Name Romil Patel (A00072915)
Name Romil Patel (A00072915)
Subject MGT604 Strategic Management
Assessment 2 Stakeholder Meeting Simulation and White Paper Preliminary Outline
Introduction
Founded in 2018 in Sunbury, Victoria, Skuta Pty Ltd is a privately owned manufacturer of high-quality electric scooters which provides compact foldable design with rechargeable batteries and many more innovative features. Skuta has also patented most of the technology used in the product.
The manufacturing firm has been enjoying constant year-on-year progress until the last financial year. Secondly, the future of e-scooter in Australia is uncertain because some states are still doing the trails and it is believed that some states might legalise privately-owned e-scooter. Therefore, the CEO has requested the management team to develop a strategy to guide the company in next five years.
Aim
The aim of this report is to provide a preferred strategy from the three strategies discussed in the stakeholder meeting to guide the company for the coming five years.
Discussion
The three strategy options considered in the stakeholder meeting are:
Market positioning: Expand into new markets, possibly international or collaborate with other companies to generate new customer interest
Lean strategy: improve profit by reducing costs, focus on stock control, innovation, supply chain and decreasing overheads
Diversification: Expand business by focusing on rental options and targeting tourist market. Further expansion may happen in development of new product like E-bikes.
To reach companys goals, strategy touches every employee and serves as an actionable way and it creates a single, forward-focused vision that can align a company and its shareholders (Cote, 2020). According to me, diversification is the best strategic option for the companys benefit. The way a company can produce goods and deliver services better than their competitors refers to competitive advantage (Peterdy, 2023). In this case, Skuta has a clear competitive advantage over their competitors as they have a track record of innovation, and technology which provides excellent value for money and many more features which keeps them apart from their rivals. The most important advantage they have over their competitors is that they have managed to patent the technology and other manufacturers cannot use it. Considering the competitive advantage, Skuta can expand their product to new rental market by targeting the tourists. E-scooters are being trialled in some state in Australia and it is believed that some state will legalise privately-owned e-scooters. Considering this political/legal factor, Skuta can manufacture new product like e-bike which are totally legal to use in Australia.
Unions help to raise productivity at workplace by participating with management in search for better ways of organizing production (Pencavel, 1999). As a Union Official, it is my role to mobilize and organise materials for new product and also to provide safety gears for the workers. It will be my responsibility to provide them with similar if not better conditions and finances to work along with new incentives and bonuses. It will be a big challenge to train or hire new employees to develop new technology like GPS and in built maps to attract tourists.
References
Cote, C. (2020, October 6). Why Is Strategic Planning Important? | HBS Online. Business Insights Blog. https://online.hbs.edu/blog/post/why-is-strategic-planning-important#:Peterdy, K. (2023). Competitive Advantage. Corporate Finance Institute. https://corporatefinanceinstitute.com/resources/management/competitive-advantage/Pencavel, J. (1999, November 30). The Role of Labor Unions in Fostering Economic Development. The World Bank eBooks. https://doi.org/10.1596/1813-9450-1469Appendix
