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Strategic management is defined as a branch of management is concerned with development of strategic vision, setting out objectives, formulation and implementation of strategies by introducing corrective measures (Höglund, Holmgren Caicedo and Svärdsten, 2018). Managing strategies assists to gain competitive advantages with aim to compete with several competitors to achieve dominance position in market. It also increases guidance to move specific direction that defines organisation goals and implement realistic objectives that take alignment with company's vision (Bromiley, Rau and McShane, 2016). Hence, it assists to develop more core competencies and advantages for survival and expansion.
The report is based on Sentek Solutions which deals in manufacturing of special electronic devices. In Europe marketplace, they determined operations and functions which covers more productivity and effectiveness to attain more goals and objectives. They have aim to expand their business in different areas of the world with planned activities and huge scope involved in it. Their objectives to provide efficiency, productivity and safety with security in business environment. The report is going to outline the important strategies which are used in the Sentek Solutions in order to gain better consumer advantage, increase profitability, garner new support etc.
Corporate strategy
Corporate Social Responsibility
Corporate Social Responsibility refers to a business model which is self-regulation and helps a company be socially accountable to its public, stakeholders and itself. From the practice of CSR which is also known as corporate citizenship any organisation can be aware about the impacts which they are having on all the aspects of society including environmental, economical and social. For Sentek Solutions engaging in Corporate Social Responsibility refers to that in their normal course of business, it is operating in such ways which is enhancing the society and the environment rather than negatively contributing to these aspects.
The development of CSR for Sentek Solutions is seen as an important aspect in to strive business success in order to create and develop unique selling advantages and capture maximum market share. Below mentioned are the ways in which corporate social responsibility in Sentek Solutions is going to provide advantages such as consumer retention, a sustainable environment and increasing profitability to the organisation. Below mentioned are the kinds of corporate responsibilities used by the organisation to achieve growth and success:
Strategic directions with reference to growth platform
Growth platform strategies seek to scale revenues at next level of profitability. It is generally requiring that opening into new market so that new demographics also using for rolling out new competitive products (Rees and Smith, 2017). The organisation is suffering from growth since last one decade, its products and services are loosing reputation within the market and customers are shifting towards new markets. Following are different types of strategies used by the organisation in order to resolve these issues:
- Horizontal integration: The organisation is entering into auto mobile sector from the current electronic one. The issue which it is facing is in what ways it should acquire new businesses and in order to achieve growth and success. The horizontal growth strategy takes existing products and services that are acquired in new business operations and develops its new products to serve current market needs. The horizontal integration can allow the organisation to achieve this advantage successfully (Höglund, Holmgren Caicedo and Mårtensson, 2018).
- Vertical integration: This kind of growth strategy focuses on greater control of an operations process with integration of key segment. This aids to control on the flow of material in different line to generate more income. The issue faced by company in which it has to set up different management for different businesses under one brand name can be solved by this approach to vertical integration.
- Diversification: This growth strategy takes company outside which is usually to develop more products and services related to the ones which it is serving right now. Sentek solutions is facing issues in diversify its electronic products to gain brand's reputation and later enter into new markets to achieve growth. The strategy of diversification can allow the business to achieve growth and development easily and gain a better market growth (Chen, Delmas and Lieberman, 2015).
- Market penetration: One major issue which Sentek Solutions is facing is entering into new markets with new products. The market penetration can allow the business to penetrate old products in order to gain better market reputation. It is one another growth strategy that take important consideration and seek with changes in marketing efforts. Therefore, it assists to develop local roofing in company to concentrate on market penetration.
Consolidation strategies for growth
The consolidation strategy makes use of acquiring new and small businesses in order to develop own products and services. This strategy can be used by Sentek Solution in order resolve the issue of starting from the edge in automotive industry. From the help of this strategy the organisation can make acquire small business which are operating within the automotive industry and start selling them under its own brand name. This strategy allows the organisation to achieve growth and success. It is best described in merger and acquisition. As a result, Sentek Solutions can expand their operations and functions into new areas of the market. It allowed stating regulations at workplace. It is less expensive to grow that compared to open several branches in different areas of the world (Gomes, Barnes and Mahmood, 2016). Corporation strategy also successfully develop different advantages that would be beneficial to technically deals with align mission and dividing several components into smaller one to serve better work.
Global corporate strategies for expansion
Porter's Generic Strategy
In every business, there is ability to perform several functions and operations as globally which help to utilise internet with its fast delivery methods. Porter's Generic Strategy helps the business to develop global expansion in order to help to ascertain desired level of results in systematic manner. As a result, using global resources to cut manufacturing costs supply costs easily (Ferlie, Crilly and Currie, 2016). Below mentioned are how Porter's strategies can help the organisation in achieving growth and advantage:
- Cost leadership: In this aspect, to deal with the issue of selling new products and services in the new markets, the organisation requires a strategy to ensure growth and success of these things. Cost leadership also seeks to beat with competition through offering products and services for lowest prices. Small business needs to focus on global strategy for expansion that probably summarised that same products and services selling by other enterprise with high margin on it. This is common strategy which helps to offer products on low price (Rosenbaum-Elliott, Percy and Pervan, 2015).
- Market expansion: In United Kingdom, the Sentek Solutions is having large debts from customers and governments. In order to deal with this issue, the differentiation can resolve is also important part of a global strategy. Therefore, it assists to develop common local items that deliver through diversification. In this consideration, it can be stated that localisation also looks for common and popular market area with appropriate resources to satisfy need. In global expansion capabilities, it can be stated that market expansion strategy is useful that assists to increase localisation which assists to looks for desired outcomes that helps to satisfy needs of business in successful manner (Sullivan, Thomas and Rosano, 2018).
- Sourcing: The continuous change in governmental policies makes it hard for the organisation to source its raw materials easily. In order to resolve this issues the organisation can make use of sourcing. It is one of the essential strategies for large enterprise which cut costs and increase profitability as well. When the business is able to source material or labour, its significant cut costs that greatly affect to net profitability of the company. Hence, in Sentek Solutions to communicate outcomes in different areas of the world. However, sourcing not always determines with cost cutting efforts. As a result, offering sustainable farming practices helps to the community to give consumers robust and different flavour options (Makadok, Burton and Barney, 2018).
Cooperative partnership strategies
This corporate strategy is designed to take several advantages with strategic alliance. Therefore, when company assists to promote another enterprise with marketing and promotion, it looks for increasing successful brand awareness, service quality and products as well. These types of partners are seeking to make qualitative products and services. The firm is facing issues in the threats of new entrants within the organisation. With the help of development of strategic alliance with different budget in line with each product and service (Eskerod and Jepsen, 2016).
Online business strategies
Business can also use different kinds of online strategies in the market, that helps to engage several clients to create sales streams. Large corporation work at dominating with search engine and advertising via keywords (Starr, Ganco and Campbell, 2018). Hence, small business can utilise online strategies for growth. The organisation is making use of the below strategies in order to deal with new entrants and easily launch its products and services in the market:
- Search engine optimisation: Its competitors are having an advantage over selling of products and services online. The strategy of SEO works with developing website, blogs and other online content in business. It is one of the greatest brand awareness which successfully develop to search something online. Brand is digital footprint that is presented to consumers and well-written aspects (Turner, Way and Witteman, 2017).
- Social media engagement: Social Media is another important advantage which is allowing the new entrants to promote their products and services in the new markets. Engaging with its customers on social media can allow the organisation to gain a good customer advantage. In many corporations large and small social media mainly influence to distribute information that deals and engage for target audience and customers. Facebook, Twitter, etc. are social media tools that helps to Sentek Solutions to increase their brand performances.
- Online advertisement and sales funnels: Its competitors are selling its products and services with the help of online advertisements which the company is lacking. It is important for the organisation to do the same. In order to expand its business online, it can be stated that advertisement and sales funnels helps to attain overall goals and objectives at workplace. In this consideration, cost leadership strategy develops with right unique selling proposition for target customers (Höglund, Holmgren Caicedo and Mårtensson, 2018).
Choice of business strategy
In order to successfully develop different products and services of Sentek Solutions, the company facing different challenges. With the help of specific strategies' product strengths, pricing and acquire another aspect can be successfully taken that helps to gain more success at workplace (Rosenbaum-Elliott, Percy and Pervan, 2015). The internal and external business strategies are used by the organisation in order to resolve the issue of customer orientation, lack of growth, product development etc. Following are different strategies which will be successfully implemented in systematic manner:
Internal Strategies – ADOPTED FROM ORGANISATIONAL INTERNAL BUSINESS ENVIRONMENT
- Growth strategy for new products and features: Sentek Solutions is entering in automotive industry and it is still new to the markets which it is serving. In order to resolve the issue of gaining market advantage while launching new products and services the organisation can make use of growth strategy. Growth strategy for new products and features entails with introducing new products which adding new features in existing. In small business, it can be forced to modify and increase product line that keep competitors as well. With using new technology and competitive company, it can be stated that in Sentek Solutions adding new features successfully. In this kind of strategy, the chosen business can easily promote their pro ducts and services with experiment that create positive infrastructure in the company (Sullivan, Thomas and Rosano, 2018). As a result, it increases more significant results for existing market conditions. Structure of the business must be effective that helps to focus on creation of several advantages. Adding new feature and discover technology helps to keep up with consumer demand so that business goes very long that ascertained with creativity and effectiveness.
- Acquisition strategy to gain competitive advantages: It is difficult for the Sentek Solutions to set foot in automotive industry in its initial stage. The acquisition strategy can help the organisation in acquiring the companies which are dealing in auto mobiles and with the help of implementation of extra capital, Sentek Solutions can easily deal with gaining competitive advantages. This is because, it helps to entail with more product line which would be helpful to expand business operations in new areas (Makadok, Burton and Barney, 2018). On the basis of creativity and effectiveness, it can be stated that more business development for competitive business advantages. In the market, there are several competitors exists that deals in term of gaining more profitability. As a result, it can be stated that the chosen business needs to focus on advertisement which would be beneficial to produce their own products. When company is only selling product, it can be stated that operations can be successfully expand that would be beneficial to attain more productive results in successful manner. Hence, it is essential to look upon competitive advantage's aspects of the business (Höglund, Holmgren Caicedo and Mårtensson, 2018).
External Strategies – ADOPTED FROM THE PESTLE FACTORS
- Finding new market for products: It is difficult for the organisation to look for new markets where it can sell its products and its competitors are having less advantage. In order to solve this, the organisation can make use of several advantages to grow their operations and functions in new areas. As a result, it can be stated that chosen areas will be successfully develop with large consideration. Finding new market for products can be successfully develop with cost leadership that assists to establish business network to produce product at less than product for all competitors (Gomes, Barnes and Mahmood, 2016). This strategy work to ascertained with preferred brand in Sentek Solutions. Dealing in new market assists to maintain creativeness that would be shown desired level of aspects at workplace to keep products and services as per customer demand.
- Product differentiation strategy: The competitors of Sentek Solutions are having same products as the company is having. In order to resolve this issue of product differentiation small businesses also develop their significant advantages to attain competitive edge. In this consideration, it is essential to adding something new products and services that develop by Sentek Solutions. When the company using this strategy, they can set competitors position that helps to build brand loyalty. As a result, it helps to focus on desired level of goals at workplace. Furthermore, there are different ways to and differentiate products from its competitors. In this way, it can be stated that competitive advantages will be successfully gained to make certain characteristics of products which is important to deliver products and services to attain more creative results at workplace (Turner, Way and Witteman, 2017). There are different secondary activities ascertained that is useful to set purchasing and human resource functions at workplace.
- Price skimming strategy: The price skimming strategy involves charging high prices for a particular product in introductory phase. The organisation needs to make use of products and services where its products are going to be charged at high rates in the market in their initial phases. It can help the organisation with the issue of having less advantage in the suffering economy of United Kingdom. Therefore, this strategy helps to tell about special things that assists to ascertained work with new technology. Productivity also increases which attract quickly to see more profits and revenue in business (Rosenbaum-Elliott, Percy and Pervan, 2015). In Sentek Solutions new type of product must be introduce to increase their technical prosperity to attract people with competition that relatively done in quick manner. As a result, reaping with production of products and services helps to expand technical aspects within the organisation. As a result, it would be beneficial to focus on creativeness.
THE ANSOFF MATRIX MODEL
Existing Markets
Market Penetration: The organisation is producing new products in order to enter into the auto mobile industry. The current competition of UK's market is large (Haines, 2016). To deal with this issue, the organisation can penetrate its current electronic products in to the markets of United Kingdom to ensure proper growth and advantage.
Product Development: It is important for the organisation to develop its products in existing markets where there is still a large requirement. It can help the organisation in achieving set growth and development as its auto mobile products will be available to its existing markets of electronic products and its issue of growth orientation in the economy will be resolved.
New Markets
Market Development: In order to develop its products in new markets. It is important that Sentek Solutions develops its products into new markets. It can allow the organisation to grow and maintain its products advantage within the current scenario (Rosenbaum-Elliott, Percy and Pervan, 2015)s. This can make sure that the organisation is achieving growth and is consumer-centric. These overall efforts can resolve the issue of lack of market growth and development within the organisational environment.
Diversification: The diversification is another important strategy for the organisation to diversify its products and services in markets where its is not having any sort of consumer reach. The issue of maintaining its position in new markets as a better auto mobile manufacturing company can be solved if its products and services are diversified within different markets.
The above mentioned Ans-off Growth Matrix can help the organisation to resolve its issues completely to serve new markets and ensure growth and advantage.
Evaluation of the strategy and recommendation
The corporate strategy used above will allow the organisation to expand its business functions and achieve growth and advantage. The vertical strategies in growth platform can to set up its products and services under single brand names. It is important for the organisation to resolve the issue of having a single management and operations management for both of its electronic and auto mobile sector and this can be resolved from the usage of vertical strategies. These are one of the most important strategies used within the business environment to achieve market growth and advantage. The usage of growth platform strategies allows the organisation to set its standards in the market as per the growth and development of the organisation. Also, it helps the organisation to gain a better market revenue and advantage along with an increase in its profitability. These all efforts can allow the Sentek Solutions to achieve set growth and advantage within the Business Industry (Haines, 2016).
The horizontal, vertical, diversification and market penetration allows the organisation to maintain strong advantage in achieving its overall market goals and objectives. It is important for the organisation to make use of corporate strategies in order to gain a strong market advantage. Another important strategies is The horizontal strategies which are used allows the organisation to place its existing products in the market and maintain a strong consumer advantage. In case, when existing products are being placed in the market it does not make it difficult for the organisation to put an effort into creating and making new products and services. It allows the organisation to achieve the required profitability in the market with the use of current products and services and without putting a large sum of effort into making any changes and developments.
The vertical strategy allows the Sentek Solutions to penetrate its market and deep dive into new developments to seek growth that creates value added developments for the organisation and its environment. Other important aspect of vertical strategy is to gain more customer from new markets and understand their particular needs and requirements. This helps the organisation to maintain a good market allowance where different culture and their consumers are being tracked within the working environment of the organisation (Busch and Shrivastava, 2017). After tracking these consumers and cultures, they get targeted in order to achieve new markets and core developments.
The business strategies such as finding new markets for the products allows the organisation to maintain a new market hold within the service industry. Also, it provides the organisation to expand its markets and services towards new consumers. It is one of the most effective strategies used within the organisational environment to achieve set growth and development. Finding new markets allow the organisation to understand what are the core markets where it competitors are having a strong hold onto. This can allow the organisation to achieve growth and advantage within the business industry respectively.
Another important strategy is social media engagement used by the Sentek Solutions. It allows the organisation to maintain a better market position (Albers, Baum and Delfmann, 2017). Social media is used by most of the organisations today to achieve market growth and advantage, also, it helps the organisation to develop and explore new markets. It can be seen as an important aspect for the organisation where it develops itself in order to gain large consumer base. Social media can help Sentek to produce new products and achieve new market growth. It can help the organisation to gain new customers from markets which are new and large. Social media is having numerous followers in platforms such as Facebook, Instagram, Twitter etc. Once the brands products and services are promoted within the market, it can help the organisation to achieve new growth and advantage respectively.
The above-mentioned strategies can help Sentek Solutions to gain new markets and a better consumer advantage within its industry. It is one of the most effective solutions to increase its market and grow its products and services along. This can make the organisation grow its products and services and maintain a better marketplace within the competitive scenario.
Recommendation
The business strategies which are explored in the present report showcases in what ways the organisation can achieve a better market growth with the help of set strategies and developments (Dagnino, King and Tienari, 2017). Strategies such as improving customer orientation and dwell into new markets includes growth platform strategies. The main purpose of using growth platform strategies in the present report is to provide the organisation with new developments. The growth platform strategies are one of the core advantages that a firm can use in order to increase its market growth and advantage. It allows the organisation to understand the kind of consumer which are there in the new markets and in what ways the organisation can serve these consumer markets.
The used global strategies for expansion allows the organisation to understand what are the requirements of its global customers worldwide. Improving its products and services globally is important because global market is the only market where new products can be tested in order to understand their success (Adler, 2018). It is important for the organisation to develop its products and services in the global market to serve its consumer needs respectively. In such manner, the organisation achieves both global audience and consumer markets and increases its profitability as well. For example, selling of a product and service online allows the organisation to understand the consumer demands of a particular product (McMillan and Overall, 2016). Also, the organisation can take require feedbacks and understand in what ways it can improve its set products performance and selling. The online market in 21st century is the biggest gain for a business to develop its products and services entirely and set new performance standards.
Another important advantage of being online is social media. Social media can provide Sentek Solution tonnes of advantages in gaining a better reputation of the firm and understanding new markets online (Johnsen, 2015). Firms across the world make use of social media in order to develop their products and services and understand consumers advantage. It is important for the organisation to develop such products and services in order to gain an efficient market advantage respectively.
People across the world today makes use of social media in order to understand the current market trends. Also, a variety of people across the world develops relationships on social media and evaluates each other preferences and their needs. This provides an advantage to the organisation to achieve growth in the new markets and develops its product and services accordingly. Social media also going to help Sentek Solutions in understanding the consumer feedbacks and comments on the platforms. It allows the organisation to think as in what ways new consumers can be gained and the market position can be improved to served these needs. (Austin and Pinkleton, 2015).
Finding new markets for the products allows the organisation to understand the market needs appropriately. It is important that the organisation makes use of appropriate strategies in order to maintain and serve its consumer base. New markets would allow the organisation to make sure its products and services are being served to new consumer markets. Understanding new markets allow the organisation to expand its products and services and garner new reputation. It is important for the organisation to develop itself into new markets and better its profitability (Haines, 2016). It can allow the organisation to rapidly develop its products and services into new markets and serve its consumer base properly.
The strategy of products skimming allows the organisation to set high prices of its products in its introductory phase. It helps the organisation to gain a better market advantage and develop its overall reputation. Setting high rates to the products in its initial stages allows the organisation to understand that its products and services are being sold or not. These rates allow the organisation to understand if its products are successful or not. It can prove as a success for the organisation to manage and sells its products and services in its initial stages and developing a better organisational environment for new products and services.
These strategies can help the organisation in increasing its overall market value and develop its needs and requirements as per the set consumer demands. It is important for the organisation to achieve and maintain a better market reputation and these strategies would fulfil the role of helping the organisation in its growth (Busch and Shrivastava, 2017). Overall, these recommendations can help the organisation to make use of its products and services and gain a successful market advantage to stand as a better organisation and deliver its products and services to the customers in set standards.
CONCLUSION
From the above report, it can be concluded that strategic management considered important role in business success and expand desired level of results. In this consideration, several positive advantages will ascertain to focus on building more positive outcomes. With the help of corporate and business strategies, Sentek Solutions can easily build their creativity in new areas of the market. According to further analysis, it can be summarised that different types of corporate strategies could be used by business such as growth platform, consolidation, global, online and cooperative strategies. It assists to attain overall goals and objectives that assists to attain positive outcomes and effectiveness that make desired level of results at workplace.
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