Business Strategy Assignment 2 BTEC Nguyen Huu Phong 2017 tại University of Greenwich Viet Nam, đây là một trong những môn rất quan trọng và cần thiết cho những người muốn theo nghành businness cụ thể là human resource management như mình. Bài assignment này được mình làm tại trường. Các bạn có thể xem và tham khảo nhưng lư
Contents Introduction Stake Holder Strategies 3 Objectives - SMART Conclusion 11 References 12 10 Introduction Understanding a company is extremely important and I have presented elements that help us better to understand the inside and outside of a business in our previous report In this report, I will talk about the stakeholders inside and outside the business to see their impact on the business while they are operating In addition, I will present my insights on the common strategies that market-based businesses are taking to compete and grow in the marketplace Finally, I will present a methodology that will help us assess the feasibility of each strategy from which to draw many lessons Stake Holder Stake Holder is a name, a way of calling, a business term used to refer to individuals or organizations related to a particular business through their resources and cash in that company They have the right to be directly involved or influential in the specific activities, strategies, plans and visions of a company Stake Holders sometimes hold the right to develop a company at a high level Best In general, Stake Holders are like owners, they directly build and run the management through each position and rank or not directly run the company Stake Holders are usually of two types, the Internal Stack Holder and the External Stake Holder When the company operates, the Internal Stake Holder has the most impact on the company's operations, and the effects of External Stake Holder are not small Internal Stakeholders and External Stakeholders in a company 2 Internal Stakeholders are often involved in the direct management of specific activities within a business, who directly make decisions and lead each department within the company to accomplish its goals Internal Stake Holder can include: A Project team, Project Manager, Portfolio Manager People who are working directly inside the business, deciding the success or failure of the business External Stakeholders are often individuals and organizations outside the business, not directly involved in the management and operation of the company but can have a significant impact on the company, This organization sometimes also decides the success or failure of a business when its effects are large enough External Stakeholder usually includes: External Stakeholder: A supplier, Subcontractors, Government, Local Communities, Media, External customer / client, In general, the Internal Stakeholder and the External Stakeholder have a direct and indirect impact on the performance of the business, but the impact of the Internal Stakeholder is somewhat stronger as they are directly involved in the business The operation of the company In addition, external stakes have external influences, but they are not really powerful because they are synonymous with many different businesses, such as those from governments or suppliers Treating and controlling external influences and increasing the effectiveness of internal business impacts will help businesses stay strong and thrive Strategies a M & A M & A (Merger and Acquisitions) is a commonly used term used to refer to a control activity of a business for a whole or a whole enterprise after agreements from both parties Although often used by each other, the M (Merger) and A (Acquisitions) have different characteristics and need to be understood differently More specific: - M (Merger) is the fact that two organizations or enterprises of the same business size and both parties have reached agreement and agreed on the merger After the agreement comes to an agreement, both enterprises will jointly remove all legal status of each other from the name, business rights of the business, tax code, to merge together And create a new business with a new name, everything new including shares of two businesses also have to reshare A (Acquisitions) is much different than Merger, Acquisitions is a company that owns everything else of a company from its human resources, intellectual property, material assets, stocks, etc Based on the legal basis after the two Acquisitions undertake, the acquired 3 business will be acquired and the acquirer will disappear However, there are a few instances after acquisition where the acquirer still allows the acquiree to operate as an independent company and all profits are acquired by the acquirer Reasons to apply M & A Strategic: The purpose of M & A is not only to broaden the hold that holds businesses together but also to occupy a business and investors When the capital and resources that the investor contributes to a business are too many and take up too much of the company's voting power in the decisions and strategies At the time, we could see it as a M & A because investors almost took control of the company at a high level Of course, when capital and resources that investors contribute to a company are not strong enough to gain control or decision within the company, it is still considered a normal investment In addition, M & A enables businesses to add new technologies, resources, missing elements or areas where they want to move towards the young and want to expand the field quickly On the market, M & A is used to kill companies that are likely to explode in the future or threaten to hurt big businesses Simpler, to remove a rival company out of the competition is also a purpose of M & A Apply to Apple: Jimmy Iovine, Tim Cook, Andre Young, and Eddie Cue, Source: Apple 4 In 2014, Apple officially bought Dr Beet's Beats fashion headset with over $ billion This deal helps Apple improve the quality of its headphones as well as take full advantage of Beats fashion style The deal will not only help Apple bring Beats the best sounders, but also attract a huge fanbase of beats to Apple Music, Apple's second-largest music stream service after Spotify It was this hit sale that helped Apple Music Apple rise to No in the world after Spotify and only released a short time ago Although Beats captures Apple, Beats is independent of Beats, but all activities will be reported directly to Eddy Cue, Apple's chief of iTunes b Franchise Franchise is a commercial activity that holds the franchisor and the franchisee Accordingly, depending on the case and the field, the franchisor requests the franchisee to conduct the purchase, sale or service or a commercial product under certain conditions The franchisee must carry out the business of a product or service, in accordance with the standards and manner of the franchisor including all forms, activities, culture and advertising , Decoration, The franchisor will control all activities and support the franchisee Reasons to apply Franchise: If a business wants to grow quickly in a short time, the pace of growth is maximized, franchising is a viable option However, any business that wants to franchise should be prepared because if not careful, the business itself will be downhill without braking after strong growth Utilize and inherit the leading technologies of global brands New investors and entrepreneurs who want to approach the management and supply chain of top brands franchise is a completely accurate path Less risk in business is a key factor that many individuals and investors choose to franchise The rate of franchise failure is very low and it receives a lot of trust from the bank as individuals seek more capital Apply to Urban Station 5 Nguyen Hai Ninh and Urban Station - Source: Internet Urban Station is the famous coffee chain in Vietnam founded by Nguyen Hai Ninh Once a brand of coffee is known to many young people with unique space imitating a stopover With the franchise model, Urban Station grows dizzily, there are times when this franchise brand sells more than 11,000 cups of coffee a day However, due to the inability to control the supply chain well in the process of franchising, the pressure from the big investors has killed the culture of Urban Station that Nguyen Hai Ninh wants to create As a result, he left Urban Station to set up Coffee House Since then Urban Station has reduced its market share greatly This is an example of franchise success but also a failure to control the bad franchise c Strategic Alliance This is a strategy that two or more businesses associate together to focus on selling products or providing services that are almost similar to each other The point is that these businesses not compete with each other but develop together and support the resources and resources to create a competitive advantage that dominates the market Reasons to apply Strategic Alliance Businesses can indirectly take advantage of each other's advertising campaigns, behind which they can share advertising costs to help minimize costs for each business Take advantage of the strengths and advantages of other businesses to make customers realize the need of products and services In addition, the total revenue of each business will increase significantly after linking together 6 Apply to Apple and Microsoft Apple invited Microsoft come to Apple Event - Source: Apple Speaking to Apple, people always think of competitors as Microsoft They used to be rivals in the field of computers and always compete hard against each other However, in the end, they work together to grow together Steve Jobs, the legendary Apple CEO, once said, "It's been a long time since Apple won, and Microsoft lost," proving that they were linked iTunes is available on Windows, in exchange for Windows will be installed on MacOS Thanks to this factor, sales of both Microsoft and Apple increased markedly as users no longer feel the barriers between the two brands dominate the computer market d Integration This is a process that occurs in the supply chain of an enterprise when the enterprise intends to consolidate the supply chain to maximize enterprise productivity Integration is of two types: Backward Integration and Forward Integration Backward Integration is the process by which an enterprise wants to optimize its distribution channel by re-selecting suppliers that are active in the supply chain or, possibly, Besides, it is Forward Integration when the company wants to build a distribution channel for its own supply chain without having to go through a third party to save money and reduce dependence on the outside Reason for applying Integration When it comes to sustainable and long-term development in a market where competition is so high Optimizing distribution channels in the supply chain helps businesses reduce costs and reduce dependence on external businesses Strengthening sustainable development 7 Apply to Apple Apple's development of a leading company has changed a lot in terms of Backward Integration and Forward Integration These changes are so powerful that it can shake up companies that are Apple's suppliers With more than 300 billion dollars at its disposal, Apple wants to maximize its supply chain and limit its dependence on outsiders so they can everything themselves for two reasons: cost savings and optimization More product For that reason, in late 2016 to early 2017, when Apple announced it would produce its own iPhone processor in the future and not cooperate with its supplier Imagination Technology, the resulting Imagination Technology went bankrupt Sell yourself Apple sometimes uses this strategy to force its suppliers to optimize their supply chains and reduce costs e Differentiation This is a strategy where the business changes a small point over the core value of the product but makes the customer feel that it is a big change These changes mainly focus on factors such as color, size, packaging, etc This is considered a temporary innovation strategy and a great change for the customer The reason for applying differentiation Applying this strategy helps the product to create frequent changes that create excitement and limit the boredom of the customer to the product This strategy helps businesses to prolong the product and maximize profits from the highest product as well as keep the customer from using the longest product even though the product does not really change too much Apply to Apple iPhone iPhone Plus and iPhone 6s - Source: Internet 8 One of the best examples of this strategy is Apple's iPhone - the most popular phone in the world For years from now until 2014 Apple uses only one design for the iPhone to maximize the performance of the production chain and maximize its cost savings, though the number of buyers remains high despite the fact that the iPhone does not have much change IPhone 6s only added new colors, iPhone just changed the design of the receiving antenna array Only two changes are extremely small and almost no difference but the customer feels it is a big change and is ready to buy the latest generation iPhone f Niche This strategy helps businesses focus on a small market and less competition to help businesses survive and thrive This market usually only serves a certain group of customers and not so easy for businesses with good products to gain the trust of customers and limit the competition from other competitors Reasons to apply Niche Applying this strategy makes it possible for new businesses or new products to survive and prosper when large markets have too much competition from competitors Reducing the risk of failure and easily succeeding is the reason many small businesses choose Apply to Apple iPad Pro 12.9 inch and Apple Pencil Apple iPad Pro and Apple Pencil - Source: Apple In a tablet market that is so saturated and fiercely competitive from Samsung, Google, Microsoft, manufacturers from China, and Apple's earlier iPads Apple still makes the iPad 9 Pro with screen up to 12.9 Inch, but instead of continuing to attack the large market with competition and unsuccessful, Apple has chosen niche market is the business object Designers, where Apple has only one competitor is Microsoft, but Microsoft is not too strong To make the iPad Pro suitable for those who work in the field of design, Apple has made Apple Pencil to help them easily create It was this niche market attack that Apple easily took over its market share and received positive feedback from designers as it helped them create great content with IPad Pro results remain successful in a sluggish tablet PC market Objectives - SMART Having a strategy must have a specific goal for each strategy To evaluate a strategy, leaders need a model that helps establish a clear plan and goal The SMART model has solved the problem and helped business leaders create a tailored and effective assessment process for each strategy The SMART model is based on five factors: Specific - Measurable Achievable - Realistic - Timing, which explains and responds to each of these elements in a planned and effective manner Easy to change, calculate in specific cases S - Specific: The goal of the strategy must be specific and clear, not too abstract and general in many goals, especially easy to understand For example, Apple's goal in late 2017 and early 2018 is to sell more than 80 million iPhones, this is the specific and clear target as this is the year Apple announced the iPhone M - Measurable: can measure what is obtained and what should be spent, in other words statistics can be measured by different traditional methods For example, the number of iPhones that Apple sells after statistics can be measured through the number of iPhones that 10 10 are enabled after a customer buys them, thanks to which Apple can easily tell exactly the number of iPhones sold all around the world A - Achievable: Can be achieved and within the ability of the business, not to exceed the limit is too high For example, Apple is aiming to sell 80 million iPhones in late 2017 and early 2018 because this is the cycle of customer change according to their research, the iPhone generation celebrates 10 years with many breakthroughs Previously, the iPhone Plus also reached 76 million units worldwide during the same period These factors are why Apple can confidently set high goals and still be able to complete R - Realistic: The goal must be realistic and not too illusory, in line with the present world For example, Apple wants everyone in the world to own the iPhone, resulting in the sale of 70 to 80 million iPhones a year and reaching billion iPhones in the world last year T - Time - bounds: There must be a clear and specific deadline for each strategy to not last for too long For example, Apple expects to sell 80 million iPhones in the period from October 2017 to March 2018 The six month period lasts two quarters This is a clear timeline and investors are assured of that Conclusion Throughout the report, we understand in part what strategies businesses are usually using to compete with competitors in the same market and how to grow in that market In addition, we also know how to evaluate the feasibility of a strategy when it comes to and understand how the real business as Apple 11 11 References • Denisemerald (2009) Stakeholder concept, Available at: https://denisemerald.wordpress.com/2009/11/07/khai-niệm-stakeholder/ (Accessed: • 22 August 2017) Duy Luan (2014) Apple confirms Beats acquisition for $ billion, Beats continues to carry its business credit, Available at: https://tinhte.vn/threads/apple-xac-nhan-mualai-beats-voi-gia-3-ti-usd-beats-van-tiep-tuc-cac-mang-kinh-doanh-cua- • minh.2306077/ (Accessed: 22 August 2017) Forbes Vietnam (2015) Urban Station coffee salesman, Available at: http://www.brandsvietnam.com/6584-Chang-trai-ban-ca-phe-cua-Urban-Station • (Accessed: 22 August 2017) Investopia (2017) Forward Integration and Backward Integration, Available at: http://www.investopedia.com/terms/f/forwardintegration.asp (Accessed: 22 August • 2017) Marketing Strategy (2014) Apple's strategy: positioning in the premium segment, Available at: http://www.marketingchienluoc.com/chiến-lược/19519-chiến-lược-của- • apple-định-vị-ở-phân-khúc-cao-cấp (Accessed: 22 August 2017) T.C (2014) The real reason behind Apple's acquisition of Beats Electronics, Available at: http://vietnamnet.vn/vn/cong-nghe/ly-do-that-su-sau-vu-apple-mua-lai-beatselectronics-178075.html (Accessed: 22 August 2017) 12 12