Strategic Management & Business Policy
Fitness industries are growing up and attracting huge number of companies to go through this business. Mini is one of these companies, which decided to enter the Australian market in order to start the fitness business as a branch of their main business. This report will explain how Mini active uses strategic management and applies its concepts and principles to enter a new market in order to create a clear base for its plans and vision. Moreover, the report presents a detailed analysis for Mini active environments. Then, the business level strategy shows how to utilize these outcomes to provide the reader with a broad view about the market that Mini active intends to compete in. In addition, the results will present the appropriate strategic direction that can achieve the maximum level of success to the firm.
A strategic management is a set of tactics and steps that the organization follows to gain competitive advantages in order to achieve its goals. Therefore, Strategic management helps the company to seek future opportunities, to manage potential risks in the business environment and to search for any change in the market trends (Leavy, 2003).
The purpose of strategic management is to help Mini active to draw a comprehensive map about the opportunities and the threats that it may face in order to create a flexible strategy and achieve the maximum goals (Ramos & Ruiz, 2004).
Mini, the famous car brand owned by BMW group, wants to enter the fitness industry in Australia seeking investment opportunities starting from Melbourne city with a future goal to expand later on. Based on its success as an automotive brand, Mini has several advantages to utilize in order to create a strategy for success in getting to the fitness industry market. This strategy consists of various elements, which are Mini vision, concepts and mission. First, Mini’s vision is to become the leading fitness industry in Australia and its members’ satisfaction is on the top of its priorities. Secondly, the concepts that Mini relies on are basically the following: Mini Active industry believes that providing fitness services with a high quality is a key element of success. Mini also wants to send a message to the Australians that Mini Active has features that represent youth, style and fun for its members. Thus, Mini’s mission is to prove to its members that Mini is more than just a fitness industry and the members always come first.
The general environment is a set of internal and external factors that affect directly or indirectly the organization’s capabilities and performances that maybe considered as threats or opportunities exploited by the management. As for the industry environment, it is a group of elements that have direct impact on the firm and its competitive decisions and actions (Schraeder, 2002). Moreover, the general environment is divided into two basic models, internal and external. The internal environment is concerned about the factors that occur within the organization including the human, the financial and the technological resources while the external environment is primarily focused on the conditions and the factors that surround the organization, which reveal the opportunities and the risks that it may encounter (Emden, Yaprak & Cavusgil, 2005).
Mini Active has found four attractive factors in the external environment that serve its objectives:
The demographic factor shows that the population in Australia is estimated to be around 22 million people; 4 million of them live in Melbourne according to the Australian Bureau of statistics (2009). This indicates that Melbourne is a populated city with potential market opportunities that attract fitness industries among the other industries. The statistics estimate that 1.7 million Australians use...