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Porters Five Forces

Strategic Management

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Question 1: Analyze 5 porter power in case? (If there 7 forces in the case add it)

Answer: Porter's Five Forces: Porter's Five Forces as identified in the case are as follows:

Industrial Competition

Because rivalry is extreme from FedEx and UPS, current players like Airborne Express will find it really difficult to gain sustainable revenues

Threat of New Entrants

The present players like Airborne Express will be prepared to gain less profit because of the powerful risk posed by fresh entrants(Baxter, 2019).

Power of Suppliers

Suppliers have powerful negotiating authority and will, therefore, obtain greater prices from those in the Airborne Express

Power of Consumers

Customers have powerful bargaining power and thereby also tend to lower prices, thus restricting the revenues Airborne Express generates(Baxter, 2019).

Threat of Substitute

Because the substitute threat is real, Airborne Express should either rely on R&D on an ongoing basis or run the risk of losing out to business disrupters

Question 2: What rational reason behind acquisition And what must happen to be successful?

Answer: Acquisition strategy is important for al the business organization in order to improve the overall business organization in an efficient manner. For that reason this organization also needs to merge with other local organizations and it will help this company to grow faster in operating market(WidyaYudhaand Tjahjono, 2019). At the same time, implementation of acquisition strategy will reduce the chances of risk leads to sustainable organizational development. It is important for Airborne Express to connect with various small organizations in different parts of the world and it will help this company to operate the business centrally that leads to improve the overall working excellence as well as financial position of the organization.

Question 3: Recommended CLS,BLS , green strategy and evlaute it by new balance score card and KPIs

Answer: CLS and BLS Strategy of Airborne Express

Implementation of CLS strategy is vital for this organization because it will help this company in managing the both legislative and regulatory policies in an efficient manner that leads to get more competitive advantages in operating market (ROSLI, Ismailand Ahmad, 2019). At the same time, Airborne Express will follow the Bureau of Labour strategy perfectly to grab the attention of more experienced talents in this organization. It will also improve the rate of employee retention.

Green Strategy of Airborne Express

The major green strategies of this organization are-

• Make lean and green production for more cost advantages

• Fulfill all the legal requirements to avoid the legal obligation in near future

• Branding all the products and services with environmental arguments to increase the overall customer value

Balance Scorecard and Key Performance Indicator for selected organization

The total concept of KPI and a BSC is mainly aligned each and individual workers' performance that are directly linked with long-term strategic goals of an organization (ROSLI, Ismailand Ahmad, 2019). Airborne Express will use Measurable, Achievable and specific objectives to manage the overall organizational operation in an effective manner. The main strategic focus of Balance scorecard is to enhance operational excellence.

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Objective

Measure

Frequency

Target

Initiative

 

Financial Result

Manage Cost

Operating and managed cost

Monthly

Reduce cost and improve profit margin

Maintenance of Benchmarking study

 

External Relationship

Manage Performance

Customer feedback

Monthly

Increase number of loyal customers

Improve the computerized work and satisfy all the customers

Operational excellence

Customer complaints

Weekly

 

 

Internal Processes

Improve business process

No. of improved process

Quarterly

Gain more certification for effective brand image

Fulfill all the requirements that are essential for international standard certification.

Achieve international standard certification

Progress and fulfill all the criteria

yearly

 

Improve Health and Safety

Identification of incidents and preserve specific corporate culture

Half yearly

 

 

Learning and Growth

Improve employee engagement

Motivate and implementation of leadership

 

Improve the performance of each and individual employees

Conduct training and development program to trigger working excellence

Effective training and skill development program

Identify the performance and conduct training program based on requirements

 

 

PESTEL Analysis

Political

Some political factors have had some difficulties, such as altering governmental structures(WidyaYudha and Tjahjono, 2019). In addition, governmental approach, taxation policies and economic uncertainty are the variables that should always be evaluated

Economic

The economic factors include the inflationary pressure on aggregate demand, changes in currency fluctuations and economic trends

Social

The main social factors also include considerations of recreation, the approach towards consumer and workplace health and safety and altering demographic circumstances(Galpin, 2019).

Technological

Technological factors like those of specializing in state-of-the-art technology, enforcing technology development are essential for the organization to reduce costs and achieve cash flow

Environmental

A powerful waste management mechanism should be pursued by Airborne Express in accordance with environmental standards and laws as well as participating in an active recycling

Legal

Environmental regulations, safety and health regulations, data security regulations and other legislation such as financial regulations  are essential to comply with

VRIO Analysis

Resources

Value

Rare

Imitability

Organizational Competence

Competitive Advantage

Economic Outcome

Intellectual Rights

YES

YES

NO

NO

High Competitive Advantage

Above Average

Marketing Strategy

YES

NO

YES

YES

High Competitive Advantage

Below Average

Financial Resources

YES

NO

NO

YES

Medium Competitive Advantage

Average

Cost Competitiveness in Market

YES

NO

YES

YES

High Competitive Advantage

Above Average

Leadership Management

YES

NO

NO

NO

Temporary Competitive Advantage

Average

Geographical Market Presence

YES

NO

YES

YES

High Competitive Advantage

Average

TOWS Analysis

External Factors/Internal Factors

Strengths (S)

-    The business manages to exploit various client categories in the Strategy & Execution section

-    The organization seems to have a massive network of dealers as well as collaborators

-    Depending onto the transaction, the organization seems to have a streamlined pricing scheme for its clients

Weaknesses (W)

-    High costs in the organization to replace current specialist

-    The market share is declining in a rapid pace due to the strong performance of the competition

-    Lack of  thoughtful and aggressive marketing strategy

Opportunities (O)

-    Enhancement in the relationship between the roadway packaging carriers

-    Increase amount of consumers adopting the online services

-    Recent acceleration in the technological advancements

SO, Strategies

Using the internal strengths (S) to gain advantage over external opportunities (O).

WO Strategies

Using the external opportunities (O) to overcome challenges arrises due to internal weaknesses (W).

 

  • Investing in technology via multiple business execution strategy
  • Investing in more flexible marketing strategy via use of online services.
  • Trying to recover the lost market share by means of strong relationships among existing customers and roadway packaging carriers.

Threats (T)

-    Product development strategy of the competitors

-    Lack of skilled workforce within the industry

-    Extreme level of competition from the likes of FedEx

-    Ever changing demographical conditions

ST Strategies

Using the internal strengths (S) in order to avoid external threats (T).

WT strategies

Using the external threats (T) to  cater internal weaknesses (W)

  • Product, service and area diversification
  • Well-experienced employees focus on greater margins through efficient general leadership of costs

 

  • Market volatility adequately reduces the risk of adverse effects in the case of a slowdown.
  • Impactful sustainability for general development as well as reduced inner threats

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