Running Head: STRATEGIC ANALYSIS PROCESS AT VTI MOBOTICS
Strategic Analysis Process at VTI Mobotics
Barbara Asselin (1210118)
Glen Dietz (1210341)
Sudhir Nair (1010101)
Payman Rowhani (1110306)
University Canada West
Professor: Dr. Shawn Ireland
MGMT 601 - Leadership in the Global Context
June 10, 2013
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STRATEGIC ANALYSIS PROCESS AT VTI MOBOTICS
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Table of Contents
Introduction ..................................................................................................................................... 3
Strategic Planning and Analysis ..................................................................................................... 3
Setting the Strategic Objectives ...................................................................................................... 5
Communicating the Strategy........................................................................................................... 9
Exhibits ......................................................................................................................................... 12
References ..................................................................................................................................... 14
STRATEGIC ANALYSIS PROCESS AT VTI MOBOTICS
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Strategic Analysis Process at VTI Mobotics
Introduction
Amalgamated Mobotics, the first manufacture of lawn mowing robots (Mobots), was
acquired by Virtual Technologies Incorporated (VTI) because of failing financials. The
company was losing its market share to more focused competitors. After the acquisition, the
firm’s name changed to VTI Mobotics and the Vice President of Product Design and
Development at VTI hired a new general manager to resolve the firm’s issues by focusing on a
proper strategy in the Mobot market.
This paper is dedicated to discuss the strategic analysis process at VTI Mobotics from the
perspective of its newly hired general manager. The paper also analyzes the manager’s decisions
for the firm’s issues presented.
Strategic Planning and Analysis
The first set of actions would be analyzing the strategy. This process usually starts by
developing a vision, in which the internal as well as external environments are evaluated, longterm goals are set, alternative strategies are generated and assessed, and a decision is made
(Mind Tools, 2013). The general manager at VTI Mobotics would also pursue the same path by
doing the following:
1. Meeting the staff and asking a few questions, such as:

What is good about the product/process/clients and what needs to be
improved?

What are the challenges to success for this company?
STRATEGIC ANALYSIS PROCESS AT VTI MOBOTICS

What aspects of business needs more focus?

What is your vision for the company in the future four years?
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2. Conducting a SWOT analysis to identify the firm’s strengths and weaknesses (internal
environment) and the market’s opportunities and threats (external environment)
(Renault, n.d.). The result of SWOT analysis is presented in Exhibit 1.
3. Generating alternative strategies. If VTI Mobotics wants to take a leadership
position in Mobots, it should narrow its business focus. Most successful companies
have focused on delivering superior customer value in line with one of three value
disciplines: (1) customer intimacy, (2) operational excellence, and (3) product
leadership (Treacy & Wiersema, 1993). Although none of these disciplines can be
neglected, market-leading organizations focuses resources relentlessly along one
principal strategic dimension and try to meet industry standards in the other two
(Treacy & Wiersema, 1993).
4. Evaluating and prioritizing alternative strategies and deciding to choose a top priority
focus. The general manager would choose a strategic matrix for this purpose.
According to David, David, and David (2009), the Quantitative Strategic Planning
Matrix (QSPM) is an excellent tool for deciding among feasible alternative strategies.
As shown in Exhibit 2, the main strategic focus of year two would be operational
excellence.
5. Choosing a few objectives based on the strategic focus. This is discussed in the next
section.
STRATEGIC ANALYSIS PROCESS AT VTI MOBOTICS
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Setting the Strategic Objectives
The general manager has several options to choose as the strategic objectives of year two.
Below the pros and cons of each objective is discussed:
1. Time Spent with Customer
o Helps to create more customer satisfaction and loyalty so as to get more
profits and mitigate the rivals’ risk.
o Helps to build ties and make the customers understand they are important to
the company.
o Helps to understand what is important to clients.
o Helps to understand image of company.
o Helps to train the customers how to use and maintain products properly so as
to reduce service calls.
o Helps to get innovative ideas from customers, create new products based on
them, and get feedback to improve those products.
o May limit the amount of profits that can be earned by investment on other
objectives, such as increasing the production capacity.
2. Time Spent on Personal Projects
o Helps to create more innovations, more market share, and profitability given
the fact that the firm is acquired by a technology giant that is a strong
supporter of innovations.
o Distracts the focus from the issues related to the business.
3. Customer Retention
o Guarantees sustainable profits by preventing customer to go the competitors.
STRATEGIC ANALYSIS PROCESS AT VTI MOBOTICS
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o Saves costs by preventing the company to look for new customers.
o Helps to retain market share and revenue stream.
o Helps to ensure key clients remain loyal.
o Helps to build new client base with an interest in standardized products and
thus economy of scale.
o May limit the company’s resources that can be spent on attracting new
customers
4. New Product Development
o Helps in achieving new market leadership, more customers, more market
share, and less competitors’ risk given the fact.
o Helps in attracting more demands and guarantees higher prices.
o Helps in adopting current products to be cheaper and more reliable products.
o May limit the company’s resources that can be spent on increasing the
capacity to meet the future demands.
5. Structured, Process-driven Environment
o Helps in reducing costs and meeting future demands.
o Helps in improving products and services.
o Helps to become more competitive.
o Creates culture and infrastructure to support the new strategic focus.
o Helps to improve the process and deliver a superior product in less time and at
a reduced cost.
6. Breakthrough Product Design
o Helps to achieve product leadership and more market share and profitability.
STRATEGIC ANALYSIS PROCESS AT VTI MOBOTICS
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o Helps to keep pace with the market’s technology and to reinforce customer
confidence.
o Distracts the company’s focus from the current operational issues.
7. Flexibility in Customer Demands
o Helps in meeting future demands more easily.
o Demonstrates the company’s keenness for customer retention.
o Helps to understand the customer challenges and the way to improve them
from an operations perspective.
8. Adherence to Company Standards
o Helps to produce more quality products
o Helps to meet customer expectations more properly
9. Cost Reduction
o Helps to earn more profits
o Helps to reduce prices and achieve more customer retention and attraction
The company has a very bad situation currently. It is losing revenues and costs are rising.
On the other hand, competitors are offering cheaper products. In addition, the demand is much
more than manufacturing capacity. Such high demand for the current products shows that new
products may not be required in the near future. In addition, it shows that many new potential
customers may come to the company and there may not be need to spend too much time and
money for customer retention. Therefore, there is an intense need for operational excellence at
the moment and the manager should focus more on the following objectives:

Cost Reduction: The product costs are rising leading to higher prices or less profits.
On the other hand, the competitors are offering cheaper products. Therefore, there is
STRATEGIC ANALYSIS PROCESS AT VTI MOBOTICS
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a need to get costs under control. The company should be more focused on
eliminating wastes that can originate from different operations, such as production
defects or investment on irrelevant innovating projects. It should also review supplier
contracts, tightness of supply chain, and other items that can reduce costs. Cost
reduction would help to attract more demands and profits, given the fact that the
company has a good reputation.

Structured, Process-driven Environment: Focusing on processes is a core component
of operational excellence. The company should create a process-driven environment
and clarify each operation in order to improve them and make them efficient and also
to understand and control costs that rise from different operations. This would result
in faster production and cheaper products.

Adherence to Company Standards: Total re-engineering may be required. There
should be well defined polices and processes for the employees to follow. Employees
should be trained how to stick into the standards. It is also important to establish a
compliance focus as a part of the corporate culture. This would result in fewer
wastes, less costs, and more quality products.

Flexibility in Customer Demands: Flexibility helps the company to match the
capacity with the demand and to decrease the inventory costs. It also helps it to
produce efficient solutions and create value for customers in less time. Tracking and
monitoring systems should be developed to understand costs, contribution, and profit.
In addition, some forecasting systems must be established to make operations more
efficient. This would result in more customer satisfaction and profits.
STRATEGIC ANALYSIS PROCESS AT VTI MOBOTICS
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Communicating the Strategy
The manager should present the strategy message to the board of directors and refine it as
required. Then, he or she should figure out how to get the message of new strategic focus and
objectives out to the business unit. Communications in times of uncertainty and change
management is critical. Many forms of communications are needed. Staging the communication
is important to gain support from key stakeholders and having prepared messages ensures
everyone gets accurate information. The manager has several options for communicating the
strategy:
1. Sending a Company-Wide Email
o The fastest and most efficient way to communicate the strategy.
o Employees can respond with questions.
o Probably not an appropriate way of communicating a dramatic change in the
strategy.
o Employees may miss it.
o Does not convey any feelings to employees.
2. Having a Company-Wide Meeting
o Allows all employees to hear the same message from the same person at the
same time.
o Fast way of communication that allows for faster actions.
o Employees can get familiar with the new manager.
o A few employee input can be obtained at the meeting.
o Allows for partial employee buy-in.
o May not be feasible if there are too many employees.
STRATEGIC ANALYSIS PROCESS AT VTI MOBOTICS
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o May not help much to communicate the strategy because it is like a
conference where the lecturer has no relationship with the audience, which is
not the case in a company.
o Employees cannot ask enough questions for clarification.
3. Having Directors Meet with Their Departments
o The message will be better received if it comes from the employee’s manager.
o Directors can communicate with their individual departments in their own
form of communication, which each department is used to.
o Employees can ask questions for clarification
o Directors can plan some sessions to involve employees in the change process
and get their feedback to improve the strategy. Employee engagement key
component of change management (Hodgkinson, 1999).
o Employees would be more candid in their feedback with their managers.
o Employee inputs and concerns can be more easily collected and moved to the
upper levels.
o Directors can ensure all employees have understood the strategy and can
provide directions when needed.
4. Attending a Meeting with Each Department
o Allows the manager to personally take the strategy to each department and
tailor the message.
o Time consuming.
o Employees may not feel intimate with the manager to ask their questions.
o Employees cannot ask any questions after the manager leaves the department.
STRATEGIC ANALYSIS PROCESS AT VTI MOBOTICS
5. Providing a Video Presentation
o Allows the manager to get the message out to each employee without taking
the time to find meetings times.
o Efficient and effective.
o Not an intimate way of communication.
o Employees cannot ask question.
Based on the above discussion, item 3 seems to be the best communication method to
start with. The manager can ask the directors to meet with their departments and receive
feedback on how their departments are affected by the strategic focus, and then he or she can
receive feedback from the directors and review the message as required. Next steps can be
presenting the strategy on a company-wide level, preparing and distributing a summary as well
as a video presentation of the strategy message across the organization, and attending meetings
with each department to ensure all employees are on the right track.
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STRATEGIC ANALYSIS PROCESS AT VTI MOBOTICS
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Exhibits
Internal Environment
Strengths
 Originator of home robotics leading to high
reputation and good brand image
 Sticking to innovation
 Large market share
 Strong customer relationships
 Strong supplier relationships
 Hard-working and committed staff
 Acquired by a technology giant leading to
more innovations and enough money for
new investments




Weaknesses
 Lack of focus / direction in many divisions
 Weak communication of strategy
(employees are not clear on requirements)
 Weak in attracting the best talent because
of unattractive work environments and
projects
 Improper housing leading to need for too
many services
 Unreliability in high-humidity situations
leading to need for many services and
customer dissatisfaction
 Long service throughput time because of
lack of enough qualified technicians
leading to customer dissatisfaction
 Serious overhead invested in providing
service because of low quality of some
parts
 Lack of enough capacity to meet future
demands
 Costs rising while some customers need
lower prices
 Motor supplier delivery is unpredictable
leading to manufacturing delays
 Lack of enough management / focus on
R&D projects
 Staff roles and span of control are not clear
leading to low staff morale and conflicts
External Environment
Opportunities
Threats
New leadership opportunities
 Competitors creating cheaper products
Much higher demands for lawnmowers
 Competitors providing faster services
Motor prices are expected to rise steadily
 Industry is enjoying a surge in popularity
New partnership opportunities for
leading to more competitors appearing
improving the quality
Exhibit 1. SWOT Analysis of Year Two
STRATEGIC ANALYSIS PROCESS AT VTI MOBOTICS
QSPM
Year Two
Customer Intimacy
Weight
AS
TAS
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Operational Excellence
AS
TAS
Product Leadership
AS
TAS
Internal Strengths
Originator of home robotics leading
to high reputation and good brand
image
Sticking to innovation
0.05
3
0.14
1.25
0.06
3.5
0.16
0.03
1.75
0.05
1.75
0.05
4
0.13
Large market share
Strong cutomer relationships
0.05
0.08
2.25
3.75
0.11
0.29
2
1.25
0.09
0.10
3.25
1.25
0.15
0.10
Strong supplier relationships
0.06
1.75
0.11
2.25
0.14
2.5
0.16
Hard-working and committed staff
Acquired by a technology giant
leading to more innovations and
enough money for new investments
0.03
2.75
0.09
2.5
0.08
2.5
0.08
0.08
2.25
0.18
3
0.23
3.75
0.29
0.06
2
0.13
2.5
0.16
2.5
0.16
0.05
2
0.09
1.25
0.06
1.75
0.08
0.03
1.5
0.05
1.75
0.05
3
0.09
0.05
1.75
0.08
2.75
0.13
1.5
0.07
0.06
3
0.19
2.5
0.16
2.5
0.16
0.08
3
0.23
3.75
0.29
2
0.16
0.08
1.75
0.14
3.75
0.29
2.5
0.20
0.08
3
0.23
3.25
0.25
2.25
0.18
0.05
2.75
0.13
3.25
0.15
2.25
0.11
0.05
2
0.09
3.75
0.18
2.5
0.12
0.03
1.5
0.05
1.25
0.04
2.5
0.08
0.02
1.5
0.02
0.75
0.01
2
0.03
0.10
2.25
0.23
0.25
0.03
2.75
0.28
0.17
3.25
0.56
3.5
0.60
3
0.52
0.17
2.5
0.43
3
0.52
2.25
0.39
0.14
3
0.41
2.75
0.38
3.25
0.45
0.17
3
0.52
3.25
0.56
1.75
0.30
0.14
3
0.41
2.75
0.38
1.25
0.17
0.10
2.5
0.26
2.5
0.26
3.5
0.36
Internal Weakenesses
Lack of focus / direction in many
divisions
Weak communication of strategy
(employees are not clear on
requirements)
Weak in attracting the best talent
because of unattractive work
environments and projects
Improper housing leading to need for
too many services
Unreliability in high-humidity
situations leading to need for many
services and customer
dissatisfaction
Long service throughput time
because of lack of enough qualified
technicians leading to customer
dissatisfaction
Serious overhead invested in
providing service because of low
quality of some parts
Lack of enough capacity to meet
future demands
Costs rising while some customers
need lower prices
Motor supplier delivery is
unpredictable leading to
manfacturing delays
Lack of enough management / focus
on R&D projects
Staff roles and span of control are
not clear leading to low staff morale
and conflicts
1.00
Opportunities
New leadership opportunities
Much higher demands for
lawnmowers
Motor prices are expected to rise
steadily
New partnership opportunities for
improving the quality
Threats
Competitors creating cheaper
products
Competitors providing faster
services
Industry is enjoying a surge in
popularity leading to more
competitors appearing
1.00
Total
5.23
Exhibit 2. QSPM of Year Two
5.26
4.96
STRATEGIC ANALYSIS PROCESS AT VTI MOBOTICS
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References
David, M. E., David, F. R., & David, F. R. (2009). The quantitative strategic planning matrix
(QSPM) applied to a retail computer store. The Coastal Business Journal, 8(1), 42-52.
Retrieved from http://strategyclub.com/CBJ%20Article.pdf
Hodgkinson, A. (1999). Employee involvement and participation in the organisational change
decision: Illawarra and Australian patterns. Retrieved from University of Wollongong:
http://ro.uow.edu.au/cgi/viewcontent.cgi?article=1009&context=commwkpapers
Mind Tools. (2013). Developing your strategy. Retrieved from
http://www.mindtools.com/pages/article/developing-strategy.htm
Renault, V. (n.d.). SWOT analysis: Strengths, weaknesses, opportunities, and threats. Retrieved
from University of Kansas:
http://ctb.ku.edu/en/tablecontents/sub_section_main_1049.aspx
Treacy, M., & Wiersema, F. (1993, January). Customer intimacy and other value disciplines.
Retrieved from http://hbr.org/1993/01/customer-intimacy-and-other-valuedisciplines/ar/1