Free

Strategy - Essay Example

Comments (0) Cite this document
Summary
Market is tight due to continued economic downslide and consumer spending is not likely to improve in near future. Hornby’s stock value has…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER94.7% of users find it useful
Strategy
Read TextPreview

Extract of sample "Strategy"

Strategy Issue C: “The British toy maker Hornby ………strategy to reverse its fortunes.” Memorandum The Board of Directors November 3, 2012
Subject: A tactical brief and strategic viewpoint on the issue involved.
Hornby is not going to make profit this year due to lower-than-expected sales before and during Olympic game this year (BBC News, 2012). Market is tight due to continued economic downslide and consumer spending is not likely to improve in near future. Hornby’s stock value has gone down by 40 percent in month of September this year (Yahoo Finance, 2012). The retailers are losing confidence in the company for the fear that whether their orders will be fulfilled in time. One of the suppliers in China has some production issues and unable to supply the goods in time. The supplier caters almost 35% of the requirements of the company that is huge and might put the company in jeopardy (Thompson, 2012).
In the given circumstances, the company needs to take into account the adverse economic environment and formulate a successful corporate strategy to cope with the business complexities (Johnson et al 2011). Haberberg and Rieple (2008) demonstrate that a well-planned corporate strategy provides means to renew competitive advantage in line with the changing environment. Accordingly, it will be most appropriate to delve deeper into the existing toy market scenario.
Italy, France, Germany, Spain and the UK constitute almost 73% of the total European toy market. Most of the supply of the toys in the Europe comes from China. The infant and preschool toy segments constitute almost 20 percent of the market – a largest segment in the total toy sales. Toy shops in the five major countries of Europe sell almost 40% of the total sales in toys (The Toy Sector in Europe, 2010).
Furrer (2011) argues that the ultimate purpose of any corporate strategy is the value creation. In order to sail through difficult times, the company needs to adopt positioning strategy to earn higher revenues by using scarce and limited resources at its disposal (Besanko, 2010). Accordingly, the company will be benefitted by positioning to the fastest growing infant/preschool segment of toys and expand by capturing the imagination of this class of children. Porter (1985) argues that it is important to differentiate the product from its competitors so that it is valued by buyers and the uniqueness in the product is eventually rewarded through a higher price. Moreover, innovation is must to make product distinct and unique Grant, 2010).
In order to ensure uninterrupted supply, suppliers’ evaluation and selection process needs to be done most meticulously (Sollish & Semanik, 2011) and therefore an effective and flaw-less sourcing strategy needs to be at place. The company needs to have at least 5-6 suppliers so that no single supplier caters more than 20 percent requirements of the company. All the suppliers should not hail from a single location or region so that geographical risks are widely distributed. For each product, there has to be at least two suppliers that will even out the supply in case one of the suppliers fails in their commitment. This is most crucial to maintain the retailers’ confidence in the company as a reliable toy producer and marketer (Waters, 2011).
In case, the board needs any further information, I will be glad to furnish that promptly.
Sincerely,
ABC
References
BBC News (2012). Hornby in Profits Warning as Olympics sales disappoint. BBC News Business. 25 September. Available from http://www.bbc.co.uk/news/business-19710155 [Accessed 5 November, 2012]
Besanko D. (2010). Economics of Strategy. 5th ed. Wiley & Sons.
Grant, R. M. (2010). Contemporary Strategy Analysis, 7th ed. Wiley & Sons.
Furrer, Olivier (2011). Corporate Level Strategy: Theory and Applications. Routledge, New York.
Haberberg, A., Rieple, A. (2008). Strategic Management: Theory and application. Oxford University Press. New York.
Johnson, G., Whittington, R. & Scholes, K. (2011), Exploring Strategy: Text & Cases, 9th Ed. Prentice Hall.
Porter M. E. (1985), Competitive Advantage: Creating and sustaining superior performance. The Free Press. New York.
Sollish, F; Semanik, J. (2011). Strategic Global sourcing: Best Practices. John Wiley & Sons.
Thompson, J. (2012). "How Mandeville and Wenlock derailed Hornby", Independent, 26 September. Available from [Accessed 5 November, 2012]
The Toy Sector in Europe (2010). European Commission. [Online] Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Strategy Essay Example | Topics and Well Written Essays - 500 words - 4”, n.d.)
Retrieved from https://studentshare.org/miscellaneous/1606556-strategy
(Strategy Essay Example | Topics and Well Written Essays - 500 Words - 4)
https://studentshare.org/miscellaneous/1606556-strategy.
“Strategy Essay Example | Topics and Well Written Essays - 500 Words - 4”, n.d. https://studentshare.org/miscellaneous/1606556-strategy.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Strategy

Strategy

...?Strategy Part Boeing, VRIO Tangible Resources Valuable Rare Difficult to Imitate? Organized Financial $24,084,000,000 60% of market share value yes yes yes yes Physical Best & largest manufacturing facilities (Everett & Renton) yes yes yes yes Technological Sole producer of VLCT (Boeing 747) and ETOPS Use of composites yes no yes yes Organizational Hierarchy structure yes no no yes Financial: Estimated revenues of over 24 billion in 1992 by capturing largest market share value Physical: Best and large scale manufacturing facilities, which are strategically located Technological: First time utilisation of current manufacturing processes and technology Organizational: Excellently optimises all resources by profound hierarchical... Part Boeing, ...
4 Pages(1000 words)Essay

Strategy

...? Case Report October Despite the type of strategy a strategy must at the minimum must be considered an integratedoverarching concept of how the business or organization will achieve it objectives and reach its short term and long term goals. Donald Hambrick and James Frederickson present a framework for strategy design insisting that a strategy has five distinct elements (Hambrick & Fredrickson, 2005, p 51). Providing the answers to five questions will distinguish these five elements allowing them to form a unified whole. Loblaw Companies Limited is the largest food retailer in Canada and also a leading provider among general merchandise, financial products, pharmacies...
4 Pages(1000 words)Essay

Strategy

...?Strategy and Social Dynamics: How Individual Behaviour Affects Organisational Strategy This essay seeks to connect the behaviour of individuals within society and society itself with the idea of organisational strategy. It begins with a definition of strategy, before considering four different categorisations of strategy and how the individual and organisational combine to create these approaches. The essay concludes with a summary of the key findings of the analysis. What is Strategy? The definition of strategy will depend on who is asked. Porter (1996), for example, states that operational effectiveness is not strategy, and that strategy is about doing things differently to competitors such that a unique advantage is created... . This is a...
9 Pages(2250 words)Essay

Strategy

...?A STRATEGIC ANALYSIS OF TESCO PLC: A GLOBAL MULTINATIONAL ENTITY Outline Introduction......................................................2 Historyof Tesco’s Strategy..............................2 Strategic Management of Tesco......................3 Internal Analysis of Tesco................................5 SWOT Analysis of Tesco.................................6 Micro Environment of Tesco.............................9 Competitor Analysis of Tesco..........................11 Macro Environment of Tesco............................13 Conclusion........................................................14 References........................................................15 Introduction Tesco is a multinational organisation with its... ...
10 Pages(2500 words)Essay

Strategy

...?Section (a) Gold and silver have been used for making or nts since prehistoric times. Human beings are naturally considerate about their appearances. Apart from using personal care products such as oils and lotions, jewelry has been very popular with the women in particular. Traditionally, gold and silver (collectively referred to as noble metals) were used for making these ornaments but recently, platinum has also been extensively used. However, with the increase in prices of other essential commodities, prices of these metals have also shown steep rise (Lior, 2011). But the need to look attractive has never decreased. Hence, a good demand exists for the alternatives that are cheaper and equally attractive. The Industry: Jewelry...
4 Pages(1000 words)Essay

Strategy

...? Dead Man Working – A Review By Dead Man Working – A Review “Dead Man Working” by Carl Caderstrom and Peter Fleming is an insightful book, which gives the reader an account of how people experience work in the present ‘dead’ world. The authors of this book largely dwell on capitalism in the society and this makes the theme of the book. They use different scenarios to prove the existence of capitalism in the past years, and show how capitalism today manifests itself in a different face, which seems friendlier, but is even more deadly than before. This review will address the major aspects of capitalism in the society in the perspective of “Dead Man Working.” Mostly, these are the strategies the authors of this book...
8 Pages(2000 words)Literature review

Good Strategy/Bad Strategy

...Good Strategy/Bad Strategy Thesis The work compiled by Rumelt- Good Strategy/Bad Strategy involves the best methodology and plan for steering the best companies. The author is keen to warn managers against focusing a lot of mission statements, setting of goals and having numerous plans that touch on resources as opposed to coming up with strategies that will allow the company survive in the tough economic times. In this case, the author argues that it is the role of the managers to come with strategies that will be practical in the successful running of the business (Chapter 1). First, Rumelt indicates that the managers need to identify...
3 Pages(750 words)Book Report/Review

Strategy

...Strategy After several meetings with the “Magnificent group” members, we were able to develop the strategy to launch the positioning of our non-profit organization and the implementing actions in order for it to be competitive and feasible. The strength of our strategy lies in several decisions made, which would constitute the strategy that is composed of a two-pronged approach: the first being the short-term strategy while the second section is a long-term plan. For the short-term strategy: 1. We filmed a video documenting a sample of what Boy Scouts learn in the camps. This video is uploaded in YouTube website under the title “ the Boy...
2 Pages(500 words)Essay

Strategy

...with the design, installation and service costs. To overcome the problems and develop a competitive advantage over other firms, the company involves an engagement strategy in its growth plan as noted by Stephen Irvin the company’s chief financial officer (Nasmaste Solar). In this case, Irvin asserts that the organization cares a lot in hiring its long-time partners in this business. He notes that hiring at Nasmaste Solar is based on a person’s values and not job role. The company also practices open accounting management using consensus-based decision-making. The company ensures that their financial statements are reviewed on a monthly basis at the staff meeting and at year end and all staff members taught how to read...
2 Pages(500 words)Essay

Strategy

...Strategy Kaplan, R. & Norton, D. (Jan- Feb, 1996). Using the balanced scorecard as Strategic Management System. Harvard Business Review, 1(1): 1-12. The article by Kaplan and Norton (1996) discusses the various concepts of a balanced scorecard. Arguably, one of the ways through which the article can relate to my previous organization is the concept of the balance scorecard in an organizational setting. The organization could largely benefit from the article since the article sheds light on the various aspects taken in by an organization pursuing efficiency, as was the case in our organization. However, some of the concepts discussed here helped in the understanding of why the organization was not functioning as well as...
1 Pages(250 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Strategy for FREE!

Contact Us