strategy and Operations and Partnerships Assignment Sample 2023
Activity 1: Analysis of implications of the vision of the organization
Analysis organisational characteristics and organisational performance
| Vision | The organisational vision is one of the important things to develop an organisational business to a broad area of people. In this case, organisational vision plays an important role to develop a proper strategy and planning procedures. This helps an organisation to handle sudden problematic situations and resolve their organisational risk factors. Their objective is to create a trust-able clothing factory in Asia that works with European standards and mindset. | ||
| Quality | Evaluation | Description and justification | Implications |
| Volume (V1) | MEDIUM | The organisation has an average volume percentage in the case of their output and the organisation has to improve its production function. | The operational team has to provide a proper training session to their employees to improve their work efficiency. |
| Variation (V2) | HIGH | This company used several variations of the model to improve their organisation business process. This helps them to lower their cost of production and improve the financial state of the company. | As the organisation use, several types of business model, they are able to handle sudden issues and other risk factors effectively. |
| Visibility (V3) | MEDIUM | Chiang Mei is a renowned company in Thailand. However, they have to improve their organisational performance as well as the sales percentage of their outlets through selling their products across the country. | The management has to develop proper strategies and planning to provide their products to other countries. They have to recognise the demand of those people and provide the service to be a renowned brand throughout those nations. |
| Variety (V4) | HIGH | Chiang Mei has a high variety of clothing possibilities and it improves their opportunities. | There are a high variety of products that provides a competitive advantage to the company as the management team develops innovation processes for their customers. |
| Speed (S) | MEDIUM | This organisation has a decent rate of productivity but there are changes in customer demand on a daily basis. The operational team have to focus on implementing new technologies to boost the work efficiency of their employees. | Operational teams have to implement advanced technology to improve the overall workflow of the organisation. |
| Quality (Q) | HIGH | Chiang Mei is known for its quality products and the customers are more attracted to get those quality based products. | The company has maintained this quality and tried to improve their products according to their customer demand. |
| Flexibility (F) | HIGH | There is flexibility in the organisational infrastructure as well as in the production function of their products. | This organisation is known for its flexible production function and the management try to maintain this goodwill for the future development of this company. |
| Dependability (D) | LOW | Chiang Mei has low dependability of other dependability percentages in tier supply management process and imports other accessories. | The organisation may issue in their future business for this. |
| Cost (C) | HIGH | The organisation has a decent amount of cost for developing its organisational products. This is why they are able to maintain the quality of their products. | However, the organisation has stable financial support that helps them to implement new strategies and maintain the quality of their products. |
Table 1: V4 model and SQFDC model
Activity 2: Evaluation of opportunities and threats by megatrends
| Megatrend | Issues affecting the organisation | Impact and Implications |
| Industry 4.0 | Industry 4.0 helps to develop interconnections and automation but it takes a lot of costs and power supply to use the features of this technology for business development procedures. | This helps to improve the productivity of this organisation and is helping to implement advanced technologies to maintain the quality of their products. This helps to maintain the flexibility in the working structure of the company as well as helps to improve their customer experience that helps to increase their customer base to get a competitive advantage in this industry. Other than this, this provides an opportunity for the management team of Chiang Mei to innovate their product for increasing the demand for their products ( Mushtaq and Haq, 2019). However, for this Industry 4.0, the organisation should have trained employees unless the employees are unable to use the features of this technology. It affects the organisational employee retention capability. |
| Role of digitalisation | The digitalisation process provides an opportunity for SMEs and small business organisations to improve their sales percentage. This increases the competitive scenario in this industry and the management team have to develop effective strategies in this scenario. | Digitalisation helps Chiang Mei to expand their business on a worldwide basis and provides information on the variety of their products. This help to increase the loyal customer base of the company and it provides a competitive advantage to step ahead of the competitors. However, the organisation has to bear the extra cost to maintain those technical issues and it affects the buying experience of their customer. Apart from this, this digitalisation process helps to maintain the sale percentage and profit percentage of the company in this worldwide pandemic situation. |
| Sustainability and social justice | This sustainability issue impacts the customer retention percentage of their organisations. Other than this, social issues can create hurdles in business opportunities and it can impact the social factors and it affects the goodwill of the organisation. | This company maintain sustainability in their products that provides the opportunity to use those products for several seasons and the organisation are able to social attention to their high quality of products. Social support helps this organisation to improve their ales percentage and this increase the income percentage of the organisation. |
Table 2: Megatrend issues and opportunities
Activity 3: Recommendations and evaluation
| Recommendation | Justification | Impact on stakeholders |
| Chiang Mei can implement a block chain analysis process in this organisational infrastructure. | The block-chain analysis process helps the organisation maintain the supply chain management process of the organisation (Kalodner et al. 2020). This help to maintain the resources of the organisation and therefore, it helps the organisation in lowering the cost of production of those products. | Customers – the customers are able to track their orders and this mitigates the risk of fake cases.
Employees – These help employees to have the raw materials and equipment in time hat maintain the work efficiency of those employees. Supplier – this help to maintain supplier to get proper payment and also the reminder to provide raw material to the company.
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| The organisation should have a proper technical team for resolving issues. | An organisation that use technologies in their development process, face such technical difficulties (Jamil et al. 2020). In this case, the technical team help the organisation to mitigate those technical faults as on a possible and maintain the overall workflow of the organisation. | Employees – employees have the advantage of using that technical facility to be accurate in their work and it improves the work efficiency of the organisation.
Investors– This reduces the risk of having the overhead cost and the risk of the unfulfillment of Chiang Mei . Customer– The employees are able to produce a large number of outlets and the employee’s are able to get their desired products in the meantime that maintain the quality of those products. |
| The organisation has to focus on maintaining the employee-manager relation. | This helps Chiang Mei to maintain the working environment and recognise the issues that are affecting their employee’s performance. | Employees- This will help the employees to focus on their work and improve their performance. This also helps them to have proper relationships with managers.
Investors – the employees are able to focus on their performance for which there is a low rate of waste materials and the investors gain profit and have to provide lower money back up. |
Table 3: Recommendation and evaluation
Activity 4: Critical analysis of industry environment
PESTLE
| Factors | Issues | Implication |
| Political | Political factors caused a change in rules and regulation and the organisation has to understand those rules the management develop an effective strategy based on those laws. | As a result, it changes the whole infrastructure of the company. |
| Economical | The organisation is unable to produce products for their customers and it increases the financial risk factors of the company. | The company are unable to implement new strategies and unable to maintain the cost of their technologies (Christodoulou and Cullinane, 2019).
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| Social | This issue decreases the goodwill of the company and the company are unable to maintain their customer retention rate. | The organisation is unable to maintain its sales percentage and it affects the profit percentage of Chiang Mei . |
| Technical | This issue impacts the quality of those organisational products and those customers cannot get that same quality. The employees cannot fulfil the goals of their organisation. | This impacts the customer experience towards the organisation and impacts the goodwill of the organisation (Niciejewska et al. 2021). |
| Environmental | Differential environment caused several issues such as it affects on the balance of the working infrastructure of the organization. | As a result, the organisation has to face internal issues that can impact the overall workflow o the organisation. |
| Legal | This creates hurdles in the case of having legal support towards the organisation. | The company are unable to run their business properly |
Table 4: PESTLE analysis
| Porter’s forces | Strengths | Justifications |
| The threat of new entrants | High | SMEs and small businesses try different types of strategies and innovative products for which Chiang Mei has to develop new strategies and planning processes (Bruijl, 2018). |
| Bargaining power of the customers’ | Medium | Nowadays, the organisation has to face issues for the customer as the customers have high bargaining capabilities and it can decrease the rate of income. |
| The threat of substitutes | Medium | Substitute products are not able to provide the same service and the customers may have trust in the organization. It decreases the ales percentage of the company. |
| Rivalry | High | Internal rivalry is one of the major issues that affect the productivity of an organisation and It impacts business development (González, 2019). |
| Supplier bargaining power | Medium | The bargaining power of the suppliers increases the cost of the organisation and they are unable to have quality based raw materials. |
Table 5: Porter’s five force model
Porter’s Five Forces
| Identification of the industry | Chiang Mei is a company that produces garments and clothing. This company is known for the quality of its products. This company cokes under fashion industry |
| Industry stage in the life cycle | The company is a renowned company in Thailand that is known for its quality based garments and clothing. The company used different theories and strategies that help it to achieve growth in its business. There are some substitute products and the company is trying to spread their business for which the organisation faces some losses in their business. |
| Implications | The organisation has to maintain the quality of their products and use the proper brand image in their products by which the customers are able to identify the authentic products. Other than this, they should use high-quality raw materials to maintain the quality of their products. |
Table 6: Industry identification
| Issues | Survival factor | Success factor |
| Substitute products | They are advertising for increasing the sales of their products to maintain their income rate. | They can use the brand image on their products by which they customer can easily identify the branded products and this maintains the customer retention o the company. |
| Fake news | They are providing customer service to maintain the trust of their customer for their brand and maintain their loyal customer base. | The organisation uses a block chain analysis process to maintain the transparency of the organisation by which customers can track their products and maintain their trust for the organization (Rocha et al. 2021).
Other than this, they are focusing on the customer engagement process by which they provide service to their customers and maintain their sales percentage. |
Table 7: Survival and success factor
Activity 5: Critical evaluation of Business to business relationships within the organization
In the case of the organisational development process, an organisation has to maintain business to business relationships and relations with its employees (Federici et al. 2021). This helps the management team to maintain proper working structure as well as the working environment in a company. A proper working environment helps the employees to maintain their working efficiency and improve their performance. Other than this, an organisation has to focus on their supply chain management and have to maintain proper relations for having quality-based raw materials and other equipment. This helps the organisation to maintain the workflow and fulfil the goals of this organisation. The management team of Chiang Mei take proper strategies and planning procedure to maintain the resources of their company and this helps them to get raw materials at a low cost. Proper business to business relations helps to mitigate the risk factor of the business process and improve the profit percentage of a company.
Apart from this, being a fashion industry-based organisation, Chiang Mei has to recognize the demand of their customer by which they are able to develop their products and fulfil their customer satisfaction. This helps the organisation to increase their customer base that helps to get a competitive advantage and it increases the goodwill of the company. This is the reason behind Chiang Mei has to develop effective strategies to maintain relationships with their customers. Other than this, the organisation can use advantages technology such as AI technologies, Block chain technology and big data analysis process that can help the management team to improve the performance of their employees and take identify the issues of their business procedure (Kalodner et al. 2020). Other than this, this also helps to identify the demand of their customer and produce products that can increase the demand for their products. This help to mitigate the overhead cost of the organisation and the management team is able to maintain the relation between business and the relation with their customer. The organisation focuses on developing their organisational products according to the demand of their customer. The organisation used several theories and business models to continuously develop their working efficiency and lower the production cost of its products.
2. COMPONENT 2
i. Evaluation of the strategy
Competitive advantage in stemming of strategy
The company of Atelier Chiang Mai is one of the most renowned “clothing manufacturer companies” of Thailand origin. Atelier Chiang Mai company is quite successful in properly implementing the several strategies that will provide them with enough advantage over other rival clothing companies present within the market arena. Analyzing the geographic location of the concerned company it is acknowledged that on the basis of the availability of resources “competitive advantage” depends on varied diversity of both natural and human resources that includes “water”, “climate”, “land”, “oil and natural gas” and “presence of both semi-skilled and unskilled labourers” (Stachová et al. 2019). “Porter’s generic model” will be used as an instrument that will help in analyzing “competitive advantages” on the strategies set forth by the company of “Atelier Chiang Mai”.
“Porter’s generic model”, is an effective model used in making a proper assessment on how any company can gain competitive advantage within the determined “market scope”. In properly applying “Porter’s generic model”, the fundamental strategy lies in gaining above “average profitability” that will provide success to the company in the long run (Keers and van Fenema, 2018). In “Porter’s generic model”, three generic strategies are used such as “cost leadership”, “differentiation” and “focus”. Thereafter focus strategy is segregated into “differentiation focus”, “cost focus”.
Figure 1: Porter’s Generic Model
(Source: Bao et al. 2018)
Cost Leadership
This aspect focuses on the company being the “lowest cost generator” within the industry and it is often varied and is based on the specific structure of a concerned industry. “Low-cost producer” is able to effectively use all the sources that furthermore contribute to “cost advantage” (Bao et al. 2018). “Atelier Chiang Mai” company uses four interrelated factors such as “factor conditions”, “demand conditions”, “supporting industries” and “firm strategy, structure and rivalry”.”Atelier Chiang Mai” seems to have easy availability of resources such as “water”, “land”, “unskilled and semi-skilled labourers” and many more. Due to this, they are able to reduce their cost and also they are successful in the application of modern technologies that furthermore helped in “delivery of cost and services”. “Atelier Chiang Mai” is using “efficient logistics” and a “low-cost base” that will help the company to follow a sustainable pathway.
Differentiation Strategy
The notion of “Differentiation Strategy” lies in the fact to provide better quality products that will be attractive to the targeted customers that the products offered by rival companies present within the market. Keeping this strategy of differentiation in focus, the company of “Atelier Chiang Mai”, seems to have effectively improved the factors such as “features”, “functionality”, “support”, “durability” and “brand image”. “Atelier Chiang Mai”, focussed on fields of research, innovation and development by application of smart technologies such as AI, and innovative ways to provide its customers with the best quality of products than rival companies. They seem to focus on providing their customers with “high quality” services and products. In addition, the company is applying “effective sales and marketing”, by giving lucrative offers and benefits different from rival companies, to their customers.
Focus Strategy
Application of Focus Strategy is based on a proper understanding of dynamics of the market and catering to the unique needs of respective customers. In addition, this company becomes successful in creating a “strong brand loyalty” that will help them gain a competitive advantage in the market arena (Bustinza et al. 2019). Company of “Atelier Chiang Mai” has successively ensured in adding up extra that will help in serving the “market niche”. The company has effectively contributed to a reduction in generating costs by applying appropriate knowledge of “specialist suppliers”. From feedback and reviews, the company is successful in acknowledging the exact needs of respective customers by increasing differentiation.
Development of issues regarding success in component 1
Reviewing the success components within the company of “Atelier Chiang Mai” an individual can evidence that the major component is that of “the greater value of the brand” of the concerned company. This is because the company has long established its roots and earned customer loyalty (Sullivan et al. 2018). The greater threat or issue can be that being a renowned company “Atelier Chiang Mai” is unable to change the pricing strategy whereas the new emerging rival clothing companies within the market are effectively attracting new customers by lowering their prices.
Another important thing that can be successful in creating issues within the company of “Atelier Chiang Mai ” is the availability of better quality raw materials. The company of “Atelier Chiang Mai” is known for providing the best quality of clothing materials to its customers within the market arena. The company may face problems in delivering good quality clothing material as day by day the rate of availability of resources is declining rapidly that in turn may raise the “cost of investment”, leading to less profit.
In addition, this company is successful in the implementation of modern and smart technologies but this also may tend to generate a few issues regarding the complex use of modern devices. In Thailand, it is evidenced that there is a lack of availability of skilled labourers and so the use of modern technologies may seem difficult in their application. Moreover, customers may face problems in communicating over online platforms as their apps are complex in their use.
ii. Prioritization of issues and development of successive strategies options
- Assessment of options using RACES and proposal creation
Assessment through effective application of “RACE” is beneficial in “Atelier Chiang Mai” company. “RACE” majorly focuses on “Reach”, “Act”, “Convert”, and “Engage” which is helpful to the company employers of “Atelier Chiang Mai”. This step by step process focuses on the entire “lifecycle of a targeted customer” present within the market arena and this strategy acts as a “marketing funnel” (Warsen et al. 2018).
“Reach”
In this step, the company focuses on building up strategies that will help in the creation of a brand catering to products and services offered by the company. This primarily focuses on generating “awareness of brand” among all the targeted customers based on the global market (Ghadimi et al. 2018). In order to extend the reach, companies of “Atelier Chiang Mai” have operated over various online and offline platforms such as “websites”, “social pages”. The company also led its focus on generating multiple interactions with its targeted customers worldwide by effective application of touch points that involves “paid”, “owned” and also “earned media”. The company also keeps track of “unique visitors”, aspects of “Value per visitors” and calculates “fans or followers”. “Atelier Chiang Mai” has used several tools to extend its reach to its customers such as “blogs”, “publishers”, “and search engines”. It is still having challenges in reaching its customers as it is facing problems in the political sphere.
“Act”
The step of “act” has primarily focused on “interaction”. Furthermore, notions of “act” seem to enhance interaction levels that help in creating effective leads. The notion of “generating leads” is crucial to any business firm and reviewing the current scenario it is acknowledged that all online marketers face the greatest challenge in lead creation (Berezin et al. 2018). In this step, the company focuses on generating effective and innovative ideas thereby taking up effective and potential actions that will help in encouraging targeted customers. Most of the time it is acknowledged that the company focuses on providing offers that will help attract customers thereby generating effective leads. “Atelier Chiang Mai” in this stage has effectively used several interactive tools that will help the company in taking up effective measures in the process of “decision making”. Leadership quality is not effective in its use in the concerned company.
“Convert”
In this stage, the process of conversion is applied through sales. In a company this process benefits in the generation of maximum revenues by instigating targeted customers to take up the most vital step to buy the particular service or the product offered by the company. This payment mode may be online or offline.” Atelier Chiang Mai” is successful in converting their targeted customers present within the market thereby effectively generating revenues and profits from the market. Due to the presence of other rival companies, it is quite difficult to convince target customers present within the market.
“Engage”
The final step in “the RACE framework” is that of “engage”, which tends to promote a “long term engagement” between customers and that of the company. In this step, the company focuses on customers from their very first buy from a concerned company (Cui et al. 2018). This is done in order to build up the aspect of customer loyalty, with the help of “repeat purchases” through effective communications. “Atelier Chiang Mai” has used tools for direct interaction over multiple online platforms such as through emails, social presence to boost the “life of the customers”.
Figure 2: Model of RACE
(Source: Cui et al. 2018)
Analyzing the current view of the present condition of “Atelier Chiang Mai” company acknowledged that it is facing big challenges regarding the massive growth of other clothes companies within the market. Several proposals can be suggested that will help in building up strong marketing and managing strategies, and as well eradicating economic factors and issues related to political spheres thereby helping the company maintain its balance within the market arena.
- Change of leadership strategies, which will help in effective utilization of time and other available resources present within the area. Leadership is important as it will help the company to take effective decisions that will help in generating revenues for the company and as well help in maintaining a balance between balance and supply within the market.
- The company should negotiate and update its policies with the policies of the government that will further help them in the generation of revenues and profits for the company.
- The company of “Atelier Chiang Mai” should adopt new marketing strategies which are different from its rival companies present within the market and focus on cost reduction. They also need to focus on reducing the prices of certain products as the new clothing industries are majorly focussing on lowering their prices and are providing huge offers to their customers.
- Explanation of resultant strategic direction
After making an effective analysis it is acknowledged that the company of “Atelier Chiang Mai” implements several strategies of marketing which involves “competitive strategy”, “corporate strategy”, “business strategy”, “functional strategy”, “operating strategy”. The application of all these strategies provides massive opportunities within the company by increasing the rate of generation of revenue and profit from the market (Liu et al. 2018). Proper application of these strategies also helps in enhancing the issues related to time management as well as issues related to leadership within the company. According to Xiong et al. (2017),” Business strategy” will help in effective retention of the customers within the company and help in increasing the brand value on a global basis. These strategies will also help in gaining a competitive advantage over rival or new entrant companies.
iii. Defending proposal and preferred strategic direction explaining the appropriateness of all stages
Implementation of “corporate strategy” will successively help in enriching the business operations of the company in terms of “competitive angle”. Here, the company focuses on the “management’s action plan” and thereby the company also sets strategies that will help in fulfilling the objective of increasing the level of customer satisfaction by devoting their hearts and customizing products and services based on specific requirements of targeted customers present within the market arena (Benítez-Ávila et al. 2018). “Atelier Chiang Mai” company tends to apply various tools to make both direct and indirect interactions with their customers and provide them with lucrative offers. Companies can also focus on making their products attractive as it will help them gain more and more customers from the market. “Atelier Chiang Mai” company is also focusing on effective analysis of feedback and reviews of their customers for enhancing their loopholes. Application of “corporate strategy” will help to gain a competitive advantage over the new entrants as well as pre-existing rival companies within the market.
Application of “corporate strategy” is effective in the company of “Atelier Chiang Mai”. According to Hoffman (2018), this strategy helps companies to develop their vision, objectives and as well as “allocation of resources” and also “prioritization of strategic trade-offs.” Furthermore, this will support the company to effectively meet its immediate objectives set forth by the concerned company as well as effective use of the availability of resources. This will help the company to maintain the quality of services and products offered to their customers.
It will be highly effective if “Atelier Chiang Mai” company applies “business strategies” within the firm. The “business strategies” will help companies to make a formulation of “business unit level”, thereby assisting in building up the competitive position of the company catering to their services and products. Moreover, this strategy will help in the effective management of time and as well enhance leadership qualities. Enhancement in leadership qualities will help companies to maintain a balance between the graphs of demand and supply (Yu et al. 2018). In addition to this, it will help in minimizing the “cost of investment” which will increase the aspect of profitability. As stated by Mazzucato and Robinson, (2018), this strategy also helps in setting up long term goals that will provide benefits to the company. This also helps in setting up action plans related to “business strategy” and supports companies with generating value for their targeted customers.
“Functional strategy” will help in enhancing the level of productivity within the company of “Atelier Chiang Mai”. “Functional strategy” focuses on approaching a specific functional area within the business operations and therefore comprises “human resource strategy”, “financial strategy”, “production strategy” and “marketing strategy” (Davies et al. 2017). The company of “Atelier Chiang Mai” needs to focus on the aspects of technology due to the complexity in the use of modern and smart technologies by unskilled and semi-skilled labourers. The company should focus on developing their employees by providing them with skill learning sessions (Baharmand et al. 2017). The company of “Atelier Chiang Mai ” can gain a competitive advantage over other rival companies within the market arena if the company keeps its competitive strategy at low costs. Companies should also focus on “advertising strategies’ ‘ that will help in generating successive leads.
Lastly, notions of “operational strategy” is significantly important in its applications in the company of “Atelier Chiang Mai ”. This will help in providing an enhancement in “sales zones” within the company and thereby the proper achievement of annual goals within the specified period of time (Rosado-Serrano et al. 2018). As opined by Jones et al. (2017), the operational strategy involves six main components such as “designing and positioning of the system of production”, “focusing on facilities related to production and manufacturing”, “resource allocation”, “usage of technology and development of processes”, “planning of layout, capacity and facility”. All these aspects will help the company to elevate its methods and procedures thereby balancing a graph of demand and supply (Verweij et al. 2017). The company of “Atelier Chiang Mai ”, will be highly beneficial as pepper selection of technology will help the company to provide its customer with high-quality products and will support in retaining their trust.
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