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Introduction to Strategic Management

Strategic management is prominent subject matter of study of management. Execution of a plan requires implementation of principles that follow strategies framed by experts and management executives to attain objectives and targets (Galliers and Leidner, 2014). Conceptual implementation of various theories of strategic management have been carried out to provide a concrete plan for resolving issues of East African drought crisis.  Strategy helps a company in developing a winning edge over the competitive firms which helps in creating a unique and significant growth prospects within the economy. Different organizational evaluations are undertaken in order to understand the present business position and examine competitive moves as well (Galliers and Leidner, 2014). Based on the same strategic planning and implementation is carried out for the business units.

Strategies are often developed to earn competitive edge or profitability within the market. However business operation of Stratsynth Corporation is associated with nonprofit motives. The organization is working to contribute towards the development of underdeveloped companies which has low financial help within the market. Project Loon is an initiative of Chan Zuckerberg that includes attempts made for acquiring, delivering and operation of such equipments that are essential for supporting essential requirements of life so as to provide a boost to the pace of rapid development.

Application of strategic tools and methods is required to build set of effective directives so that it becomes easy to attain the core objective of enhancing the life style of people of geographical region considered in the project (Gorla, Somers and Wong, 2010). Brief explanation about these organizations includes quality considered for integration to achieve development of infrastructure utilizing products that promote social cause considered under the project Loon. Moreover, special emphases have been laid upon focusing on usage of products and models that would provide social aid to developing countries that will be major stakeholders of Stratsynth organization (Keupp, Palmié and Gassmann, 2012). Light strike vehicle and Rokon two wheel motorcycle are the core products to be considered by cited organization.

As stated earlier, the study work presented below is a research work conducted to highlight application of principles of strategic management considering given case study presented for establishment of Stratsynth Group. Melinda Gates and Priscilla Chan can be accredited for the efforts laid by them to bring about permanent aid and rehabilitation program. Such an extraordinary initiative will be named as Project Loon for providing assistance to countries that are on the path of development by laying emphasis on development of infrastructure. The stated project focuses to include strategic advice for establishment of corporation to aid victims of East African regions. As per the case evaluation, Melinda Gates interests in the firm producing the Pouncer Drone, the Spider Light Strike Vehicle and the Rokon two wheel drive motorcycle. This will help in enhancing the disease and flood stricken areas through effective delivery. Sincere efforts will be made for providing an ocean of knowledge to regions that are keen to succeed by preparing an accurate plan that will be supportive to provide aid against uncertain natural disaster (Gorla, Somers and Wong, 2010). The project will be based on ideology that it is extremely necessary to provide availability of essential life items to general public of regions that are affected by natural uncertainties to a greater extent. Primary focus of Project Loon will be on providing aid to victims of east African region including Ethiopia, Somalia, and Kenya, etc. Therefore, there is a wide scope for success of project Loon within these regions as various factors such as political, economical, and technological, etc are supportive in making the project effective (Priem, Li, and Carr, 2012).

Overview of Stratsynth Group

In order to develop strategic plans for business growth and development effective and well defined models will be implemented in the study. PESTEL analysis will help in examining the external factors affecting business operations. It will help in determining the factors which are beyond the control of the organization (Hazen and Byrd, 2012). This will help in evaluating the upcoming challenges associated with the business. Porter five force model will determine the competitive position for the business which will effectively contribute in designing and developing effective strategies. Strategic analysis of business operations will create significant measures for business which will help in outreaching the victims and people seeking for aid.

One of the most prominent subject considered within area of strategic management, includes analysis of external factors prevailing outside organizational environment. These elements existing within business environment are considered an important matter of subject for every business organization. It is essential to study and analyze the extent of impact of factors such as political, economical, socio-cultural, technological, and legal and environment factors. It is therefore required to research in detail for drawing inferences about such factors that are completely not under control (Keupp, Palmié and Gassmann, 2012). These external factors gave an abbreviation known as PESTLE analysis. Considering the importance of these macro-economical factors, it will provide a business landscape for Stratsynth Corporation. Each of the factors determined by PESTLE analysis provides in depth knowledge of impact upon organization cited in the project. Negligence of these factors would have adverse impact and thereby requires creating a balance between internal and external factors by designing effective resolution model that minimizes effect of these factors.

Political

Stratsynth group includes integration of government of number of countries located worldwide, as it has been formed for welfare of these regions (Hodgkinson, and Healey, 2011.). It is thereby important to gather all required information about how different economies are managed to analyze required attempts to be made to improve standard of living of citizens of respective countries. Gaining information about policies implied on different economies would enable the cited organization to frame most favorable policies for these regions. It will thus enable the cited group to highlight drawbacks of political authority and thus provide most suitable support system to enhance the quality of living of citizens of respective regions. It might so happen that government of certain regions would not appreciate the policies implied by Stratsynth group.

Technological

Technological factors include research and development activity that can be supported by respective regions wherein the project will be implied. Moreover, it is essential to draw inferences on extent of technological change that will be supported by residents of developing countries (Chen and et.al., 2010). As stated earlier, the project includes laying special emphasis on utilizing light strike vehicles and other two wheel motorcycles so as to provide aid during emergency situations like combat situation or surveillance (Rahm and Riha, 2012). These vehicles can also be used as ambulance or for transmission of crew members within short span of time. It is therefore essential to research in depth about availability of required technological assistance for exploiting benefits of such modernized equipments for welfare of people. Inadequate technological assistance and required manpower and experts from field of engineering and technicians would increase the cost of making the project successful within such regions.

Economical

Economic factors such as exchange rate, economic growth, pricing policies, market condition, and business cycles of countries must be considered in project Loon. It is important to analyze the extent of economic growth that can be achieved by aligning with such regions (Tallon, 2011). Excessive rate of inflation or deflation might make it difficult to achieve targets determined by project Loon.

Legal

Legal factors prevailing within a country will have direct influence on extent of success of cited organization for bringing about a change in social environment of developing countries for welfare of people (Al-Aboud, 2011). Moreover, there will be a need to gain complete knowledge of various laws implemented by government, as this will determine the overall costing to be incurred for achieving objectives determined by project Loon (Hill, Jones, and Schilling, 2014).

Socio-Cultural

Social and cultural factors that determine population growth rate, safety trends, health concern and culture followed by people determine the extent to which, people would align with policies of project. Receiving equal participation from people is equally important. Moreover, the project must provide ample of opportunities and advantages to economy wherein it will be implemented. Also, strategic application must align with social environment and behavioral pattern of general public (Hitt, Ireland and Hoskisson, 2012). Then only the project will be acknowledged as most beneficial one.

Environmental

Environmental factors are subject matter of concern. Factors affecting environment positively and negatively must be considered to ensure none of the activities or programs conducted as a part of project Loon would harm the environmental balance of specific geographical region. Climatic condition of participating countries must support the project so as to make it more effective for delivering maximum benefit for welfare of society. Environmental policies of such region must align with usage of products under project Loon.

Five forces analysis is prominent study work provided by Michael porter of Harvard University. After analyzing impact of various factors prevailing outside organizational environment, it is important to conduct analysis of factors that would determine level of competency that will be faced by Stratsynth group. Acknowledgement of factors determining level of competition would enable the top most authority to prepare efficient plans for carrying out activities more effectively then rivals existing within same area of social welfare programs. Stratsynth group’s core objective has therefore focused on bringing about a change in lifestyle of people by providing social support during crisis situation (Melville, 2010). However, numbers of organizations have been established that focus on similar objective and thereby provide a strong competition for cited group. Success of project depends on role played by suppliers and threat of organizations that would be new entrants. Usually, five forces model is applied for profit oriented business firm but here the model have been applied for drawing inferences about nonprofit oriented organization (Hazen and Byrd, 2012). Five forces model would thereby provide an example of benefits that would be attained by aligning analytical tools with nonprofit organization established for welfare of people (David, 2011). Factors determining competition and its extent have been explained in detail below:

PESTEL Analysis and Business Landscape

Industry rivalry

Taking a note of various social entities and nonprofit organization that form an industry for welfare of people is essential. Health, safety and social concern are important for organizations working for welfare of people. This would require the cited organization to be innovative enough to achieve targets determined in mission and vision statement.

Bargaining power of suppliers

Stratsynth group provides list of products and equipments to developing countries and regions that have been victims of natural calamities. It is therefore essential to attain appropriate cost structure plan of required tools so as to provide maximum benefit and social aid to victims regions facing problem of severe crisis (Wong and Karia, 2010).

Bargaining power of customers

Using this part of five forces analysis model, Stratsynth group will determine expectations of stakeholders that are developing countries. Expectations can create a pressure on cited organization. Moreover, level of dependency of these countries would determine required efforts to be made.

Threat of substitutes

Substitutes can be products, equipments, tools and techniques that would decrease the efficiency of cited organization in delivering social aid to participating countries. Organization’s image would be affected if it becomes difficult to attain objectives of social welfare as compared to those attained by rivals. Substitutes are products and tools used by rivals to serve the society better (Freeman, 2010).

Threat of new entrants

Stratsynth must be innovative and efficient enough to lead its rivals. Creating effective application of strategic principles is essential to withstand competition provided by similar organizations. This requires the cited organization to put in more efforts for understanding requirements of developing countries.

In order to effectively operate the business, analysis of organizational resources and capabilities are crucial. Stratsynth Corporation is the organization which is focusing on establishing a nonprofit organization to deliver effective and rehabilitation services to the in flood and disease stricken areas of East African Drought Crisis which have been disadvantaged by decades of warfare and economic denial. In order to meet the stated aim, resources and capabilities are significant to maintain for the business. The following model portrays functional aspect of Stratsynth Corporation.

            The value chain analysis will help the business operations in effectively evaluating the activities and attaining significant output form the process. The process will be crucial in aligning the internal business operations effectively in order to attain expected outcome for the study. The major components of the process include:

  • Money: This is one of the most crucial and significant input of the business and operational aspects in any field. It helps the organization in creating a well defined impact on growth and development measures (Hill, Jones and Schilling, 2014). High and significant requirement of money is essential to effectively meet the business purpose. It helps in completing the activities such as feeding poor, managing medications for the poor, developing education and measures etc. For project Loom, activities such as imparting education and manufacturing vehicles need significant investment by the associated people. Hence the organization has decided to attain the amount through pledges. This will results in generating well defined output for the business (Hitt, Ireland and Hoskisson, 2012). The organization will be able to spread awareness and ensure effective delivery of aid to needful in flood stricken areas. This will help in attaining business objectives.
  • Staffing: This is another crucial yet very significant aspect of business growth and development. It helps the company in creating a well defined impact on business growth and success. The staff will ensure in effectively attaining the business objectives of manufacturing vehicles and preparing them for the rescue programs (Liao, Chang and Wu, 2010). It will be significantly helpful in ongoing business activities. The output of the process will be measured through number of employees and its contribution in organizational success. The staff will be hired as per the vehicles needed and budget. This overall outcome will be increased organizational efficiency.
  • Volunteers: This business resource will focus on managing the operational aspects of the organization. Volunteers are the people who significantly contribute their efforts to attain business mission of social welfare and spreading awareness and knowledge (Mithas, Ramasubbu and Sambamurthy, 2011)). Volunteer training will be significant activities for organizational growth and development. It will help in easing the way to cope up with business issues within the market.
  • Facilities: This aspect relates to the infrastructural aspects of the organization. Adopting effective and well defined facilities for project Loom will result in attaining favourable business results while ensuring high and significant development aspects within the economy (Keupp, Palmié and Gassmann, 2012). Facilities related to rehabilitation or storage of aids and stuff will be crucial for business success. The overall impact will be significant and effective for attaining business objectives in a well defined manner. It will also help the organization in creating positive and useful prospects of success.
  • Equipments: Physical resources are crucial for commercial and non-commercial business activities. It helps in attaining the business objectives in a well defined manner (Mithas, Ramasubbu and Sambamurthy, 2011). These resources will help in attaining the aim of the business which will be deliver valuable services to the consumers while managing business activities in a well defined manner. it will result in improving the condition of people living in East Africa suffering with flood issues.

Figure 1 Value chain evaluation

(Source: Prajogo and Olhager, 2012)

  • Financial resources: Finance is the basic and most significant need of every business unit. It acts as the blood of the business which supports its operations widely. StratSynth Corporation is a nonprofit organization which will be established in order to meet the needs and demands of flood and disease stricken areas (Kumar and et.al., 2011). Its immediate mission is to enable the acquisition, delivery, and operation of essential life support items. Hence finance is crucial need of the organization. Funds for the operations will be collected through pledges.
  • Human resources: in order to effectively operate the business operations staff requirement is crucial. In order to attain the needs of StratSynth corporation need of effective employees and volunteers will be highly important. The organization will thus focus on managing an effective team of committed employees (Rohrbeck, 2010). In order to ensure smooth operations of the business staff will be prove to be a significant resource.
  • Physical resources: In order to attain the stated objective the organization is focusing on manufacturing the Pouncer Drone, the Spider Light Strike Vehicle and the Rokon two wheel drive motorcycle, specifically for rapid aid delivery. Physical resources are crucial in different aspects of social welfare. This will help in attaining the business mission significantly.
  • Capabilities: The study evaluated that StratSynth corporation will be establishing its operations in flood and disease stricken regions. Business capabilities for it need to be attained significantly. StratSynth Corporation has low competitive position within the market. Moreover it has been analyzed that attaining high growth within the economy, demands the business unit a well defined means of resources. The organization will ensure the same.

Strategic analysis and evaluation is one of the most crucial and significant part of business growth and development. Every organization operating within the market, irrespective of its purpose, focuses on developing effective strategies to ensure sustainability and growth of the entity. This helps in ensuring competitiveness and success within the economy. Mithas, Ramasubbu and Sambamurthy, (2011) stated that the impact of ineffective strategic planning is significant on business development measures. It results in creating a well defined impact on integrated business operations and analyzing goals as well. Strategic planning thus helps in ensuring that organizational goals are defined effectively and significant efforts are invested to achieve the same.

Different strategies are implemented and evaluated within the businesses to attain high developmental aspects. The present study focuses on Stratsynth Corporation which is currently working on project loon. The stated project focuses to include strategic advice for establishment of corporation to aid victims of East African regions. As per the case evaluation, Melinda Gates interests in the firm producing the Pouncer Drone, the Spider Light Strike Vehicle and the Rokon two wheel drive motorcycle. This will help in enhancing the disease and flood stricken areas through effective delivery. In order to attain the stated product and attain the business objective of social welfare aligning business operations with established organization is significant. Prospective organizations which may help Stratsynth Corporation in attain the mentioned aim are:

Jaguar

Jaguar is a British multinational firm which produces luxury cars for its consumers around the world. The organization has established its market around the globe. Quality and technology are the core aspects of business growth and development. Jaguar has been operating within the market from 1936 which has helped the business unit in developing significant consumer base. Effective manufacturing base and well defined brand name within the market has helped the business in attaining significant competitive edge. The luxury car models offered by the firm have developed significant demand within the economy.  The growth rate and demand for the products has helped the origination in making significant market value within the economy. However the luxury products have refined its target market to high income group of people.

Porter's Five Forces Analysis

Honda

Honda Motor Company Ltd. is Japanese Company which is basically a multinational conglomerate corporation and is primarily called manufacturer of the aircraft, automobiles, power equipment and motorcycles. Its headquarters are situated in Japan, Tokyo and Minato. It has several subsidiaries like Acura, PT Astra Honda Motor, Monesta Honda and many more (About Honda, 2017). The company has created a significant brand identity all over the world. Its diverse area of operations has helped in attaining high demand and growth within the market. The firm offers variety of products and services which has helped it in managing a significant range of consumers (Prajogo and Olhager, 2012). The target market of the business is all income level. The production aspect focuses on manufacturing of spare products to completed product.

Suzuki

 Suzuki Motor Corporation is Japanese multinational company which is specialized in the manufacture of four wheel drive vehicles, automobiles, all-terrain vehicles, motorcycles, wheelchairs, outboard marine engines and many other small internal combustion engines. It has employed more than 45,000 employees around the world and has 133 distributors in 192 nations and 35 major production facilities in 23 nations. The organization is effectively identified for its growth and success within the market. The wide range of products has helped the organization in attaining significant success in the competitive economy.

Ford

 It is an American multinational automaker which is having the headquarters in Dearborn, United States and Michigan. It was incorporated on June 16, 1903 and was founded by Henry Ford (Ford Motor Company, 2017). The organization is renowned for its quality production and technology up gradation. The company offers a wide range of products. It manufactures cars, engines and has developed a significant assembly line which focuses on minimizing the errors and managing effective quality aspects within the market. 

Toyota

 Toyota Motor Corporation is Japanese automotive manufacturer which is headquartered in Aichi, Toyota and Japan. It is the second largest automotive manufacturer in the world and is the first automobile manufacturer in the world which has produced 10 million vehicles in just one year, i.e., in 2012 (Company Profile, 2017).

Joint venture is one of the most significant aspects of global growth and development for the business. It helps the companies in developing a significant growth measures within the market. StratSynth Corporation is currently focusing on manufacturing Pouncer Drone, the Spider Light Strike Vehicle and the Rokon two wheel drive motorcycle. In order to attain the stated objectives for the business strategic alliance with well established firm will deliver high value for the organization. It will also provide significant growth aspects in the market. StratSynth Corporation will develop joint venture with Honda to ensure business growth and development in the competitive market. Honda is well established unit and is operating in multi level production aspects. The company will develop a contract for production of vehicles for delivery. This will be cost and quality effective measure for the business which will help in ensuring business development in the economy while focusing on fulfilling set business objectives.

Organizational Resources and Capabilities Evaluation

Klein, Rai and Straub, (2007) have stated that strategic relationship management is creation of the cooperative alliances which are formed for expanding exponentially the capabilities that are involved in procurement efficiencies and procedures, information exchange of the product and reqisition of the materials. It is related to structuring of the win-win relationships and the mutual commitment for sharing resources and information for ascertaining the common objectives. It also involves the engagement in long term strategy for the mutual competetive benefits.

A project can only become successful if it accomplishes the objectives and exceeds or fulfils the expectations of its stakeholders. According to Liao, Chang and Wu (2010), stakeholders are those individuals who care about and/or have invested in the project or firm. They are those individuals who are either progressively linked to the work of project or the firm, or who have got something to lose or gain depending upon the activities of the project. Some of the stakeholders of the cited firm are customers, suppliers, subcontractors, Government, team members, managers of the different departments of the organisation, etc. Furthermore, the stakeholders are divided into two categories: internal stakeholders (includes owners or shareholders, managers and employees) and external stakeholders (includes customers, community, suppliers, banks and government).

Conflicts among the stakeholders can be avoided by having clear project goals, identifying the key stakeholders and by communicating on a regular basis. For this purpose, the cited firm can perform an effective stakeholder analysis which involves identifying the stakeholders, working out their respective powers, recognizing their influence and interest, understanding the crucial ones.

Stakeholder Analysis: Power/Influence- Interest Matrix

Source: Klein, Rai and Straub (2007)

  • The stakeholders who possess less power and interest are giving less priority. They are monitored cautiously and are provided with regular updates for the purpose of raising their interest. This quadrant is crucial for planning strategic development aspects. However managing corporate relations with these stakeholders is not crucial for business. It helps in managing a significant growth measures for the organization (Priem, Li and Carr, 2012). Managing communication through news feeds and annual reports may help the businesses in developing high growth measures within the economy.
  • The company needs to accomplish the needs of those stakeholders who possess high power but low interest in the firm. The firm always tries to keep those stakeholders satisfied as they have high powers which can affect the functioning of the firm (Cassia, Paleari and Redondi, 2005). These stakeholders may include government authorities and regulatory bodies. Involving them win the business operations is very crucial for attaining mission and objectives. Developing strategic partnership is effective measure undertaken for the same (Rahm and Riha, 2012). This helps the business unit in developing high and well defined relations with the stakeholders thus effectively managing the operations within any interference or issues.
  • The firm needs to provide adequate information to the stakeholders who possess low power but high interest in the firm and also shows proper consideration to them. These stakeholders contribute in business growth and operational aspects (Tallon, 2011). These may involve the companies, who are interested in business development, volunteers who need to be effectively involved in the organization etc. in order to efficiently attain the business needs companies focuses on keeping them informed (Rohrbeck, 2010).
  • Lastly, the organisation should keep those stakeholders engaged closely who possess high interest and high power in the firm as they are the key players of the company. This quadrant is most crucial for business growth and development. It creates a significant impact on growth measures if business mission through stakeholders involvement (Wong and Karia, 2010). These are the stakeholders who are managing the operations or have invested in the organizational growth and success. The significant measure of development for this organization is crucial and effective in business development (Wasowska, 2015).

Organizational Structure

Source: Powell (2003)

The organizational structure of StratSynth Corporation can be in a hierarchy of which the head can be the founder of the firm, i.e., Melinda Gates and Priscilla Chan. After that, there will be Board of Directors which will be followed by the Officers. The President, Vice-President, Secretary and Treasurer come under the category of the Officers.

The next will be Committees which includes the Board members, fundraising committee, public relations committee, financing and budget committee, and the marketing committee. The last will be the employees or the staff which involves volunteers, paid staff and the general members (Wasowska, 2015).

Being a NPO, it is essential for the firm to keep a hierarchal organizational structure so that adequate control can be done at each level and the communication process can also be kept formal.

Value Chain Analysis

The business operations in any sector need to effectively organize the functional aspect and strategic planning in order to effectively structure the operational measures. different strategies are evaluated and analyzed in order to attain the significant aims and missions. StratSynth Corporation is focusing on establishing a nonprofit organization within the market in order to attain significant development measures. The core focus of the organization is to delivering knowledge regarding the growth and advancement of the country. Project loon has been proposed for the same. The vision and mission statement for effective business operations has been discussed below:

Vision: Vision of StratSynth Corporation is to stabilize the developing regions and to enable the Project Loon like a method of distribution of knowledge. In addition to this, it also aims at the growth, development and betterment of the those developing regions.

Mission: Mission of the cited firm is to offer preferential option for the people in various sectors developing areas. By developing long term relationships with various related sister organisations, the firm can accomplish two of its goals: bringing benefits of modern facilities like medical facilities, education facilities, etc. to the people in need of the same; and serving like an antidote to despair. Thus, StratSynth Corporations aims at the overall development of the developig regions.

Stratsynth Corporation is currently working on project loon. The strategic objectives of the business are discussed henceforth.  The project focuses to:

  • Include strategic advice for establishment of corporation to aid victims of East African regions.
  • In the firm producing the Pouncer Drone, the Spider Light Strike Vehicle and the Rokon two wheel drive motorcycle.
  • In enhancing the disease and flood stricken areas through effective delivery.

 In order to attain the stated product and attain the business objective of social welfare aligning business operations with established organization is significant.

Conclusion

Strategic planning is one of the most significant part of the business operations. It helps the company in attaining a winning edge within the competitive units. Effective and well defined business operations are crucial for creating a significant different within the economy. The aim of major commercial units is to earn high profitability in order to attain significant success. However the current study developed a strategic planning analysis for a nonprofit organization. This will help the business in developing a significant and well defined understating about the mentioned sector. It will also be helpful in creating an effective planning measure in the market.

The above evaluation implemented a range of models for analyzing the current business position and develops strategies for its future growth. PESTLE and Five forces analysis are applied to analyze the impact of external factors and create competitive strategy against rivals. Moreover, corporate level strategies are also designed and implemented to engage efficient organizations that have adequate resources and capabilities required to achieve targets as determined by higher authority. Corporate strategic planning is a significant part of developing the stated organization. In order to initiate the operations of Stratsynth Corporation, networking is a very significant part. In order to ensure production and deliver effective services, integration with corporate organizations will help the business unit in delivering expected product while enhancing the chances of development within the market. Hence the study helps in creating wide measures for business planning and success for the mentioned project.

Conclusion

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[Accessed 05 March 2024].

My Assignment Help. 'Application Of Strategic Management - Establishing Stratsynth Essay.' (My Assignment Help, 2022) <https://myassignmenthelp.com/free-samples/mgt3smg-strategic-management/financial-accounting-management-file-A8B097.html> accessed 05 March 2024.

My Assignment Help. Application Of Strategic Management - Establishing Stratsynth Essay. [Internet]. My Assignment Help. 2022 [cited 05 March 2024]. Available from: https://myassignmenthelp.com/free-samples/mgt3smg-strategic-management/financial-accounting-management-file-A8B097.html.

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