MBA Assignment Cover Page

Student Name Luying Fan

Student ID Number 199129676
Module Name Mastering Strategic Consulting
Assignment Title Strategy consulting proposal for Company

Blue

Effective word count (words used) 6896

Midterm draft of the final 16th August - 23rd August

assignment

Table of Contents
MBA Assignment Cover Page...............................................................................................................1
Executive Summary...............................................................................................................................3
Strategy consulting proposal for Company Blue...................................................................................5
Introduction...........................................................................................................................................5
Current strategic position.....................................................................................................................10
Proposal for Strategic options..............................................................................................................24
Proposal to Develop Further Future Strategy.......................................................................................27
Critical reflection.................................................................................................................................30
Conclusion and Recommendations......................................................................................................32
Reference.............................................................................................................................................33

Executive Summary
Blue is a Chinese company that provides service on the international visa application for

Chinese people, including; international travel visas, international student visas, and other

travel services. Blue also provides exclusive offers from airlines and hotels within China. In

addition to traveling, Blue also helps Chinese people buy property in Europe and

immigration. Because the company's chief executive officer used to work in the Chinese

government international cooperation department, he has gained professional experience,

resources, and knowledge on visa applications service. The company began five years ago

and has employed thirty people. The blue service model has been a one-to-one service in the

last few years. The business has had a stable growth with a yearly twenty to thirty percent

profit, and Larger enterprises have approached Blue for partnership. The company has a

service and exclusive offer pool to provide to their business consumers, continually find more

partners, seek more exclusive offers for their customer service, and offer a collection.

With a good reputation, they were chosen to cooperate with Company A ( America Express)

in China in 2018. Blue became Company A’s supplier, to serve to distribute cardholders and

assist the cardholders with an international travel visa application. Company A had finally

received the Chinese RMB settlement license issued by the Chinese government in June

2020; they need jumping into the Chinese credit card settlement market as soon as possible.

With excellent cooperation experience with Company A, Blue got another opportunity to

expand its business scope to be an authorized agent of Company A on co-brand credit

issuance and find co-brand credit card issuing partners with an excellent reputable brand

Chinese market. Blue is responsible for helping Company A obtain the Chinese cardholder

market and issue more credit cards under Company A's brand. This project Blue plays a more

prominent role as; an organizer and a supplier, which provides diversified service, offers, and

products to this co-brand credit card. Blue has lately established a great connection with co-
brand partners and searched for more business opportunities, such as; exclusive offers,

benefits, and discounts for Blue's customers. This a big blue ocean market blue can work on

since currently there aren't many suppliers of multi-field interests. Other suppliers are small

and don't have the resource to obtain quality benefits and offer from famous brands.

Unfortunately, COVID 19 negatively impacted international business; their international

business had dropped by 70%. Blue has made tough choices on achieving plans in their

international trade, maintaining the company, and fulfilling it with low cost preparing it for

post-COVID-19. Since many other countries experience a tourism disaster, this will be a

good time for Blue to add more service for their visa application cooperation with this

embassy in China. Put more focus on being a supplier for cardholders.

Blue found a well-known enterprise in China, Company S., interested in Company A's brand

and wants to issue a co-brand credit card for Company A with a bank M and partner. As the

organizer status, Blue had built a deep partnership with company S and received their

exclusive offers for Blue to use on this co-brand project and other Blue's customers.

Additionally, as a co-brand card business supplier, Blue will have the chance to earn up to 20

RMB Yuan per card. This Co-brand card issuance target is 500 thousand cards per year,

which means Blue company may receive up to ten million income as a net income per year.

Blue is establishing an Application that will include all the services and offers that Blue and

co-brand issuance cooperation. Blue will obtain cardholders' visits and usage on their

platform and turn them to Blue's cardholders. The blue objective is to become an extensive

service provider offering services to the provider to business and customers.

Strategy consulting proposal for Company Blue

Introduction

COVID-19 pandemic has impacted companies and business strategies significantly.

Company Blue, a Chinese SME company that provides international travel service, is no

exception in this pandemic. Current economic impacts have forced companies to restructure

their business strategies to ensure their survival. The global travel industry suffered

economically at a great length due to numerous countries closing their borders. Company

blue is faced with business barriers impacted by the COVID-19 pandemic, realized that they

might be faced with a stagnant or little growth in the next few years compared to the past

when the travel service provider in China was healthy. To have continuous growth over the

next few years, they need to expand their business strategy by expanding its business scope

with the supplementary and related territory. In October 2019, Blue Company realized a new

opportunity for their business; co-brand credit card insurance operation. They decided to put

this business as a significant Company's project over the next three to five years. Both the

COVID-19 pandemic and the new co-brand credit card insurance operation demand new and

accurate strategies to enable them to thrive as a diversified service platform in the supplier

market.

The situation that Blue faces is the organization revolution; the uncertainty of Blue’s future

can be analyzed by Donald’s theory “There are known knowns. These are things we know

that we know. There are known unknowns. That is to say, there are things that we know we

don't know. But there are also unknown unknowns. There are things we don't know we don't

know (Rumsfeld, 2011).”

Donald Rumsfeld explains the theory of the "known knowns," which can be elucidated for

Blue's company below:

 Known knowns: Blue knows that their international travel service business can not be

their primary income sector, due to the projected impact of COVID-19 and the rapid

changes in the Chinese economy and markets. Blue's decision due to the pandemic's

challenges is that they are projecting to resume their travel service within the next two

years. This conclusion bases on the current recovery rate of COVID 19. Blue plans to

venture into a co-brand credit card issuance operation that relies on its existing business

partners and resources to support their businesses.

 Known unknowns: Blue's primary mandate and expertise is in the international travel

service business; however, they are faced with the uncertainty of the impacts of COVID-

19 on their new business venture. Blue understands that venturing into a new business

territory comes with unknown challenges, risks, and complications amidst the COVID-

19 pandemic.

 . The CEO of Blue, Mr. K, had discussed this new business opportunity with their current

partner, America Express Company. The new business’ project planning steps are

currently proceeding without a hitch. The new venture requires at least two more key

partners to succeed; this results in more unknown consequences.

 Unknown unknowns: It is uncertain when the COVI9 19 pandemic will ultimately end. It

is also uncertain when the travel industry will resume business without any COVID-19

related restrictions. It is currently impossible to predict when Blue's economic status will

continue its original financial position, as realized in 2019. Blue has extensive experience

and understanding of the travel services business; the new business poses new

challenges. In addition to Company A, Blue will be involved with two more key partner

companies to initiate the co-brand credit card issuance operation. The unknown

unknowns are inevitable for the kickoff of the new endeavor.

With the analysis of Blue’s “known knowns," we have a clear overview of the new business

strategy and the uncertainty they will be facing with the changes (Logan and David, 2009).

Using the strategy tool "SWOT," we can objectively and accurately study the company's

situation by analyzing aspects of their Strengths, Weaknesses, Opportunities, and Threats

formed by the company's internal and external factors of the Company (Humphrey et al.,

1960). SWOT analysis will reinforce Blue and its business partners, strengths in

understanding customers' demands in different fields, and what aspects Blue should focus on.

SWOT analysis will also explain how Blue can use their powers to develop new business

opportunities and provide areas of improvement to become more competitive in its new

strategic plan.

An additional analysis tool, “PESTLE” can be implemented to help Blue understand the

macro-environment. It will be used to analyze and investigate the external environment that

influences the business; furthermore, it identifies all the company forces. “PESTLE”

represents major external influences inclusive of; Political factors, Economic factors, Socio-

cultural factors, Technological factors, Legal factors, and environmental factors. Due to the

impacts of COVID 19, and the rapid changes in customers’ demands, Blue is compelled to

change its business strategy to survive in the changing industry. In the new business, Blue

should implement the critical external factors that PESTLE demonstrates.

Blue Ocean analysis is a crucial analysis tool that should be used by Blue. To analyze the

Blue's business, we will look at both blue ocean strategy and red ocean strategy and decide

how to use them to achieve the best results. The red ocean analysis will determine where the

company's position and attributes customers place their care. Blue ocean analysis will

evaluate the specific customers to serve instead of the place of the business.
Mintzberg gives strategies in “Five strands of strategy” that will provide practical solutions to

Blue's business transition (Mintzberg, 1987). The presented techniques provide Blue with an

understanding of their ploys, patterns, positions, and perspectives, and the competitor’s status

provides a big picture of the next business life cycle.

Strategic options are provided to Blue on how short-time merges its business and strategies to

protect the original travel service business and ensure continuity. We will identify and present

multiple scenarios for Blue to help them understand the challenges they may face and how to

mitigate them. The given strategies will help Blue achieve swift cooperation with all partners

involved and realize the best outcome. Additional methods will be provided to Blue on the

best way to organize their resources to expand into new territory in the future.

The strategy forces are:

i. Power of the Suppliers

Blue has endeavored in the travel service business in the past, but during the COVID-

19, the pandemic business is underperforming. The government, as a Visa provider,

can decide to raise the prices for visa applications. The power of the government to

change prices for visas is the power of suppliers. As a Visa application service

provider, Blue will be highly dependent on the decisions of the supplier.

ii. Power of the Buyer

Due to the COVID-19 pandemic, Blue has established itself in the travel service

industry and can drive down the supplier's prices. It can be argued that with a low turn

up of customers, the lower the cost of tickets.

iii. Competitive rivalry.

As discussed later in the Blue ocean analysis, competitors in the red ocean can lower

its attractiveness. As Blue ventures in a new business, they enter a blue ocean space

with no rivalry and thus their chances for reaping more profits.

iv. Substitution threat. 

If Blue decides to fully venture into the new business and substitute their service for

the latest products, it will create a threat for its competitors. Customers are easily

attracted to new alternatives to products and services in the business industry.

v. New entry threat

Licensing of RMB has been a significant challenge to obtain in China, but Company

A managed to be awarded. The new market the Blue is venturing into is protected by

the license, which prevents new entry threats allowing profit maximization.
Current strategic position
Blue's Chief Officer started his own business with the intent to provide professional

international travel services to exclusive customers nationwide. He also wanted to offer travel

services such as; tourism visa application services, international study visa application

services, and other travel-related services. With the rapid 30 % yearly growth, Blue became a

well-known professional international visa application service provider. In 2018, Blue

developed a business partnership with Company A Company. Company A is a United States

of America company with one of the biggest global payment card clearing network; they

have card issuance business agreements with the central banks in China. Company A' brand

is well known for delivering excellent card usage experiences with their customers and has

demonstrated a need for providing High-end cardholders travel and visa services. From the

history of portrayed professionalism of Blue in the visa service fields, Company A chose

them to fill the niche for cardholders. Blue provides 'VIP' services to Company A' premium

cardholders for tourism visa applications. Because of cooperation with Company A, other

well-known domestic enterprises have begun showing interest in Blue's services, thus

bringing more business opportunities and partnerships for Blue. In June 2019, Company A

received a Chinese government license to process RMB transactions in China. The

opportunity stood as a paramount opportunity for Company A since they were the first

international payment processor obtained this license, which allowed them to provide RMB

credit card service to the one billion potential card issuance mark in China. Company A

needed a partner to assist with their expansion in the new market as fast as possible. Blue

acquired permission from Company A' to represent it in discussions of co-brand card

issuance projects. Blue will find suitable famous enterprise and Chinese banks to issue

Company A, a co-brand credit card. In this opportunity, Blue will not only combine all of its

travel services but also look for new benefits suitable for this project to become a card
benefits supplier platform for the co-brand credit card through Company A and the issuance

bank.

Figure 1: Deliberate and Emergent Strategies for Blue

Blue’s intended strategy is to give quality while also ensuring that the travel service business

runs efficiently. The business plan is created now that the Blue plans to venture to a new

operation. The intended method for Blue is to guide the company as it grows to ensure both

the old and new businesses reach their expected goals (Peng, 2013).

Emergent strategy is the unplanned strategy that has come with the COVID-19 pandemic. As

Blue's travel service business continued to grow, the corona pandemic hit stopped travel, the

primary income source. The blue strategy changed on realizing that it is uncertain when

operations will return to normal and thus promoted the new business to be their primary

focus. Today Blue business's main strategy, which emerged, was that they have become the

leading supplier in co-brand credit with company A and have also obtained exclusive benefits

that allow cardholders to flow in their platform.

Company S offered a co-brand credit card with a domestic bank M under Company A's

brand. Since Company A is a processing company, they required Bank M. This cooperation
between these four partners started in December 2019. All four companies will provide their

best resources and support in hopes that this co-branded card will be a significant player and

choice in the Chinese market. This program partnership will bring Blue to new brand

awareness and identity as an entity for the co-brand credit card issuance operations and

services market.

Figure 2: “Five

strands of strategy” (Mintzberg, 1987)

Based on the new opportunity with Company A, Blue changed company strategy from

Position A to Position B. In the Antecedent Actions, Blue had their business focus on global

travel services, which they could quickly expand due to the large number of people who want

to travel, study, work, or invest overseas. Their pattern is to use their global professional

service to provide service to different business entities that need high-end global Visa service

providers. Blue only has thirty people in the company, and they only have a simple online

program to complete their business. After deciding to expand their business scope, their;

plans, ploys, patterns, positions, and perspectives that will be affected by internal and

external factors must be observed to ensure a swift transition to stage B.

To analyze Company Blue, “SWOT” tool will be used to analyze the strength, weakness,

opportunities, and threats they are facing ( Humphrey, 1960), and give a better picture on the

company's internal factors that need to change in the new business strategy

Figure 3: SWOT Analysis

i. Strengths

Blue offers exclusive international service offers, such as international student visas.

In addition to travel services, Blue has superseded other competitor companies by

assisting the Chinese people to buy properties in Europe and immigration. The new

venture for the co-brand credit card is new territory for blue, and its partnership with

Company A allows it to gain access to a more extensive market base.

 ii. Weaknesses

Although Blue has had a stable economy since it started, the unforeseen COVID-19

pandemic has changed its financial direction. Blue has to look for other profitable

business opportunities in the current situation. Capital is the main weakness that Blue

is facing due to the pandemic. The COVID-19 related travel restrictions have proved

to be a constraining factor in the growth of the business. Blue has only thirty

employees, and the new venture will force them to employ more professional experts

who can handle the unique experience.

iii. Opportunities

The merge with company A brings a new business opportunity. Prospectively this

new business venture will improve the current financial position that Blue is stuck in.

co-brand card issuance is a new territory, which also opens up the business to the new

domain.

iv. Threats

It is uncertain when the COVID-19 pandemic will end. The epidemic poses a threat to

the old existing travel service business because no prediction can be met. Venturing

into new a new territory is a threat because of the lack of experience and uncertainty

for the future. There is also a threat of loss of investment capital if the new venture

does not succeed as projected. Partnership with a new business is a threat because its

needs and objectives may not be aligned with Blue's company objective. There is also

the threat in decision making since Blue can no longer make sole-decisions.

Unfortunately, in January 2020, COVID-19 severely disrupted the global tourism and travel

service industry without any warning. Almost all the countries in the world were forced to
shut their borders to travelers. COVID-19 not only had a significant impact on businesses, but

it also has had unforeseen consequences on how firms need to operate in the future.

Due to the unexpected impacts of COVID19, the PESTLE analysis tool is a great way to

determine how external factors influence the company's operations and offer guidance on

how companies can be more competitive.

Figure 4: PESTLE analysis

Political:

The COVID-19 pandemic forced countries to restrict travel services outside and within their

borders, which has, in turn, affected different factors within countries. How the government

influences the economy of an industry gravely bases on these factors. A government may

decide to raise or lower a new tax duty to an industry, which may affect an entire revenue-

generating organization structure. Political factors include policies such as; fiscal and tariffs

of trade that a government may decide to levy for the fiscal year and impact the business

structure and its environment. For Company A, China had always been their aiming markets.

The ability to provide RMB clearing services in China has been a political factor between
China and the USA. On 13th June 2020, Company A obtained the License from China’s

central bank to start a payment card clearing service in RMB currency. “This approval

represents an important step forward in our long-term growth strategy,” the chief executive

officer of Company A said in the statement.

Economic:

the impact of COVID 19 on the world in the last eight months to experience a historical

recession and a crash in the global stock market in March 2020. Factors that impact the

economy inevitably has implications on company performance and have resonating long term

effects. These economic factors include changes in inflation rates, interest rates, and foreign

exchange rates. An increase in inflation affects companies' pricing of products and services,

consumer purchasing power, and impacts supply and demand models.

Societal:

As with global disease outbreak, the COVID-19 pandemic is likely to and already has, in

some places, resulting in panic. This panic is visible on many levels, such as consumers'

stockpiling goods, increasing savings, and decreasing spending. Due to COVID 19's origin in

Wuhan, China, racism and prejudice towards the Chinese community are observed. COVID-

19 pandemic discourages travelers from moving from one destination to another, especially

traveling by air. Although the pandemic acts as a socio-cultural circumstance, its outcomes

have caused severe economic impacts; airline companies, as an example, face a dire lack of

customers and observing financial record losses. Most companies have preferred the work

from the home model since most employees are unable to go to work physically. Companies

encourage remote work, and although this is a short term decision, it may affect the future

decisions of companies to allow employees to work at home.

Technological:

Without Information and Computing Technology (ICT) seen today, COVID-19 would have

had a further economic impact than is seen today. The technology sector has recorded

positive effects amid this pandemic. All types of technological services are sought in many

industries, such as work, school, and retail, as they move towards online models. Many

retailers have already implemented online purchasing abilities combined with pick-up or

delivery models. Going forward, we believe that more companies will be embracing

technology.

Legal

As the pandemic sweeps through society, the legal processes in government and company

practices are impacted, such as delays in court proceedings, unpaid annual leave/pay

cuts/termination of company employees, the retail and commercial rent delays, and

organizations compliance with COVID-19 precautions and requirements.

Environmental

With COVID-19, there are environmental impacts that need to be considered. For example,

people will only resume travel if they deem it necessary and safe. The increased usage of

sanitization products, disposable masks, and disposable delivery packages will have a

damaging impact on the environment. The result requires considering how to mitigate

COVID 19's adverse effects on mother nature, the ecosystem, human health, and animals.

As Blue ventures into a new business, while continuing with their original traveling services

business operations, the Blue Ocean Strategy is a great analysis tool to ensure an efficient and

effective transition.
 Figure 5: Blue Ocean Analysis

Companies move out of blue and red oceans overtime. Successful organizations with sound

financial output and profits tend to attract competitors. A niche market with no competition is

a blue ocean, while those with a lot of competition are red oceans.

The blue ocean strategy provides the following guideline for Blue's businesses in the new

market to ensure success;

i. Creation of an Uncontested MarketSpace

As Blue ventures into a new business, it partners with one of the most reputable

companies from the USA, Company A, the first company to receive the Chinese

RMB settlement license issued by the Chinese government in June 2020. The

result will ensure and secure their position as leaders in the new and uncontested

market.

ii. Making the Competition Irrelevant

As Blue ventures into a new business, they bring in new products that attract

customers from both their old and new companies. The step taken by Blue, in
 turn, attracts more customers from the industry, rendering the competitors

irrelevant.

iii. Creating and Capturing new demand

Co-brand credit card issuance operation, which is the new business that Blue has

decided to focus on, is unique in China. The market niche is estimated at one

billion users; therefore, Blue can attract the maximum number of customers

possible.

iv. Breaking the value-cost trade-off

The partnership with Company A allows blue strategies to provide high-value

brand credit card issuance at a lower price since the cost can be shared. The

partnership, in turn, achieves low cost and differentiation.

The red ocean strategy provides the following guideline for Blue's businesses in the existing

market to ensure success;

i. Ability to compete in existing market space

With the COVID-19 pandemic, Blue's existing international travel service

business is under jeopardy. Although placed under the same conditions as the

competitors, Blue can use the new company to ensure the existing travel service

business continuity and sustainability.

ii. Beating the competition

With the new business funding the existing business until the end of the COVID-

19 pandemic, Blue's travel business will be sustainable while the competitor's jobs

are liquidating.
 iii. Make the value-cost trade-off.

Due to COVID-19 pandemic travel-related restrictions and its effect on the travel

industry, Blue has focused on the new business. To gain more customers, Blue has

to reduce the prices of the brand credit card issuance while at the same time

producing a reasonable quality. The move of reduction of price will help market

the new business further.

iv. The exploitation of existing demand

COVID-19 pandemic has rendered travelers stranded, and Blue can exploit this

opportunity by ensuring they find way back to their desired destination with ease.

Key Success Factor for Blue’s Business

The process of creation and updates is required for every organization's strategic plan in order

to remain relevant in a given industry. In the current time, politics, pandemics, and economic

changes are rapid; thus, the need for reviews ad changes in current strategic plans. Before

beginning strategic plans, an organization should first observe the current position and decide

where they want to be. It is also important to decide what actions they have to take to get

their destination. For any organization that needs growth in the ever-changing environment,

strategic planning is essential.

As all the organizations have a; mission vision and values, it is important to critically observe

each of the elements and decide where they should focus their energy. An organization may

decide to focus on the strengths or the business basing on forecasted results. It is important

that a conflict of objectives are looked into as early as possible and solved for all the

company's stakeholders; this ensures that everyone is working towards a common goal. It is

common knowledge that "failing to plan is planning to fail," which means organizations must

highly prioritize and invest sufficiently in making a strategic plan for their business. The key

factors for the success of a strategic plan are:

 i. Creation of a collaborative process

The strategic planning of any business depends on collaboration. Although

collaboration comes with fear of too many people having power, strategic planning as

a single business is bound to fail. With more collaboration, there is more support from

stakeholders and, thus, a realization of the organization's objective. Blue has partnered

with Company A, thus more support. An in-depth analysis of Blue Company can be

taken before deciding on a strategic option. Both the present and future strategies

must be reviewed by all the collaborators of the firm.

ii. Operation on Data and Not Assumptions

Although every organization has its own pre-conceived notion about how they

operate, beginning a strategic process without sufficient data is bound to produce no

results. Before the strategy of Blue begins, it is a requirement to gather sufficient data

such as talking to focused groups in the organization and generally talking to the

employees. The most significant factor is to know the position of the organization

currently in the industry; thus, the use of current data is becoming a requirement.

iii. Setting up Expectation for Sharing of Responsibilities

Usually, a committee of the organization is set up during collaborations without a

clear and concise goal. It is critical to find the right committee members. The

committee should be given clear responsibilities and opportunities to guide both

enterprises to achieve smooth operations. Blue and Company A should appoint

members who can raise concerns and make decisions that are critical to the future of

both companies to enable a win-win situation.

iv. Prioritization of Clear and Transparent Communication Channels

Transparency in communication, both internally and externally, builds trust; for all

stakeholders to agree on strategies, they need to trust and have faith in each other's
 integrity and decisions. All parties need to see how their issues, concerns are raised

and how actions are taken throughout the organization. Ideas from all the levels of the

organization need to flow easily and clearly in a systematic flow.

v. Putting thoughts past the strategy plans

After planning, the last thing the organization would need is having a document of

plans not being used. Implementation is required after the plan; thus, while looking

into the strategy, Blue should consider how to implement the strategy. Blue should

consider their resources, e.g., staff, while looking into the new plan. Priorities should

be set up to guide the business to achieve its objectives. For success to be achieved,

the organization should be able to make tough decisions like saying "no."

vi. Commitment is making changes.

Though difficult, change is inevitable in any organization. Once an organization is

used to a certain process, it becomes difficult to alter that process, let alone change it

completely. External factors are the first elements that will push an organization to

change. In the COVID-19 pandemic, Blue has been forced to change its normal

processes. To stay relevant and sustain itself, it has decided to make the new business

its priority. Leadership is among the factors that are most difficult to change; for

example, Blue's leadership will change based on Company A's partnership decisions.

To remain relevant, Blue has to adapt to this new environment and change the normal

course of business.

vii. Innovation

When an organization reaches a point of stability, they should aim for innovation.

Innovation is the ability of the organization to try something new because if it works,

it might be a great success point. While developing strategies, organizations should

also focus on innovating new products or services or restructure departments.

 Sometimes some groups in an organization, if put together, achieve major success

results, but if the organization does not try, it will never know. As Blue Company

enters into a new domain, they should restructure their departments and observe the

results. Although organizations tell their employees to try to be innovative, if there is

a lack of innovation strategy, then there is no room to innovate.

Proposal for Strategic options

1.1 1.12
Funds from
the new
business profit
 Focus on
sustainability
1
Grow current
revenue 1.2 1.22
Covid-19 Travel streams
restrictions uplifted Focus on Create new
innovations travel
BIG BET strategies

Current position
Growth stagnated 2.11
in the last six BIG BET 2
months due to the Enter .1
into a
COVID-19 new product
category
2 2.1
2
Covid-19 Travel Create .1 into
Enter 2.12
restrictions not lifted new partnerships 2
revenue Enter a .1
new
streams market (co-brand
Create new credit issuance)
revenue streams

Figure 6: Analysis model

The option that company Blue would consider pursuing depends on choice one or option 2 in

Figure 6, depending on the COVID-19 travel restriction. The uncertainty of the future in the

model above goes to level two, which can be improved in further research. In the choice to

take for Blue Company, the current issues like the COVID-19 pandemic would play a

significant factor (Liu, 2020).

The key concerns in the analysis presented are creating new revenue streams or growing with

the existing business. Future uncertainty depends on whether Blue chooses option one or two.

Blue's has a chance to choose option one and reserve the current firm or select option two and

adapt to the current situation. Both choices presented above have risk factors and

opportunities; for example, Blue can decide to reserve its play and stick to the existing

business. In the model, COVID-19 related restrictions may be soon lifted, and the industry

returns to normal, or the rule will not be quickly lifted, and the business suffers gravely. The
choice that Blue decides to undertake should be based on the SWOT, PESTLE, and Blue

Ocean models presented.

Although Covid-19 travel restrictions' outcomes remain uncertain, should the rule be lifted,

this would turn out to be optimistic given, Blue pursues option 1. In choice 1 of the analysis

model presented above, Blue continues with the current business and does not venture into

the new business fully. Traveling services remain the sole and primary source of business and

income for the company. The next choice, 1.1, will take place if the restrictions are not

uplifted. For the business to remain afloat in the market, funds from the new venture will be

injected to sustain the business in figure 1.11. If the Blue chooses option one, and the

COVID-19 restrictions are uplifted, the company will continue to thrive, and innovation 1.2

in the travel service business will be realized.

In the analysis model for Blue, 1.2, is a ‘no regret move’ where new application innovated by

Blue can serve purposes for both the existing business and the new business. Projections

brought about by the innovation are set up and calculated based on the unique customer

reach. The profits can feed into both the existing and new companies to generate higher

revenue streams and profitability. Every option taken is with risk as every winning might also

be a loss, and the larger the opportunities, the larger the risk (Busco, 2018). The move from

being a service provider to production is a considerable change for Blue strategically. In this

proposal for Blue business, there have been significant considerations taken into account for

both internal and external factors and the platform to tackle emerging issues with the

business's change.

In figure 6, the analysis model for Blue Company, option 2, to create a new revenue stream is

a dive into the new business. With COVID-19 pandemic travel restrictions in place, the

alternative is viable for Blue. If Blue takes this option, it will be forced into a partnership
with Company A and two other companies. First, the advantages of getting into a partnership

are the share of the workload and also a risk. Company A has financial stability and may be

willing to inject more funds to Blue to ensure the new business runs efficiently. The next step

after choosing to venture into a conglomerate falls under option 2.11 and 2.12. In option 2.11,

Blue can run both the new business and the existing business efficiently because it can use

the generated profits to stabilize the existing business until it stabilizes. In this option, the

production cost is minimized due to the existence of the well-branded partner, Company A.

The product will attract more customers due to the presence of the partnership, as they each

come with their customers. 2.11 is the most viable option for Blue as it ventures into the new

market territory. In option 2.12, Blue can decide to venture fully into the latest business and

neglect the existing travel services business, which is dwindling. Blue can determine that one

billion's projected customer base is sufficient to sustain and give them enough profits. The

results are if this option is taken, the state of travel restrictions in regards to COVID-19 will

not affect Blue's profit-making objective.

Proposal to Develop Further Future Strategy

Considerations of internal and external factors that influence the business have been taken to

develop future strategies for company B. The initial process already provides the solutions to
 current issues the firm is facing, and all factors influencing it. Further research is required to

be able to tackle in-depth problems that the company faces; this will require proper inquiry

and deeper research into company B (Brito and Michael, 2013), predetermined options stated

in the current strategy and participation will be a key factor in ensuring a new, improved and

better system. The client's willingness to participate will give them the power to handle the

problem and get the macro and micro issues.

Pause and review Pause and review

PHASE 1 objective approach PHASE 2 objective PHASE 3

Engagement Discovery Selection Development Execution Learning

Clearly Workshops Answering Creation of a Communicati Documenting

defining the to unpack the key clear strategy on of the new strategic
problem. SWOT, question of statement by strategy results
Pestle, and how to win keeping it
Blue Ocean simple,
Setting up a recognizing Engagement Conducting a
scene for the imperfection with the post-project
strategic life- Collating key Using s, and environment review
cycle issues in required making it for future
desired models for assistance
logical
models guidance
Agreement
on factors for
Validating
the success of
and
the business
presenting
current
results

Figure 7
Figure 7 is the new proposal strategy, based on "pause and review" between each phase to

allow the client to assess the result before proceeding to the next step. In Phase 1, an

engagement is built, and throughout the stages, it is recommended that the consultant have a

set fee for budgeting. The client and the consultant should clear out any issues before
continuing to the next phase. Problems should be clearly described, and also the agreement

of the success factor should be defined. The consultant should bill the client based on

completion or an hourly rate. Objectives are set in this face to clear out any conflict of

interest between the client and the consultant.

The extent of change of the travel industry based on the impact of the COVID-19 pandemic

is looked at in Phase 1; furthermore, the life-cycle model is implemented to enable

examination of the current review and to give reasons why a new strategy is required rather

than improvements on the old approach (Delaney et al., 1998). A great extent of industry

changes usually requires examining internal and external factors driving business and its

process.

In Phase 2, the discovery of the issues takes place. The right analysis tools will be chosen,

and validation of the result presented to the client. The client can pause at any given moment

to assess the outcome before deciding to resume. The next step in phase is to select a winning

question; this is where methodologies are formulated to guide the business on how it will

win. After the winning item is selected, the creation of a clear strategy statement is

developed, kept simple, recognizes imperfections, and is logical. The last phase, Phase 3, is

an option that requires learning and improving on the newly developed strategy. Execution

takes place in this phase, and communication to all shareholders regarding the new plan is

done.

To fully understand how environmental factors affect Blue's business, models such as OCIA

can be used. COVID-19 pandemic is an example of how shifts can occur in the business

world. The model can help us understand how external factors can disrupt the industry and
provide strategies to mitigate them. To fully understand Blue's business, all shareholders

must be taken into account and their role specified. The varying degree of influence is a

matter that must be looked into and how the clients affect the business.

Critical reflection
Throughout the proposal, a review has been done regarding the Blue business strategy. The

critical examination was further done on this section specific to the selection of tools is
applied. SWOT analysis has been used to understand the past and presents strengths and

opportunities that have given Blue its current position. It is essential to looks at tools in-depth

to prevent "active inertia," which leverages the strengths of Blue only, misuse of the analysis

tools may result in business failure.

Defensive/Offensive Evaluation as a tool has been argued to be better than SWOT since

SWOT does not apply trade-offs. SWOT has been used in this proposal together with other

devices, which strengthens it. Blue Ocean model is a tool that has a quid pro quo, for

example, and critically looks at every aspect of the business. By using Blue Ocean mode, we

observe both red and blue ocean markets for Blue Company and advise how best to find a

winning position in all, e.g., how to beat competitors. Due to the current COVID-19

pandemic, blue does not trade-off its investments, and there is a possible downfall of profits

for the year 2020. The environmental factors that influence the business are applied using the

PESTLE model. Interdependence on the specific model items gave a clear understanding of

the potential shifts and even the results.

Blue's decision to venture into a new business has both risk factors and opportunities

associated with it presented in all the analysis model tools. There is always a risk of over

tooling the analysis and thus creating confusion. In this proposal, the most important tools

were used to ensure the usage of only the tools that give clarity. In the analysis model crated

for Blue, the proposal recommends option two as part of either the current of the future

strategy depending on the need. The request itself gives the client the responsibility and gives

them the trust of all the content presented. There may be resistance and acceptance toward the

analysis since there is uncertainty with the model. The use of analysis tools is used more

compared to the iterative processes that drive the business. The power of any framework is

ensuring it integrates with other instruments and becomes more transparent and robust. Blue

needs to ask questions, i.e., "where will we win?" After the defined question is answered, the
model for the product rather than service is created. Strategies implemented should also help

customers differentiate the old processes and new where service converts to a by-product.

Conclusion and Recommendations

Blue Company's assessment has been extensively done. Frameworks, including SWOT, Blue

Ocean, and 5P's, were implemented while only a few critical elements were not included. The
critical view has enabled us to select the right tools to use for each specific component. Some

tools that are used like SWOT have had shortcomings that have researchers point out.

In the approach, the proposal acknowledges issues faced bu Blue Company and its clients. In

my thinking, I believe success is determined by how easily the client can understand and

apply the strategies outlined by the proposal. I do not think that any method that solved every

issue instead develops and improves strategy plans starting with the ones outlined in this

course. Blue's future is uncertain, but the strategies can shed light on what outcomes can

come from confident choices.

It can certainly be concluded that Blue Company is at a point of uncertainty; the COVID-19

pandemic has led to this demise. The need for a new strategy to beat this issue is, therefore, a

requirement for the survivability of the bossiness. This proposal is a recommendation by each

step, stating what should be done. The model created in figure 7 is to help Blue know the

level of uncertainty their choices have and the consequences that come with every choice.

Personally, I feel that Blue should consider taking option 2 in figure 7 to ensure survivability.

Reference
Rumsfeld, D. (2011). Known and unknown: a memoir. Penguin.
Logan, D. C. (2009). Known knowns, known unknowns, unknown unknowns, and the

propagation of scientific inquiry. Journal of experimental botany, 60(3), 712-714.

Dosher, M., Benepe, O., Humphrey, A., Stewart, R., & Lie, B. (1960). The SWOT analysis

method. Mento Park, CA: Stanford Research Institute.

Peng, M. W. (2013). Global strategy. Cengage learning.

Liu, J., Zhou, J., Yao, J., Zhang, X., Li, L., Xu, X., ... & Yan, J. (2020). Impact of

meteorological factors on the COVID-19 transmission: A multi-city study in

China. Science of the

Brito, Michael. Your brand, the next media company: How a social business strategy enables

better content, smarter marketing, and deeper customer relationships. Pearson

Education, 2013.

Delaney, P. F., Reder, L. M., Staszewski, J. J., & Ritter, F. E. (1998). The strategy specific

nature of improvement: The power law applies by strategy within a task. Psychological

science, 9(1), 1-7.

Key Charts
Impacts of COVID-19 Pandemic On the Trade and Economy of China
Chart 1; Impacts of COVID-19 on trade.

Chart 2; The negative effects of COVID-19 on China's economy.