INTEGRATED STRATEGY Essay Example
The FBI Company applied the following strategies in the fifth and sixth year of operations. The outcomes and explanations accompany each strategy as follows:
Word wide sales
The main markets for Action-Capture camera and UAV Drone are North America, Europe-Africa, Asia-Pacific and Latin America. FBI companies has more than two outlets and well laid out distribution for its Action-Capture cameras and UAV Drones related products in all the above named markets.
For this reason FBI Company has found itself in a position to produce more of these products in order to meet the demand in all these markets as discussed by Whittle & Myrick, (2016). Increased production level has made FBI company achieve good Earnings per Share, (EPS) of 1.84 and Return on Capital, (ROC) of 27.7.
Using financial leverage
One specific financial leveraging strategy that FBI Company applies is the use of debt capital. This has the effect of lowering the level of share capital that share holders have to input as discussed by de Oliviera & Jabbour, (2017). This consequently lives the FBI Company with a good level of Return on Equity, (ROE).
FBI Company produces top quality Action-Capture Cameras and UAV Drones that appeal to a vast of its worldwide users and this has been able to give them an edge over its rivals as shown by Buckley et al, (2016). The quality of the products accompanied by its timely delivery and support services such as use demonstrations has positioned FBI Company positively. This has led to increased sales volumes.
Discussions In Comparison To Competitors
Company B has the highest returns on Earning per Share, (EPS) of 1.84. They are likely to have established outlets for their products all over the world. This enables them to have high level of production. With increased production level it is able to regulate the levels of profits through price determination as discussed by Grant, (2016). This is owing to the fact that this is unique industry without too many suppliers. Company B is likely to be charging slightly in excess for their products hence the big value of Earning per Share, (EPS) 1.84.
Their large scale operations in terms of production and market coverage have worked to their advantage in this situation. FBI Company intends to borrow this idea in its coming trading periods. There will be a caution however of not overcharging. Means of producing improved quality Action-Capture Cameras and UAV Drones at customer friendly prices must thus be sort out as shown by Chang, (2016).
The values from the books of accounts for the sixth year indicate that company a little in regard to its marketing effort. It’s inferior marketing expense value of $27885 in relation to the values of the same for the other companies in the evidence for this. This means there may be miss doing in the marketing department of Company A that is, its marketing managers are not vibrant. It could also simply mean that company A has limited market coverage. Company A thus cannot produce products in high quantities consequently given them a low profit margin. This has not worked for Company A as reflected by their negative profit margins of $-77351
The two best performing companies B &E 107 & 99 weighted averages respectively owe their success to a number of practices. First they have wide market coverage as discussed by Lederer et al, (2017). This makes them intensify their production efforts. They are thus able to produce extensively, market wisely and vigorously and consequently sell in large volumes. This ultimately increases their profit margins and thus allows them a good return on Earning per Share, (EPS) of 1.84.
Secondly, they practice margin expansion. This is to say that their costs of production are low. They are able to achieve this via increased efficiency in production which means that no resources are wasted. They also are likely to be operating at a strict production time schedule to eliminate time wastage.
Thirdly they are able to maintain a high stock price. This is only attainable through the establishment of market dominance along with ensuring that the products delivered to associated markets are the most superior in terms of quality in that particular market as shown by Lederer et al, (2017).
Lastly the image quality of their products is maintained almost at an all time top level. Image is the main defining feature for the products in this industry. Being a step forward with regard to the quality of image the products produce is very important angle from which to determine who reigns supreme in the industry.
The low performing industries A and C both have low Earning per Share, (EPS) of -3.29 and -0.05 respectively. They also have low return on Equity, (ROE) of -82.5 and -0.9 respectively. This is likely indication that they are not that well established in the markets. They lack demand for their products and whatever they are producing might be voluminous but not selling. This only leads to losses.
They don’t have good stock prices which is likely indication that they are not producing top quality products
Being a market leader means a company must establish its products in the market of concern as shown by Chang, (2016). It must have its image positively engraved in the eyes of the customers. For a company to have good Earnings per Share, (EPS) and Return on Equity, (ROE) it must operate at the highest possible level and have wide market coverage.
Competitive advantage practices such as product differentiation and market price differentiation are important in getting the market control right as suggested by Grant, (2016).
It is important for a company to keep a track of all its competitors beware of what they are doing. It is important to read the market trend and determine the actions of rivals as well as knowing what they are responding to just in case there is a disruptive technology.
In as much as sale volume and profit levels are of essence and often the primary objective of most companies, product quality must be up held at all costs. This is what generally determines a company’s long term survival in the market as discussed by Whittle & Myrick, (2016)
Buckley, P. J., Burton, F., & Mirza, H. (Eds.). (2016). The strategy and organization of international business. Springer.
Chang, J. F. (2016). Business process management systems: strategy and implementation. CRC Press
de Oliveira, J. A. P., & Jabbour, C. J. C. (2017). Environmental Management, Climate Change, CSR, and Governance in Clusters of Small Firms in Developing Countries Toward an Integrated Analytical Framework. Business & Society, 56(1), 130-151.
Grant, R. M. (2016). Contemporary strategy analysis: Text and cases edition. John Wiley & Sons
Lederer, M., Kurz, M., & Lazarov, P. (2017). Usage and Suitability of Methods for Strategic Business Process Initiatives: A Multi Case Study Research. International Journal of Productivity Management and Assessment Technologies (IJPMAT), 5(1), 40-51.
Rogers, D., & Lee, R. (2016). Strategic opportunities and decision making. MHD Supply Chain Solutions, 46(2), 40.
Whittle, R., & Myrick, C. B. (2016). Enterprise business architecture: The formal link between strategy and results. CRC Press.
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