Strategy
Section 1
Businesses are organisations which aim to provide society with goods and services and in
return gain a profit. However, there is a bigger picture behind the way that businesses
operate. The business world is constantly changing, therefore organisations must adapt and
formulate strategies in order to succeed. The purpose of a strategy is to gain a sustainable
competitive advantage over the long run. This is the ultimate goal for most organisations.
What this means is doing what you do better than your competitors. Key performance
indicators are a good measure of whether the business is performing successfully or not.
Components such as sales, labour productivity and shareholder wealth are all factors that
contribute to whether the business is thriving or failing. Each firm has their own core
competencies which include the skill level of the employees, the technology the company
possesses and so on. It is very difficult for organisations to achieve sustainable competitive
advantage. This is the reason why businesses formulate strategies in order to achieve this
concept known as sustainable competitive advantage over the long run.
When businesses create a strategy they want a game plan, they need to get from point A
which is where they are now, to point B which is where they want to be. However every
strategy faces challenges and will most often than not fail. Strategy is ‘a linking process
between environmental and organizational variables’. It contains a number of interrelated
elements. (Needle 2010, p. 255)
There are three essential stages to formulating a strategy. The first stage is ‘Analysis’ which
comprises of businesses examining the environment around them, collecting information
and exploring it. This contains internal analysis which involves locating the strengths and
weaknesses of the business in addition to the analysis of opportunities and threats that
come external to the business environment but still affect it. These components together
create a concept known as the SWOT analysis which is a major factor when planning a
business strategy.
The second stage is ‘Formulation’ where a business must decide their goals, pinpoint where
and how they want to improve and create value for customers. Finally the last stage is
‘Implementation’ where the strategy finally takes form, and must be monitored and
evaluated to know whether the business strategy is successful or not. These three stages
make up what is known as a business strategy.
Section 2
Mcdonalds has recently been suffering poor performance, ‘the company admits sales have
suffered in the past 12 months’. (Hendy 2012) Therefore McDonalds is implementing a
strategy that will help them improve profits and gain a sustainable competitive advantage in
the fast food industry. Firstly, McDonalds plans to give Australians a look behind the curtains
of how the company operates in an attempt to gain consumer trust and confidence. ‘The
initiatives include inviting people to investigate its supply chain and restaurants or go behind
the counter to see how the food is prepared in the hope it will dispel what it says are myths
about the quality of its food’. (Hendy 2012) Mcdonalds hopes this will give consumers a
positive impression of the organisation. However this move has the ability to tarnish the
McDonalds brand name. Some concerns were raised with issues such as the ‘sugar wash
used on fries and the chlorine solution used to wash lettuce’. (Hendy 2012) This may cause
an undesirable reaction from Australian consumers and spur negative media attention.
Nevertheless, McDonalds does not expect the whole Australian population to fall in love
with the brand, but rather just to have a better understanding of the organisation and prove
that McDonalds has nothing to hide. Thus this would be an appropriate strategy for
Mcdonalds to implement.
Furthermore Channel Ten has also been suffering losses, according to Simpson (2012)
confirming a 70.1 per cent plunge in half-year profit. Channel Ten is employing a new
business strategy that will see the broadcaster deliver a variety of new programs in an
attempt to broaden the networks appeal. Channel Ten plans to build a newly diversified
schedule that will draw a variety of viewers throughout all hours of the day as opposed to a
‘one bet, one punch mentality.’ (Simpson 2012) which only saw viewers tune in for shows
such as Masterchef. However, this strategy may see Channel Ten attract many viewers
away from their multi-channels such as ONE and Eleven. This has the ability to diminish
Channel Ten’s overall market share in the digital media industry, and may eventually lead to
the cannibalism of the company’s own secondary networks. Then again, according to
Simpson (2012) Channel Ten would be looking at bidding for more sports rights as they
come up - it has previously expressed interest in the NRL and V8 Supercars which will entice
most viewers from the other major networks. Therefore this would also be a suitable
strategy for Channel Ten to introduce.
Lastly, Emirates is developing a business strategy in which ‘Emirates is rolling out a new
international campaign which for the first time moves away from introducing the brand, to
encouraging travellers to think of the airline as part of the whole holiday experience’.
(Kermond 2012) This strategy is aimed at gaining a sustainable competitive advantage as
they will be the only airline that aims at creating a journey that is better than the
destination itself. However, this strategy could also backfire as this campaign will require a
high level of investment and funding which will be passed on to consumers, not allowing
many who would usually fly business or economy the option to experience the Emirates
flights. On the other hand according to Kermond (2012) Emirates wants to ‘show people the
airline was not just about transportation but connected to all aspects of travel, including
education, culture and new experiences’. This will give the Emirates brand name a big boost
as an ethical customer based company which relies on pleasing the consumers. Thus this
strategy is appropriate for Emirates and should be implemented.
Reference List

Nina Hendy, 2012, Maccas welcomes eyes on the fries, SMH, viewed 13 April 2012,
<http://www.smh.com.au/business/media-and-marketing/maccas-welcomes-eyeson-the-fries-20120412-1wwii.html#ixzz1rqmQRHzM>

Clare Kermond, 2012, Emirates' new campaign off to a flyer, SMH, viewed 13 April
2012, <http://www.smh.com.au/business/media-and-marketing/emirates-newcampaign-off-to-a-flyer-20120412-1wwif.html#ixzz1rqlc0G2l>

Kirsty Simpson, 2012, Ten rolling out the shows after 70% profit plunge, SMH, viewed
13 April 2012, <http://www.smh.com.au/business/ten-rolling-out-the-shows-after70-profit-plunge-20120412-1wwo1.html#ixzz1rqn260eY>