Business strategy plays a vital role in the establishment and progress of any business as it determines the long term goals, objectives, action plans and the required resources to achieve those goals. Thus a business strategy formulates an organisation’s approach to establish a market or bring out a business component. This strategy is developed by internal analysis of an organisation that what is the current situation, what are the strengths, weaknesses and opportunities. Internal analysis is also significant in order to explore the resources and to develop the competencies to revaluate the value adding activities to be more established and to address the weaknesses that might hinder the progress of the business. The next step is future planning to determine the goals and then the most important step is to think and formulate an action plan to achieve the goals. A case study of a small private trading company is going to be discussed below in which I am going to suggest a business strategy for a business organisation that will be certainly beneficial for its stakeholders. 1. The Company
Asfalsa.S.A (Quito, Ecuador) is jewellery trading private company. This company has been operating in the silver jewellery trading world for the last four years. The chief executive of this company is a single person. He has contacts with the jewellery shops in the city and provide them on the whole sale rate. He employed five people who sell this jewellery in other cities. He pays his employees on monthly basis. The aim of this company is to become one of the biggest jewellery trading companies in the city and to earn more profit. 2. Products:
This company imports the sterling silver jewellery with and without precious stones like ruby, emeralds, sapphire, and turquoise etc. this jewellery is usually imported from Thailand which is famous for its best quality silver in the world. 3. Target Market
The target market for ‘Asfalsa.S.A.’ is both men and women. It offers variety of ornaments like rings, earrings, pendants, bracelets, bridal sets. The company believes in providing the original sterling silver jewellery to the customers. Therefore, for the reliability of the customers, every single piece of the jewellery has its originality stamp 9.25 by the factory, so that customers could feel confident in buying the original things for which they are paying. Being original this company’s products are a little bit expensive and because of this customers’ ratio is not as high as most of the people like to buy cheap stuff. Usually during Christmas, there is peak season and this company can earn more than during the rest of the year. So the plan of the company is to revaluate its strategy to maintain its income throughout the year. The employees of the company are not working hard because of their fixed salaries. Therefore, from the last one year income of this company is not as much as it was in the beginning of the business. SWOT and PESTEL analysis is very important for strategic planning as it depicts to an organisation about the environment that how it affects to the achievements of the desired goals. 4. SWOT Analysis:
In the case of ‘Asfalsa S.A.’ the foremost speciality of the company is that it sells original sterling silver with original stones. For the customers’ reliability each single piece of the jewellery carries stamp of 9.25. The jewellery which is sold by this company is famous for beautiful and unique designing. Most of the customers are loyal to the company and are permanent patrons. These customers are usually well off people who love to buy unique and expensive bits of jewellery so they spend money generously. This jewellery is imported by Thailand and the owner of the company has direct dealings with the jewellery factories and is also a regular client so he is able to buy his stock on cheaper rates than other traders. The weaknesses that cause the decrease of...
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