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Business Integration Project 2 Assignment Help

Business Integration Project 2 Assignment Help (GC01640)

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Table of Contents

1.0 Introduction

Background of Toshiba

Key issues faced by Toshiba that lead to poor performance

Aims of this Report

2.0 Clarification of Theoretical Context

PESTLE Analysis.

Porter’s Five Forces Analysis.

VARIO.

Value Chain Analysis.

3.0 Evaluation and Analysis.

External environment analysis.

Competitive environment analysis.

Internal environment analysis.

4.0 HOW Toshiba could improve its performance.

5.0 Conclusion.

References.

1.0 Introduction

According to Spender (2016), Business Integration Project (BIP) is a kind of management process in that a business organization can identify its opportunities and also minimizes its weaknesses. In addition, a business integration project means the strategic planning process for s business organization. This report finds out different strategies for Toshiba because of its poor performance over the recent years and also overcomes this problem for Toshiba.

Background of Toshiba

Toshiba is the leading manufacturing firm in the world. Toshiba was first founded by the merger of Shibaura Engineering Works and Tokyo Electrics in 1939. Toshiba’s key products include television, refrigerator, computers, laptop, notebooks, other electronic products and digital equipment (Toshiba Annual Report, 2018). Toshiba provides quality products at affordable prices to its potential customers in different countries such as UK (Toshiba, 2018).

Key issues faced by Toshiba that leads poor performance

Toshiba’s key issue of its poor performance is increasing in its operational cost. Because of increasing operational costs, both the production cost and business cost of Toshiba are also increasing. For this, Toshiba demands high prices for its products and services to meet the high production and business cost. According to Business Insider (2015), Toshiba lost about $102 million from its drop-off in sales in 2015. In addition, Toshiba needs advanced technology to manage EU rules for selling its products that increase its business cost (Toshiba Annual Report, 2018). On the other hand, this company’s profit margin is reducing because of high competition from its competitors such as Samsung, Dell, Walton, Asus and others. Finally, Toshiba has to need huge costs for its products’ marketing or advertising which also reduces its profit and this leads to poor performance for Toshiba.

Aims of this Report

This report aims to evaluate both internal and external factors for Toshiba where different models are used such as PESTLE, Value Chain analysis and VRIO. In addition, this report aims to evaluate the competitive position of Toshiba by using Porter’s Five-Force model. Lastly, this report analyzes the strategies for Toshiba and provides a number of recommendations for Toshiba to develop its business performance.

2.0 Clarification of Theoretical Context

PESTLE Analysis

According to Kourdi (2017), PESTEL is an analysis tool that mainly evaluates macro factors of a business organization that affect business performance directly.  PESTEL includes six factors such as political, economic, social, environmental, technological and legal factors. Kotter (2015) said that PESTLE is a very simple tool and the managers can apply this tool easily to evaluate the external environment of a business. In addition, this analysis tool supports a business organization to discover the opportunities and minimize the threats to developing the strategic thinking of a business (Rumelt, 2016). This is very cost-effective and time-consuming to analyze the external environment of a business. If managers are not successful to use this tool efficiently, then it will affect the business in a negative way.

Porter’s Five Forces Analysis

Kourdi (2017) said that Porter’s Five Forces is the analysis model by that a manufacturing company can assess its competitive situation in the marketplace. This analysis model includes five factors such as competitive rivalry, customer bargaining power, supplier bargaining power, the threat of new entrants and the threat of substitutes (Porter, 2016). Kotter (2015) stated that Porter’s Five Forces model concentrates on the external competitive factors of a business. In addition, this model is mainly industry-based as well as recommends an organization how it adopts different revolutionary changes in its business.

VRIO

According to Bhasin (2018), VRIO framework is the strategic analysis tool that is mainly designed to support the business organizations to uncover as well as protect their business resources and abilities which provide them a long-term competitive advantage in the marketplace. VRIO includes four parts such as value, rarity, imitability, and organization. In addition, VRIO is the internal analysis tool for a business organization. This analysis tool is applied to recognize and assess the resources of a business organization.

Value Chain Analysis

A business organization’s activities are measured by the value chain analysis system. This value chain analysis tool supports the business organizations to increase their products’ value. The value chain analysis tool includes two different activities such as primary activities and support activities. Spender (2016) said that the combination of these two activities supports the business organizations to achieve their business goals and objectives. In addition, this analysis tool mainly helps a business organization to develop its competitive advantage by analyzing the five primary activities of the value chain (Kotter, 2015). Rumelt (2016) said that the value chain analysis does not successfully link a particular activity of a business to other activities……………..

 

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