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BSG: COMPANY K

Student’s Name

Institutional Affiliation
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Table of Contents
Introduction......................................................................................................................................3
Mission and Vision..........................................................................................................................3
Task 1: Strategic Decisions.............................................................................................................4
Financial decisions.......................................................................................................................4
Market Segments..........................................................................................................................5
Corporate Social Responsibility...................................................................................................6
Analysis of Decisions...................................................................................................................7
Task 2: Strategic Models.................................................................................................................7
Telescopic Observation Strategic Framework.............................................................................8
Benchmarking..............................................................................................................................9
Porters Value Chain.....................................................................................................................9
Balanced Scorecard....................................................................................................................10
V-MOST Analysis.....................................................................................................................11
Gap Analysis..............................................................................................................................11
Conclusion.....................................................................................................................................12
Appendices....................................................................................................................................15
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BSG: Company K

Introduction

The global athletics footwear sector continues to develop over the years due to the

strategic effectiveness and commitment by companies. They key players in the sector have

aligned themselves with positive cultures which that have led to the realization of their relevant

goals and objectives over the years. The coordinated experiences have further provided

incentives by which other organizations are able to emulate on the practices as they work to

achieving their individual objectives. Additionally, organizational effectiveness is also enhanced

through the strategically reviewed measures of development and ensuring that reliable growth

factors are integrated in the future. The distinct features of the geographical markets of

operations further open up new avenues through which companies can assert their positions and

review their strategic effectiveness. The aspects open up channels for diversity which help

guarantee the long-term stability of the nations.

Mission and Vision

Beast from the East is represented as company K in the model and has been efficient in

its operations. The organizational structure and culture has been facilitated by the mission and

vision statements adopted by the company. It has ensured that the best forms of decisions are

incorporated in the practice through reiterating their active roles in the long-term. Additionally,

the stakeholders and important decision makers in the organizations have also been briefed on

the statements. Consequently, their strategic measures are aligned with the objectives adopted

from the statements. Company K’s mission is to provide sports footwear to the customers at low

prices with a good quality promise. Moreover, the vision statement seeks to be a leading

company in the industry and enhance measures that inspire the individuals to enjoy life.
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Task 1: Strategic Decisions

The organization has worked towards meeting the strategic missions and vision through

adoption of decisions that work towards favoring the management structures. The realized

success over the periods have been enhanced from the successful integration of the decisions and

realization of the actual factors used to support the organizational culture. The decisions have

been adopted in key strategic areas of interest, therefore, placing the company at an effective

position to realize success through competitive advantage.

Financial decisions

The organization has been effective in the incorporation of the best financial decisions

that are central to the smooth running of operations. The proper decisions provide room for

planning which is key in the running of a business. Essentially, financial planning helps in

ensuring a reasonable balance between outflow and inflow of funds so that stability is maintained

(Bruce and Ahmed, 2016). Moreover, the form of planning can also help reduce uncertainty and

encourage profitability of the business. Financial planning helps in reducing the uncertainties

which can be a hindrance to growth of the company (Lusard and Mitchell, 2014). Essentially,

their effective incorporation allows the company to pursue varied interests and provides the best

structures for the future.

The balance sheet recorded shows the organizational growth factors over the years. For

instance, in year 14, Company K recorded a net profit of 63,300,000 which was among the

industrial best. The particular figures demonstrate the effectiveness of the company to develop

new ways and strategies of increasing revenues while significantly cutting down on the costs

incurred. The organization improved various aspects related to the internet and marketing

wholesaling options while cutting down on expenses in various areas such as administration and
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marketing. However, in the implementation of the perspectives, the management understands the

important of finding a balance which is central to the growth.

The company also has total assets amounting to 496,177,000. The management’s

decision to invest in fixed and current assets has been an important strategic framework. It allows

the company to retain capital as well as providing actual cash that can be used to support the

daily running of the business and the ultimate development of the required programs and features

in the long-term.

Market Segments

The organization has adopted the strategic decision that seeks to maximize the sales on

two platforms; the internet and wholesale labels. The market segments open up opportunities for

the business to effect changes and realize the required support growths for success. It has also

been important for the organization to maximize on the diversity that is incorporated through the

different avenues of reaching the customers.

The internet segment involves online transactions that company K does in reaching

directly to the customers. Beast from the East has understood the strategic advantages that are

offered by e-commerce, therefore, adopting mechanisms which help in the realization of the set

goals and objectives. Costs incurred in everything from inventory, customer details, payment

details to product selection and management of customer’s interests are lower than traditional

commerce expenses (Clarke, Thompson and Birkin, 2015). The business has set an above

average retail price which helps reiterate the quality of the business. Additionally, the company

has also significantly invested in search engine advertising to ensure that online customers are

easily able to access the products developed and sold by company K. Search advertising is a

method of placing online advertisements on web pages that show results from search
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engine queries (Yang et al., 2016). The strategic effectiveness of the mechanism has ensured that

the organization incorporates a 9.2% market share in the online platform. Furthermore, company

K in year 14, sold 664,000 pairs over the platform. The aspects show the effectiveness of the

strategic decisions adopted from the internet segment.

The organization also operates the wholesale market segment which involve footwear

sales to the local retailers. The strategic decision allows the company to be effective in building

and maintaining of the relationships with such people through incorporating of the best industry

practices over the years. The company spends a significantly higher amount of 21,000,000 on

brand advertising. The imbalance in the figures have led to it having the industry lowest S/Q

ratings of 3.6. Brand advertising is an important framework used to establish connections and

build strong, long-term relationships with consumers over time through exposure, influence and

engagement (Boyland and Halford, 2013). However, there is need for the organization to review

the decision to help reduce costs and improve the ratings. However, the company prides itself in

the industry low delivery time of 1 week which helps it significantly adopt a market share of

7.6%.

Corporate Social Responsibility

It has also been important for the organization to incorporate the best CSR measures

which reiterate its support for the community of stakeholders. Company K has been involved in

ethically supporting activities which are important in the incremental perspectives of the

organization. Effective CSR measures help the organization improve its relationships with the

stakeholders through facilitation of loyalty. The company CSRC initiatives include ethical

training and enforcement to its employees. It allows them to gain significant knowledge and

skills in relevant interest areas which are effective in the business platform. Moreover, the
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intervention also ensures that the employees remain motivated through helping them understand

their importance to the business strategy. The role of human resource in a business is to help

transform ideas into actual output. Thus, strategic decisions to improve their skills and prowess

helps the organization effectively develop. Furthermore, the employees are also provided with

cafeteria and on-site child care services to help them concentrate on their duties and effect

productivity levels. The working environment is also enhanced through proper ventilation,

lighting and safety measures that protect them in the course of their duties. Company K has also

considered the suppliers and incorporated a code of conduct which is used to guide the

relationships between the individuals and facilitate their smooth operational activities.

Analysis of Decisions

The organization, however, has not effectively endeared itself to the industry. The

company still falls below the industry average in various sectors, therefore, creating the need for

assessed reviews and planning strategic factors. The decisions can be enhanced to incorporate

modern trends and developments which are vital to the attainment of required results. For

instance, the management can seek for ways in which it can reduce costs and enhance revenue

generating programs. The support of the physical activities in the plant can also be stimulated to

help attain the required objectives which propel company K to success.

Task 2: Strategic Models

It is imperative that companies have strategic models which are used to help meet the

required results. The organizations involved in varied practices should work towards aligning the

models with the cultural practices in the company. The management, in the case should be

involved in training and development of the workers and general stakeholders on the importance

of the models and the need to ensure that they are properly implemented within the company
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precincts. The move is important in determination of the long-term survival features as well as

the required support structures needed in the long-term. The strategic models involve tools that

are useful for guiding day-to-day decisions and also for evaluating progress and changing

approaches when moving forward (Wright, Paroutis, and Blettner, 2013).

Telescopic Observation Strategic Framework

The incorporation of the strategic model within the company allows for the company to

review its position in the industry. Its adoption ensures that the management overcomes the

weaknesses of models such as PEST while building on the strengths of the SWOT analysis. It is

essentially a dynamic program of continuous situational monitoring, intelligence gathering,

organizational learning, and performance monitoring that allows proepr decisions to be

integrated within the company (Panagiotou and van Wijnen, 2015).

Its incorporation in Beast from the East can help realize certain misfits which make the

company post below industry average results. Company K can use it to conduct a situational

analysis which provides a clear picture of the position of the business. The strategic model is

then incorporated in the determination and evaluation of the findings recorded from the

situational analysis. The next step in the cycle involves the development of the right measures

and strategies which are used to implement policies. The tool highlights the need for SMART

strategic frameworks which are easily implemented. Ultimately, the model provides provisions

for the continued monitoring and evaluation techniques which help provide required reviews for

the company.

The telescopic observations can help the organization analyses various areas of wastage and

determine the strategic measures to reduce them. Company K should incorporate it to understand

excess expenses and formulate policies to cut on costs.

Benchmarking

Companies have the opportunity to improve on their performances through introduction

of the benchmarking policies. The model involves the comparison of the business practices and

metrics with those of the industry best (Tee, 2016). There is need for the business to develop

performance indicators which are used the basic variables for comparisons. The step allows

organizations to develop plans on how to make improvements or adapt specific best practices

that ultimately result in the improvement of the performance in the industry.

The business may ensure benchmarking through first identification of the problem areas.

Company K can try to enhance its overall strategy by reviewing of the various department

interventions and analyzing their effectiveness within the particular organizational constructs.

The open nature of the BSG simulation provides opportunities for the business to identify

organizations that are leaders in the industry and enhance the best comparison ensures and

strategic plans which are effective in the long-term. It is important, however, that the company,

in the course of the comparison, maintains its corporate identity and culture that supports its

growth.

Porters Value Chain

The incorporation of the model within the organizational perspectives works towards

ensuring that customers are central to the plan and strategies of the company. The tool system

links systems and activities to each other and demonstrates what effect this has on costs and

profit (McPhee and Wheeler, 2016). Company K can help improve its industry position through

use of the model. It will help in identification of the value of the company and the best ways in

which it can be enhanced within the organizational context.

The method involves primary activities of the company which include activities related to

inbound and outbound logistics, production, sales and marketing as well as delivery of services.

They allow the company to review the production chain and determine possible lapses that

reduce delivery time. Moreover, there are also support activities in the model. The firm

infrastructure is important in supporting production activities. Company K can try to reiterate the

position through improving and enhancing of the organizational plant capacity and equipment.

The incorporation of technological features and programs also ensure that the organization is

strategically placed to benefit from the advantages of speed and accuracy in service delivery.

Balanced Scorecard

The balanced scorecard model is used to integrate the best available measures and models

that help an organization. Its use it incorporated to help managers to keep track of the execution

of activities by the staff within their control and to monitor the consequences arising from these

actions (Taylor and Baines, 2012). The approach has a coordinated focus on the strategic agenda

of the organization concerned. Thus, the business is easily able to understand its vision and

mission and use the tool to translate them into actual support structures which are relevant in the

long-term. Moreover, the use also encourages the stakeholders to work towards central approach

through identification of the ways in which they can be better and improve on their long-term

plans.

Company K can use the tool in its business processes to make sure that importance

sectors of the organization are encouraged. For instance, the financial sector encourages the

business to identify relevant high level measures that analyze the cash flows, operating income

as well as sales growth. The scorecard can also impact the customers through ensuring the

management develop policies that help realize their required satisfaction levels. The relevant
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internal business processes encourage the identification of measures that answer the question

"What must we excel at? Consequently, the coordinated alliance of the features put company K

at a better position on which it can facilitate the realization of set goals and targets.

V-MOST Analysis

The company has consistently highlighted important factors regarding its strategic

alignment to the vision and mission statements. There is need, therefore, for the aspects to be

reiterated in and adopted in the management process. The strategic model reviews the overall

strategy and supporting activities, and determining whether they are all in alignment (Aithal,

2017). The integration of the model in company K will help guarantee the required forms of

consistency which are relevant in the existing structures and supporting environments. It is a

framework for the identification of the various methods of the future strategies through

facilitating the creation of the best forms of organizational culture practices. It allows continuity

through developing clear and well thought-out measures of integrating growth in the various

areas of company development. Company K’s mission is to provide sports footwear to the

customers at low prices with a good quality promise. Moreover, the vision statement seeks to be

a leading company in the industry and enhance measures that inspire the individuals to enjoy life.

Thus, the application of the strategic alignment mechanism will help the company work towards

meeting such mission and vision statements within the expected periods of the developmental

interventions.

Gap Analysis

The company has consistently failed to meet industry average levels in various sectors.

Thus, the incorporation of a gap analysis technique can help in determination of the possible

areas that need improvement to ensure guaranteed success in the future. Gap analysis involves
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the comparison of actual performance with potential or desired performance (Peterson, 2019).

Consequently, company K will try to review the performances in the previous years and compare

them with targeted levels. The intervention can help in easily identifying the particular laxity

areas and incorporation of the available long-term features which are central to company

management. It also allows company K to come up with policies and effective strategic features

for the future

Conclusion

Essentially, organizational effectiveness remains an important factor in the business growth and

development. Company K has shown required promise needed to develop and surpass the

industrial averages. It is important for the organization to be involved in activities that rely on the

overall strategic development. It should work towards constant improvement and reiteration of

the best support structures which ultimately help the company achieve the intended results.
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List of References

Aithal, P.S., 2017. ABCD Analysis as Research Methodology in Company Case

Studies. International Journal of Management, Technology, and Social Sciences

(IJMTS), 2(2), pp.40-54.

Boyland, E.J. and Halford, J.C., 2013. Television advertising and branding. Effects on eating

behaviour and food preferences in children. Appetite, 62, pp.236-241.

Bruce, K. and Ahmed, A.D., 2016. Conceptions of professionalism: meaningful standards in

financial planning. Routledge.

Clarke, G., Thompson, C. and Birkin, M., 2015. The emerging geography of e-commerce in

British retailing. Regional Studies, Regional Science, 2(1), pp.371-391.

Lusard, A. and Mitchell, O.S., 2014. The economic importance of financial literacy: Theory and

evidence. Journal of economic literature, 52(1), pp.5-44.

McPhee, W. and Wheeler, D., 2016. Making the case for the added-value chain. Strategy &

Leadership, 34(4), pp.39-46.

Peterson, O. (2019). Gap Analysis: How to Bridge the Gap Between Performance and Potential

| Process Street | Checklist, Workflow and SOP Software. [online] Process Street.

Available at: https://www.process.st/gap-analysis/ [Accessed 5 Dec. 2019].

Panagiotou, G. and van Wijnen, R., 2015. The “telescopic observations” framework: an

attainable strategic tool. Marketing Intelligence & Planning, 23(2), pp.155-171.

Taylor, J. and Baines, C., 2012. Performance management in UK universities: implementing the

Balanced Scorecard. Journal of Higher Education Policy and Management, 34(2),

pp.111-124.

Wright, R.P., Paroutis, S.E. and Blettner, D.P., 2013. How useful are the strategic tools we teach

in business schools?. Journal of Management Studies, 50(1), pp.92-125.

Yang, S., Lin, S., Carlson, J.R. and Ross Jr, W.T., 2016. Brand engagement on social media: will

firms’ social media efforts influence search engine advertising effectiveness?. Journal of

Marketing Management, 32(5-6), pp.526-557.

Appendices

Company K Marketing Segments

Industry Financial Statements