The Reflective learning Report

Introduction

Strategic management

The Reflective Learning Review Report

What is the strategic position

The strategic position is related with the impact on strategy of external environment. The strategic
capability of a firm (resources and competences) and expectation and influence of stakeholders
(Johnson, Scholes and Whittington-2009).

After reading a lot about WRSX I personally feel that PESTEL analysis would help WRSX assess the
industry and to expand strategies to stay competitive. So as In order to drive the key strategic issues
of WRSX group I selected PESTEL analysis that is known as political, economic, social, technical,
environmental, legal and it’s highly recommendable for WRSX. Because as we know that WRSX is is
a very big organisation, as it was established with a merge of three big advertising companies of
London, Paris and New York .The owner of these firms wanted to grow their business more and
more with this objective they formed WRSX .In the near future WRSX is planning to adopt some new
strategies in the near future.

In WRSX is intended to create increased expenditure of those products and services through the
creation and reinvention of a ‘’brand image’’ for their clients. But with all this WRSX has some
strategies to control the prices. As we know that WRSX has been facing a lots of problems like there
was a recessionary years for WRSX but it’s envisaged that expenditure on advertising will surpass
$450 billion(£300)billion after 2011.The working expenses of WRSX was very high which cause of low
profit even after a good turnover. The merge has given some other major impact on WRSX because
later on it merged with New York’s Silbersterin and Lord agony. The main strategy of WRSX is to
diffenciat their bran from the others and making strong relations with their client. WRSX was listed
at London stock exchange 8 years ago. But WRSX has not yet performed well in the stock exchange
market.Even Raphael Roux who is the CEO this firm has not done any remarkable improvments.
Especially it has earned a bad reputation due to the Paris scandal. WRSX also has 3 non executive
directors who are inefficient. It has a high gearing proportion but that’s a high threat for the
business. Profit before interest and tax is low as compared to the industry average (AD com industry
bench mark survey). It has also a gross profit of £190m. North America generates high revenue but
Asia pacific is generating lowest.

WRSX has many reasons because of which it has not performed much well like lack of better
management ,over expenses, scandals failure to deliver better qualities to the clients and
diffrenciating their brand. WRSX has lack of new products and services. It has a low position in
market, share prices is low, poor sales channel are the biggest disadvantages and key factors that
will give a major impact in near future. It has not been unable to capture the Asia pacific market.

But if we look at the other side WRSX has some great opportunities that will boost it’s scope and
productivity in different parts of the world. WRSX have enough capital to spread its business in the
other countries . It has a great emerging market segments in India, China and also in Asia pacific.
WRSX is speedily adopting digital media era. By using ‘digital media’ it can draw a large number of
young customers. The business environment mainly plays a major role. WRSX has a great
opportunity to spread it’s business in Global market.

WRSX has always been a customer focused firm and giving first priority to it’s clients/stakeholders.
In order to give main concern to their clients WRSX set up their brands through the range of services
offered by the group. It also sells a large number of their products and services to
customers/business customers. In fact the objective of WRSX to become the industry’s most client
focused group. WRSX also wants to deliver against their operating plans, there by building upon
recent development and creating sustainable shareholder significance.

WRSX has some positive and negative aspects. Positive aspects to build on clients attraction and
retention, geographical spread, expansive position. It has to improve it’s brand & group reputation,
cost culture, management growth and risk, leadership capability, corporate social responsibility(CSR)
and also procurement and supplier management.

-ISSUES

I analysed many key issues from the company profile but I suppose these six issues are important .

-Corporate scandal

-Restructuring it’s goal to become a global brand

-Build a strong relationship between suppliers and buyers

-Change of global CEO Raphael Roux

-To become customer focused

-Managing their operating cost.

-Restructuring creative and innovative teams in US.

2-Strategic Choices

WRSX has seen as a medium sized agency but it has a high aspirations. Although many risks and
disadvantages are there inside the WRSX, Opportunities are also vast. I think that we can adopt
some of the following strategies which can help to achieve the goal of WRSX .

I think that fist of all the firm should focus on its financial growth

Company should pay more consideration on financial performance because economic growth will be
more risky in the future. It should also spotlight on recovering their corporate governance because it
can be upsetting in creative process which also concern in severe competition with other advertising
agencies/alternative agencies. WRSX should utilize it’s force in creativity to grasp the market
prospect.

In order to close gaps our group has focused on Hybrid strategy which’s quite suitable for WRSX and
also chose Competition and collaboration. And when it comes to corporate level we found Ansoff
matrix models are best for WRSX.

Globalization, organic development, sustainability, flexibility, diversification, market development

,product development, poor HR policy and digital media are the main issues for implementing three
levels strategy and also innovation and evaluation within WRSX group.

There are many risk in WRSX which can avert accomplishment strategic vision and objectives. Risk
such as- corruption scandal, fails to use it’s buying power, poor relationship with suppliers. WRSX
has also not seen as a global brand and it’s position is not in the top 20 brands. It has a below
average scores in ADCOM industry bench mark survey.