BSS050-6 Strategic Management Assignment Sample 2023
Introduction
Strategic management is accounted as the key process of ongoing planning, analysis, monitoring as well as assessment of all the key necessities a business firm requires for addressing key goals and objectives. Change in the business atmosphere would require the business firms in consistently assessing their respective strategies in order to gain success. In the field of management, strategic management is found to ensure involvement of the formulation as well as implementation of key goals as well as initiatives adopted by the business firms on behalf of the stakeholders. This is determined on the basis of the resource consideration as well as evaluation of internal along with external atmosphere in which the business firms Study Active operates. Study Active is identified as a business firm in the UK which offers personal training courses as well as fitness qualifications. Other than this, it is a leading provider of the certified “CIMSPA & REPs” which are accredited in terms of personal trainer courses and fitness qualifications. The purpose of this report is to shed light on the business operation of Study Active through the application of key theories and tools into practices. This would be determined through the help of PESTLE analysis, Porter’s five forces; resource based value, VRIO, Value Chain as well as SWOT analysis.
Evaluation by application of tools and theories into practices
PESTLE analysis
| Factors | Impact |
| Political | ● The UK government is identified to ensure establishment of a stable political environment in order to seek maintenance of a potential relationship with Queen Elizabeth II.
● The prominent impact in terms of “No Deal Brexit Decision” is being offered to be prominent which can be determined on the basis of referendum through incorporation with potential techniques. |
| Economical | ● There is a decline in the rate of inflation from around “2.0 to 1.75%” which has been identified. This might lead to significant profit in the UK.
● There has been a prominent reduction of the corporation tax rate to 19%. It is regarded as the key factor with respect to the development (BBC, 2021). |
| Social | ● Population of the UK is identified in enjoying diversified culture. This states that the sports embrace a diversified mindset.
● On the other hand, the population of the UK is recognised to be around 66.8 million with the reports that has been published in the year 2019. This would also help the sports firms in acquiring key insights. |
| Technological | ● It has been identified that the UK is an established hub with respect to the technologies thereby seeking determination and facilitation of key opportunities with respect to advancement as well as evolution.
● Creation of feasible as well as attractive helps in the determination of growth along with development. |
| Environmental | ● Sports business firms in the UK aid in providing sports products. Environmental factors aid in posing an impact on the product quality with respective selection.
● Sports firms in the UK are required to abide by the “Environmental Protection Act 1990”. This can help the business firm in the reduction of carbon footprints. It would also minimise key challenges which have been posed with regards to the environmental degradation. |
| Legal | ● “Data Protection Act 2018 (c. 12)” has been incorporated as it would focus upon the personal details of consumers as well as workers which cannot be leaked.
● “Copyright, Design and Patents Act 1988” is required for the purpose of entailing full control over the operation of sports firms. |
Table 1: PESTLE Analysis
(Source: As Inspired by Perera, 2017)
Porter’s Five Forces
Figure 1: Porter’s Five Force Analysis
(Source: As Influenced by Lee et al. 2021)
| Factors | Impact |
| Threat of new entrants | High |
| Threat of Substitute products | Low |
| Rivalry among the existing firms | High |
| Bargaining Power of Suppliers | Low |
| Bargaining Power of Buyers | Low |
Table 2: Porter’s Five Force Analysis
(Source: Created by the Author)
Analysis
Porter’s Five Force Model helps in the assessment as well as evaluation of the competitive positioning as well as strength of business firms. The overall competitiveness of the industry aids in the declination when the factors tend to reduce profitability. Incorporation of this framework can help Study Active to ensure determination of the industry attractiveness thereby understanding the competitive positioning in the market (Schlömer-Laufen and Rauch, 2020). The analysis has been further used in making wise decisions strategically for the improvement of performance of Study Active thereby determining long term survival. Threat of new entrants performs how the new players in the market impose threats to the existing players of the market. In the case of Study Active, it can be identified that the threat of new entrants turns out to be high. Entry in the industry is identified that it needs substantial resources as well as capital investment. Threat of Substitute products and services turns out to be low as switching cost of using the product substitute turns out to be high. Customers in this case might not derive the same utility from the substitute product as they derive from products of Study Active. Rivalry among the existing firms turns out to be high for Study Active as there are only a limited number of players in the market and the growth of industry is determined at a faster rate. Study Active might face strong pressure from the rival industries which might limit each other’s potential growth. Bargaining Power of Suppliers is found to reflect prominent pressure exerted by the suppliers on the business firms thereby adopting key tactics such as reduction of product availability. As the bargaining power of suppliers is low, the power of weak suppliers might make the industry more attractive because of the high level of profitability along with growth potential. Bargaining Power of Buyers aims at indicating that the customers exert on the business firms for the purpose of acquiring high quality products at affordable rates with excellent customer services. As the power of buyers is weak, it would make the firm less competitive and enhance the profitability as well as ensure growth opportunities.
Resource Based Value
Figure 2: Resource Based View Theory
(Source: As Inspired by AYDIN, İ. and TÜTÜNCÜ, 2018)
The “Resource Based View theory” states that the business firms possess key resources which act as a subset that enables them in achievement of the competitive advantage in a significant manner. It also acts as a subset of those which leads to the determination as well as formulation of long term performance. Incorporation of the “Resource Based View Theory” would help in the determination of competitive advantage. Other than this, it can be also identified that this particular theory would aid in competing with each other for the purpose of attracting spectators, sponsors as well media coverage. Here, the institution promoters aid in playing an integral role in the management of reputation over a significant time period (Rydehell et al. 2019). This may be leveraged through the help of place branding strategies and in order to enhance the attractiveness as well as determine socio economic development of a destination. They are identified to face prominent challenges due to their competitors such as YMCAFit, The Fitness Circle as well as Educate Fitness. In this respect, it is therefore significant to analyse as well as understand the competitive dynamics in terms of the sports institutions. It aids in the incorporation of a wider perspective which takes into consideration the promoters as well as organisers thereby verifying the governance model impacts the key resources which are appropriate to the success.
VRIO
Figure 3: VRIO Analysis
(Source: As Inspired By Vitasari, 2021)
VRIO analysis is identified as an analytical as well as prominent technique which aids in the evaluation of the business firm’s resources and capabilities as an outcome of competitive advantage. The primary objective of this framework is to ensure assessment as well as evaluation of key resources of business firms such as Study Active on the prominent microenvironment levels. This also comprises the key financial resources, material resources, non material resources as well as human resources. It mostly focuses upon the insights and information of the market and acquires knowledge about the industry. Incorporation of the VRIO Analysis helps in the determination of resources which focuses upon the tangible as well as intangible assets where Study Active aids in controlling that can make usage of conceiving thereby seeking implementation of strategies (Loan, 2018). They are identified to face prominent challenges due to their competitors such as YMCAFit, The Fitness Circle as well as Educate Fitness. Study Active has aided in the combination with other business firms in terms of the promotion of the healthy lifestyle. In the field of management, strategic management is found to ensure involvement of the formulation as well as implementation of key goals as well as initiatives adopted by the business firms on behalf of the stakeholders. This is determined on the basis of the resource consideration as well as evaluation of internal along with external atmosphere in which the business firms Study Active operates. This also aids in signifying a proper educational lifestyle as well as ensure social lifestyle. Having discussed the history of Study Active, it is essential to understand the competitive analysis of the business. Other than this, it has been further identified that the business has the ability to evaluate the challenges faced by the sports students. In this respect, the business adds value towards its competitive advantage (Sinthupundaja et al. 2019). Study Active is identified to face significant pressure from its competitors Educate fitness, the fitness circle as well as YMCA fit. On the other hand, it has been found that the firm has helped a colossal number of individuals in terms of achieving their life goals and ensuring to continue their good work in the communities within a global interface.
Value Chain
Figure 4: Value Chain Analysis
(Source: As Influenced by Sakinah and Wibowo, 2021)
Value chain analysis is the process of evaluating each and every activity within the value chain in terms of understanding key opportunities. Through the application of Value chain analysis can help in the determination of the planning process as well as possible sources in terms of competitive advantage can be recognised. The business is accounted as a gathering of key activities which aids in sharing relatedness to some extent. The value chain approach also recommends that a business firm can consider the activities as a prominent source of economics. In the case of Study Active, it aids in catering key activities with the key arena thereby taking place in accordance with the value chain. The training of young talents is not connected with any of the types of productions (Hsiao and Shiu, 2019). The primary activities are “inbound logistics, operations, outbound logistics, marketing sales as well as services.” In this case, support activities turn out to be the infrastructure of the firm, human resource management, procurement as well as technological development. The key task of a training camp is to ensure identification of challenges and then offer solutions to the issues. These activities are considered as the primary activities of a prominent value shop. In this case, the creation of value turns out to be cyclical as well as sequential in terms of the prominent value chain. In this case, primary activities are in terms of identification of problems, solving them, choice, execution as well as control and evaluation. The creation of value logic is implemented in Study Active which aims in offering network services and at the same time ensures coordination of the network participants (Bolland, 2017). The value analysis framework is a prominent framework which helps in deriving competitive advantage and also prominently depends upon the primary as well as support activities which have been performed in a prominent manner. Furthermore, in the case of Study Active, competitive advantage can be attained through the help of cost leadership as well as differentiation.
SWOT Analysis
| Strength
● Always aids in striving for the establishment of sustainable partnership with regards to diverse communities. ● Offers “CIMSPA & REPs” services to each and every individual regardless of the age, background, race as well as religion. ● It determines partnerships so as to engage youths in various societal based programs. |
Weakness
● Study Active is identified to face lack of sufficient financing in terms of the projects in diversified facilities. ● The firm is found to face threat in terms of ineffective facilities of camping. ● Other than this, it has been found that adults in this particular movement have lack of key opportunities for growth as individuals. |
| Opportunities
● Purchase of advanced equipment can help in the improvement of fitness centres. Individuals wish to seek maintenance of a healthy lifestyle that would opt for institutions which can help them to fit effectively. ● Starting on the mission trips would help in increasing morale of both the members as well as the staff. |
Threats
● Establishment of more prominent gyms. ● Surge in competition ● Prominent pressure from the competitors Educate Fitness, The Fitness Circle and YMCA Fit. |
Table 3: SWOT Analysis
(Source: As Influenced as STUDY ACTIVE, 2021)
Analysis
Study Active is accounted as the prominent leader in offering fitness and gym training in the United Kingdom. It also aids in offering certifications for the professional gym instructions, nutrition as well as personal training. The institute uses a significant combination of online and physical learning so that it is an application learning process which is easy for the individuals to learn. Other than this, Study Active makes use of an effective learning strategy in which the students are being taught with theoretical segments of the online courses which acts as a practical part of the course on the campus site. For the purpose of enhancing competitiveness the business can determine growth and development.
Conclusion
Change in the business atmosphere would require the business firms in consistently assessing their respective strategies in order to gain success. From the above study, it can be concluded that through the help of internal and external evaluation Study Active would be able to ensure identification of areas where they are required to work and can ensure capitalisation of market share. Having discussed the history of Study Active, it is essential to understand the competitive analysis of the business. The creation of value logic is implemented in Study Active which aims in offering network services and at the same time ensures coordination of the network participants. It is also significant in understanding the competitors thereby offering students in identification of gaps of the business firms. The overall competitiveness of the industry aids in the declination when the factors tend to reduce profitability. Incorporation of this framework can help Study Active to ensure determination of the industry attractiveness thereby understanding the competitive positioning in the market.
Reference List
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