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Business Strategy

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 Business Strategy (LO1.1)
It is a course of action through which business enterprise such as Sony
Ericsson become competent to attain its goals and objectives (Aras and
Crowther, 2012). Some of its essential components are enumerated as:

 Mission: Its mission is to become most innovative brand along with

encouraging wide market coverage.

 Vision: Its ultimate vision is to become leader in entire field of

communication.

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 CONTD…
 Objectives: Their objective is to combine social media into its corporate
communication strategy and become technological leader all across the
globe (Bowhill, 2008).

 Goals: They want to retain customers for long run by delivering maximum
satisfaction.

 Core competency: They competency is to become successful company in

its sector.

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 Stakeholders (LO 2.3)
 They are the person or group which has certain concern for the
organization.

 They have the capacity to affect or get affected by actions, objectives as

well as policies undertaken by company.

 Some of the significant stakeholders of Sony Ericsson are its owner,

shareholder, customers, employees, suppliers, society, government and so
on (Aras and Crowther, 2012).

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 Importance of Stakeholder Analysis (LO2.3)
The concept of stakeholder analysis is concerned with determination of
major stakeholders along with their assessment. Major importance of
stakeholder analysis is mentioned as under:

 It provides assistance in delivering clear idea.

 By means of this relationship prevailing between varied stakeholders are

determined (Aras and Crowther, 2012).

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 CONTD…
 It tends to differentiate between conflict of interest and conflict of potential.

 Apart from financial terms, it identifies viability.

 It proves to be of great use in drawing our interest of number of parties

(Vallabhaneni, 2005).

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 PESTLE Analysis (LO2.2,2.3)
It is a framework which is used for analyzing as well as monitoring macro

environmental factors.

 Political: These are policies and regulations which is developed by

governing body of country. Majority of decisions taken by Sony Ericsson

got affected by changes in policies and procedure in nation in which it is

operating (Vallabhaneni, 2005).

 Economical: Due to high rate of exchange, number of problems has been

faced by business enterprise.

 Social: For carrying out function in long run, it is essential for Sony

Ericsson to produce goods and services as per taste and preference of

people along with their lifestyle pattern.

 CONTD…
 Technological: In order to gain competitive edge against its rivals in
market place, Sony Ericsson has to make best possible use of new and
improvised technology.

 Legal: Copyrights, trademark etc. are some legal issues which has
influenced overall working of business enterprise in long run
(Vallabhaneni, 2005).

 Environmental: Company has realized its corporate social responsibility

by taking steps for protecting the environment and society in which it is
operating.

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 CONTD…

Figure 1 – Pestle analysis

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 Porters Five Force Analysis
(LO2.1,2.3)
This framework is used to analyze level of competition prevailing
within industry.
 Bargaining power of buyer: It is quite high as they are getting
quality products and services in market place.
 Bargaining power of supplier: They are quite less in number as a
result to which their power is low comparatively (Vallabhaneni, 2005).
 Competitive rivalry: There exist number of competitors of Sony
Ericsson such as Nokia, Samsung etc. which has made competitive
rivalry high in nature.

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 CONTD…
 Threat of substitute: It is moderately low in nature. This is because of the
reason that availability of substitutes is less in market place.

 Threat of new entry: Due to excessive rules and regulations as well as huge
amount of investment cost. The threat of entry in this sector is low
(Vallabhaneni, 2005).

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 CONTD…

FIGURE 2- PORTER’S FIVE FORCES MODEL

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 Internal Audit
($) 31st March 2011 31st March 2012

Total Revenue 86,647,000 78,902,000

Cost of Revenue 66,447,000 62,246,000

Gross Profit 20,199,000 16,656,000

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 Organizational Audit (LO2.1,2.3)
In order to carry out organizational audit of Sony Ericsson, SWOT analysis
can be used.

Strength:

 Large customer base

 Well known brand throughout the world (Vallabhaneni, 2005).

Weakness:

 Inadequate channel of distribution

 Lower rate of technological advancement

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 CONTD…
Opportunities:

 High demand for products and services.

 Rise in demand for its products

 Developing interest of youth towards technology (Bowhill, 2008).

Threats:

 Intense competition from brands of all across the globe.

 Bargaining power of consumers.

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 CONTD…

FIGURE 3 - SWOT ANALYSIS

 Strategic Planning (LO1.2,1.3)
It is a course of action which is concerned with defining strategy as well as
direction of organization on the basis of which decisions regarding
allocation of resources are taken.

It is also regarded as control mechanisms which tend to guide strategy

execution. It is essential for business enterprise such as Sony Ericsson to
make things clear before taking any decision (Bowhill, 2008).

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 Issues involved in Strategic Planning
(LO1.2,1.3)
There are number of issues that are accountable for
affecting strategic planning of Sony Ericsson. In
regard to this, some of them are enumerated as under:

 Unclear strategies in strategic plan

 Absence of adequate approaches (Bowhill, 2008)

 Inadequate planning need

 Perplexed knowledge especially at ground level

 Different Planning Techniques (LO1.2,1.3)

Planning action is referred to as a process in which actions are

carried out in a orderly managed sequences so that
organizational goals and objectives can be attained within
stipulated framework of time. It is a problem solving activity in
terms of consciously and unconsciously (Li and Solis, 2013).

There exist number of planning techniques that can be adopted

by business enterprise such as Sony Ericsson are discussed in
next slide.

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 CONTD…
 Emergent strategic planning – It is a set of actions that form a pattern that
was not anticipated in the initial phase of planning.

 Command planning – A plan in which all decisions are taken by centralized

authority.

 Directive planning – A planning in which directions are given by higher

authorities (Vallabhaneni, 2005).

 Coordination planning – A type of planning that is done through

coordinating among all members of the organization.

 Devolved tactical planning and so on.

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 REFERENCES
 Tiwari, A., and Roy, D., 2013. Optimization of mean life of brands under cost constraints with an
empirical study on mobile handsets. International Journal of Quality & Reliability. Management.

 Vallabhaneni, S. R., 2005. Internal Audit Activity’s Role in Governance, Risk and Control. 3rd
ed. John Wiley and Sons.

 Li, C. and Solis, B., 2013. The Seven Success Factors of Social Business Strategy. John Wiley &
Sons.

 Porter’s Five Force Analysis. 2011. [Online]. Available through:

<http://visleshan.blogspot.co.uk/2011/06/mobile-hanset-industry.html>.

 Stakeholder Analysis. 2009. [Online]. Available through:

<http://www.odi.org.uk/publications/5257-stakeholder-analysis>.
 Aras, G. and Crowther, D., 2012. Business Strategy and Sustainability. Emerald Group
Publishing.
 Bowhill, B., 2008. Business Planning and Control: Integrating Accounting, Strategy, and People.
John Wiley & Sons.

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