2.0 Overview of Manchester Products Inc.
3.0 Assess the impact and relevance of environmental and competitive drivers on the company.
3.2 Key Drivers.
4.0 Assess the relevance of the organizations existing culture, assets, and competencies for sustainable market presence.
4.1 Resources analysis.
4.2 VRIN Analysis.
4.3 Core Competencies.
4.4 Competitive Advantage.
5.0 Identify and evaluate the strategic options open to the board to leverage its core business.
6.0 How much change could be accomplished, the barriers which may occur, and how these can be pre-empted in a change plan.
Appendix A: PESTLE Analysis.
Appendix B: Porter’s Five Forces Model
To fulfill the objectives of the business and make it to a prosperous end, strategic management is an essential thing for the business. To evaluate and do an assessment on the environment of the business from both sides, internally and externally strategic management is a must needed thing. In this paper, the first section discusses the impact and relevance of environmental and competitive drivers on the company depending on different models. The second section explains the relevance of the organizations existing culture, assets, and competencies for sustainable market presence. The third section discusses the identification and evaluation of the strategic options open to the board to leverage its core business. Finally, the paper discusses how the changes can be applied and the barriers which may occur and how these can be pre-empted in a change plan according to relevant academic approaches.
2.0 Overview of Manchester Products Inc.
According to Quelch and Beckham (2009), Manchester Products Inc. is one of the leading companies in the UK that do the business of premium office furniture. Manchester Products Inc. was established in 1998 and in 1999 they contained only three types of product collection. In 2003, the sales of Manchester Products Inc. were about $200 million and in 2004 the sales were $260 million.
Quelch and Beckham (2009) disclosed that, In 2005, Manchester Products Inc did a brand transition with Paul Logan’s Furniture Division (PLFD) and move their business into the household furniture market. Before that, they sold only office furniture. The addition of Paul Logan’s Furniture Division (PLFD) with Manchester Products Inc made their business grow hugely overnight and they became one of the strongest brands in the market achieving the leading position in the household furniture business. As the main goal of Manchester Products Inc was to sell household furniture with a mid to upper price limit, they combined their business with Paul Logan’s Furniture Division (PFD). But before that, most of the products of Manchester like about 75% of them were sold through the dealers who were independent, 15% of the products were sold directly, and 10% of them were sold through retailers of furniture. (Quelch, and Beckham, 2009)
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3.0 Assess the impact and relevance of environmental and competitive drivers on the company
To assess the impact and relevance of the environmental and competitive drivers on the company two models can be used. The first one is PESTLE analysis and the second one is Porter’s five forces model. According to Professional Academy (2017), PESTLE analysis is the framework that is used to know about the external environment of business. PESTLE means political factors, economical factors, social factors, technological factors, legal factors, and environmental factors. According to Mind Tools (2017), Porter’s five forces are used to know the competitiveness of a business and how the business will increase its profitability by using these forces. The five forces are Supplier’s power, purchaser’s power, and competitive rivalry within the industry, threats from the newcomers, and threats from the substitute products.
The business of household furniture combining with Paul Logan’s Furniture Division (PLFD), Manchester Products Inc faced some political situations due to Brexit affairs between the UN and UK. As the UK currency dropped more than 20% due to the Brexit affair, there is much political, economical instability that is affecting the businesses of the UK. As Quelch and Beckham, (2009) suggested, the target of the customer of Manchester Products Inc was a householder between the age of 34-55, whose income was about $50 thousand. But as PLFD customers were more fashion-oriented they have to focus on the customers with conservative elegance along with fashion-conscious.
In the current world, along with traditional business, e-marketing is getting popular day by day. Especially, social media marketing is one of the most famous regions of marketing. According to Di-Sousa (2017), if the business has to increase their sales they need to increase their social media activities. The same goes for technological factors. In the modern world, technology is advancing every day. As disclosed by Versatech (2017), to keep up with the changing demands and expectancy of customer Manchester Products Inc have to use modern technologies in their business.
3.2 Key Drivers
As they combined with the PLFD their focus is now not only the customers with conservative elegancy, they have to focus on the fashion-conscious customer also. Snook and Wright (2016) disclosed that, for this, to improve their designs and also making the products within the limit of the targeted customer they have to use new technologies. In case of legal issues, in doing business with the combination of PLFD, the contract included four production facilities, ten distribution centers, and an inventory of 150 products. Manchester Products Inc was restricted to use the name of Paul Logan in case they launch any new product. PLFD also was restricted to re-enter the furniture business for 10 years according to the study done by Quelch and Beckham (2009)……………….