Online Assignment Submission

Birmingham Business School

Student ID Number: 2043062, 2086073, 2006972, 2053557, 2006398, 2031735, 2009091

Programme of Study: Advanced Engineering Management

Module: Strategic Innovation Management

Assignment Title: Strategic Management Group Assignment

Date and Time of Submission: 20-10-2019

 TABLE OF CONTENTS

Executive Summary...............................................................................................................................................1

Initial Strategy.........................................................................................................................................................1

PESTLE Analysis...................................................................................................................................................2

Porter’s Generic Strategies Framework.............................................................................................................3

Ansoff Matrix.......................................................................................................................................................... 4

Learnings from Leading a Change Project.........................................................................................................5

Kotter’s 8 Distinct Phases.....................................................................................................................................5

Creating an Innovation Strategy..........................................................................................................................7

A Forecast of Team’s future Prospects Post End of Case..............................................................................8

Explanation of Changes in Our Strategy During Work.....................................................................................9

Executive Summary

This report provides an analysis of the current situation and future development strategies for
transportation and cash management done by company. We made strategies for different
stages. Methods of analysis include PESTLE model, Kotter’s 8 districts, value chain analysis,
Ducker’s analysis as well as decision making methods include ANSOFF MATRIX, and
Porter’s Generic Strategies.

The report draws attention to the result of our company’s development can be influenced by
external factors such as society, technology and competitors, and internal factors like
organizational structure, personnel and leaders. Furthermore, our company innovated and
made new strategies according to changes. The strategies varied according to market
changes.

The report concludes that our company maintains the competitive advantage of original
transportation market by providing different security levels and opening daily goods delivery
market. Also, we provided our services on internet. Furthermore, our company is targeting
elderly people market due to the aging population in the UK. Our core business is still cash
management.

1. Initial Strategy
A number of years ago, based on the given conditions of that context, we as the
Management Team in charge, did this initial strategy for our company as follows.

Company Vision:
To make people’s life more convenient and safer for the better future.

Company Mission:
We offer cash management, security service, and asset handling solutions with the most
advanced technology, in the best professional ways. Our service aims to be accessible and
affordable for everyone.

Initial Strategies:
1) To maintain the market of transporting valuable goods and money.
2) To open a new market for daily goods delivery.
3) To provide different options of security based on the value of products or customer
demands:
a) Security level 1: provided for the food, low priced metal products or other products
which don’t need the security.
b) Security level 2: provided for valuable goods which has low chance of getting stolen.
c) Security level 3: provided for expensive goods or money.
d) Security level 4: This is the extra security provided for the goods which have higher
chance to get stolen. It can be provided as per customer demand and also costs per
provided security.

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PESTLE ANALYSIS:

Opportunities:
1) ” Economy is growing and it is estimated to grow with 10 % the coming period.”
(Economic)
It means that more transactions are going to happen, where the company would benefit
because people will have more money to be utilised.

2) ” When they pay the bigger bills, they are going to the Bank to pay. There are no
other certified ways to make safe money transactions than cash or bank
transferring. There is a lot of money machines/ATM to help the flow of money.”
(Economic)
The only way to make a daily transaction is by using cash and it gives the company an
opportunity to dominate market share.

3) ” The population is in mixed ages, more and more people are getting older.”
(Social)
Older people tend to choose simpler way of doing transaction. With more and more
people getting older, it would sustain the cash transaction culture in the country.

4) ” New Cars are getting faster and more effective.” (Technological)

Using faster and more effective vehicles for cash/goods delivery means more
transportation can be done per day, which will definitely increase revenue.

5) ” Every fourth adult person has a mobile phone, Nokia 3210 is the most common
model.” (Technological)
The current technology situation would be beneficial for this specific line of business,
because cash transaction is still a primary way to pay for things.

Threats:
1) ” In the end of the month there is always long lines to pay the bills and shop food.”
(Social)
Because of this problem, soon enough people will try to find an alternative way to pay
bills and buy foods.

2) ” In the inner cities it is crowded with stores, on the countryside they have started
to close down many stores and bank offices because of the urbanization.” (Social)
The company would definitely lose some of their clients because of shrinking area of
operation

3) ” The government is worried about the increasing amount of drug dealer and Mafia
gaining power and there are new laws around banking on its way.” (Legal)
New laws around banking could be an opportunity or threat to cash-in-transit type of
business, and the company should be prepared for the upcoming strict regulation in the
future.

4) ” You have heard about something that is called bitcoin.” (Economic)

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 Bitcoin is a digital currency, because it has capability to act as a disruptor in the current
market by being an alternative way to make a transaction.

Opportunities/Threats (Grey Area):

1) ” There is an election next year in your democratic country somewhere.” (Political)
After election, there could be some changes in regulation that would be beneficial or
disadvantageous to the company business.

2) ” Computer systems is under development and computer is getting cheaper.”

(Technological)
Using computer to process company’s service should be more effective. This situation
also means there could be development in cashless transaction that would disrupt
current market share.

3) ” Robbery in stores and banks is a more and more coming problem in the society.”
(Legal)
This situation would make our clients become insecure whether it is safe to trust our
service. In the other hand, this could be an opportunity to provide the best security to gain
competitive advantage.

PORTER’S GENERIC STRATEGIES FRAMEWORKS:

Cost Leadership (Short-term):

From the PESTLE Analysis, for short-term we are aiming to be the best transportation
company with fast delivery and the best security system with competitive price. We assume

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that the company operates in high criminal rate area. By making the security aspect as the
company’s main selling point, our company can gain competitive advantage.

Differentiation Leadership (Long-term):

For long-term strategy, there could be an opportunity to expand our business into a wider
market segment. To be able to make premium service, we will take advantage of the internet
and computer development by integrated it to our service such as using live tracking GPS in
our delivery service.

ANSOFF MATRIX:

Product
Existing New
Existing Transportation Security
Market

Transportation for Transportation for

banks and stores banks and stores

New Transportation Security

Transportation for daily Transportation for daily
goods goods

The existing product is transportation service and the market is banks and small business.

1) Market penetration:
We concentrate on offering services and best support to customers in affordable rate, so
they recommend us to potential clients while maintaining our share price for the best
profits.

2) Product development:
We provide diverse security levels that depend upon the value of goods and client
requests to reduce the danger of robbery.

3) Market development:
We will start delivering goods with faster and cheaper cars to elderly people and people
who live in countryside because of the long queue in the store, population aging, and the
decrease of stores and bank in rural area.

4) Diversity:
Our security services are accessible to everyone because of security levels. Also, we are
entering a new market of delivering daily goods.

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2. Learnings from leading a change project
A few years later, based on the given conditions in the new context, we had an internal crisis
with our staff and made a plan for a change project…

Kotter’s 8 Distinct Phases:

Forming Anchoring
Developing a
Creating a Sense Powerful Communicating Removing Creating Short- Consolidating Change in the
Vision and
of Urgency Guiding the Vision Obstacles term Wins Gains Corporate
Strategy
Coalitions Culture

1) Creating a Sense of Urgency:

a) From the provided information about the current situation, we have identified urgent
threats that might affect our company stability:
 10% rise in current personnel’s salary caused by the boom of economy.
 People need to work extra.
 Current personnel are worn out and making complains.
 Need to fully automate counting process.
 Need to move/renovate.
 Big robbery happened in the country and 2 company cars are robbed.
 New alternative way of payment (e-money).
 10% of the transactions are made by using internet.
b) Those threats should be known by all of the managers.
c) The employees should be aware of the importance of the change.
d) We also will gather feedback from our current customers to see what we should
change.

2) Forming Powerful Guiding Coalitions:

a) We will form a new team consisted of new and experienced employees and they
should show the team spirits.
b) Team leader should gain trust from the team members.
c) Choose a strong leader who is professional, skilled and passionate about the
transportation market.

3) Developing a Vision:
Vision: To solve employee and security problem, and be prepared for the internet
revolution.

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4) Communicating the Vision:
a) Make sure everyone ready for the change, communicate clearly by training, seminar,
etc.
b) Train lower manager for better communication so our vision can reach every
employee.

5) Removing Obstacles:
a) Make sure everyone understands our vision so they can keep working hard in the
right direction.
b) Take intelligent technology as the core technology, which can reduce manual work,
improve efficiency and relieve people’s pressure.
c) Establish a clear reward and punishment, flexible salary system. Give rewards to
people with good performance and also always notice if there is anyone who resist
the change and see the reason behind it.
d) Developing Security products to reduce the rate of robbery and enhance the
comprehensive competitiveness of our company.
e) Move into a new and comfortable office environment to stimulate the enthusiasm of
employees.

6) Creating Short-term Wins:

Make short-term goals instead of trying to finish the whole project without any
checkpoints. This will give the employees a sense of achievement in order to keep them
motivated.
a) Set up priority for company division
b) Review the company budget
c) Set up IT Division, start by making the company website and live tracking GPS
service.
d) Gather feedback from employees by making questionnaires to see what complains
they were making.
e) Automatize the counting process by using machine, which can reduce the workload
of the employees.
f) Negotiate about the rising salary to the current company, see if there is any deal can
be made.
g) Review the company security by making new standard of operations (SOP), see if
our cars need to be upgraded.

7) Consolidating Gains:
a) After each short-term victory, we need to analyse the success factor and look for
other areas that can be improved.
b) Make some changes in the organization based on the condition after each short-
term victory.
c) Keep the project momentum by not celebrating early victory.

8) Anchoring Change in the Corporate Culture:

a) Keep the success of the change by recognising all of the people who contribute.
b) Encourage managers and employees who are accepting our change, by giving them
promotions/rewards.

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3. Creating an innovation strategy
Earlier this year, with additional information about our organization’s structure, which country
we are operating in and closest Competitors, we made an innovation strategy

1) The unexpected success or failure:

Possibility of new market from the culture of cash payments, which is mostly associated
with elderly.

2) The incongruity between what is and what ought to be:

We are running our businesses of security service and cash transportation service.
However, two competitors came, which are Loomis and G4S. They provide high-quality
security service and cash management.

3) Process needs:
In the process of innovation, compared with G4S, our company could not provide perfect
security services, so we launched security services for different customer’s needs.

4) Changes in industry/market structure:

Due to the Internet revolution, targeting the elderly market has become a new possibility
in order to compete with other companies with similar services.

5) Demographics:
There is an increasing number of elderly people in UK.

6) Changes in perception, mood, and meaning:

People are changing into cashless transaction, and digitally excluded elderly people still
needs cash.

7) New knowledge:
Technological and scientific breakthrough in transportation such as self-driving vehicles,
could be an advantage if used correctly.

Our innovation strategy:

1) Targeting elderly people for the possibility of potential customers
a) Direct debit:
The population of elderly people who cannot use internet banking is increasing. To
solve this problem, we provide a cash delivery service. They can decide time period
for direct debit to our account. After receiving money, we will deliver the cash to the
customer.
b) Personal consultant:
This service is especially for elderly people, but other people can also use it. Personal
consultants can give advice about money management and financial advice.

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 c) Cash to the bank:
We are providing this service for elderly people who are earning money in cash and
cannot go to bank to deposit the money. Once they call us, we will collect the cash
and transfer the same amount to customers’ bank accounts instantly through online
banking.

2) Organizational structure
a) Changes in organizational structure:
We already have IT department under production and operation but now we are
investing more in this department due to internet revolution to give best service online
to every customer.
b) Benchmarking with other competitors.

3) Improving our services with internet

a) Live tracking GPS:
We provide live tacking services for the customers who wants to keep an eye on their
goods and for the normal goods we are providing free tracking services which
provides checkpoints that the goods reach.
b) Mobile application:
We provide mobile application for the convenience of customers. People can use all
of our services that we are providing on website through new application which is the
quickest way to access our services.

4) lowering the price of service

a) Different security level with different prices:
We provide many levels of security to meet the needs of customers. Some customers
need minimum security for normal goods and some customers need military grade
security.

5) Make alliances with government to protect free access of cash

a) Work together with LINK and Post office.
b) Promoting “Community Access to Cash Initiative” Program.

4. A forecast of your team’s future prospects post end of case

Finally, we have analysed the future for our company and our future strategy is

1) To maintain the market of transporting valuable goods and money.

To maintain the core market, our company will target new potential customers, such as
elderly people. Also, by making alliances with the government, our company can ensure
that we will have loyal customers.

2) To open a new market for daily goods delivery.

With growing core business, our company can start to make some subsidiary service,
such as daily goods delivery. This is a good opportunity because we already have
transportation vehicles and other resources to support this new service.

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3) Improving our services with the internet.
Based on analysis on other competitors and the ongoing trends of internet usage, our
company needs to integrate the transportation services with internet in order to make
more effective and faster delivery process.

4) Targeting elderly people for the possibility of potential customers.

The increasing of elderly people in the UK would make it a reliable source of income. Our
company decided to target elderly people, by providing special services to suit their
needs.

5) To provide different options of security based on the value of products or

customer demands.
More diverse service means more accessible to variety of costumers. We also need to
improve our security because of the high crime rate and to gain competitive advantage by
providing the most secure service.

The future for our company:

Nowadays, more and more transactions are done online. Therefore, in the next two years,
the majority of our services are available online. However, we still keep all offline services.

Cash management is still our core business from the beginning to the present. Also, the
cashless society cannot be achieved because of the government policy and citizens’
unwillingness, especially elderly people. Thus, our company should continue to maintain the
competitive advantage of our core business in the future.

Elderly people will account for more percentage of the whole population. Our company have
provided professional services for elderly people, which helps us win the trust from them. As
a result, more and more elderly people will choose our services.

In future, we will have more services: cash management of different security levels, daily
goods delivery, targeting market to elderly people in order to meet the different needs of our
customers.

5. Explanation of changes in our strategy during work

The changes we have done in our new strategy compared to the first one is based upon…

1) Changes in company position:

The position of company has changed mainly due to internet and technological
revolution. More and more people are going cash free but elderly people still needs cash.
Thus, our future strategy will integrate our service with the internet as well as premium
services.

2) Company capabilities:
We analyse our company capabilities by using Porter’s value chain analysis model. We
need to know to what extent we can provide our resource for our future services. There
are some organisational changes that happened inside the company, where now we
have more resource than before.
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 For example, we have internet-based service development such as mobile application
and live GPS tracking. This can be achieved only because we have supporting activities
which is IT Department to bolster our transportation service.

3) Changes in company choice:

Market is gradually changing from cash to cashless economy. In the past, our company
focused on transporting for banks and bigger consignments. Now, because of the
emerging competitors and market change, our company need to make new strategy. Our
future services will be more focused on gaining new potential customers such as elderly
people. However, we are still developing our current service by using latest technological
advancement in order to gain competitive advantage and keep up with the current era.

6. A review of our overall performance

Conclusions and reflections of our overall performance as a company and Management
Team

At first, our company managed to make an initial strategy to overcome problems. Thus, we
analyse our company position and make strategy choice based on them. We utilized every
opportunity we had to expand business. Our company operated in a high crime rate area,
where high security in transportation is absolutely needed.

Also, with the shrinking market size we found a way to target a new market and differentiate
our service to make it affordable to everyone. Company also entered in a new market of
delivering daily goods.

However, there were some unexpected internal crisis which compelled our company to
initiate some changes. As the management team, we used Kotter’s eight distinct phases to
prioritize the urgencies and make a change plan. We managed to solve the problems by
making organizational changes.

As the company grows, the market has changed to the extent to go through great changes to
compete with competitors. We made our future strategies as per customer and employee
feedback, internet revolutions, and forecasts. Currently, we are focusing on acquiring new
potential customers by providing them special services. As a cash transportation company,

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we also participate in sustaining the culture of cash payments for those who need it, by
making alliances with the government for future changes.

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