1.0 Introduction
Company Overview
Firm E was engaged to form one of the automobiles manufacturers in the industry in period 1. The firm is selling Economy (Echo), Trucks (Egad) and Family (Efizz) vehicles to the consumers. The firm has recorded net income after tax of $140mil in period 1.
A basic strategy was adopted by the firm whereby a minor upgrade will be made for all its three groups of vehicles. A new concept vehicle is in the planning stage and is to be introduced in period 3 to the industry.
2.0 Mission and Vision
The firm’s mission is to become the market leader in the automotive industry for the Family vehicles and delivering industry standard vehicles with good interior qualities and performance engines to its consumers.
3.0 Objectives
The strategic objectives of the firm are as follows:
• To achieve 50% market shares for the family vehicles;
• To create consumer awareness for its vehicles’ qualities and good performance through advertising and promotion;
• To ensure good resource planning management; and
• To improve its technology through research and development.
In order to achieve competitive advantages and meet the changing needs of the business and consumers in the industry, the firm has decided to analyse its existing resources and competences (Johnson, 2008).
4.0 External and Internal Analysis
It is important for a firm to analyse its external and internal environment. Through the external environment, the firm would have a better understanding of the environmental changes and thus able to adapt to changes easily. The firm would also be able to analyse if its objectives have been met by focusing on its existing resources and capabili ...