Strategic Management

The corporate strategy of Nokia management has witnessed marvelous success in the field of mobile communications. Its success lies in Nokia’s achievement of the key position in the cell phone market. Nokia is expanded through all the international markets including Europe, Asia-Pacific, Middle-East, Africa, China and North America. By producing the best mobile devices and services, Nokia promises to connect everyone together. Birth of Nokia: history and background Way back in 1865, Fredrik Idestam established his paper mill at the Tammerkoski Rapids on the banks of the Nokiavirta river in south-western Finland (Vision and Strategy, 2008).

This is where the birth of the future mobile conglomerate took place. Between 1865 and 1967, the company continued to grow as a major industrial force. In 1967, the company took merger with a rubber firm named Finnish Rubber Works founded by Arvid Wickstrom in 1898, and a cable company called Finnish Cable Works started by Eduard Polon in 1912. The new merger gave birth to the Nokia Corporation, the pioneer of mobile communications and cell phone industry. Vision To connect people in new and better ways – this is what Nokia aims at (Vision and Strategy, 2008). In terms of communication, the global scenario is quite promising.

Nokia also focuses on how to help people communicate easily. With simple and effective consumer solutions, Nokia is committed to build trusted consumer relationships by maximizing its lifetime value to consumer. By delivering its best mobile solutions, Nokia aspires to enhance and capture market growth in emerging markets. Goals and objectives The main objective of Nokia is to engage in the telecommunications industry as well as other sectors of the electronics industry that include – manufacture and marketing of telecommunications systems and equipment, mobile phones, consumer electronics and industrial electronic products.

The company is also interested in participating in other industrial and commercial operations. Besides, Nokia is willing to get involved in securities trading and other investment activities. Competitive environment At the international level, there is a progressive and continuous increase in consumer involvement with technology and communications. People are now more aware of how to broaden their modes of communication. The role of social networks is significantly effective in this context. Internet has amalgamated the entire globe into one united global village. This altogether has created new challenges for Nokia.

Its major competitors are – Sony Ericsson, Motorola and Samsung. By 2007, Sony Ericsson was the fourth largest cell phone manufacturer in the world after Nokia, Motorola and Samsung. By the end of the third quarter of 2008, the sales of Sony products increased largely due to the launch of the Walkman and Cyber-shot series. Significantly, Motorola has improved profitability since 2004. Aiming at challenging Nokia to become the handset market leader, Motorola has launched a number of series of innovative handsets, which helped the company to distance itself from its closest competitor, Samsung.

Whereas Samsung has dethroned Motorola by the end of the third quarter of 2008 with 22. 4% market share in the US cell phone market. Motorola remained in the second position of the US market with its market share falling to 21. 1% from 32. 7% in 2007 (Ziegler, 2008). Company performance review Nokia’s market control in 2007 was quite prominent in Europe and Asia-Pacific with 39% and 22% net sales in these regions respectively (Vision and Strategy, 2008). China is the topmost market with net sales of €5,898 million in 2007. The following figures make a clear picture of its market supremacy in 2007.

An external analysis will be done for Air New Zealand using the strategic tools such as PEST analysis and Porter’s Five Forces aiming to identify key strategic issues which will affect the profitability of the company. The analysis will be based on these two categories: the General environment which centralise on the company’s future among other competitors and the Industry environment which centralise on situations and circumstances which will affect the operation of Air New Zealand in the industry.

PEST Analysis

Political/Legal

Government support plays a significant role in the success of Air New Zealand as a leading airline company representing New Zealand. This support can be seen in 2001, major losses created by Ansett Australia (Air NZ owns 50%); massive amount of capital was injected to Air New Zealand by the New Zealand Government. Also, the New Zealand Government is currently the largest shareholder of Air New Zealand (73.13% – see figure 1 in appendices). However, the Government proposed to drop current shareholding to 51% until end of 2013 or early of 2014. According to analysis, because of this proposal, Air New Zealand’s shares prices have not fully reflected its current company value (Matthew Goodson from Salt Funds Management). Less shareholding means less support in difficult times.

Economical

All airline companies are directly influenced by the economy of the country. The numbers of passages are quite tightly connected with economic performance. Also the fuel cost is the other essential element to impact on company’s profit (need to find some reference). The reduction of flight prices between Gisborne and Auckland is a good example. An average of 11% price cut was able to be introduced because of direct increase (12%) in the demand for the services since October 2012 (Media Releases 2013 – Air New Zealand cuts fares between Gisborne and Auckland, 2013). Even there was 100% increase in the landing fees since December 2012 at Gisborne Airport; the increased demand enabled them to save some costs by operating in a larger fleet.

Sociocultural

Rising concern for the environment has been an issue for airline industry and Air New Zealand has made it a goal to maintain their green image worldwide. The commitment to minimise the impact of aviation on the environment was done using two ways: Carbon Offset Programme (Carbon Offset) or making donation towards Air New Zealand Environment Trust (Environment).

Technological

Airline industry is an extremely technical industry, therefore, new innovation in technological side will only benefit and enhance the airline ability to provide their services. Air New Zealand domestic service was transformed dramatically in 2002 (History). Online booking and check-in support reflect simplified booking rules and net based sales strategies, substantially low fares with improved frequent flyer benefits and more seat availability show the operating efficiencies of the airline (History).

Porter’s Five Forces Analysis

Threats of New Entrants

This is considered low as it requires large amount of capital to enter the industry, not very much product differentiation and strong brand identity is needed. This strong brand identity can be seen in Air New Zealand company profile.

Supplier Bargaining Power

This can be considered as medium – high. Reasons: high volatility in fuel prices, strong union backing up labour workers’ and limited supply of aircraft.

Customer Power

This can be considered as medium. Airline tickets are not bought in bulk; therefore, customers can only have certain flexibility from a range of suppliers. Good customer service can be one of the reasons why customer chooses an airline.

Threats of Substitutes

This is considered medium. There is no actual short time period substitute to distance. Domestic travel can be substituted by road trips and train, however, further distance becomes time consuming. Video conference can also be another alternative for business trips.

Rivalry among Competitors

This is considered medium. Not very much product differentiation, high fixed storage costs, high exit barrier, slow growth and diverse competition can be those reasons. For more information, please look at appendices figure 2.

Airline industry competes domestically and internationally. For Air New Zealand, its main competitors are Jet Star for domestic flights. For international flights, depending on its routes: Australia (Qantas, Virgin Australia, Jet Star, Etihad Airways); Fiji (Fiji Airways); Indonesia (Asiana Airlines, Singapore Airlines, Malaysia Airlines, Qantas); Japan (Aircalin, All Nippon Airways); Hong Kong and China (China Airlines, Cathay Pacific, Air China); United States and Canada (Air Canada, United Airlines, US Airways); United Kingdom (Virgin Atlantic Airways); Cook Islands (Air Rarotonga); Vanuatu (Air Vanuatu); French Polynesia (Air Tahiti Nui). High

McKinsey Matrix (The GE multi factoral)
With the help of McKinsey and Company, a leading consulting group, the General Electric Company (GE) developed a popular business portfolio analysis tool called the GE Multifactor Portfolio Matrix. This tool helps managers develop organizational strategy that is based primarily on market attractiveness and business strengths.

Industry attractiveness might be determined by such factors as the rate of industry growth, the number of competitors in an industry, and the weakness of competitors within an industry. Business strengths might be determined by such factors as a company’s core competencies and capabilities, financially solid position, its good bargaining position over suppliers, and its high level of technology use.

The Boston Consulting Group portfolio matrix
is a chart that had been created by Bruce D. Henderson for the Boston Consulting Group in 1970 to help corporations with analyzing their business units or product lines. This helps the company allocate resources and is used as an analytical tool in brand marketing, product management, strategic management, and portfolio analysis.

Cash Cow – a business unit that has a large market share in a mature, slow growing industry. Cash cows require little investment and generate cash that can be used to invest in other business units. Star – a business unit that has a large market share in a fast growing industry. Stars may generate cash, but because the market is growing rapidly they require investment to maintain their lead. Question Mark (or Problem Child) – a business unit that has a small market share in a high growth market. These business units require resources to grow market share, but whether they will succeed and become stars is unknown. Dog – a business unit that has a small market share in a mature industry. A dog may not require substantial cash, but it ties up capital that could better be deployed elsewhere. Unless a dog has some other strategic purpose, it should be liquidated if there is little prospect for it to gain market share.

Michael Porter’s “Five Forces
Porters model of competitive forces assumes that there are five competitive forces that identifies the competitive power in a business situation. These five competitive forces identified by the Michael Porter are: Threat of substitute products

Threat of new entrants
Intense rivalry among existing players
Bargaining power of suppliers
Bargaining power of Buyers

ABC ANALYSIS
ABC analysis is another form of Pareto (80:20) rule. It is defined as a method of classifying clients, events, inventory, items or activities according to their relative significance and deciding upon this fact that on the extent of importance, consideration and control one should put on this analysis under such classifications. One should use it for selection of a restricted number of tasks or clients because it produces significant overall result or profit. It basically uses the idea that by doing 20% of effort, 80% of the gain of doing the entire work can be generated. For many events, about 80% of the things come from 20% of the causes.

http://homes.ieu.edu.tr/~ykazancoglu/BA437/ABC_Analysis_Excel_new2.pdf http://powerbranding.ru/metodiki-v-marketinge/matrica-bkg-primer-postroeniya-i-analiza/

Ford Motors faces a number of strategic management challenges that needs to be addressed if there has to be any success for the turnaround to succeed. Evidently, the firm recorded loss of US$ 12. 7 billion at December 2006 financial years. This loss alone is the largest to be imagined in its operations history. Furthermore the market share statistics indicates that by the end of this year 2008, Ford Motors is expected to have a market share of 14 percent as compared to what it had in the 1990s of about 25 percent (Kerwin 2006: 67, Huston 2003: 196).

This is just a tip of ice burg submerged in great problematic ocean. Furthermore, the leadership presents a complex hierarchy and bureaucracy, which had created a lethargic environment within the company. Business wise, there is a relative decline in the sales recorded from $134, 442 million to $135, 249 million, assets base declined from $315,920 million to $270, 249 million, shareholders equity reduces to $27, 604 million to $11,601million the year 2000 to the year 2003.

Whereas recording a loss of US$ 1. 4 billion in 2006 to a loss of US$ 282 million in the first quarter of 2007. In this regard, the cause for these challenges lies with firm’s strategic management issues. Therefore the solution to this and more challenges that faces the organization is in the overhaul of its strategic management planning. This s because the firm formalizes the process of strategic management, thus reacting or acting to any emergency of managerial crisis within the motor industry, whereby its main competitors prove too good and forward looking.

Thus the topic of strategic management issues examination for the Ford Motor Company deems a timely one for this once giant US motor manufacturer is a timely one in attempts to reengineer the company. So that it can be able to integrate the brands it had acquired over a period of time and to evolve a comprehensive winning strategy. In order to be able to examine the situation and come up with a viable, valid and reliable solution to the crisis, the approach taken shall be;

a) Diagnosis of the situation facing a company and management team. b) Identification of what problems/issues need to be addressed. c) Determination of which school of strategic thought applies to the situation. d) Discussion and justification of the analysis to resolve identified problems/issues. e) An evaluation of courses of action, or strategic alternatives (within the recognized means and capabilities) of the company or management team. f) Competently framed figures, tables, models and references from primary refereed sources

Kotter (1995), in his article “Why transformation efforts fail”, argues that, the bad outcome of most change efforts is caused by the management’s failure to take the company through a series of important change steps. According to the author, these failures are caused by generally underperforming management rather, the researcher postulates that, there is little experience out there when it comes to organisational change processes and as he states; “Even capable people often make at least one big error”7. It is important to recall here that, one big problem identify with “The Airline” was resistance to change.

According to Kotter, successful organisation implementing change process needs to follow and adopt his eight-step model for transforming organisation. This model includes establishing a sense of urgency, forming a powerful guiding coalition, creating a vision, communicating the vision etc. Cobb Gnyawali ; Offstein (2006:315) argued that while effective human resource management and policies have, indeed, been linked to strategic outcomes, human resource management theory has yet to link human assets and HR practices directly to the building blocks of strategy and competitive behavior.

Accordingly, their model of strategic human resources links both micro and macro literature streams “The resource base view of the firm infers that firms create competitive advantage by implementing unique combinations of resources and business practices that are difficult (or impossible) for competitors to imitate” from this viewpoint, Human resource practices are key components of overall firm strategy.

In fact, the success of some well-known firms has been attributed attributed to their HR practices as a competitive advantage (e.g. Southwest Airlines and SAS)8. When faced with conflicting priorities and guided by the rational behind investment theory effective human resource policies need to be put in place to gain employees commitment, flexibility and for creating a “core resources” and competitive advantage to sustain performance9. According to Piercy (1995) the larger the gap between a company’s employees and customer’s perception concerning both service product and service delivery the smaller the probability of satisfying the customers.

If properly implemented, HR compliance is a process. It’s a way of defining proper individual and group behaviors, and assuring that laws and policies are understood and followed. This means you must know the laws and develop appropriate policies in relation to these laws. Compliance also means you and your managers need to communicate these policies to the troops, along with your expectations for adherence and the consequences for non adherence. The latter requires specific investigative and punishment procedures.

Effective HR compliance programs have been instituted in to the airline activities. Compliance has to start at the top and trickle down to all levels, so everyone in the company knows that the workplace must be kept safe and discrimination won’t be tolerated. So far, many researchers have been able to recommend the following methods as a pathway towards effective human resource development. * Keep abreast with the laws. Human Resource policies changes most often and to be on the safe side requires organisation to be responsive to current laws and their environment.

This will enable the organisation develop appropriate policies and facilitate communication with employees. At the Turkish Airlines, the routines procedures and values lay emphasis on this. * The next step will be for the organisation to hire Human Resource professionals with the skills and talents to forge ahead with compliance measures. In the absence of this organizations should contract with human resource consultants12. The airline has a strong human resource department, and do not make use of agency personnel.

Organizations are also called upon to develop a handbook that meets their respective human resource needs and which can be expanded subsequently. The human resource department should make sure new policies are reviewed with the lawyer prior to implementation13. Another important factor can be drawn from agency theory. Aligning the interest of the principal and the agents requires a fair play where neither the principal nor the agents are worst off. Cobb Gnyawali ; Offstein (2006:6) see strategic human resource planning and policies

as vital and primary to an organisations survival. To make this a success, these researchers on their work “A strategic human resource perspective for firm’s competitive behaviour” refer to human capital as a full range of knowledge, skills, and abilities an individual can use to produce a given set of outcomes and at the “upper echelon of the organization, human capital is usually deployed to scan the internal and external environment, process information, solve problems or recognize and seize opportunities”.

Drawing from Portals five forces framework, Cobb Gnyawali ; Offstein (2006) postulate how internal human assets and human resource practices of a firm help drive the specific competitive activities that result into market advantage. 2. 0 Conclusion and Recommendation The purpose of this paper was to investigate the human resource management strategies of Turkish Airlines. Judging the human resource management strategies of Turkish Airlines with the work of leading experts in the field of Human Resource Management strategies, we found out that:

At Turkish airlines management has created a conductive environment, with more workers participation, career succession planning, career relevant training, greater opportunities for higher roles, job satisfaction, trust and commitment to enhance employee commitment and satisfaction. If these findings are properly implemented by other organisations, a number of benefits could be achieved which include developing a set of shared values, reducing costs when the relationship finishes and increasing profitability as a greater number of end users customers are retain.

References

1. Cobb T. A, Gynyawali R. D, ; Offstein H. (2006) A strategic human resource perspective of firm competitive behavior. Human Resource Management Review Volume 15, Issue 4, Pages 305-318. DeMarie,S. M. ;Werbel,J. D. (2005). Aligning Strategic Human Resource Management and Person-Environment Fit. Human Resource Management Review. Volume 15,Issue 4,Pages 247-262.
2. Doty H. D. , ; Delery, E. H (1996). Modes of Theorizing in Strategic Human Resource Management: Tests of Universalistic, Contingency, and Configurationally Performance Predictions.
3. The Academy of Management Journal, Vol. 39, No. 4 (Aug. , 1996), pp. 802-835. Gilbreath, B. , (2008). Creating Career-Conducive Organizations. A primary intervention approach. Advances in Developing Human Resources, 2008-10.
4. Guilding C. ,Warnken J. , Ardill A. , and Fredline L. , (2003). An agency theory perspective on the owner/manager relationship in tourism-based condominiums. Tourism management 26 (2005) 409-420.

This paper will identify strengths, nakedness, opportunities, threats and trends for some of those external factors such as economic and legal and regulatory forces and trends and how The Salad Bar will adapt to overcome them. The analysis will also cover supply chain as well as other issues and opportunities. Economic, Legal and Regulatory Forces and Trends Economic factors concern the nature and direction of the economy in which a firm operates (Pearce II, 2013). Prices play a large part in consumer choice when it comes to food.

During economic downturns, restaurants with lower price points typically fare better so great consideration should be given to al pricing. However, the differentiation of The Salad Bars offering can be considered a strength there as customers are often willing to pay a little more for high quality, healthier foods. Given America’s recent trends in health consciousness, especially when it comes to food, The Salad bar should have some extra flexibility when it comes to pricing regardless of the economic climate. Legal and regulatory factors will have a significant impact.

Due to the recent problems with food safety, the FDA and USDA have implemented several new regulations to ensure public safety. The Salad Bar will need to ensure that it is constantly aware of existing regulations, exceeding expectations, and passing all inspections. A single black mark in this area could be disastrous given the promise of fresh and healthy food. Again, there has been a significant shift in eating habits and trends with many activists exposing the unhealthy nature Of some foods, their additives and the environmental impact with documentaries such as [Super-Size Me], [Food Inc. And [Fed Up]. The social factors that affect a firm involve the beliefs, values, attitudes, opinions, and lifestyles of persons in the firm’s external environment (Pearce II, 2013). Socially, raw foods, also called whole foods are becoming more attractive options for the young and old who are embracing this back to basics food trend. People like the experience of eating out but often associate it with high prices, long waits, lack of family atmosphere and a lack of healthy choices. Few restaurants have truly embraced this trend however.

Consider that some restaurant salads (without breadfruits and salad dressing) have as many calories as a burger and cost as much if not more. Competitively, some restaurants are seeing success in this area such s Subway and Pita Jungle. Others are still struggling for market share as they fail to innovate and introduce truly healthy options. While they wait, new entrants are starting to pop up slowly and are gaining popularity. To avoid obsolescence and promote innovation, a firm must be aware of technological changes that might influence its industry (Pearce II, 2013).

External technological factors could include on-line reviews of the restaurant from customers and critics. With sites such as Yelp and Urbaneness gaining popularity it will be important to monitor these sites for feedback and opportunities to resolve issues. In terms of advertising online advertising is probably a more attractive option because residents of all ages are more likely to read information online or through social media than in physical print (Pearce II, 2013).

Us ply Chain Procurement of resources can be a strong force positively or negatively for any business. The plan IS to source as much product as possible from local vendors to keep transportation costs down and minimize economic impact of fluctuating fuel prices. Some items may not be available locally or during retain seasons so they will have to be transported from other locations. Either way, vendor selection will be critical. They will have to be reliable and capable of fulfilling orders to ensure supply chain is a strength.

Strategy The internal strategy will be to provide fresh, healthy, affordable food, educate them about the benefits of different fruits and vegetables and create an experience that keeps them coming back. Providing dine in and to-go options ensures that we are able to serve customers in both markets. To further differentiate, the Salad Bar will have fun and educational options for hillier as well. There will also be customer engagement and incentives for helping to create new seasonal and monthly salad recipes.

Regulatory To stay on top of food safety regulations, internal controls will be established to constantly measure and track proper storage, placement and shelf life of all products. Since fresh fruit and vegetables will be in an open area in chilled cases, temperature will be measured in real-time to ensure any discrepancy is detected immediately. Internal inspections will be conducted regularly to ensure the restaurant identifies and resolves issues immediately. Culture Culture is another internal force that can make or break a restaurant.

A strong, positive internal culture needs to be developed with the employees that foresters trust, teamwork and accountability. They should also be able to enjoy their work and have fun. Employees must feel like they make a difference because they do. Regardless of a customer’s experience with the food, if they receive poor service the overall perception of the restaurant is ruined. The customer’s should feel welcomed when they arrive, comfortable when they dine in and satisfied when they leave. Adhering Solid leadership is essential to a business’s ability to be successful.

The leadership must be able to articulate the company’s vision in mission in actionable terms in every aspect of the company. They have to hire and train the right people, engage and motivate employees, evaluate operations and quality and put processes in place to ensure strategic objectives are met. Being a leader means much more than giving direction to employees, it is leading them and the organization to success. In conclusion, careful consideration has to be taken into account regarding internal and external forces. Both can have a potential positive or negative effect an organization.

After examining several relevant internal and external factors, The Salad Bar will certainly face many challenges. However, with a solid concept, strong strategic plan and thorough SOTTO analysis, The Salad bar should be able to overcome those obstacles and greatly increase its chances for logo term success. SHOOT Analysis Factor Strength Weakness Opportunity The retreat Trends Economic People pay more for healthy People eat out less during hard economic times Focusing on local community Chain restaurants that can engage in price war

Support for local businesses that support other local businesses Legal and Argue lately Owner has strong industry knowledge of Food Safety Regulations Regulations change regularly and can be cost prohibitive Technological innovations combined with knowledge can be advantage One slip can spell disaster in terms of customer health and reputation FDA partnering with businesses to help stay on top of regulations Social Socially responsible offering Advertising driving foot traffic Not many competitors / new market niche Other niche players Healthy is in Environmental Literally “Green” offering

Considering Ericsson is not really entering a new market, there is no new risks of entering there is no new risks of entering into VOIP mobile phone market. Although the production costs of this phone will be astronomically high, Ericsson should expect the cost of development and production to decrease as parts become easier to mass produce and manufacturer. Regulations within this industry are as usual within other Sony Ericsson phones. There is a substantial loyalty to both Sony and Ericsson products. There I would fully expect sales to be strong of this product.

Both companies are well-known for cutting edge technology within their respective fields of specialties that are electronics and telecommunications. Convincing people to change handsets should not be too much of a problem considering the VOIP feature should encourage existing and new customers. This is because of the lure of free phone calls instead of subscription based network calls. Ericsson has very good distribution channels. They have many partners within this industry that will help distribute the phone efficiently.

At this moment in time Sony Ericsson are unable to undercut other existing business. 2) The threat of substitutes Ericsson are not really in danger of anything else going onto the market that negates interest of our VOIP mobile phone unless another competitor does something better than Ericsson does. There is no danger to a complete loss in market if Ericsson brings out their phone early within the market and continues to add functionality towards the future iterations of the phones.

But future improvement in mobile broadband technologies to improve the quality of services of the VOIP capability within the phone is something that can be a unique selling point. Profits will therefore be very high initially but will obviously have to drop over time as the market may become saturated. 3) The bargaining power of buyers We expect many buyers to go out a purchase this phone because it will be one of the best phones on the market, good enough to at least rival the best phones out there.

We expect many people to go out and purchase this phone especially new customer without a network provider because this will mean that they will not have to spend as much on a subscribed network provider line. Many of consumers may search around for the best deals available on the market but will see the combination of VOIP calls and network minutes as an attractive option 4) The bargaining power of suppliers Suppliers should not be any cause for concern for Ericsson as they have good relations with most of their suppliers.

5) Rivalry among businesses in the industry Rivalry will be quite fierce within this sector because as mentioned earlier. This is because you would expect competitors to emulate Ericsson’s product This would be by undercutting Ericsson’s prices and possibly thinking of something else, that we’ve have not incorporated into our VOIP phone Product It is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need. It is created by preference and culture.

Here, SonyEricsson partners Skype for Mobile Internet telephony(VoIP), to create the iSonyEricsson. Product differentiation Core product: The new iSonyEricsson transcends the problems solved by mobile phones. It is the new wave to connect more people wirelessly using the latest cutting edge Wi-Fi technology which would stimulate a bigger audience due to its main VoIP feature – Unlimited Free communication(phone calls) within wireless connections. It solve the usually problems faced amongst consumers, “I ran out of phone credit”.

The western world already boasts of fast internet broadband connection, the iSonyEricsson will be the latest must-have accessory to have in order to fully utilize the internet. Actual product: This is the new iSonyEricsson which includes the regular features of SonyEricsson phones, and new features to support the VoIP capabilities e. g fast mobile broadband Augmented product: This consists of extra benefits built around the core and actual products. It includes free warranty for a year and Technical support(Toll-free telephone number).

Consumer product: bought for personal use by final consumers. The iSonyEricsson is categorised as a Shopping product because before selection and purchase, it will be compared with other similar product. The immediate competitor to the iSonyEricsson is the 3G Skypephone, also launched in the same month. The key to the iSonyEricsson’s success over its competitor will be SonyEricsson’s strong reputation and brand e. g during the fiscal year ending 2006, the SonyEricsson’s phones outsold Apple’s ipod by almost two-folds.

Also, they are the second most profitable handset maker, just behind market leader Nokia. Place Is the setting where a product can be bought. Sony Ericsson sponsors the Women’s Tennis Association(WTA), and helps promote the Tour in about 80 cities. This will help bring exposure to the iSonyEcrisson phone to people associated with the events. All these elements will then be integrated to form a distinctive, but logical promotion. Conclusion The external analysis carried out above, shows the concerns that Sony Ericsson will face in launching the new product to the public.

Sony Ericsson will therefore be able to diversify into a new division quite easily because the company will has an idea on the public’s view and social concerns on the new product. The effect of the external environment on Sony Ericsson in the past 18 months was explained above in order to show how those problems can interfere with the new product. According to the research being carried out on the new product, the external environment will tend not to have a large effect on the new product as explained above.

The strategy is a long term plan of action designed to reach a particular set of goals. The main aim of Sony Ericsson in the creating of the new division is to aim at customer satisfaction and generating profit on goods and services. In order to achieve this aim, the combination of the three main processes in strategic management will be used this includes strategy formulation, implementation and evaluation.

(1)Performing a situation analysis, self-evaluation and competitor analysis: both internal and external; both micro-environmental and macro-environmental. (2) Concurrent with this assessment, objectives are set. This involves crafting vision statements (long term view of a possible future), mission statements (the role that the organization gives itself in society), overall corporate objectives (both financial and strategic), strategic business unit objectives (both financial and strategic), and tactical objectives.