Competitive Strategy - Question 1

In the year 2016, the European Union along with 194 countries signed The Paris Agreement in which they vowed to combat the issues related with Humans’ impact on the environment, particularly the global warming effect (Mazzocato 2019). Keeping this thing in mind, the luxury car manufacturing industries in Germany are now looking for the suitable environmental elements which can ensure these companies to have a better future. The general environmental elements that play a key role in the future of the German luxury car industry are as follows:

  • Strategies to develop the affected regions: There is a requirement of development in strategies as per the analysis of the regional impact of systematic change.
  • Meeting skill and qualification requirements: It can be seen that without proper qualification requirements and work skills among the employees, a company cannot flourish. It is applied in this sector too.
  • Supporting corporate cooperation: The automobile industry in Germany is developing storage technology, batteries, mobility, amongst many other things, at their interfaces. The industry requires support from the government and stakeholders to ensure a bright future in the German market (Barthel et al. 2015).
  • Providing fiscal incentives: While regulations only focuses on manufacturers, fiscal incentives attract buyers to use a luxury car by affecting their buying behaviour.

Competitive Strategy - Question 2

A customer loyalty program can be launched by David to build a relationship with customers as a part of customer building strategy. Customer loyalty program is one of the important business strategies that are adopted by all the industries. It will allow him to engage with the customer base and to understand them better. The program can be based on customer value delivering throughout the group within all brands and the categories. Business organizations want to build a relationship with loyal customers as it is an economic source of income for them. These loyal customers can affect the people around them by advising to buy a particular product as they have a trust on the company which allows them to earn incentives while purchasing and also provide several discount offers (Kahraman 2020). Hence, it can be concluded that launching a customer loyalty program can be very useful in making an effective relationship with customers as it provides a competitive benefit and prevent the customer loss. Adding to it, it also secures revenue streams and allows the business firms to reach their customers easily.

Competitive Strategy - Question 3

Walmart, which was founded by Sam Walton in the United States, has become the largest retailer across the globe having more than 11200 stores in 27 countries (Michelson et al., 2016). The company entered into the Chinese market in 1996 by opening its first store in the Chinese city of Shenzhen.

To perform a smooth firm operation, the company needs to consider two of the most important trends in China. One is sourcing the local resources. Local resources cut the company cost of all the sectors, no matter if it an industry or retail store. Chinese market is full of resources at lower costs compared to the market of other Asian countries. Being the highest populated country in the world, China has enough human resource available at a low coast. The company should take this advantage to save some important bucks.

Apart from sourcing the local resources, Walmart should adopt the strategy of sustainable development to ensure a long-lasting presence in the Chinese market. It should think of opening environment-friendly outlets in the Chinese city. Since the Chinese cities are struggling with much pollution and toxic atmosphere, taking environment-friendly steps can help the company earning good name there which will ultimately result in increasing customers. Along with decreasing environmental pollution, another benefit of following sustainable development is that it can save energy usage at a great degree. The company can install efficient cold system in its stores along with energy-saving light bulbs which can help it cut down its business cost. Moreover, the company should emphasize on promoting online retailing services more than their retail stores. It will help the company to reach every corner of the country and increase the customer base for Walmart.

Competitive Strategy - Question 4

The major competitive issue that is faced by General Electric while managing cooperative strategies are; inadequate contracts, misrepresentation of competencies, partners failing to use their complementary resources and holding alliance partner’s specific investment hostage (Dadashian and Zarandi 2007). Since the international corporations demonstrate higher performance in the comparison with the domestic firms that operate within a national boundary. Because these domestic firms are growing to be more global, the international cooperatives have got increased importance. Usually, companies that develop distinct resources and abilities within the domestic market can be able to leverage them by allowing direct investment in the global market in contrast to providing license or exporting their products (Beamish and Lupton 2016). Still, this cooperation can be proved to be riskier and complex than the domestic one. A higher failure rate can be observed in international joint ventures since it is difficult for the domestic firms to manage them. There is a need for coordination and cooperation for sharing skills and information required for all the manager partners. There is a need of taking care while selecting the specific partners, managers, and ventures for an ensured success. Another issue while managing the cooperative strategies is that the companies have to compete within the firm and outside the alliances also even if a company attempt to cooperate. Most of the contemporary alliances though are made up of a portfolio of firms in supply chain and service unites that are shared. To add value, a company should align its service and operating units to others to create synergy.

Competitive Strategy - Question 5

The five most common challenges of successful acquisition are; lack of proper acquisition motive, choosing the wrong company, overestimating synergy, overpaying and exogenous risk (Pathak 2016).

The acquisition problem starts before taking place of the deal itself. To avoid the issue of lacking proper acquisition motive is to spend time on strategic planning. A firm needs to look into the basics determines what does it want and decide whether acquisition is required for achieving the goal or not.

Another issue that a company face while looking for a successful acquisition is that they target the wrong company. It has become one of the major issues in acquisition. Choosing the right firm is very important for a successful acquisition.

Overestimating synergy is another common challenge faced by companies in performing acquisition. It can be avoided by conservatism. A firm should look into the profit it makes by itself and assess if it can make it double by performing acquisition and then proceed further for it.

Overpaying for companies is also one of the major challenges faced while acquisition. It occurs just because the acquisition challenges exploit company rules which make an unavoidable overpayment. It can be resolved by assessing a suitable value for the company.

One major challenge of a successful acquisition is exogenous risk which may lead to the failure of the acquisition however well- planned the acquisition it. To overcome this problem, the firms need to make conditions into the transaction to protect itself.

Competitive Strategy - Question 6

Being a leader in a business organization comes with some responsibility for the leaders to perform (Hussain and Hassan 2016). The business leaders should have a vision to share among its employees, should possess an effective communication skill, should know the strategies to build relationships, should have an expertise in the industry and should be able to assess the need of the team.

Sharing a vision indicates that how a leader can assess their vision and share it among the employees and support them. A leader should be able to motivate its employees to gain more productivity from the organizational operations. To perform this action, the leaders can hold periodic meetings with the employees and allow them to share their visions in it.

An effective communication skill plays a vital role in leading a business organization. It helps them to pass their ideas to all the employees to get the maximum outcomes from them. To build a strong communication skill, leaders can have a regular communication with the clients and employees regarding their business activities.

Building a strong relationship with employees and clients is one of the most important responsibilities of the leaders. It requires a passage of time, attachment and emotion to maintain a business relationship. It helps an organizational leader to make the teamwork together and put all their efforts in it. To do so, business leaders should ask for the feedbacks of the clients regarding the products or services and allow them to pass on any suggestions.

A business leader must be an expert of the firm who can make strong decisions to be followed by the employees, clients and professionals from other industries. The leaders must implement their expertise to make important decisions and should know what is possible for the organization to accomplish and what will create challenges doing the same. To get expertise in a business organization, the leaders must study and assess the business environment and the employees behaviours carefully.

To lead a business organization successfully, the leaders must know what are the needs of the team in regards to the skills and information. They should be able to determine the most important skills for a post or should be able to employ resources which are fit for the place. For assessing the needs of the employees to improve the work efficiency, the leaders should have a close look at the working of the employees.

References for The Leadership Styles Dilemma

Barthel, K., Baedeker, S. B., Bormann, R., Dispan, J., Fink, P., Koska, T., Meibner, H. R. and Pronold, F. 2015. Structural Change in the Automotive Industry: Challenges and perspectives. The Future of the German Automotive Industry, pp. 1-30. Available at: https://library.fes.de/pdf-files/wiso/12165.pdf [Accessed on 8th October 2020]

Beamish, P. W., and Lupton, N. C. 2016. Cooperative strategies in international business and management: reflections on the past 50 years and future directions. Journal of World Business, 51(1), pp. 163-175. Doi: https://doi.org/10.1016/j.jwb.2015.08.013 [Accessed on 8th October 2020]

Dadashian, F., and Zarandi, M. H. F. 2007. Strategic alliance for core competencies improvement in textile industries. International Journal of Management Science and Engineering Management, 2(1), pp. 98-154.

Hussain, M., and Hassan, H. 2016. The leadership styles dilemma in the business world. International Journal of Organizational Leadership, 5(4), pp. 411-425.

Kahraman, A. I. 2020. The importance of creating customer loyalty in achieving sustainable competitive advantage. Eurasian Journal of Business and Management, 8(1), pp. 11-20.

Mazzocato, A. 2019. The Rising E-car Industry, and the Influence of Car Sharing in the German Market. Available at: http://dspace.unive.it/handle/10579/14291 [Accessed on 8th October 2020]

Michelson, H., Boucher, S., Cheng, X., Huang, J., and Jia, X. 2016. Connecting supermarkets and farms: the role of intermediaries in Walmart China’s fresh produce supply chain. Renewable Agriculture and Food System, pp. 1-13.

Pathak, A. A. 2016. Tata motor’s successful cross-border acquisition of Jaguar Land Rover: key take-aways. Strategic Direction, 32(9), pp. 15-18

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