Student Details (Student should fill the content)

Name A.Tharindu Udayanga Somapala Amarasooriya

Batch Number 22
Student ID Cardiff Met ID : 20207769 ICBT ID : CL/CARDIFFMB/22/123

Scheduled unit details

Unit code MBA 7002
Unit title Strategic Management Assignment WRIT 1
Assignment Details

Nature of the Assessment WRIT 1 (Examination converted to an assignment)

Topic of the Case Study GIVEN
Learning Outcomes covered YES
Word count 2000 words
Due date / Time 20 February 2022
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without acknowledgement. Except where I have clearly stated that I have used some of this material
elsewhere, I have not presented it for examination / assessment in any other course or unit at this or any
other institution
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For student use: Critical feedback on the individual progression towards achieving the assignment
outcomes

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Table of Contents
Task One......................................................................................................................................................6
(A)............................................................................................................................................................6
Strategic Position.....................................................................................................................................6
Strategic Choice.......................................................................................................................................6
Strategic Action.......................................................................................................................................6
Understanding the external environment...............................................................................................7
(B)............................................................................................................................................................7
How to gain sustainable competitive advantage.....................................................................................8
VRIO analysis of an organization.............................................................................................................9
Task Two....................................................................................................................................................10
(A)..........................................................................................................................................................10
(B)..........................................................................................................................................................11
Task Three.................................................................................................................................................12
(A)..........................................................................................................................................................12
Environmental Factors...........................................................................................................................12
Company Size........................................................................................................................................12
Company Age.........................................................................................................................................12
Structural Designs..................................................................................................................................13
(B)..........................................................................................................................................................13
Task Four...................................................................................................................................................14
(A)..........................................................................................................................................................14
(B)..........................................................................................................................................................15
References.................................................................................................................................................16

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Task One
(A)
Strategic Position
Examination of the current strategic position or strategic analysis can be identified as the key
step within the strategic planning procedure. This can be defined as influence on strategy of the
external environment as well as internal resources and competences. besides the prospects and
influence of investors. (Scholes, 2008)

As specified above, there are 3 main aspects of strategic position which can

influence on strategy of the organization.

• External environment
• the resources and competences of the organization which directly link with strategic
capability.
• Influences of stakeholder & culture of the organization.

Strategic Choice
Strategic analysis typically forms a basis for strategic choice. Which made upon the results of
strategic analysis.

Strategic choice can be defined as pick out the best possible sequence of action. However, these
strategic choices need to be further analyzed in the basis of relative merits for that they can be
evaluates based on SWOT analysis.

It is important to select options based on strengths which can take the advantage of
opportunities. However, in the process of selection of strategy, the influence of management is
prominent therefor it is recommended to get the ideas of different tears of the organization in
order to minimize the influence of power structure of the organization.

Strategic Action
Translation of the strategy in to action is next main component of strategic management.it is
essential to develop suitable positioning of organization resources & active change management.
Several parties are involved in the implementation of the strategy.

The first part deals with planning and resource allocation. The second part is the design and
structure of the organization. During the execution of the strategy, certain changes must be made
in the organizational structure. It is also likely that it will be necessary to adapt the system used

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to manage the group. The third part is strategic change management. When a strategy is
executed, it also requires that strategic change be managed.

Understanding the external environment

It is important to understand the external environment in terms of macro influencing factors
(PESTAL) & micro influencing factors which factors specific to the exact industry such as
competitors, targeting customers profile, external suppliers etc.

A SWOT analysis is a structured method to evaluating an organization's strategic position by

categorizing its strengths, weaknesses, opportunities, and threats.

Fig (1) understanding external & internal environment

It is important to analyze the environment such as competition, potential market & legislature
requirements in terms of opportunities and threats & the strategic capability of the organization
mainly competences & resources as strengths and weaknesses.

(B) Organizations uses their strategic capabilities and resources to generate products and
services that customers need. To create competitive advantage organizations are always trying to
produce product at the lowest cost and with more features, which creates competitive advantage
in the market. (Manag, 2013)

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Fig (2) sustainable competitive advantage resource-based view (SAXENA, 2000)

How to gain sustainable competitive advantage

The organization must have better resources and capabilities than its competitors to position
themselves with cost or differentiation advantage. If it is not so, the competitors would easily
duplicate the product. therefor the task for the organizations is to accomplish a sustainable
competitive advantage over deploying their resources capably. The matrix created by Porter’s
helps to create general strategies that can offer a competitive advantage to the organization

F
ig (3) Porter's Generic Strategies Matrix (SAXENA, 2000)
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VRIO analysis of an organization

Nevertheless, there is no assurance that an asset represents a competitive advantage of an

organization results the expected value. Those may not be used by the organization or it may
only be a provisional benefit.

Therefore, what organizations actually need is to develop sustainable competitive advantages.

However, generating this isn't as easy as it sounds.it needs analysis of resources with its
potential. In general, the category most likely to improve is the category of unused competitive
advantage. VRIO analysis is addressing 4 aspects in terms of gaining competitive advantage they
are (Morris, 2022)

 Value -value of the available resources

 Rare – availability or value of the resources they have
 Inimitable- the values and resources can’t duplicate
 Organization wide support – appropriacy to the organization

S upported Competitiv Perfor-

Difficult to by e
Valuable? Rare?
Imitate? Organizat Implicatio mance
ion? ns
Competitiv
e Below
No —– —-
Dis advan t Normal
age
Competitiv
Yes No —- Normal
e Parity

Temporary
Competitiv
Yes Ab ove
Yes Yes No e
Normal
A dv antag
e
Su s tain ed
Competitiv
Ab ove
Yes Yes Yes e
Normal
A dv antag
e

Fig (4) VRIO and Relative Firm Performance (Morris, 2022)

Resources already have a competitive advantage and simply lack the organizations desire to
make the most of them and drive value of it. Strategic planning helps here. As previously

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mentioned, unused competitive advantage assets lack the support as well as processes &
organizational culture to take full advantage of them.

strategic management helps to identify untapped competitive advantages and formulate strategic
plans to develop these resources. development of strategic plan is essential to align the processes
& develop people and structure, further which will identify the resources & turn them into
sustainable competitive advantages.

Fig (5) Interdependence between Company Strategy and Competitive Advantage (Manag, 2013)

Task Two

(A).

The company's mission and vision convey more about the goals that an organization would
follow. However, it is possible that the organizations vision & mission & values inconsistent
with its strategy in terms of corporate, business & financial. It can lead to some problems.

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If the strategies are inconsistent, it means that they cannot live up to the expectations of their
stakeholders. In this situation, the company can lose its customers, staffs and many other
important parties including its stakeholders.

These strategic inconsistencies with the mission of the organization can be detrimental, which
can create dissatisfaction among employees. It can affect the staff of job performance. Further
investors feel that the stated vision, mission, or values are inconsistent with current strategies &
they may be losing the interest of investing.

The effect of external factors directly effecting in terms of strategy formulating and strategy in
action phase these factors are mainly consisting PESTAL factors. However, based on the
unstable situations of economic, political & social factors most of the time organizational
corporate, business & operational level strategies changes time to time most of the time these
changes may not aligning with the mission or vision of the company. as an example, due to the
current financial situation of Srilanka companies are compelled to buy FOREX from open
market at a higher rate, which is obviously unacceptable with their financial strategy.

When it comes to the internal factors which can contradict in the strategy in action phase it is
important to do the proper change management in terms of organizational culture, objectives,
communication & engagement of employees

(B). Resistance to change would be considered as a sign which is of disloyalty or inability to act
accordingly. The resistance for the natural part of the change process. Which is considered with
the change process. This would indicate the resistance for the vision to lack for the ability to
compete. Therefore, managing the change would be considered with the change involvement for
the anticipation of the individuals to consider the role of the company and the activities which
are carried out. There are possibilities which are considered for the change to be overcome.
There are most considered areas of belief which are considered as the reason for the people to
resist change.

1. No requirement for change is necessary

2. The change would be made difficult to reach the goals

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 3. The benefits are lowered
4. The necessity to make the change is not considered
5. Change would be making thing fail
6. Change has to be made systematic by the management
7. The values would be different
8. The change is necessary to be made

Task Three

(A). the best approach which is considered as the tailor of the strategic planning. Therefore, the
plans would be considered as the vision of the company along with the mission. The mission
would be considered with the organizations purpose. The vision therefore would be considered
as the ultimate for the accomplishment which is in line with the mission. The strategy which is
considered would be of the support which is considered. The factors below are considered for the
strategic planning.

Environmental Factors
The environment of the company would consider for the designing of the strategy. the robust
and mechanized structure reduces staff agility and responsiveness. Instead, the designer can
build an organic horizontal structure. This flattens the level of control and decentralizes
decision making.

Company Size
Most of the small-scale businesses would be requiring the need for the overlap of the roles and
the infirmity for the rules to be made in line. The company would be considering the mistake to
be mechanistic and this is considered as the futility. The unnecessary hierarchy would be
considered not necessary.

Company Age
At the inception of the organizations first year the medium scale company would consider the
structure to be encouraged and the flexible. mechanize, adding rules, policies and procedures;

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closely defined tasks; wide-ranging internal systems of control and command chains. This can
be identified as bureaucracy in the maturity. Resulting a barrier to innovation as well as
compliance. Therefore, it is important to restructure itself to reduce its mechanical structure.

Structural Designs

When carefully considering the structure, the structure is considered with its strengths and
weaknesses in mind. There are two common areas of concern. Structure creates departments
according to business activities such as production, marketing, and finance. Grouping activities
that way is more efficient, but can lead to barriers between departments. Due to overlapping
business activities between departments and throughout the company.

(B). The term social responsibility means that it varies from person to person. In general,
corporate social responsibility improve the welfare of society by obligation to take actions and
support the interests of the organization. According to the concept of corporate social
responsibility, managers must strive to achieve both organizational and social goals.

Present perspective which is considered with the social responsibility of the business to be
included for the long stand of the Davis model which is considered for the social responsibility,
which would be categorized as for the social responsibility of the various positioning and the role
of expectations which are considered with the areas concerned.

Some of the most publicized in these areas are urban & consumer issues, environmental matters,
and employment practices. Many organizations are involved in socially responsible activities,
but much debate continues as to whether such involvement is necessary or appropriate. There are
pros and cons to companies that engage in socially responsible activities.

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Task Four

(A). Passive culture which can be considered with the culture where the members would be
interacting with the individual areas which are considered for the own safety. The aggressive
which is the defensive culture where the expectation would be considered for the status and the
security. The culture therefore would have to be considered with the passive rather than
constructive for the balance to be considered for the tasks which are of concern between the tasks
and the hold of the accountable.

The negative attitude which would be considered as part of the human behavior would be
considered for the behavior to be influenced around them as well. The negative attitude therefore
would be considered as the unhappy people who are carrying out the work and the most common
for the negative to consider would be the comparison with other individuals. Therefore, the
negative attitude would be considered as the attitude which would be lacking awareness. The
negative attitude would be considered for the lack of awareness of the attitude for the interaction
with others as well as within. There are two areas of concern for the leadership which can be
considered as the managers to consider the leadership and the leader to help the worker to adopt
and to change. The method would be to consider the leadership to be more autocratic and to
change the process. Addressing these behavioral issues is one of the main challenges of
managers.it is important to address the cause of the behavior by understanding the motivations
of them. As a manager it is important to inspire more leaders by establishing clear KPI s,
succession plan & performance plan. (Carpenter, 2020)

Another important fact in terms of negative attitude and passive culture is lack of accountability
and ownership as a manager it is important to empower the team in terms of decision-making
process. (Anon., 2021 )

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(B).

Mergers and acquisitions are important growth strategies for any multinational association. It can
be new market, new technologies. Culture is very important during this remarkable change,
However, if the two organizations are merged or acquired for financial reasons, it is uncertain
that the two cultures will remain exactly the same. Therefore, it is important to understand
individual, team & organizational level cultural differences. (Doolittle, 2021)

The main cultural issues of M&A can be identified in short as follows

 Inadequate cultural due diligence can be identified as one of the major issues.
 Employee communication is difficult during mergers and acquisitions
 Retaining employees is a challenge in mergers and acquisitions.
 Global mergers and acquisitions can present the challenge of different physical distances
and time zones between employees.

To solve these major problems, it is important to understand the three phases. First, in the pre-
merge phase, the organization identifies. During the merger or acquisition integration phase, it is
essential to carry out a cultural assessment of the current status of the newly merged or acquired
company. Please do not accept the comment that both companies are exactly the same. This
assessment not only reveals the strengths and weaknesses, but also identifies possible areas of
subculture and opportunity. This will give you a better understanding of how to solve problems
related to M & A. (Doolittle, 2021)

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References
Anon., 2021 . 5 Ways to Deal With Passive Aggressive Behavior. [Online]
Available at: https://ardencoaching.com/5-ways-to-deal-with-passive-aggressive-behavior/
[Accessed 20 february 2022].

Carpenter, M. B. T. &. E., 2020. Strategy, vision, mission, and values Alien from another Universe-ity.
[Online]
Available at: http://studyis.fun/2020/08/14/strategy-vision-mission-and-values/
[Accessed 20 february 2022].

Doolittle, D. J., 2021. Organizational Talent Consulting. [Online]

Available at: https://www.organizationaltalent.com/post/2019/04/18/mergers-acquisitions-the-
importance-of-creating-a-shared-culture
[Accessed 20 february 2022].

Manag, J. T., 2013. Building a Sustainable Competitive Advantage. Journal of Technology Management &
Innovation Santiago mayo, p. vol.8 no.2.

Morris, J., 2022. STRATEGIC MANAGEMENT. [Online]

Available at: https://open.oregonstate.education/strategicmanagement/chapter/4-vrio-analysis/
#:~:text=To%20lead%20to%20a%20sustainable,the%20foundation%20for%20internal%20analysis.

SAXENA, D., 2000. Super Heuristics. [Online]

Available at: https://www.superheuristics.com/sustainable-competitive-advantage/

Scholes, G. J. K., 2008. EXPLORING. EIGHTH EDITION ed. Edinburgh: Pearson Education Limited.

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