Business Strategy Essay

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1.0 Introduction This report is based on a Strategy Simulation Management where you put your decisions and this program interprets it in real life industry. StratSimManagement ties all functions together: Marketing, Operations, Finance, HR. Basically it is a cross functional long term strategy. StratSimManagement is based on automobile industry, • two markets: consumer and fleet (B2B), • consumer market of 150 million people, • B2B market of numerous fleet contracts • Currently GDP, inflation growth rates • Demand sensitivity on GDP, Interest rates and the decisions that the firms makes The products are cars and trucks and some of their characteristics are vehicle class, size, engine/performance, interior, styling, …show more content…

Then services which includes areas of services such as after-sale, complaint handling. Internal analysis of this service helps the firm identify gaps and add importance to minimise those gaps. 3.1 PESTEL PESTEL stands for Political, Economic, Socio-Cultural, Technological, Environmental and Legal. This important tool not only outlines a list of influences but also help the business understand key drivers of change which has differential impact on industries and markets. Eventually focus in on future impact of environmental factors. United States has a political stability but there are decisions made from the government that can affect the firm. Factors which can affect the firm can be minimum wage, petrol, health and safety, and other regulation which the government can amend at anytime. For example minimum wage can touch costs of labour if is to go up. Let's look at petrol as is a necessity for a car to drive for example prices are rising everyday and the control over price is all on governments' hands. Economical considerations consists a wide range of factors that affect businesses in this case the car industry. In USA climate of the economy influences how the consumer behaves within the society. Whether the economy is a boom or recession will also affect consumer confidence and behaviour. Interest rates tend to affect consumers expenditure – if it goes high people with mortgages hold back as their disposable income is being affected.

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