Strategic Management for Competitiveness - myassignmenthelp.com

Question: Discuss about theStrategic Managementfor Competitiveness and Globalisation. Answer: JB Hi-Fi organization having headquarter in Australia having an extensive retail interests throughout the countries Australia and New Zealand. It is regarded as the second largest company by revenue in the country Australia. The organization is actually deals with blu-rays, electronics, hardware and dvds and as well electrical appliances available at home. it was regarded as the 19th largest organization in the world in the year 1974 (De and Meyer 2014) (Jbhifi.com.au. 2017). In terms of sales, this This business in Australia improved with the sales from previous years in the fourth quarter, the strongest and largest for the year which is pushed by a strong growth which is comparable in nature and it has revenue, which is above A $ 4 billion, which was detected in the year 2016. However, in the recent years, turnover happened which resulted to the increase of net profit that happened out of increase of interest and tax from the in the country Australia. The target market of JB Hi Fi is the general public. The market share of JB hifi is based on the consumers who are using housing products appliances and the children who are interested for the video games from the age 10-20 (De and Meyer 2014). There are at least by combining both Australia and New Zealand is 275,00 employees who are serving the company for a longer period of time. The market share of the company has reached 31% in the year 2016-2017 and the market share is expected to grow in the upcoming year. The company has made its profit up to 13.3% to $ 173 million in the year 2016-2017. The vision of JB hi fi company is to give empowerment to the economic quality and vitality to the life. The mission of the company is to render safe, reliable energy as a cost which is reasonable in nature to the customers of the company and the best returns to the owners of the share (Grant et al., 2014; Hitt et al 2012). In order to align with the mission and vision theory, the vision of the company as per the regulations as pointed out by the leaders look forward to communicate the vision statement of the company. The vision statement of the company to produce economic vitality, which according to the theory is easy to understand, inspiring as well future oriented. The mission of the company is being addressed to the shareowners, customers, and the share of the companies in the area of business. Their mission statement, according to the theory is to elaborate on the services, products that the company is selling to the customers as well the areas of business where the company would operate (Grant et al., 2014). The important factors of the PEST about JB hi fi which are needed to be taken into account is Political, economical, social and technological (Jbhifi.com.au. 2017). Political: The political factors include the change in political leaders, which might affect the working of the company out of the changes in decisions of the government. The changes in taxation and legislation of the government might affect the working of the business. Economical: The economic factor is important because the current economy of the company is growing and this might be under the cause of changes of economic stability and the fluctuations of the exchange rates. The most important element, which is affecting the factors of economy, is the effect of globalization and the changing taste of the customers. Accordingly, the company needs to update according to the change in trends (Hitt et al 2012). Socio-cultural factor: This factor is important because due to the growth of population, the age and factors of the population affects the change of the taste of people, this happened due to the changes in attitude along with the patterns of the employment, the trends of the market of job according to the variety of age groups (Jbhifi.com.au. 2017). Technological: It is another and foremost important factor of the electronic appliances in terms of using new technology of the company which can make the work easier for the organization or industry. Legal factors: The JB hi fi in terms of legal factors focuses on bringing improvements to the protection of the patent, looks forward to increase the regulations on the e-waste and increasing the regulation of the product, which incorporates threats and opportunities. Environmental factors: The Company focuses on the sustainability of business, the company has opted for the demand of environmentally friendly products and also concentrates upon the recycling facilities (Thompson, Strickland and Gamble 2014). The factors or points, which are not regarded important, in this case are is the changing policy of the government and its effect on the industry. As far JB hi fi is concerned, the government rules and regulations have not affected the workings of the company and there was no change in the regulations. Analysis of Porters five forces New Entrants threats: JB wifi builds innovative products in order to face touch challenges to the other markets. Even it can slow down the fixed cost per unit. Bargaining powers of suppliers: In the dominant position, suppliers can reduce the margins; the company can gain from the market. It tackles it through the mean of constructing the proper supply chain with effective suppliers. Buyers bargaining power: The Company can tackle it through the construction of larger bases of customers and through the innovation of new products, where the customers seek discounts for the new products (Pearce et al. 2013). Threats of New substitutes: The threat of the substituted products is high as the company starts offering the proposition f value which is different from the recent offerings of the industry. Enmity among the competitors: As it is a retail market, it has to face a huge competition. Competitors like Wal-Mart and much other retrial market can often outnumber HI-Fi ltd. in the long run (Jbhifi.com.au. 2017). In the Life cycle of Industry, the company is in its matured stage and in terms of its competitive advantage. Through the description of PESTLE and Porters five forces, it can be said, that the competition it is facing is quite tough as there were higher chances of the substitution of the goods by the new entrants, the company needs to come up with more innovative products, which cannot be replicated or substituted (Hill et al. 2014). Therefore, right now the company needs to keep pace with the rising competition in order to meet competitive advantages (Hanson et al. 2014). Strengths: The Company makes sure to bring in the usage of many new and innovative technologies. This is done in order to see that the customers do not easily switch over to any other retail sectors. In order to do this, the company makes sure to incorporate a large amount of skilled workforce is brought in to the business. Weakness: As it is basically a retail unit it has a very large number of competitors existing in the market. This provides the customers with a very large and modified choice of switching from one retail sector to the other. In this modern era of scientific advancements and developments, all the retail sectors are trying their level best to uplift both the quality and the quantity of production (Thompson et al. 2014). It is true that the company has higher competitive advantage as there is an important opportunity in order to make services competitive advantages. In terms of quality and innovation, the products bear efficiency as it is coming up with innovative products. Therefore, in this regard, the innovation is underpinning the competitive advantages of the company. References De Wit, B and Meyer, R 2014, Strategy: process, content, context an international perspective, 5th Edn, Cengage Learning, London. Edn, McGraw Hill Irwin, NY. Grant, R Butler, B, Hung, H, and Orr, S 2014, Contemporary strategic management, an Australasian perspective, John Wiley, Milton, Qld Hanson, D, Hitt, MA., Ireland, R. D., and Hoskisson, R. E. 2014. Strategic management: Competitiveness and globalisation. South Melbourne, Victoria, Australia Cengage Learning Hill, C.W., Jones, G.R. and Schilling, M.A., 2014.Strategic management: theory: an integrated approach. Cengage Learning. Hitt, M.A., Ireland, R.D. and Hoskisson, R.E., 2012.Strategic management cases: competitiveness and globalization. Cengage Learning. Jbhifi.com.au. 2017.Google Pixel 2 | JB Hi-Fi. [online] Available at: https://www.jbhifi.com.au/features/phones/googlepixel2/ [Accessed 25 Oct. 2017]. Morschett, D., Schramm-Klein, H. and Zentes, J., 2015.Strategic international management. Springer. Thompson, AA Strickland, AJ and Gamble, JE 2014, Crafting and executing strategy: the quest for competitive advantage: concepts and cases. 14th Edn, McGraw-Hill/Irwin, NY.