BSS050-6 Strategic Management Assignment Sample

BSS050-6 Strategic Management Assignment Sample

Introduction

Company and industry analysis together helps to provide direct insights on revenue growth and market share analysis of competitors. This study aims to analyse firm and industry analysis of Gabor Logistics to analyse its current status and to manage its top-line growth and bottom-line profitability. Gabor Logistics is a UK based logistics company that provides warehousing and storage facilities in activities for land transport (Gaborlogistics, 2023).

This company strategy has managed its courier services to main scheduled courier, same-day services and timed deliveries. Gabor Logistics offers a cost-effective courier service on same day that maintains great customer value. This start-up business has faced problems running its business in competitive marketplaces which would deal with strategic management and approaches analysis. Top competitor of Gabor Logistics is Elanders which has successfully managed its long-term business in logistics industry in UK.  This analysis aims to identify current position and issues of Gabor Logistics within its industry that affect its competitiveness besides its competitor.

Main body

Strategic Management Analysis

SWOT Analysis

Gabor Logistics has maintained its cost-effective courier services towards its key customer base while limited technological advancement has affected its business sustainability. This company has managed its strengths with cost-effective courier services that have attracted a significant customer base. Cheaper labour force in its warehouses and storage houses has ensured greater profitability (Gaborlogistics, 2023). This company has tactically managed its labour forces at cheaper rates in its warehouses and storage houses which have managed its greater profitability rate which become affected by inflation rate increment in UK. However, this company would benefit from having UK’s communication and transport advanced technologies which have allocated greater opportunities for this company. Gabor Logistics has limited technological investment on automated and new technologies. Operating cost has been increased due to inflation rate of UK (Ul-Hameed et al. 2019) which are weaknesses for this company. Additionally, Gabor Logistics would gain opportunities due to UK’s smart transport technologies and communication technologies would ensure greater innovation of Gabor Logistics (Goswami et al. 2020). Great customer intention on courier services is another greater opportunity for Gabor Logistics (Gaborlogistics, 2023). This company would face threats for rise of fuel cost would affect schedule and cost-effective courier service of Gabor Logistics. Intense competition from Elanders in the effectiveness of service management would affect Gabor Logistics’ sustainability (Goswami et al. 2020).

PESTEL Analysis

In Political factors, UK is a unitary state governed within a parliamentary democracy framework. Value of political stability of UK is 0.54 points from 2021 (Theglobaleconomy, 2023). Logistic services would face relief from political disturbance as UK is a democratic country which provides respect to customers’ demands. In economic factors, GDP is estimated to have fallen by 0.5% in December 2022 and annual output is estimated to grow by 4.1% in 2022 (Ons.gov.uk, 2023). Inflation rates have increased by 10.5% by surges in energy prices (Cnbc, 2023). In social factors, UK’s logistic industry is most advanced industry across Europe due to increased demands of customers. Customers’ online purchasing manner in UK has contributed £139 billion GVA from logistics sectors to UK economy (Logistics.org.uk, 2023). Current customer base has been seen to be highly interested in online purchasing which provides an advanced logistic industry in UK.

In case of technological factors, UK has an advanced e-commerce market which has contributed to the higher sustainability of UK’s logistics industry. Industry leading technologies and advanced innovation of technologies in UK have increased greater profitability for UK’s logistics sector (Orji et al. 2020). In technological advancement, ecommerce platforms become highly advanced along with innovative and higher technologies in UK’s logistics sector. Such ways, a sustainable and continuous improvement scenario for this sector has been allocated. In case of environmental factors, “Environment Act 2021 (c. 30)” has reviewed and revised plans for environmental improvement. UK has set its ambition to zero avoidable waste by 2050 and the target to remove plastic waste by 2042 (Gov.uk, 2023).

Logistic industry in UK would achieve advancement by having higher initiatives towards environmental sustainability. This would help this industry from packaging sustainability to transport efficiency for maintaining social and environmental benefits. From economic analysis of UK, it has been identified that the logistic sector in UK has contributed largely towards UK GDP. Hence, this sector would be highly beneficial in UK along with technological support, political stability and high demand of customers. In legal factors in UK, “Consumer Rights Act 2015 (c. 15)” has protected rights for customers and “Employment Rights Act 1996 (c. 18)” has mentioned rights to employees in UK industries. Legal initiatives of UK has protected employment and customers benefits and rights which helps to keep logistics towards responsibility and to maintain sustainable relationships with customers.

VRIO Analysis

VRIO analysis helps in evaluating different resources that can give the idea of organising marketing positions of businesses. It would assist in controlling different contributions of marketing and value added services that are responsible for maintaining growth opportunities.

In the case of Gabor Logistics, this analysis can improve the delivery based operations with innovation and digital technologies. According to Miethlich and Oldenburg (2019), it can allow employees to provide required support within their service management operations and reduce critical issues in distribution management activities. Through the assistance of resource management operations, employees can make changes in their resource based operations and sustain competitive advantages depending on requirements.

Flexible supply chain operations give the improvement in distribution processes with innovative logistic based services depending on demands of consumers. Digital technologies enhance quality of digitalisation and delivery based activities that improve clarity in business operations. Structured and professional delivery operations create opportunities in engaging qualitative results for business employees and owners. As followed by Amaya et al. (2022), continuous innovation creates productive and delivery management operations by reducing complications in performance development activities. It can give allowance to this business to develop their existing business functionalities and avoid critical issues according to expected requirements. In this way, flexibility and structure can be modified to achieve their organisational goals and objectives depending on marketing demands.

Value Chain Analysis

Gabor Logistics has a collection of activities which have designed its business value and effectiveness which have been analysed by value chain analysis. This analysis would examine its internal activities for analysis its current position in competitive advantage over competitor, Elanders.

Primary activities

Gabor Logistics’ inbound logistics have covered up retail businesses that are attached with technical production, engineering, manufacturing, printing and exhibitions. In case of operation, this company has designed its warehouses and storage with cheaper labour forces which have made sure its effective transforming inputs into sustainable courier service maintenance. Outbound logistics have been ensured in this company accurately towards customers and maintaining on time delivery and cost-effective services. Marketing and sales is most effective process in business activities which keep strong sales of business offers (Kakalejčík et al. 2020). Gabor Logistics have managed its advertising, promotional activities using digital marketing tools which have successfully drawn significant attention from target customers (Gaborlogistics, 2023). Along with this, service is most effective while customers have received their products on time with affordable courier service offers from this company.

Support activities

Technology Development is identified as a limited zone for Gabor Logistics in which this start-up business has lacked from its top competitor Elanders. Its e-commerce site and supply chain technologies are identified as not strong such as Elanders. Procurement attains along with maintaining effective delivery time management strategy (Gaborlogistics, 2023). Human Resource Management has set a cheaper labour force in its warehouses and storage factories which have allocated greater profitability for this company. As identified by Pham et al. (2020), human resource management is considered as a key feature for companies to ensure its valuable internal business operation management with quality and profitability management efforts. In case of Firm Infrastructure, Gabor Logistics is not accurate in current business context which has limited its strategic management in competitiveness enhancement over Elanders due to its limitation in technological advancement in services and supply chain activities.

Strategic Approaches Analysis

Porter’s five forces Analysis

Porter’s five forces consist of a total of five forces which helps to analyse competitiveness of Gabor Logistics. Along with this, this analysis manages its strategic approaches towards more advantage management over internal business activities management.

Competition in the industry

Gabor Logistics have faced intense competition from Elanders as this company has developed its effectiveness and sustainability towards customer management and courier service approach. As mentioned by Distanont and Khongmalai (2020), competition is a contest between rivals which keeps one competitive against the other. Based on competition, start-up company Gabor Logistics has to develop its competitiveness against Elanders to ensure a sustainable future. This force is most high for Gabor Logistics which has negatively affected its business operation and activities with limited technological advancement.

Potential of new entrants into the industry

New entrants’ potentiality is a high force for Gabor Logistics as UK’s logistics sector is growing and most of entrants have developed their intention to enter into this sector. New entrants have identified benefits of profitability in UK’s iconic industry logistics which would significantly attract various businesses towards generating high force to Gabor Logistics.

Power of suppliers

Suppliers’ influence is most observed feature in logistics companies as supply chain activities are major activity zones in these businesses. Gabor Logistics would face this as a high force which would facilitate its successful courier service. As identified by Benton et al. (2020), suppliers have used to ensure delivery of business products and services and this would ensure more profit generation strategy for companies. Expansion of logistic business in UK has increased supply power within this industry actively.

Power of customers

Power of customers in logistics remains always high as the whole sector is developed based on demands and expectations of customers. Gabor Logistics aims to maintain its courier services in a cost-effective and timely manner to manage its customers’ attention (Gaborlogistics, 2023). Hence, this force is high for Gabor Logistics which would insist on its strategic approaches in business operational activities management.

Threat of substitute products

Logistics service is an innovative approach of traditional business where customers have received their products online service advantages. Hence, the alternative of this service is not significant and Gabor Logistics would face this force as a low force. This would keep its strategic approach to serve customer services as of their existing processing manner.

Resource based value

Resource based value (RBV) is a model that identifies resources of Gabor Logistics to access its firm superiority as resources are identified as significant components to gain competitive advantage.

Resources as per RBV model are tangible, intangible, Heterogeneous and immobile resources. As mentioned by Aydiner et al. (2019), tangible resources are physical assets and intangible resources are assets that have been owned by companies. In case of intangible assets, Gabor Logistics have a reputation in the market providing cost-effective and on-time courier services towards customers (Gaborlogistics, 2023). Along with this, tangible resources become limited for Gabor Logistics as it has limited technologies than its key competitor, Elanders. As analysed by Dubey et al. (2019), heterogeneous resources are skills and capabilities of companies while immobile resources are counted as knowledge or intellectual property of companies. Gabor Logistics has developed its business activities along with maintained skills of chapter labour force in its warehouses and storage factories (Gaborlogistics, 2023). This has ensured Gabor Logistics’ capabilities towards earning more profitability. On other hand, cost-effectiveness and knowledge for maintaining its on-time delivery services are its immobile assets. Hence, it has been identified resources are capable enough in Gabor Logistics to maintain its greater competitive advantage within UK’s logistic industry. However, limitations of technological effectiveness have affected its competitiveness over Elanders and would negatively affect a sustainable future in target marketplaces.

Capabilities

Capability analysis helps a business to access its specifications and requirements. As identified by Mikalef and Krogstie (2020), business capabilities describe abilities of companies to act and transform business activities towards achieving set business goals. Gabor Logistics is capable in logistic services as of maintaining its intangible resources in which this company has maintained its sustainable action and effectiveness to provide on-time delivery and customer satisfaction to target market. However, tangible resources have faced ineffectiveness due to limited technologies in supply chain activities and e-commerce management. Its competitor, Elanders is capable enough to deal with advanced technological implementations which have access to more brand images than Gabor Logistics.

In tangible resources, Gabor Logistics in such ways become incapable enough of limitation of physical resources towards competitive advantage management. On other hand, this company has managed its HR management skills, maintaining a cheaper workforce in warehouses and storage factories towards successful management of this company. In immobile resources, Gabor Logistics has maintained its cost-effective courier services towards customers dealing with higher capability of this company towards maintaining customer relations and customer satisfaction rate management (Gaborlogistics, 2023). Hence, Gabor Logistics has set its capabilities towards responsible management towards customers while its capability in sustainability management has affected its business activities contexts. In case of competitive advantage, this company has faced limitations in such a way which have affected its innovation and sustainability of business approach towards target customer base.

Conclusion

From above analysis, it can be summarised that internal and external environmental factors have set competitiveness advantages for Gabor Logistics in UK. In internal business activities, this company has set its goal for maintaining cost-effective courier services towards customers along with managing on-time delivery services which have greatly assisted brand image and recognition. Beside this, this company has faced a threat due to limitation of technological advantages which have limited its competitiveness in front of competitor, Elanders. On other hand, external environmental factors in UK’s logistic sector have set a great advantage for Gabor Logistics to gain and sustain key customers and target marketplaces. Resources are real assets for companies towards maintaining greater competitive advantages in target market while this company has successfully managed its intangible resources such as good brand image and recognition. However, beside its competitor, this company has highly limited innovation and creativity management along with technological advancement which have affected its sustainable future in UK’s logistics market. Hence, it can be concluded that Gabor Logistics has to develop its innovation including effective technologies for sustainability management in target marketplaces along with gaining competitive advantages.

References

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Cnbc (2023). UK inflation rate dips for second straight month to hit 10.5%. Available at:  https://www.cnbc.com/2023/01/18/uk-inflation-rate-dips-for-second-straight-month-to-hit-10point5percent.html#:~:text=Inflation%20rates%20have%20spiked%20across,Russian%20oil%20and%20gas%20supplies [Accessed on: 01 February 2023]

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Gaborlogistics (2023). Gabor Logistics- Our Services. Available at: https://www.gaborlogistics.com/courier-services/ [Accessed on: 31 January 2023]

Goswami, M., De, A., Habibi, M.K.K. and Daultani, Y., (2020). Examining freight performance of third-party logistics providers within the automotive industry in India: An environmental sustainability perspective. International Journal of Production Research, 58(24), pp.7565-7592.

Gov.uk (2023). Summary of targets in our 25 year environment plan. Available at: https://www.gov.uk/government/publications/25-year-environment-plan/25-year-environment-plan-our-targets-at-a-glance#:~:text=National%20Adaptation%20Programme-,Minimising%20waste,waste%20by%20end%20of%202042 [Accessed on: 02 February 2023]

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Miethlich, B. and Oldenburg, A.G., (2019). The employment of persons with disabilities as a strategic asset: A resource-based-view using the value-rarity-imitability-organization (VRIO) framework. Journal of Eastern Europe Research in Business and Economics, 1, pp.1-13.

Mikalef, P. and Krogstie, J., (2020). Examining the interplay between big data analytics and contextual factors in driving process innovation capabilities. European Journal of Information Systems, 29(3), pp.260-287.

Ons.gov.uk (2023). Gross Domestic Product (GDP). Available at: https://www.ons.gov.uk/economy/grossdomesticproductgdp#:~:text=GDP%20monthly%20estimate%2C%20UK%3A%20December%202022&text=Monthly%20real%20gross%20domestic%20product,growth%20of%207.4%25%20in%202021 [Accessed on: 31 January 2023]

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Ul-Hameed, W., Mohammad, H., Shahar, H., Aljumah, A. and Azizan, S., (2019). The effect of integration between audit and leadership on supply chain performance: Evidence from UK based supply chain companies. Uncertain Supply Chain Management, 7(2), pp.311-328.

Appendices

Appendix 1: SWOT Analysis

Appendix 2: PESTEL Analysis

Appendix 3: VRIO Analysis

Appendix 4: Value Chain Analysis

Appendix 5: Porter’s five forces Analysis

Appendix 6: Resource based value

Appendix 7: Capabilities over Resources

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