Programme Title and Cohort: BSc (Hons) Business &

Management 15

Module Code and Title: Understanding Strategy

Forename: Abirami
Surname: Jeyakanthan
Student ID number: 17043273
University email address:
abiramijayakanthan@northumbria.ac.uk

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NAME: Abirami Jayakanthan

DEGREE: BSc (Hons) Business &

Management 15

TITLE: Understanding Strategy

MODULE TUTOR: .John Dymott

DATE:

CAMPUS Newcastle

Student Number : 17043273

Word Limit :

Word count :
Submission date :

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Contents
1 Introduction ......................................................................................................................... 5

1.1 Definition...................................................................................................................... 5

1.2 Importance of strategy ................................................................................................. 6

1.2.1 Customer retention ............................................................................................... 6

1.2.2 Resource optimization .......................................................................................... 6

1.2.3 Expansion of business .......................................................................................... 6

1.3 Limitation of strategy .................................................................................................... 7

1.3.1 Complex nature .................................................................................................... 7

1.3.2 Time consumption ................................................................................................ 7

1.3.3 Skillful planning ..................................................................................................... 7

2 A Review on the internal and external environment ............................................................ 8

3 Company background ........................................................................................................11

4 External market evaluation .................................................................................................12

5 Business industry Analysis .................................................................................................16

6 Internal market evaluation ..................................................................................................18

7 Evaluation of competitors ...................................................................................................21

8 Vision Mission and Objectives............................................................................................23

8.1 Vision, mission, corporate objectives ..........................................................................23

8.1.1 Vision ...................................................................................................................23

8.1.2 Mission ................................................................................................................23

8.1.3 Objectives ............................................................................................................23

8.2 Corporate objectives ...................................................................................................23

9 Competitive strategy ..........................................................................................................25

10 Marketing Strategy .........................................................................................................26

11 Recommendation ...........................................................................................................27

12 Conclusion .....................................................................................................................28

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13 References .....................................................................................................................29

Figure 1: Comparison of the internal and external environment analysis (Developed by author,
2019) ............................................................................................................................................................ 8
Figure 2: PESTEL analysis (Author Developed, 2019) ...................................................................... 12
Figure 3: Porter’s five forces analysis (Author Developed, 2019) .................................................... 16
Figure 4: Internal environment TOWS analysis (Author Developed, 2019) .................................... 18
Figure 5: Competitors Analysis (Author Developed, 2019) ............................................................... 21

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1 Introduction
The concept of strategy includes a broad discussion of business and management.
Moreover by the means of employment of several analytical frameworks and tools in order
to assess the organizations strategic position, the organizations are able to bridge the
gap the current position and the vision, mission and objectives of the company. This
provides the company with the insights to identify their capabilities to strike at the prior
goals delicately (Hambrick & fredrickson, 2005).
The report critically evaluates the definition and important of strategy in any business
scenario. In order to, understand the concept of strategy development of Singer PLC in
the Sri Lankan market, the external market situation such as PESTEL analysis and
internal evaluations such TOWS analysis, five forces analysis, customer analysis and
competitive strategies are assessed. Moreover, recommendations are provided based on
the internal and external analysis followed by conclusion.

1.1 Definition
Strategy is referring to as development of plan to achieve specific objectives in uncertainty
environment condition. Strategy provides with logical flow in the development of business
scenario in limited resources and it describes way of developing advantages in market
place comparing to the available resource level in the market. Porter describes that
strategy as delivering optimal marketing mix to the market in order to develop competitive
strategy.(Goi, 2009)

(D. Chandler, 1963) specified the term strategy as long term goals of organization which
has to achieve through allocating resources efficiency. In that he specified in the strategy
there is a logical process has been implemented to achieve set of goals. Further Michael
Porter (1996) view point it is specified that there is direct implication in the delivering
unique value beyond the competition. In that nature that concept is discussed about
unique nature of products such as differentiation and competitive behavior in the market.

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Strategy also identified as serious of decision making activities where developed with
decision making activities. (Henry Mintzberg, 2007).

1.2 Importance of strategy

1.2.1 Customer retention

It is identified that importance of developing business strategies to retain customers are
to maintain optimal level of business strategies in operation. From identification process
of needs and wants and to handover goods and services to customer would lead through
development of ranges of strategic implementation. Proper scanning of environment and
providing with optimal level of product and services to customers considering market
situation and competition comes under strategic movement of organization. All over those
factors would create customer retention factors within the organization contest. (Clayton,
2013)

1.2.2 Resource optimization

Any business organization is developing business activities with limited resource levels.
In such instances, it is important to recognize level of understanding in strategic
implementation into the business scenario. Company resources are inclusive with human
resource, marketplace, and customer bases, manufacturing process, logistic and
warehousing. Thus, developing optimal level of resource factor would lead to
development of high level of utilization and ultimately it would lead for cost reduction as
well as for margins.

1.2.3 Expansion of business

Business expansion is important task in the business development process and it would
lead to the level of business improvements in development of future business scenario.
In order to maintain retention and growth factor it would assist with development of future
business scenario. Identification of market needs which are align with current business

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operation would assist the situation of business scenario development process through
strategic movement. (Fan, 2006)

1.3 Limitation of strategy

1.3.1 Complex nature

It is identified that development of strategy is complex nature and a specific knowledge is
required for the development of strategies in diverse settings. Moreover, strategies are
based on various types of analysis such as internal and external analysis factors and
those are concern in development of accurate decision factors. However, in overall it
creates a complex setting in several situations.

1.3.2 Time consumption

In the development of strategic movement it is identified that there is high level of time
that has to be allocated with the scenario of development process. Further to that it is
identified that the long process of researching, communication and all create direct
implication over the timing factor and it created negative implication in day to day decision
making and operation.

1.3.3 Skillful planning

In order to create correct set strategies it is required to have specific knowledge factors
relating to the strategies. In that scenario key importance is developed with the acquiring
of correct set of skills.

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2 A Review on the internal and external environment
Business environment is the total of all things or factors that affect the work of a business
and its operations. Business environment can be broadly divided into two groups:
 Internal environment
 External environment

Internal environment is defined as the environment factors which are internal to the firm
that can be controlled by business while external environment is defined as the
environmental factors which are beyond the control of the business. Moreover, internal
environmental factors can be altered or modified to suit with the environment while
business organizations cannot change the external environment factors but they just react
only. Table 1, illustrates the comparison of internal and external environments.

Figure 1: Comparison of the internal and external environment analysis (Developed by

author, 2019)

Internal Environment Analysis External Environment Analysis

Focus on the functional areas strengths, Focuses on micro and macro
capabilities and the weakness of the environment forces influencing
organization (Duncan, Ginter & Swayne, organization (Turkay, Solmaz & Enguls,
1998) 2011). Also focuses on the threats to the
organization and the opportunities
created from external environment.
Included important internal environment Included important external
factors such as Value chain, Vision, environmental factors as follows; Micro
Mission and Objectives, Human environment: Suppliers, Customers,
resources, Corporate image, Physical Financiers and Public. Macro
,Financial and Marketing resources, environment factors: Political, Economic,
Research and development facilities and Social, Technical, Environmental, Legal

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 Internal relationships etc. (University of and International environment (University
Mumbai, 2015) of Mumbai, 2015)
Situated within the internal structure of Situated within outer part of the business
the organization which includes the structure and it cannot be controlled by
reason for internal environmental organization.
pressure that can be controlled by
organization.
Value chain analysis is used to identify Five forces analysis and the PESTEL
the how effective the each level of analysis is used to identify the impact of
production added value to the external environmental factors.
organization.

Strategic positioning models

“The strategic position is concerned with the impact on strategy of the external
environment an organization`s strategic capabilities and expectation and influence from
the stake holders” (Jhonson et al, 2008).

Porter’s five forces analysis

This analysis is helps to identify the level of competition of the industry from external
environment. Moreover, it determines the competitive intensity, analysis of attractiveness
of an industry structure and ultimate profit potential of the industry (Porter, 2008).
Porter’s five forces model is captured key five elements of industry competition. There
are three forces consist under the “vertical competition” namely “threat of substitute
products, threat of established rivals and threat of new entrains”. Apart from that,
“bargaining power of customers’ and bargaining power of suppliers” are consisted under
the “horizontal competition” of Porter’s five forces model (Porter, 2008). This model is
very useful to the organization when they are going to prepare or upgrading their strategic
plan especially in qualitatively to face the competition successfully as well as it provides
useful input for performing the SWOT analysis.
However, according to the researcher’s point of view, Porter’s five forces model does not
cope with the synergies and independencies within the portfolio of large corporations as

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well as ignore the inside out strategy. In addition to that, it does not focus on the possibility
of creating completely new market instead of selecting from existing one. Moreover, this
model may be not powerful for organizations which have rapidly changing, radical and
systematic environments.

1.1 Value chain analysis

Porter (1985) as cited by Charles, Stabell, Oystein and Jeldstad (1998) said that, value
chain analysis helps to identify the key activities of the organization chain and its cost
value impact, to gain a competitive advantage. Furthermore, it is useful to identify the
sources of competitive advantage especially opportunities to secure the cost advantages
and opportunities to create product or service differentiate while including all value
creating activities of all industry participants.
Using the value chain analysis model an organization can examine how the primary and
supporting activities of the organization process interact with one another and affect each
other’s cost and performance. According to the researcher’s point of view, value chain
analysis helps to stay out the organization from the “Nonprofit zone”.

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3 Company background
Singer Sri Lanka commenced its business operation in 1877 in Sri Lankan market by
implementing operation of retailer in sewing machines and is considered the first ever
sewing machine retailer in Sri Lankan market. Moving forwards it became the number
one brand in Sri Lankan house hold by providing ranges of electronic appliances to the
market place. Currently it operates as public limited company which is listed under stock
exchange of Colombo.(Singer Sri Lanka PLC, 2018)
Singer operating with multi products, multi brands and multi-channel strategies provides
different experience to market and different goods and services to the different customer
segments in the market. (Singer Sri Lanka PLC, 2018)(Singer Sri Lanka PLC, 2017)
Product categories identified in relating to the company operation are kitchen related
products, consumer electronics, sewing related products, white goods, technical
products, agro and transportation.
Singer has both direct and indirect competition in the market place. Moreover, there are
ranges of direct and indirect competitors operation in the market .However, the key
competitor recognized are Abans, Damro and Softlogic and Dinapala. (Singer Sri Lanka
PLC, 2018)

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4 External market evaluation
In the development of strategy it is important to evaluate external market environment of
the organization and in relating to the Singer Sri Lanka external market evaluation is
processed through the PESTEL analysis which discussed about political, economic,
social, technological, ecological and legal environment factors. (Payne & Frow, 2005).

Figure 2: PESTEL analysis (Author Developed, 2019)

Environment Drivers Implication to Singer Rating

H/M/L
Political Stability in political With policies and procedures are H
environment environment reported as constant in the situation
and would assist to develop level of
planning within the company

Development scope Market penetration would become M

towards to the business one of key fact in the development
scenario in relating to of scenario since there are situation
the rural area. of developing direct implication over
identification to market share more
into the rural areas.
H

Strong position in 90% of Singer business is oriented

controlling about the by sourcing through overseas
imports in the market market. Controlling factors create
negative effect over the
development of business scenario.

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Economic High level of rupee Directly make implication over cost H
value depreciation in of sales since it create direct
the market. implication over value of import
goods.
H
GDP level of economy In the constant GDP level it would
do not shows significant not create positive environment over
improvement. singer business since it not
categories under necessity goods.

H
Increment in the With higher inflation rate directly
inflation rate of create implication towards
economy purchasing power of customers.
Since it’s not a necessity good it
would create implication around
turnover of company.

Social Knowledge and People are more knowledge driven H

educational level of and requested with more
industry is getting information in the development of
increased. purchasing decision. Especially
technology related products are
highly concern with selection
process.

H
Level of customer Company need to match with
needs and wants are emerging situation in the
development of business scenario

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 become more where required to concern about
complicated more clarity in developing product
portfolio. M

Consumer preferences With different level of preference

are getting more required to have different range of
complicated products into category.
Unavailability of product portfolio will
lead to loss of market share.

Technological Technical environment Failure to meet technological H

is rapidly moving and improvement would lead to narrow
new products and down market share and increase
technologically competitor effect on market
improved products are activities.
introduce into the
market.

Ecological Power groups and Process of manufacturing generates H

general public are more waste in the market and it would
concern over disposal developed level of environmental
patterns. More concern protection concern. One of Key
over environmental factor is that company is operation
protection in different of electronic goods and after uses
aspects including electronic waste would create huge
water, air and soil. implication to environment. The fact
is create implication in the aspect of
brand name of organization. As a

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 responsible corporate it should have
to maintain optimal level of practices
to organization in development of
ecological environment concerns.
Legal Warranty process is Risk on failure of trust would be H
key factor in relating to created with direct implication in
the nature of product relating to the development of
which create direct business scenario in relating to the
implication in business trust of business factors.
development.
Customers are more
concern over warranty
policies.

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5 Business industry Analysis
In business strategy formation identification of industry related factors refers to be
important. In that regards it is recognized that implementation of Porter’s five forces is
important in the scenario (Rhee & Mehra, 2006).

Figure 3: Porter’s five forces analysis (Author Developed, 2019)

Factor Evaluation

Bargaining power of In present scenario relating to the supplier effect it is recognized

supplier that company is operating with one supplier and there are
situation that company do not able to fulfill requirement of
Singer. In that scenario it is identified that barging power of
supplier in the company is referred to be high through dealing
with one supplier. Power of company had been diminished and
required to improve level of implication in the development
through more suppliers.
Bargaining power of Bargaining power of suppliers is identified as in the high level of
customer implication of different competition and brand consideration
related concerns. There are number of choices are available in
the market place in relating to the laptops and considering to
world reputed brand Singer still operating in lower place. In
overall consideration it is recognized that there is high level of
customer power are established.
Threat of new Level of new entrance also refers to be high in situation where
entrance there are no significant level of barriers are recognized with new
entrance to the organization operation. Also it would able to
purchase branded products and resale in the market place. By
considering overall facts it is recognized that effect of new
entrance is referred to be high.
Threat of substitute There are substitutes available in the market place and no
specific alternatives are developed in relating to the laptop. As

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 substitutes it is identified with desktop ranges which are least
popular in the market and products like tabs are not exactly fulfill
the requirement of laptops.
Industry rivalry Rivalry level in the market is refer to be high in since the
business model could able to change in any instant and would
able to develop different product in the market according to the
nature of business.

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6 Internal market evaluation
It is important to understand internal environment behavior in the development of
business scenario to the organization. Thus, through TOWS the strength, weakness,
treats and opportunities in relating to the business development of Singer PLC are
identified (Payne & Frow, 2005).

Figure 4: Internal environment TOWS analysis (Author Developed, 2019)

External opportunities External Treats

Level of political Heavy depreciation
stability in the market. of rupee value would
Implementation of lead to increase the
development process prices of goods.
in rural area. Branded laptops are
No margins has to be available in the
kept with laptops in the market place would
LC opening up create direct
process implication on
Technology oriented turnover of Singer
market is developing laptops.
and would lead to With facility of online
enhance the level of purchasing global
market has
developed the
business.
No barriers in the
aspect of legal
consideration to the
market entrance.
Well experience and
established

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 competition in the
market.
Internal Strength SO –Maxi Max strategy ST-Maxi-Mini Strategy
Brand reputation EO IS IS ET
is located in 1. Business expansion
highest level. towards the emerging rural 1. Maintain lower level of
Highly establish market which would assist to margin in until capture the
network for the generate early bird market share.
business advantage.
activities. 2. Develop reputation base
Well-earned brand 2. Make availability of all the trust in the development of
trust in the market. products category in every market segment towards
Well experience geographical placement in the laptop market as well
and professional order to provide similar to other brands.
employees in
business 3. Make popularity among
operation. youth by introducing flexible
Financial stability payment methods to the
Dealing with world customer segment.
reputed suppliers.
Facilitate with hire 4. Development of trust in
purchases. relating to the product similar
Microsoft to the other products.
certification for the
Singer Brand
laptops.

Internal Weakness WO-Mini Max strategy WT-Mini Min Strategy

Considering the IW EO IW ET
internal market

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evaluation it is 1. Recruitment of more 1. Purchase from reputed
identified that employees who has suppliers under OEM
there are no much knowledge and experience
experience relating to the industry.
relating to the 2. Open up agreement with
market. new suppliers in the market.
Deal with only one
international
supplier relating to
the products.

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7 Evaluation of competitors
When it comes to the operations, products and the market of the Singer Laptops, Softlogic
has been identified as the closest competitor for the business and the analysis is mainly
based on the Softlogic Laptops.(Anon., n.d.)

Figure 5: Competitors Analysis (Author Developed, 2019)

What drives competitors What the things competitor is doing

and capabilities
Objectives Strategy

Vision It was noted that the company is

To be the most preferred business having very good customer service
partner by offering diversified and it is very good in cross selling
products & services of high quality and bundling among other products
and unmatched values. with them.
It was understood that the company
Mission is offering an unmatched after sale
Satisfy customer with an entirely new service with a strong customer
experience service.
Sector-Softlogic (technology)
Furthermore, the company is
Objectives
providing a strong technical training
Be the market leader in 2019
session for the who required an
Achieve 30% growth in revenue
by 2019 initial training over the product

Be the best after sales service operations.

provider. The company is mainly targeting,
Expand business all over the school students and the small and
country identifying emerging medium scale business
markets. organizations which could attract
higher number of customers with
lower pricing strategy.

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Assumptions Softlogic Resources and capabilities
It was noted that the Softlogic is the Strength
distributor for the DELL computers in - It having several
Sri Lanka and they are having very accreditations and
strong and distributed distribution dealerships with reputed
channels which is covering the entire global brands
country - Authorization for service and
distribution of Dell
- Partner of CISCO
- Partner of Microsoft
- Stable financial performance
and strong brand name

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8 Vision Mission and Objectives

8.1 Vision, mission, corporate objectives

When it comes to the vision, mission and corporate objectives, it could be considered as
the drivers of the business where it gives the direction to the business with the ultimate
goals of the company (Ambler, et al., 2004). The following are identified as the vision,
mission and objectives of the company which were extracted from the corporate website
of the company.

8.1.1 Vision
 To be the foremost consumer durable retailer and foremost consumer financier in
Sri Lanka.

8.1.2 Mission
 To improve quality of life by providing comforts and conveniences at fair prices.

8.1.3 Objectives
 Become market leader in the industry by catering all the segments.
 Improve consumer experience and consumer needs in the development of
business scenario.
 Being the market leader for all categories.
 Introduction of latest technologies to the market.
 Understand employee needs and facilitate it.
 Achieve financial requirement of investors.
 Development of turnover and profitability organization.

8.2 Corporate objectives

It is essential to have a set of corporate objectives when it is driving a marketing campaign
in order to ensure that the business is delivering expected outcomes through the
investment (Powers & Loyka, 2010). Therefore, the following are identified as the key
corporate objectives which are going to achieve through this plan.
- Achievement of the 30% sales increment by 2019

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- Accomplishment of the return on investment of 15% at the end of Financial year
2019
- Increase the market share by 20% at the end of 2019
- Maintain higher level of brand loyalty which will equals to 30%

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9 Competitive strategy
When it comes to the competitive strategy of the business, it is essential to focus over the
Porter’s Generic Strategies. It mainly focuses over the cost leadership, differentiation or
the focus differentiation. Therefore, Singer laptops also required to be mindful about its
strategy and manage to attract the customers based on the strategy. Consequently, it is
highly recommended to follow the cost leadership strategy where it will be a strong
attractive offer to the target market of the business. (Yan, et al., 2011)

Cost leadership
SINGER Differentiation
X-SERIES

Differntiation
Cost forcus
forcus

Figure 08

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10 Marketing Strategy
When it comes to the marketing strategy, it was understood that the company required to
consider the several areas such as market penetration, market development, product
development and the diversification. However, diversification is not recommended at this
stage. Therefore, the following table is illustrating the proposed marketing strategies to
the business.
Market Penetration Product Development
Build brand awareness Changes colors of X-series laptop
Promotion Campaigns targeting individual user groups.
Sponsoring to events. Changes in packaging.
Advertising Enhance after sales facilities.

Market Development Diversification

Open up new showrooms
Select dealers and enter into
agreements.
Conduct promotional campaigns.

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11 Recommendation
According to the above evaluation it is recognized that Singer Laptops are operating in
highly competitive market situation. In order to overcome that situation it is required to
develop market entrance with identifying most suited movement in the market place. In
overall consideration Singer is recommended to develop market in relating to the cost
leadership approach. In the cost leadership approach it is identified that market would be
understand the situation where would able to grab the market share. Singer is well trusted
and well establish brand beyond the main town and rural segment has more faith over
the brand. In that scenario it is recognized that rural is one of key market segment that
company would able to popularize the Singer branded laptops.
In the development of such market it is identified that purchasing power of customers are
low and special into present market environment it creates more challenges. Therefore
by developing approach of cost leadership it would able to gain high level of attraction for
the product. In further development it is recognized that company would able to generate
more customers in key town as well. The fact is the product is targeting towards the
segment of middle income earners and price consideration of such market is comparably
high. Evaluating to the product features it is provided with close features to the branded
products and Singer would able to emphasis that the product is provided with similar value
and features in the development of market. Promotion factor could be recognized as value
over the features and quality.

27
12 Conclusion
This conclusion is inappropriate, please include information on what you have discussed
in the report and the outcome; G you have used an introduction and external and internal
environment analysis. Under environment analysis you used PESTEL and what was the
finding in pestel UNDER INTERNAL YOU HAVE USED PORTERS ETC. Under that what
was the finding.And finally say that based on the findig s you gave recoonemdations,
that’s all

In relating to the business scenario it is required to conduct continuous market screening

in the development of future business activation process. In that it is recognized economic
factors are developing negative implication over business activities and by that it is
required to analyze related solutions to overcome such situation in order to minimize
negativities. It is important to recognize the level of facts within the organization about
strength, weakness, opportunities and treats, Further to that development of business
scenario collaborating strength and opportunities to mitigate negative factors and improve
the market possibilities. Ever changing industry factors also have to understand in the
scenario of creating business opportunities in the market place. Therefore understand of
customers behavior, suppliers behaviors, substitute effects and rivalry factors re refer to
be important in the contest of business. With the Identification of customer segment and
properly evaluate customer needs of those segments are refer to be important in the
development of future business activation process. Also customer evaluation and gaps
identification of customers against to the Singer laptop would facilitate to establish proper
strategies in relating to business development activities. Clear recognition on business
strategies and implementation those strategies to gather different market segments are
refer to be importance task in the development of future market activation process.

28
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