According to given scenario, H&H is small shop of Pizza operated by owner named as Peter which is surrounded through colleges at marketplace (Aghazadeh, 2015). In order to strengthen business model, it is very important for Peter to adopt strategies for positive results. Here, he has adopted market penetration in which same product is deal in same or existing market. With the adoption of such strategies, it is possible to grow market share which will helps in betterment of business model. H&H has to charge low prices of pizza as students cannot make or afford large prices. Organisation has to focus on quality as well as quantity while serving to students. For growing of market share, it is important to provide students with discounts to motivate and encourage them for buying products and services. If they can survive at small level, then they should go for international expansion. This is important to start business at small level so that they could grow at high. The adopted strategy will assist Peter to target large number of student operating at college place which has high opportunity to gain more profits and sustain business for long period of time. Therefore, market penetration strategy will assist Peter to strengthen business model and attain high results in short period of time. With the penetration of the market, it would be easy for the organization to strengthen the overall business outcomes. The cost leadership strategy would also be another business strategic outcomes to accomplish the set goals and attract higher number of clients.
As per scenario given, HARDA limited is regarded as detergent manufacturer (Buckley, 2016). Here, it is looking to launch fresh detergents in existing market so, company has to use product development strategies to strengthen business model. Such strategies are adopted when there is no opportunity available to grow at current market for organisation. Main purpose is to earn maximum profits and create value at market and within minds of users.
DATE: June 10, 2020
TO: XYZ, Boss (H&H)
FROM: ABC Manager (H&H)
SUBJECT: Assumptions are incorrect
I am writing this memo to make you aware that assumptions which are predicted by you are incorrect due to various factors.
H&H is small company that is leading in terms of embryonic market with lowest structure cost, possessing sixty percent market share, valued as well as reliable products. These assumptions are totally incorrect as there are large numbers of competitors available at marketplace. Our business is operating at small level so with such components it is not possible that business will not face any risk. The future of company required proper innovation, use of technology, market expansion and many more. Also customer taste and preferences keeps on changing which compel business to make changes otherwise they have to vanish from market. However, the adapting business program and undertaken business process activities would be followed by organization to attract higher number of clients in market.
The organisation has to make modification in plans and strategy then it will have bright future at marketplace. They should focus on their target users so that they can adopt new changes to earn high profit margins at marketplace. However, the strengthen business strategy would be useful to gain the competitive advantage in market and have higher number of market share.
In order to discuss more, it is better conduct meeting and gain positive outcomes as well as running organisation in effective manner.
Thank you for your assistance
In order to enter into strategic alliance, it is very important to know their pros as well as cons and make decisions (Ho and Wang, 2015). As per scenario, companies have entered into strategic alliances with competitors to gain strategic objectives. Here, both companies will be gaining from entering as there is formation of new base of clients as well as rise in competitive skills. The organisation creates strategic alliance for survival and sustainability of business at marketplace. With entrance, both enter into fresh territories, creation of various kinds of income sources, industry rising up as well as down, building capital and reducing risk, sharing of knowledge and many more. For better understanding of strategic alliance benefits, example is show here: These both work for business for proper supply chain management and attaining high results. It is easy for organisation to carryout work in diligent manner and attains set goal and objectives. Main purpose is to create value at competitive marketplace and make organisation to run their activities and operations.
Strategic alliances among Spotify and Uber where they have focus to provide stereo control to all consumers of Uber (Jansson and Söderman, 2015). There are less consumers of Spotify who uses Uber facilities and not all users of Uber possess Spotify account. With strategic alliance, it is possible to pursue prospectus from base of consumers and continue for promoting both products and provide services. Both are providing equal competition at marketplace and providing high quality facilities to users in appropriate manner.
It is necessary to understand horizontal integration for best results (Johnson and et. al., 2017). In this case, there are some conditions in which horizontal integration cannot be consistent with attainment of maximum profits. They are as follows:
Therefore, the above are some conditions that create problems for business to do horizontal integration. This creates difficulty in attaining goals for maximising profits at competitive marketplace and gain best results. If business is dealing in same segment they try for horizontal integration and run their activities and operations in effective manner.
The differentiations among company’s internal value chain as well as industry values are as follows:
Company’s Internal Value Chain
Industry Value Chain
This covers all types of activities that are distinctive in nature and including technological as well as physical within company that add value to goods and services (Shijaku, Larraza-Kintana and Urtasun-Alonso, 2018).
This covers all types of activities that help in converting materials into finished products and services. It involves final consumption through help of ultimate consumers in effective way.
There exists relationship among vertical integration as well as industry value chains. Both are related with internal as well as external activities of supply chain of business. With help of vertical integration, it is possible to control all critical elements of supply chain like distribution, raw materials, convenience, effectiveness, efficiency and many more. On other side, value chain is focusing towards process of supply chain to collect and add value to goods and services.
Value creation is defined as main aim of any organisation. It is very important to create value for consumers which assist in selling of products as well as services in best way and on other side create value for shareholders to raise prices of stock, ensure future investment and availability of capital for funding operations. There are different types of activities which are involved in value creations such as development of product, technical capabilities, development of talents, flexibility, cooperation, global structure, capabilities of technical and so on. With such activities, it is possible for business to raise their value at marketplace and attain set results. The possible business activities is followed to manage the risks and strengthen the overall outcomes.
Moreover, it is also essential to identify risks that are related with outsourced to independent suppliers (Tutar, Nart and Bingöl, 2015) (White and et. al., 2016). The different types of risks involved are financial, strategic, operational and compliance. Here, strategic risks are faced by business in terms of mission and vision. Financial risks are related with funding issues. For creation of value, compliance should be followed in proper manner otherwise risk will be higher. In order to carry out operations, risk can be in terms of resources and so are found. It is essential to identify all types of risks in advance for making positive outcomes. However, the risks assessment of the program is used to strengthen the overall management is used to increase the overall outcomes.
Therefore, these are the value creation activities and risk associated with them to operate work in appropriate manner.
Books and Journals
Aghazadeh, H., 2015. Strategic marketing management: Achieving superior business performance through intelligent marketing strategy. Procedia-Social and Behavioral Sciences. 207. pp.125-134.
Buckley, P. J., 2016. International strategic management and government policy. Springer.
Ho, M. H. W. and Wang, F., 2015. Unpacking knowledge transfer and learning paradoxes in international strategic alliances: Contextual differences matter. International Business Review. 24(2). pp.287-297.
Jansson, H. and Söderman, S., 2015. International strategic management hybrids in China. International Journal of Emerging Markets. 10(2). pp.209-223.
Johnson, G., Whittington, R., Scholes, K., Angwin, D. N. and Regnér, P., 2017. Exploring strategy (No. 11th e). Pearson.
Morschett, D., Schramm-Klein, H. and Zentes, J., 2015. Strategic international management (pp. 978-3658078836). Springer.
Salamat, V., Aliahmadi, A., Pishvaee, M. and Hafeez, K., 2018. A robust fuzzy possibilistic AHP approach for partner selection in international strategic alliance. Decision Science Letters. 7(4). pp.481-502.
Shijaku, E., Larraza-Kintana, M. and Urtasun-Alonso, A., 2018. Network centrality and organizational aspirations: A behavioral interaction in the context of international strategic alliances. Journal of International Business Studies, pp.1-16.
Tutar, H., Nart, S. and Bingöl, D., 2015. The effects of strategic orientations on innovation capabilities and market performance: The case of ASEM. Procedia-Social and Behavioral Sciences. 207. pp.709-719.
White, G. O., Guldiken, O., Hemphill, T. A., He, W. and Khoobdeh, M.S., 2016. Trends in international strategic management research from 2000 to 2013: text mining and bibliometric analyses. Management International Review. 56(1). pp.35-65.
10 Ways Your Firm Can Benefit from a Strategic Alliance. 2016. [Online]. Available at: <https://go.psmj.com/blog/10-ways-your-firm-can-benefit-from-a-strategic-alliance>.
Horizontal Integration. 2020. [Online]. Available at: <https://strategicmanagementinsight.com/topics/horizontal-integration.html>.
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