BSS050-6 Strategic Management Assignment Sample
BSS050-6 Strategic Management Assignment Sample
Introduction
Background
Gabor Logistics specializes in film, TV industries, and events, and also offers other businesses within a wide range of others. The organization generally collects and delivers costumes, props, furniture, camera equipment, and much more. The organization generally offers dependable delivery services to the customers to ease the hassle of any occasion and to make it easier and smoother. The organization offers its services to collect and return hired times across several locations in an effective manner (Gaborlogistics, 2023). The current study discusses the key organizational factors associated with the organization and demonstrates several business aspects and dimensions of Gabor Logistics to offer suitable solutions to them to increase their profitability and client satisfaction. The customer-centric attitude of the organization ensures the trusted reliability of customers across multiple industries. Furthermore, the key focus of the organization is to bind a strong relationship with the customers.
Problem statement
The current study eagle woody the multiple aspects related to the successful business regulation and handling of one of the reputed logistics and transportation service providers of the UK. The study aims at evaluating and discussing key trends of the particular industry, the strategic position, and the tactics of the organization. The main objective of the study is to offer a clear demonstration through which the business executives in the organization can understand the tactics and strategies of successful business regulation by formulating the stretch and weaknesses of the organization (Guerrero-Lorente et al. 2020). The global logistics system has been upgraded in several dimensional aspects and thus in order to get dominance the organization should rethink and reconsider the current marketing strategy to ensure business growth and client satisfaction. The study includes multiple aspects of business proceedings through which a clear understanding can be received for the organization.
Main body
Industry introduction
Structure of the industry
Logistics is a crucial industrial presence in the modern business world. This industry mainly focuses on efficiently delivering goods to the target customers. This industry is thus helpful for bridging the gap between the manufacturer, supplier and customers (Azeem, 2022). The supply chain can be crucial in setting up the interrelationship between these three factors. SCM includes a number of activities including production, manufacturing, planning, manufacturing and delivering.
Key drivers of the industry
This industry is highly modernised and upgraded sort of medium. In the successful functioning of the industry, several factors can be crucial. Information can be beneficial in tracking each process within the supply chain. This is necessary to build effective decisions at each step of the entire process. Inventory control can be an essential factor in managing operations this technique is helpful in optimising supply-demand operations within the organisation effectively (Park et al. 2022). Transportation is the most important driving factor for this industry. This can be essential in managing the operations of the associated organisations.
Industry value
The market size of supply chain management has encountered effective growth in the recent past. The operations of this industry largely affected the global market of the industry in several ways. In 2020, the global market value amounted to nearly 15.85 billion U.S. dollars. As per the above image, it is expected to reach almost 27 billion and 30 billion in the years 2025 and 2026 respectively. The market value of this industry is growing faster in the upcoming times to ensure better functioning as well.
PESTLE analysis for the industry
| Factors | Description | Impact |
| Political |
|
Moderate |
| Economical |
|
High |
| Social |
|
Low |
| Technological |
|
High |
| Legal |
|
Moderate |
| Environmental |
|
Moderate |
Table 1: PESTLE analysis
The industry has strong macro-environmental factors all around reading its political, economical, social, technological and legal aspects. The external environment of the industry is highly effective in deciding its role to control the global market by taking up effective activities (Roh et al. 2022). They can be important in managing the operations of the industry in a chosen geographical background. Different types of political environments can be necessary to make up for success in the operation. The competitive factor of the industry can determine its economic impact on growth (Azeem, 2022). The industry is largely dependent on its economic stability to make up for changes in its functions. Technological growth of the modern world has a strong impact on each industry by making them stronger in approach. Technological disruption may be beneficial for the company to reduce competitive risks and become profitable.
SWOT analysis of industry
Strength
|
Weaknesses
|
Opportunities
|
Threat
|
Table 2: SWOT analysis
The company may be beneficial by evaluating its strengths and weaknesses in the process of expansion. These two factors can be important to manage the prevailing opportunities and threats for the company in its functions. This can be an important factor in the management of organisational functions (Pinho Santos and Proença, 2022). A challenging economic environment can be crucial to evaluate the strength of the company. The supply chain of an organisation needs to be managed by taking up strategic implementations. Proper strategies can lead the organisation to its success.
Porter’s Five Forces analysis for industry
“Bargaining power of buyers”
The low switching cost and the minimum differentiation generally give the buyers “a lot of bargaining power” and thus the effect of this factor in this prayer industry is detected as high. Nowadays customers generally desire fast shipment with flexibility and transparency at an affordable price (Baxter, 2019). Special consideration of the customer-centric approach is needed for the logistics industries to gain a competitive advantage in this regard.
“Bargaining power of suppliers”
The bargaining capacity of the supply is very low because a lot of suppliers can be found in the current market and the industry has the option to choose from them. Thus the suppliers do not have enough scope to challenge the existence of “logistic industries”.
“Threat of Substitution”
This particular factor is identified as “low”. The logistics industry is one of the fastest-growing industries and offers several types of services at different costs. Thus it would be difficult for the other industry to copy the marketing strategy of the logistics sectors and to gain a customer base (Zelkowski et al. 2019). The customers have to depend on the logistic services for delivering any products or services and thus the entrance of the new substitute is not possible here.
“Threat of New Entry”
It can be said that the influence of this factor can be high in the logistics sector. This particular industry offers great profit and value and is a source of interest in several emerging industries across the globe. The reason is that high-profit generation, the scope of expansion, and fewer rules and restrictions of the government make entry easier for the new entrance in this aspect.
“Competitive rivalry”
This factor is high in “the logistics sector”. In the modern era, several competitors are laws in the current market. Because of the multiple scopes of high-profit generation and expansion criteria, this sector has become a source of interest to business entrepreneurs.
Key trends of the industry
The identification of the specific trends and specialty of a particular industry generally helps the marketer to understand the prices of business regulation and to gain insight into the business regulation tactics of the industries. The current trends of the logistic sector include supply chain agility, automation complexity, demand for “real-time data”, transparency of the supply chain for complex collaboration, and “digitally evolving business” (Lee et al. 2019). It has been further reported that the logistics sector will implement “predictive analytics tools” to detect anomalies, and “real-time operational data” and to find the area of development. The application of this technology will help the logistics sector in routine optimization.
Cone of plausibility
This method generally refers to the method of scenario generation which is used in intelligence production. The main objective of this factor is to evaluate how the situation can change by affecting several key factors (Costa-Leite, 2023). The global crisis and political and socio-economic events generally highlight the need and demand for the future development of the logistic actor. The flow of global logistics has dramatically increased because of globalization. The presence of many factors like technology, “skilled human resources”, infrastructure, mailroom services, and “integrated service providers” generally affects the overall business regulation and profit generation of the global logistic industries.
Current strategic position and tactics of the organization
The evaluation and analysis of the effective strategic approach of the organization generally ensure successful market expansion as well as gaining positive responses from the customers. The strategic position of the organization is quite satisfying as compared with the other competitors. Gabor Logistics generally makes careful decision-making choices about value creation and evaluates the effect of the value in its operational activities.
Furthermore, the organization has set a coup of tactics for better business regulation. These strategies or tactics further include the determination of the “transport logistic goals”, application of contingency planning” and the implementation of innovative technology and software.
Porter’s value chain analysis
Inbound Logistics
It refers to the warehousing, receiving, and inventory regulation of the raw materials of the organization. It further covers the relationship with the suppliers (Linkov et al. 2020). Gabor Logistics further follows effective strategies and tactics to deal with inbound locusts for smooth operation activities.
Operation
In this particular stage, the input of services or products is transformed into finished or semi-finished products. This is an essential stage that generally empires the effective delivery and production of the organization (Clay and Feeney, 2019). In this case, Gabor Logistics generally maintains effective strategies to handle this factor effectively.
Outbound Logistics
In this particular step, the materials are ready to deliver to different distribution centers, wholesalers, retailers, or customers. In other words, the delivery of the ready material is further known as outbound logistics (Facchini et al. 2019). Gabor Logistics generally considers this stage as one of the essential steps for making the business regulation more effective and delivering the products to the customers as soon as possible.
“Marketing and Sales”
In the specific process, the organization generally offers the products to the target customers and applies effective strategies to influence them so that they buy the products. Effective marketing strategies are applied by Gabor Logistics for the collection of effective revenue collection and to gain more attention from the great demographics.
Services
This stage includes the specific activity of the organization to maintain the products and sustain the consumer experience. Furthermore, the services generally include maintenance, customer service, refund, repair, and exchange. Gabor Logistics typically offers excellent service to customers through a wide range of their services.
Resource-based view
| Resource types | Valuable | Rare | Inimitable | Organised |
| Brand image | yes | no | no | no |
| International presence | yes | yes | no | no |
| Risk management | no | yes | no | yes |
| Adaptability | yes | no | no | no |
| Marketing communication | yes | no | yes | yes |
| Customer experience | no | no | yes | no |
| Technological innovation | no | no | no | yes |
| Financial stability | no | no | no | yes |
Table 3: VRIO analysis
Valuable
The resources help in increasing the power of the company to exploit the existing opportunities in the market. These resources are necessary to reduce the threats in the market as well. In the growth of an organisation, valuable resources are necessary for its further growth and expansion.
Rare
Rare resources help in analysing industrial development in order to make up competitive advantages. In a highly competitive background, rare competencies are necessary to benefit the firms in increasing their existing resources as well.
Inimitable
The competitive advantage of an organisation helps in increasing long-term sustainability. These resources are generally difficult and costly to imitate by the existing competitors.
Organised
Organised resources are individually organisation-based and solely for the purpose of the organisation. In the chosen company, these resources are necessary to exploit the existing opportunities to ensure further growth of the business. Financial and technological resources are necessary factors in managing organisational competencies.
Organisational competitor analysis
In the contemporary market, the company faces several competition from its rivals. In order to mitigate the risks of competition, the company need to be efficient enough in making up strategic implementations for the company. Royal Mail plc, Zendbos, Bezos, Movivan, and TBM are some of the active logistics organisations in the UK. Therefore, it is necessary for Gabor logistics to be more effective in its approaches. It is essential to makeup changes in their existing marketing policies and regulations to reduce the risk of competition. Each of the companies is focussing on technological upliftment in making up competitive strategies.
Customer services can be enhanced in order to make up for important changes in the supply chain processes. Data analytics can be helpful in managing the datasets for the organisation. It is necessary to use available data in order to improve competitiveness in the highly challenging market (Dehgani and Navimipour, 2019). Competitive markets can help in improving existing resources for the company. It is necessary to make up structural changes in organisational management. Collaboration is an important factor in the business enhancement of an organisation. Customer loyalty can be a huge beneficial factor in the growth of the business.
Conclusion
This essay concludes with a recommendation note for the chosen company to enhance its services. This company needs to be more efficient in making up strategic implementations in its process. Therefore, the company’s activities can be improved to retain more customers towards them. Proper usage of the advantages can be helpful for the company in making up decisions to reduce competitors’ risks. The better sport of labour availability can be helpful in the growth of the company. The internal and external environment of the organisation is necessary to consider in the process of strategic implementation. Exceeding in customer satisfaction can lead the company to conquer any existing competition in the market.
References
Azeem, F., 2022. The Influence of Inter-Organizational System Use and Supply Chain Capabilities on Supply Chain Performance: Supply Chain Capabilities. South Asian Journal of Operations and Logistics (ISSN: 2958-2504), 1(1), pp.20-38.
Baxter, G., 2019. A strategic analysis of Cargolux Airlines International position in the global air cargo supply chain using Porter’s Five Forces Model. Infrastructures, 4(1), p.6.
Clay, P.M. and Feeney, R., 2019. Analyzing agribusiness value chains: A literature review. International Food and Agribusiness Management Review, 22(1), pp.31-46.
Costa-Leite, A., 2023. Measuring and classifying levels of futures.
Dehgani, R. and Navimipour, N.J., 2019. The impact of information technology and communication systems on the agility of supply chain management systems. Kybernetes, 48(10), pp.2217-2236.
Facchini, F., Oleśków-Szłapka, J., Ranieri, L. and Urbinati, A., 2019. A maturity model for logistics 4.0: An empirical analysis and a roadmap for future research. Sustainability, 12(1), p.86.
Guerrero-Lorente, J., Gabor, A.F. and Ponce-Cueto, E., 2020. Omnichannel logistics network design with integrated customer preference for deliveries and returns. Computers & Industrial Engineering, 144, p.106433.
Jahan, S.A. and Sazu, M.H., 2022. The Impact of Data Analytics on High Efficiency Supply Chain Management. CECCAR Business Review, 3(7), pp.62-72.
Jermsittiparsert, K., Siriattakul, P. and Wattanapongphasuk, S., 2019. Determining the environmental performance of Indonesian SMEs influence by green supply chain practices with moderating role of green HR practices. International Journal of Supply Chain Management, 8(3), pp.59-70.
Lee, P.T.W., Kwon, O.K. and Ruan, X., 2019. Sustainability challenges in maritime transport and logistics industry and its way ahead. Sustainability, 11(5), p.1331.
Linkov, I., Carluccio, S., Pritchard, O., Ní Bhreasail, Á., Galaitsi, S., Sarkis, J. and Keisler, J.M., 2020. The case for value chain resilience. Management Research Review, 43(12).
Nguyen, T., Tran, T., Luong, T. and Luu, K., 2022. The effect of corporate social responsibility on green supply chain management and firm performance. Uncertain Supply Chain Management, 10(3), pp.807-818.
Park, S.R., Kim, S.T. and Lee, H.H., 2022. Green supply chain management efforts of first-tier suppliers on economic and business performances in the electronics industry. Sustainability, 14(3), p.1836.
Pinho Santos, L. and Proença, J.F., 2022. Developing return supply chain: A research on the automotive supply chain. Sustainability, 14(11), p.6587.
Roh, T., Noh, J., Oh, Y. and Park, K.S., 2022. Structural relationships of a firm’s green strategies for environmental performance: The roles of green supply chain management and green marketing innovation. Journal of Cleaner Production, 356, p.131877.
Sazu, M.H. and Jahan, S.A., 2022. How Analytics Can Improve Logistics And Supply Chain In Multinational Companies: Perspectives From Europe And America. Business Excellence and Management, 12(3), pp.91-107.
Tukamuhabwa, B., Mutebi, H. and Isabirye, D., 2021. Supplier performance in the public healthcare: Internal social capital, logistics capabilities and supply chain risk management capabilities as antecedents in a developing economy. Journal of Business and Socio-economic Development, 3(1), pp.50-68.
Zelkowski, J., Gontarczyk, M., Kijek, M. and Owczarek, P., 2019. Implementation of Porter five forces method for analysis and evaluation of courier services in Poland. WUT Journal of Transportation Engineering, 124, pp.193-205.
Websites
Gaborlogistics, 2023. “GABOR LOGISTICS”. Available at: https://www.gaborlogistics.com/ [Accesseed on: 13th February, 2023]
geektonight.com, 2023. “What is Value Chain Analysis”. Available at: https://www.geektonight.com/value-chain-analysis/ [Accesseed on: 13th February, 2023]
Statista, 2023 Size of the global supply chain management market worldwide Available at: https://www.statista.com/statistics/1181996/supply-chain-management-market-size-worldwide/ [Accessed on: 13th February, 2023]
wallstreetmojo.com, 2023. Porter’s Five Forces. Available at: https://www.wallstreetmojo.com/porters-five-forces/ [Accesseed on: 13th February, 2023]
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