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Table of Contents
1. Introduction ............................................................................................................................ 1
1.1 Brief about the company .................................................................................................. 1
1.2 Purpose of the report ........................................................................................................ 1
2. Rationale of the study ............................................................................................................ 1
3. Theoretical application........................................................................................................... 2
4. Analysis and findings ............................................................................................................. 3
5. Recommendation ................................................................................................................. 11
6. Conclusion ........................................................................................................................... 12
References ................................................................................................................................ 13
I
1. Introduction
1.1 Brief about the company
ABC company focuses on manufacturing Kitchen utensils. Mr Sirisena Perera was the founder
of the company and the company started small by manufacturing coconut scrappers decades
ago. However, the company has achieved its success in delivering many products to the market
by ensuring the creation of dream kitchens to its customers and with the two decades of hardworking the company has grown its market under the visionary leadership of Mr Perera. The
company focuses its growth and development with the adaptation of modern technologies and
better strategic management methodologies.
1.2 Purpose of the report
The report was written under the subject scope of Strategic Management and it was required to
deliver various recommendations according to the analysis of the study. The report delivers the
proper rationale for the application of the strategic management methodologies, theoretical
definitions, proper analysis of the given situation and ensures the delivery of recommendations
to the company to ensure the further growth of the business under the strategic management
considerations. The significance of creating vision and mission to the company, significance
of management information systems for the strategy formulation, and BCG matrix application
for the strategic development are mainly focused in the report as well under those main
headings.
2. Rationale of the study
Strategic management associates with defining the organisational vision, mission, objectives
and goals which allow the companies to improve their business journey with a higher level of
value creation during the time (McGee, Thomas and Wilson, 2006). The subject scope is
associated with the evaluation of the environmental considerations and assessment and
implementation of strategies to achieve a better level of sustainable competitive advantages to
the business conduct (Grunwald, 2014).
Considering the expectations of the strategic management, ABC company and its newly
launched brand (products) can achieve a higher level of growth. With the formation of strategic
management practices, it can be ensured the delivery of a better pathway to the business
organisation and further new strategic initiatives are expressed under the scope of strategic
management (Grunwald, 2014). All these positive factors are supportive of the growth of ABC
1
company. Mainly the company’s environmental considerations are critically assessed during
the study and define various positive advantages and opportunistic considerations to the
company to ensure its growth and development.
3. Theoretical application
Strategic management is associated with the formation of main areas which are supportive to
the growth of the business conduct (McGee, Thomas and Wilson, 2006). Mainly the business
organisation can be well guided with the strategic management considerations and further it
would ensure the proper utilisation of the organisational resources during the time (Thompson,
Scott and Martin, 2017).
Figure 1 Strategic management
Strategic management is associated with the formation of clear vision, mission and objectives.
Based on the assessment of the environmental considerations, the formation of the strategy
would be ensured and then the strategy would be implemented in the business environment
(Nelke, 2012). With the strategic implementation, it would be evaluated the strategy to identify
any gaps or need for the development (Jeyarathmm, 2008). It would ensure the proper growth
to the business conduct and further ensure the continuous development of the business conduct
(Voeth and Herbst, 2016).
The starting point of strategic intent is associated with the development of the organisational
vision, mission and objectives (BUTLER, 2016). By ensuring the establishment of strategic
intent, (creation of organisational vision and mission) the organisation can have below
mentioned benefits (Thompson, Scott and Martin, 2017).

Deliver proper strategic guidance to the business
2

Development of proper background and foundation for the business development
(Thompson, Scott and Martin, 2017)

Delivery of proper strategic functional guidances to measure the level of success to the
business (BUTLER, 2016).

The management finds it easier to guide the employees and further improve their
thinking based on organisational development expectations (BUTLER, 2016).

Assessment and correction of the performances and achievement of the company can
be properly done (Grunwald, 2014)

The company can ensure the proper talent attraction and resource attraction to the
business conduct based on its strategic pathway (Grunwald, 2014).

Ensure the flexible organisational restructuring which can be grounded with the vision
and mission and other objectives of the company (Voeth and Herbst, 2016)

Proper stable frameworks are given to the company to stable the internal processes in
an everchanging business context (Jeyarathmm, 2008)

The organisational culture would be improved under one main guidance of vision and
mission and the organisational resources would be inspired to achieve better sustainable
strategic competitive advantages to the business conduct (Jeyarathmm, 2008).
With the above benefits, the strategic formation would be conducted focusing on the growth of
the business according to the vision and mission of the business conduct (McGee, Thomas and
Wilson, 2006). With the implementation and evaluation of the strategic implementation of the
business would allow the companies to address the gaps in the current strategies to achieve
better growth accordingly (SALONER, 2018).
4. Analysis and findings
The management of the business organisation, ABC, wants to improve their organisational
functions and processes in the most improved manner. Under the visionary leadership of the
company, it can be seen that the company did not follow proper strategic management
frameworks to the business conduct and that should be properly corrected as well. Below it
was mentioned the current business status under the description of the strategic positioning of
the company.
3
Figure 2 Strategic positioning of the company
Above factors are introduced to the SPACE diagram accordingly.
Figure 3 Space matrix application
Considering the above, it can be defined as the strategic positions according to the SPACE
Matrix model.
4
Figure 4 Space matrix strategic direction
When considering the above two diagram, it can be seen that the company has better financial
positioning under Aggressive strategic direction. The working capital management and
financial performances of the company are in the highest standards. Under the industry
positioning as well, the company is in a positive nature with better access to the financing and
better growth potentials to the business conduct. The challenges are presented in the economic
conditions under inflation, demand and taxation. Further, the company has fewer tendencies
for the adaptation with modern technologies as well. However, considering the SPACE matrix,
the company’s suggested strategy focus should be Aggressive strategic approach.
With the Aggressive Posture in the SPACE Matrix, the company should ensure the full
exploitation for the available opportunities in the market and achieve the market share to the
business. All the positive opportunities should be adapted to the business to ensure the growth
of its operations and use their better financial strengths to improve the market share
accordingly.
5
To ensure the proper development of the competitive positioning of the business conduct, the
business organisation must ensure their production expansion with a proper adaptation of the
technologies and improve the quality and value creation in the organisation (SALONER,
2018). Brand development and market development should be properly done by the business
organisation accordingly (McGee, Thomas and Wilson, 2006).
With the implementation of the BCG matrix, the company’s current brands status and position
can be identified as below.
Figure 5 Product market share and growth rates
Considering the above-mentioned sales and market growth statistics, below it was mentioned
the BCG matrix accordingly.
6
Figure 6 BCG graph for the products
Considering the above, below it was mentioned the varients of the BCG matrix while including
the products relatively
7
Figure 7 Varients of BCG matrix
Symbol of BCG matrix
Name of the Brands
Dog
No Brands
Question marks
Brand B and Brand D
Stars
Brand C
Cash cows
Brand A
The company does not have any DOGs in the matrix and only two QUESTION MARKS, and
one STAR with one CASH COW. It can be seen that the cow has achieved the market
leadership and the starts are going the same way. The company should create its question mark
position to the stars and then cash cow (McGee, Thomas and Wilson, 2006). With the
aggressive business approach, the company should follow the below-mentioned vision and
mission with related strategic considerations.
8
Vision
Be the best home appliances brand in the creation of the customers’
dream house demands
Mission
Be the best brand in kitchen appliances in the Sri Lankan market in
the upcoming five years.
Strategy
Deliver the products to the customers with the highest level of value
creation and quality while reducing the cost of operations for the
lowest prices in the market.
The operational development and improvement can be achieved with the integration of the
value creation with Porter’s Value Chain model.
Figure 8 Porter's value chain model
Both primary and supportive activities of the ABC company should be enhanced with the
considerations of the value chain model (Thompson, Scott and Martin, 2017). Due to the
consideration of the positioning of the business, it can be seen as better procurement, firm
infrastructure and HRM functions are available (Nelke, 2012). Yet the technological adaptation
in the company is lesser and further, the inbound and outbound logistics, operations, marketing
and sales and services can be expanded for the business conduct (Jeyarathmm, 2008). The
technological adaptation to the company would ensure that expectation of business growth and
it can be suggested the adaptation of the MIS (management information system) to the business
accordingly (Jeyarathmm, 2008).
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Figure 9 Process flow of MIS
When introducing MIS to the business, it is better to introduce an ERP system to the business.
It would cover all the value creation considerations of the business while ensuring better
development of the processes and outcomes of the company.
Figure 10 Focuses on ERP system
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As above it can be seen that the ERP system is focused on the improvement of the
organisational processes while creating value creation with the automation (McGee, Thomas
and Wilson, 2006). With the reduction of the process resource requirements, the system would
ensure the positive strategic allocation to the business to deliver the products with the highest
value and lower pricing considerations (Thompson, Scott and Martin, 2017).
5. Recommendation
The business organisation can be given with below recommendations to ensure its positive
development and market growth.

The company should follow the agile approach for identifying the market opportunities
and improve the organisational processes to address the opportunities by taking proper
risk management considerations.

It is essential to improve the marketing processes of the company to improve the brand
building and the main attention should be given to the question mark positions of the
company

The cash cow should be reintroduced to the market with better marketing and
relationship building to further grow its market.

The marketing functions should be reevaluated to measure success. Mainly the business
organisation should follow collaborative marketing communication method and ensure
the delivery of marketing messages to the target market directly and cost-effectively.
More focus should be given to digital marketing functions.

The introduction of the ERP system should be done under MIS integration and it is
essential to deliver proper training for the employees to take the maximum outcome
from the system implementation during the time. The change management practices
should be further focused as well.

The company’s future development strategies should be aligned to the vision and
mission of the company and the resource management and productivity development
of the company should be done to deliver higher value for the lowest pricing in the
market. The hybrid strategy of the company should be further promoted to grow the
market with the growth of business operations.
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6. Conclusion
The report reviewed the case study of ABC company under the scope of Strategic management.
It was identified that the company can achieve better growth with the implementation of the
strategic management practices and the organisation was suggested to choose with the
aggressive approach under the SPACE matrix.
The approach is supportive to develop the current market question marks to the stars and cash
cows in the market. Further, the company is suggested to pursue the hybrid strategy of
delivering higher quality products for the lower price ranges. It would ensure the positive
growth of the business while addressing current positive resource management considerations.
Mainly the automation of the business with MIS and ERP systems would ensure better
productivity development and value creation to the business conduct.
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References
Birkinshaw, J., 2004. Strategic Management. Northampton, MA: Edward Elgar Pub.
BUTLER, D., 2016. BUSINESS DEVELOPMENT. [Place of publication not identified]:
ROUTLEDGE.
Grunwald, T., 2014. BUSINESS DEVELOPMENT. Berlin: epubli GmbH.
Jeyarathmm, M., 2008. Strategic Management. New Delhi: Himalaya Pub. House.
McGee, J., Thomas, H. and Wilson, D., 2006. Strategic Management. [Limerick]: McGrawHill.
Nelke, M., 2012. Strategic Business Development For Information Centres And Libraries.
Oxford [England]: Chandos Publishing.
SALONER, G., 2018. STRATEGIC MANAGEMENT. [Place of publication not identified]:
JOHN WILEY.
Thompson, J., Scott, J. and Martin, F., 2017. Strategic Management. Andover: Cengage.
Voeth, M. and Herbst, U., 2016. Business Development. Stuttgart: Schäffer-Poeschel.
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