Table of Contents
Part 1: Strategic Planning.
1.1 External analysis.
1.2 Internal analysis of Venus.
1.3 SWOT analysis for Venus.
1.4 Strategic options evaluation.
1.5 Strategic recommendations.
Part 2: Stakeholder summary.
2.1 Stakeholder of Toyota.
2.2 Mapping Toyota’s stakeholders.
Appendix A: Implementation Status of Stakeholder Engagement in Toyota.
This report analyses the business situation of Venus Mobile, a mobile company in the USA. Venus Mobile has been performing poorly for the last two years in comparison to its competitors. The vision of Venus Mobile is to connect the world by offering a mobile phone to adults. The mission of Venus Mobile is to offer mobile phones with great functionality and extraordinary prices according to the changing needs of customers and market demand. The values of Venus Mobile are it is respectful of all its stakeholders, transparent in its activities, and dedicated to the interests of shareholders. This report has two parts. The first part of this report analyses the internal and external situations of Venus Mobile. This part also conducts a SWOT analysis and evaluates strategic options for Venus. In addition, this part provides strategic recommendations for Venus. The second part of this report conducts a stakeholder analysis for Toyota.
Part 1: Strategic Planning
1.1 External analysis
1.1.1 PESTLE Analysis
Blythe (2016) stated that PESTLE is an effective tool to analyze the external environment of a business. This tool analyzes six factors that are political issues, economic issues, social issues, technological factors, legal factors, and environmental factors. However, this tool cannot analyze the internal issues of a business. Thus, businesses need to apply other models for internal analysis (Christopher, Payne, and Ballantyne, 2012).
|Factors||Analysis of Venus Mobile||Opportunities/Threats|
|Political||Both the USA and China have a ‘trade war’ that has raised tariffs to $25 on routes from Asia to the US. The cost of exporting from the US to the EU is about $12.6. It has increased shipping costs.||Threats|
|Economic||US dollar is expected to gain on other currencies. The interest rate is expected to fall in all markets. The corporate tax may remain lower in Asia.||Opportunities|
|Corporate tax is high in the US (38%) and the EU (31%)||Threats|
|Social||People’s lifestyles and behavior are changing dramatically. The social and demographic structure is also changing. This put a hard time for Venus to develop the right strategies.|| |
|Technological||Technological development by competitors (including Apple) is attracting Venus consumers.||Threats|
|Legal||Because of cartel-like behavior, the US Department of Justice forced the mobile companies to fire and replaces their top management.||Threats|
|Environmental||There are an increased interest in environmental, sustainability, and governance (ESG) policies. Therefore, Venus needs to improve its performance in these areas in both its internal and supply chain.|| |
1.1.2 Porter’s Five Forces Analysis
According to Palmer (2015), Porter’s Five Forces model is applied to analyze five forces for businesses. This tool is effective to analyze competitive rivalry, customer bargaining power, supplier bargaining power, the threat of substitutes, and the threat of new entrants. However, Hill and Sullivan (2011) said this model cannot analyze the external environment of a business. Thus, a business needs to depend on other models.
|Five forces||Analysis of Venus||Power/probability|
|Competitive rivalry||Venus is facing severe challenges from six aggressive competitors- Mercury, Saturn, Uranus, Jupiter, Neptune, and Mar.||Very high|
|Customer bargaining power||Customers have lots of alternative options in prices, quality, design, technologies, and other value-added features. This is because there are many competitors in the market with a wide variety of products.||Very high|
|Suppliers bargaining power||Venus depends on several suppliers in both local and global markets to supply its raw materials. Venus also depends on high outsourcing.||High|
|Threats of new entrants||Although the global mobile industry is attractive, it is now in a mature stage of the industry lifecycle. That is why it is very expensive and difficult for the new entrant to introduce in the market.||Low|
|Threats of substitutes||Fewer substitutes are seen in the mobile industry. Therefore, there are fewer threats of substitutes in this industry.||Law|
In addition, complement providers like network providers have high power in the business of Venus. This is because Venus depends on this network for Tech 3 and Tech 4. These providers affect price levels, products and technologies, and marketing efforts. The network coverage forecasts are shown in the diagram below:
Chart 1: Network coverage forecasts Source: Venus Case Study (2017)
1.1.3 Competitors Analysis
According to Kotler et al. (2015), competitors are those organizations that offer similar products/services targeting the same customer segments. The case study of Venus Mobile shows that six keys are competing with Venus in the US market with similar products and targeting the same groups of customers. These competitors are Mercury, Saturn, Uranus, Jupiter, Neptune, and Mars. Among these competitors, Mercury and Saturn are performing better than others, whereas Venus is performing worse losing about $0.5 billion of profits in the 2016 Venus Case Study (2017)…………….