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BSG: Company A

Student’s Name

Institutional Details
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Table of Contents
Introduction......................................................................................................................................3
Background......................................................................................................................................3
Task 1: Strategic Decisions.............................................................................................................4
Workforce Compensation............................................................................................................4
Branded Production......................................................................................................................5
Branded Operations......................................................................................................................5
Corporate Social Responsibility...................................................................................................6
Celebrity endorsements................................................................................................................7
Task 2: Strategic Models.................................................................................................................8
Balanced Scorecard......................................................................................................................8
Porter’s five forces model............................................................................................................9
PEST............................................................................................................................................9
BSG Matrix (Strategy Map).......................................................................................................10
Porters Diamond Model- Government.......................................................................................11
Telescopic Observation Model..................................................................................................12
Conclusion.....................................................................................................................................12
Appendix........................................................................................................................................14
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BSG: Company A

Introduction

The global athletics footwear market continues to grow and develop in a bid to meet the

increasing demand for quality products. Companies around the world are constantly getting

involved in improved practices which help guarantee the required levels of growth and

development in the long-term. Moreover, there are also no effective laws and regulations

regarding entry into the markets, therefore, making it easy for organizations and companies to

infiltrate the industry. The aspects call for well thought out measures and effective strategic

aspects which can help guarantee protection of the business through development of a strategic

competitive advantage. The organizations in most cases, are forced to adopt different strategic

measures for the industrial areas. Thus, each geographical operational area gets to have a unique

strategy with which it reiterates and continuously implements.

Background

Company A has incorporated various mission and vision statements which it uses to

create an effective corporate culture. The company’s strategic vision is to bring best quality

footwear to the consumers through sustainable prices as well as enhancing socially responsible

measures. The mission of the company is to capitalize on the continuing customer interest, keep

the company abreast as well as compete for global market positions. Such effective goals and

measures put the organization at a better position to enhance required success.

Company A has adopted the differentiation strategy as they key model for its success.

The strategy is an approach that a business takes to develop a unique product or service that

customers will find better than or in another way distinctive from products or services offered by
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competitors (Boehe and Cruz, 2010). The implementation and eventual success of companies

taking up the method depends on their abilities to work on modern and trending topics. The

business should provide an enabling environment which support innovation as a way of keeping

the competitive edge. Moreover, companies incorporating the differentiation strategy have a

competent sales teams that can explain why their products are better than the competitors'

products (Cattani, Dunbar and Shapira 2017). It thus, becomes easier to work towards the set

goals and objectives through relying on the interventional experience.

Task 1: Strategic Decisions

Workforce Compensation

The organization has worked towards meeting its strategic decisions of differentiation

through adoption of effective decisions over the years. For instance, in year 11, the company

raised the salaries of the employees. Company A understands the important role that is played by

the workers in meeting strategic goals and objectives over the years. The employees are tasked

with converting of the raw materials into actual products. Thus, it is important to properly

compensate them as an incentive for the future of the company. The differentiation strategy

works towards ensuring that the employees improve their quality of research and innovation.

Studies have shown that when employees are being paid well and are happy, they are likely to

stay with the company (Cui, Ding and Yanadori, 2019).

Proper compensation of the employees also leads up to the increase in their loyalty levels.

They tend to have a bond with the organization which improves their levels of job satisfaction.

The right compensation program invests employees into the work being done, which gives them

a stronger sense of satisfaction when the company succeeds (Ngwa, 2016). Thus, the decision by
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company A to be involved in such practices of employee compensation and training benefits the

organization and the long-term strategies incorporated.

Branded Production

It is also important for the company to be involved in branded production as an incentive

towards meeting of the differentiation strategy. Branded production in company A has been

enhanced through the wide use of superior materials. The company, in the North America

division, uses 76% superior materials whereas the industry averages are at 47%. It shows the

commitment of the organization towards meeting of the set targets with regard to branded

production and the net effect on the position of the company in the industry. The organization

has managed to integrate the most effective TQM position which enables it to grow and effect

the changes in the developed mechanisms for growth in the long-term.

The continuous need to enhance and maintain creativity at individual levels is the reason

behind coordinated growth and long-term successful implementation of branded production in

the company. Company A should be involved in production of content and facilitating the use in

mainstream media. The Branded Content Marketing Association has been developed in recent

years to promote branded content to a wider, international audience. It can be an effective

opportunity for the business to realize its set goals and objectives through the effective review of

the policies and practices set in the long-term.

Branded Operations

The organization has also made strategic decisions with regard to branded operations

which work towards the differentiation strategy. The decisions relate to ensuring that there are

effective and more applicable costs for distribution and warehousing. Company A averages

$4.38 per pair in distribution and warehousing costs in North America where the average is
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$5.42. The distribution is further facilitated through the involvement of the internet which creates

the best strategic features that reach out to a wider audience. It also allows the companies to

consistently improve and benefit from the e-commerce platforms.

The move is also important to organizations as they get a good understanding of the

warehousing operations. Through effectively reducing the costs, there can be strategic measures

which work towards ensuring that products are dispatched from the warehouse within the

required time frames. It also enhances quality in production since the customers are able to get

products effectively and within the stipulated time frames. Essentially, it becomes easier for the

businesses to meet their targeted goals and objectives. The organization is easily able to monitor

and keep track of its sales and inventory through the proper warehousing and distribution

measures. The aspect positively contributes to the attainment of required profit margins.

Corporate Social Responsibility

The integration of effective CSR activities in an organization help in ensuring the overall

success and meeting of the set goals and objectives in the long-term. The attainment of the

differentiation strategies in an organization can further be enhanced by CSR activities. Company

A has taken up the activities as a way of giving back to the community and facilitating the best

frameworks for the future of the business. In year 14, company A attained second place in the

World Council for Exemplary Corporate Citizenship.

The decision to adopt the best forms of CSR in a company might have been motivated by

the increasing need to give back to the society. Company A is able to benefit from CSR through

the resulting impacts on the people. Corporate social responsibility plays a crucial role in making

your brand popular not only among your competitors but also media, other organizations and

most importantly people who are your direct customers. The incorporation of the CSR activities
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also ensure that the organization creates and develops a bond with the employees. The

workers develop a habit of working together as a single unit to help others which increases their

loyalty to the company. Therefore, the CSR approaches in the business help in creating and

reiterating the best frameworks for the future of the company.

Celebrity endorsements

Company A has also made the decision to involve celebrities in the marketing process.

The idea is an important industrial trend which ensures that the individual reaches out to a wider

base and audience who may have an active following. The company made an offer of $2000 to

Steff Caraway in their contractual agreement. Through the initiative, the company hopes to

increase its branding through involving a popular figure in the marketing process and ultimately

increasing its differentiation strategy in the long-term. Additionally, it also creates a desirable

culture in the popular sector and industrial awareness perspectives.

The company will purchase new equipment to help in the production process. The

production equipment in the North America facility has fully depreciated and, consequently,

been scrapped. New production capacity is considered to have a service life of 20 years and the

capital costs are depreciated on a straight-line basis at the rate of 5% annually. Thus, the decision

to purchase the equipment is seen to be a viable idea mostly because it guarantees quality of the

output which is in line with the strategic goal of differentiation. It also ensures that the

organization is strategically positioned to meet the increasing demand for the products through

investing in quality and long-term equipment which has the capacity to meet the demands

projected.

The decision to avoid purchase of used equipment helps the company avoid possibilities of

failure and consistent breakdown. Despite the fact that used equipment may be cheaper, it brings
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about unwanted risks which may affect the strategic development of company A. it creates the

need for constant reviews and effective implementation features which guarantee success of the

equipment used.

Task 2: Strategic Models

Balanced Scorecard

The balanced scorecard is an integral model which helps organizations align their

strategies according to their objectives. The score card is a metric used to identify and improve

various internal business functions and their resulting external outcomes (Vu, 2016). They are

involved in measuring of certain variables and providing the organizations with the right plans

and feedback regarding their integration in the long-term process. The model measures learning

and growth, business processes, customers, and finance (Vu, 2016).

Company A can rely on the model to effectively enhance the differentiation strategy

within its premises. It can be implemented through improvements of the key variables in the

plan. For instance, Company A can ensure that better customer retention strategies are enhanced

through use of CRM approaches. The company can also train its workers to put them at better

positions to reduce the customer wait time. Additionally, the business can stimulate the internal

processes in the athletic footwear sector. Stimulation ensures that there is process efficiency and

faster output in the productivity sector. The learning and growth sectors are also viable in the

case where the business continuously improves the skills and assembles the right tools to be

relied upon in the business development.

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Porter’s five forces model

The analysis of the industrial position through the porter’s model helps expound on

integral features of the external environment. Such external factors help a business change its

internal strategies to ensure that their effect is mitigated. The model provides analysis of the

competition relevant to the business. There is need for companies to integrate competitiveness in

their attributes through reviewing of their roles in meeting of the set goals and objectives over

the years. Competitive rivalry comes about in different spaces where individual activities may

not be developed.

The developed differentiation strategy has the potential of making the company realize its

set goals and targets within a given period. Intense rivalry can limit profits and lead to

competitive moves including price cutting, increased advertising expenditures, or spending on

service/product improvements and innovation (Huang et al., 2015). Company A faces intense

competition from various leading producers in the industry. There is need for the adoption of

relevant sketches and more effective factors of development which encourage research and

innovation in the industry. Additionally, they also create and develop the right frameworks on

which subsequent success can be realized. The company can also take up measures regarding

active interactions with workers and ensuring that they are regularly trained and developed to

meet industrial standards.

PEST

The company operates in four distinct geographical areas; North America, Latin

America, Europe Africa and Asia Pacific market. The different physical locations open up new

challenges with regard to the political, economic, social, technological, environmental and legal

issues. The company will need to rely on strategic duties within the given areas with regards to
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the political environment. Organizations need to respond to the current and anticipated future

legislation, and adjust their marketing policy accordingly (Prabhu, 2019). It involves analysis of

the government policy in the forms of political stability, tax laws, labor laws and foreign trade

policy.

The economic factors of the industry explain aspects related to economic growth and the

interest rates on loans. The diverse geographical areas means that the company is bound to be

involved with different economic perspectives which eventually ensure the attainment of

success. The social factors are the areas that involve the shared belief and attitudes of the

population (Prabhu, 2019). The different regions in the organization open up opportunities for

diversified strategies that effectively meet the demographic factors of the organization.

Incorporation of technology is also important in ensuring the continued business and

improvement quality in the output. Technology is used to maximize product quality and

reduce production costs (Kolios and Read, 2013). The use of a common technology amongst the

different regions can help enhance harmonization of the activities and features needed in the

long-term.

BSG Matrix (Strategy Map)

The incorporation of a strategy matrix can also help ensure the overall development of

organizational factors and meeting of set goals regarding differentiation. A strategy map is a

diagram that shows your organization's strategy on a single page (Islam, 2018). It allows the

employees and stakeholders of the company to know the overall organization strategy and their

role in ensuring its success (Islam, 2018). The basics of the strategy map incorporate the key

stakeholders in the running of the business and meeting of the required differentiation objectives

in the case of company A. for instance, the organization needs to develop measures which
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improve the customer experience. The increased competition in the athletics footwear brand

creates the need for the organization to ensure customer satisfaction.

The organization also adopts strategic features in the financial sector through

enhancement of the reduction of the costs and increasing the profits. They help in enhancing of

the operational excellence, culture of safety and sustainability. Moreover, the strategy map also

provides opportunities for the company to learn and develop in the form of increasing expertise

and optimization of technology. It helps ensure the right frameworks of success and effective

structures that support the business development.

Porters Diamond Model- Government

The government is a key feature in the analytical model developed by the companies. It is

described as both the analyst and the challenger. The model explains that governments should

encourage and push companies to raise their aspirations and move to even higher levels of

competitiveness (Tsiligiris, 2018). The aspects are ensured through the stimulation of early

demands for the products as well as specializing factor creations in the form of

infrastructure which support the long-term engagements in the business perspectives. The

government is also important in supporting the model through the promotion of domestic

rivalry by enforcing of the antitrust laws and encouraging measures that facilitate change

in the long-term.

The government should work towards benefitting of the industry and involving key

players such as company A. The company also needs to be involved in active analysis of the

industrial measures as well as in supporting of the growth of the company in the future.

Such effective practices open up channels for the athletics footwear company to grow and

develop as it works ion its structure of differentiation.

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Telescopic Observation Model

The model is effective in facilitation of the best features in the case of the strategic

planning and attributed growth. The model is an integrative design overcomes some of the

weaknesses of other available techniques whilst utilizing the strength of the SWOT and PEST

analysis (Ng, Nepal and Schott, 2017). The company incorporating the move is able to focus on

the strategic direction it takes up in the meeting of the market goals and demand products over

the years. Company A for instance, can achieve the objectives through first analyzing the

variables to determine its current position relevant to the competition in the business. It should

also be involved in evaluation of the findings developed and strategic formulation of the SMART

strategies and features. Ultimately, the business also needs to enhance monitoring and evaluation

techniques which improve business operations.

Conclusion

The company has introduced measures and practices which put it at a better position to

grow and develop. The strategic decisions taken by company A communicate its objectives and

success measures. It is the duty of the management to support the decision through the

integration of models that help guarantee meeting of the objectives. The differentiation strategy

of the company further puts it at a competitive advantage. It is the duty of the stakeholders to

constantly involve actions which secure the implementation of the measure in the future.

List of References

Boehe, D.M. and Cruz, L.B., 2010. Corporate social responsibility, product differentiation

strategy and export performance. Journal of Business ethics, 91(2), pp.325-346.

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Cattani, G., Dunbar, R.L. and Shapira, Z., 2017. How commitment to craftsmanship leads to

unique value: Steinway & Sons’ differentiation strategy. Strategy Science, 2(1), pp.13-38.

Cui, V., Ding, W.W. and Yanadori, Y., 2019. Exploration versus exploitation in technology

firms: The role of compensation structure for R&D workforce. Research Policy, 48(6),

pp.1534-1549.

Huang, K.F., Dyerson, R., Wu, L.Y. and Harindranath, G., 2015. From temporary competitive

advantage to sustainable competitive advantage. British Journal of Management, 26(4),

pp.617-636.

Kolios, A. and Read, G., 2013. A political, economic, social, technology, legal and

environmental (PESTLE) approach for risk identification of the tidal industry in the

United Kingdom. Energies, 6(10), pp.5023-5045.

Ng, E.H., Nepal, B. and Schott, E., 2017. An Updated Approach For Depicting Swot Factors

And Strategic Actions.

Ngwa, L.N., 2016. Impact of financial distress on UK bank performance and customer loyalty:

an empirical study (Doctoral dissertation, University of Wales Trinity Saint David).

Prabhu, P.R., 2019. A study on the political & government policy related challenges faced by

startups in the UK (Doctoral dissertation, Dublin Business School).

Tsiligiris, V., 2018. An adapted Porter Diamond Model for the evaluation of transnational

education host countries. International Journal of Educational Management, 32(2),

pp.210-226.
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Vu, M., 2016. Is The Balanced Scorecard Useful In A Competitive Industry?: Using Tesco Plc

As A Case Study In The Uk Grocery Retail Industry.

Appendix

Porter’s Five Forces Model

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Celebrity Endorsements

Branded Operations