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Tasman Arts Training Institute: Strategic Management

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TATI (Tasman Arts Training Institute) is an organisation that with the implementation of Strategic Management has the capacity to become a functioning, financially viable institute with a sizable market share in the arts education industry. The strategic management process is a philosophical approach to business and can be characterised through establishing a mission, creating objectives, and devising strategies, then through external and internal assessment creating strategy which is then implemented and checked on by strategic control. With the application of strategic management the CEO Ethan Williams has decision choices between alternative courses of action in order to establish TATI’s competitive advantage.
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An opportunity for TATI to not only gain a greater market share, but also to gain extra revenue is to open a gallery to display and sell the artwork of students at TATI, however under Porter five forces there is a threat of not only rivalry, but also threats of new entrants, which bring new capacity, the desire to gain market share, and often substantial resources. (Porter, 1997). Threats need to be evaluated appropriately to avoid market failure, such as if a new arts institute were to open, then Ethan would need to us an alternative strategy to create a competitive advantage to maintain leadership in the market, such as employing specialised tutors as stated above.
Once a successful SWOT analysis has been completed, Ethan needs to revise his set missions and objectives. TATI graduates have gone on to prominent placements because of their ability to produce for the international and tourist markets, and with TATI being located in Nelson, the home of the World of Wearablearts, there is a current market to compete in. Using a corporate strategy, which sets long-term direction through diversification of opening a gallery TATI can grow into new and different business areas, meaning TATI could compete in the niche international tourist market, which would allow TATI to compete with price and quality rather than just differentiation.
Successful strategy implementation is critical to the success of TATI. If the overall strategy does not work with TATI’s current structure,

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