Corporate Strategy Analysis Using Scrum Methods Assignment Sample

This analysis offers recommendations to help Totto sustain its competitive advantage through research teams, target market expansion, product innovation, and technology integration.

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Corporate Strategy Analysis Using Scrum Methods

Introduction of Corporate Strategy at Totto

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The business proficiency of an organization is often impacted by the consideration of significant strategic options. In terms of identifying different strategic options, some stages need to be followed. Analysis of three-dimensional strategic options by applying the SAFe framework is an important part of this study. Significant strategic options have been identified and analysed in this study by using the SAFe framework. Detailed analysis of Totto’s business in gaining competitive advantage is also considered in this study.

The procedure of identifying strategic options

Strategic options are highly innovative and changing responses to action-oriented to external condition experiences. Organisations acquire competitive benefit through strategic options by taking benefits of opportunities, trends, facts and threats outside the world. Totto mainly utilises the “cost-leadership” strategic option for its business as they believe in satisfying the customers than gaining more profit. The company accomplishes its objectives and profits through this strategy by minimising the cost factor from the products while charging average prices from the customers (George et al. 2019). Through this strategy, the organisation maximises the share of market by charging the minimal costs while still creating a reasonable profit on every sale. This fashion and apparel sector has access to the capital required to spend in technology that helps in bringing their costs down. The company maintains a very effective logistics and the base of low labour costs and the manner of sustainably reducing prices below those of the rivalries. The organisation has identified its strategic options based on the sales procedure and annual report.

Assessment of the identified options with the SAFe framework

Market trends, threats, and opportunities of a particular market are found to be considered while analyzing important strategic options. Such options are often found to be creative in acquiring business-oriented responses. External situations of an organizational business are considered to affect the overall performance of a business (Antcliff et al. 2022). The four most important strategic options, applicable to the business of Totto are financial performance, Markets, Competitive advantage, and operating model.The identified strategic options of an organization can be evaluated by considering the implementation of a SAFe framework. As per this framework, the success of an organizational business depends on the three most important characteristics these are Suitability, Acceptability, and Feasibility.

Three components of the SAFe framework

(Source: Booth et al. 2019)

Suitability: Key challenges regarding the strategic position of an organization are found to be concerned with ‘suitability’. An organizational business can consider the market environment, capabilities of the business, and expectations of customers to provide the expected results from a market. As per the opinion of Kemp et al. (2018), the two most important techniques to measure the suitability of an organizational business are PESTEL analysis and value chain analysis. In this regard, the strategic option Market environment can be regarded as the most suitable and applicable one. Identifying the targeted market and making business decisions accordingly is important for Totto to implement an appropriate marketing strategy. The chances of growth and successful business can be enhanced by considering this strategic option (Smith et al. 2018). A continuous changing nature of the market impacts overall business management as the proficiency of a business varies on market demand.

Acceptability: The term ‘acceptability’ of this framework is associated with the desired and expected performance of an organization in providing better performance. The criteria of acceptability can be defined as profitability, analysis of shareholders' value, and cost-benefit attributes. In this regard, the strategic option of financial performancefor Totto can be considered the most appropriate one (Warland et al. 2019). An organizational business is often found to be impacted by financial attributes and components. Financial trends in the associated market very much impact on overall financial decision-making procedure.

Feasibility: In terms of mentioning the capabilities and resources of an organizational business, ‘feasibility’ is mainly concerned. The financial feasibility of Totto depends on fund flow forecasting and break-even analysis. Consideration of competitive advantage and operating model can be considered as related and applicable ones for this component.

Competitor organizations are important components that impact the business procedure of an organization (Lyon et al. 2020). Implementing a proper strategic option is necessary for increasing competitive advantage in a business and also to ensuring a competitive business environment within the workplace. This can be beneficial for the employees to grow interpersonal as well as intrapersonal attributes that can overall impact organizational performance.

Another important strategic option can be regarded as an operating model. An operating model can be found in different forms in which unification, coordination, and relocation operating models can be regarded as the most important ones (Mettert et al. 2020). An operating model is also considered a clear and effective blueprint of an organizational business with which service and product delivery regarding activities and operations of an organization can be managed. 

Significant recommendations for successful implementation of options

  • The organizational business of Totto can evaluate recent marketing trends of business to understand the reason for changes.
  • The strategic option for financial performance can be successfully implemented by analyzing the financial decisions of the company.
  • According to Yang et al. (2018), the competitive advantage of this company can be more impactful by analyzing the business procedures of competitor companies.
  • Implementation of operating models can be more effective by considering a critical understanding of business operations and management procedures.

Analytical tools

PESTLE analysis:




Political factors

? Political stability index: -0.95 in 2019

? Corruption rate: rank 70 in global index



Economic factors

? GDP rate: 27,134.69 crores USD in 2020

? Inflation rate: 2.52 % in 2020



Social factors

? Lifestyle: Stable and hedonistic in nature

? Average annual income: USD 14,425 or 56300000 COP



Technological factors

? Technological investment by the government: Average USD 1.83 Billion per annum


Legal factors

? The company abides by the employment act: British Columbia Employment Standard Act (ESA)

? Labor law: ESA (Employment Standard Act)



Environmental factors

? Environment protection act: EMA (Environmental Management Act)

? Resource utilization act: Land and Resource use legal direction index



Table 1: PESTLE analysis

(Source: Akpoviroro and Owotutu, 2018)

Analysis of PESTLE factors:

One of the most important analytical tools can be mentioned as PESTLE analysis. The political stability index indicates a safe environment for a company to do business in the future. The corruption rate being low in the global index is an advantageous feature for this company that impacts positively on the company. The high GDP rate is a beneficial indicator as more economic stability can be acquired by this GDP rate. As the inflation rises, the price of products, in this region is also found to increase which can affect the overall purchasing considerations of citizens. The state of lifestyle can positively impact the overall performance of this company (Phan, 2021). A strong income base is found in this region that can help the Totto Company to maintain a sustainable business. The success of an organization depends on the effective consideration of technological implementation. Employees and employer management can be handled properly by the Totto Company. Labor considerations and benefits can be evaluated. This act can help an organization to understand environmental sustainability-related considerations. Usage of resources in a proper way can be done by this index and regulation. Different environmental and legal factors as external factors are important to be evaluated to understand the chances of the mentioned company to maintain sustainability in business (Akpoviroro and Owotutu, 2018). By considering this PESTLE analysis the management team of Totto Company can consider its future business procedure.

The fashion and apparel sector like other organizations mainly focuses on giving their customers with the products of high quality fashion, accessories, backpacks, and clothing. Totto continue doing its business successfully worldwide by utilising “Porter's five forces”. The five forces of porter is one of the feasible but strong analytical tools that the marketers and professionals of the organizations utilize to the competition source in the targeted segments of market and in the recent sector (Ulubeyli, 2017.). The five forces severely impact the business operation of different organizations in the fashion and apparel sector are “new entry threats”, “power of supplier”, “power of buyer”, “substitution threat” and “competitive rivalry”. The high officials of this organization can able to resolve their strategy of marketing and business when they comprehend the forces level. It helps to enhance their profitability and productivity to remain positive in the competitive environment.

It has been observed that Totto utilizes the effective strategy in business. They attract the potential customers by minimizing their product costs and services and implementing higher effects of the campaigns of marketing. This can reduce the competition level for the company and keep it intact as one of the leading fashion brands in the potential market.

Porter’s Five Forces

(Source: Ulubeyli, 2017)

In the context of supplier power, the company has determined to choose more suppliers than its competitors and this will help Totto to switch to a “cheaper alternative”. This can also have a great impact on the company’s productivity and profitability. 

In the context of buyer power, Totto always tries to keep their supplier's numbers higher than their buyers to gain the buyers’ power (Kirabo et al. 2017). This will help them to switch to cheaper and new competitors that can drive the prices down. 

In context of substitution threat, Totto supplies a unique “software product” that generally automates the vital process then which can weaken the company’s position in the market and threaten its profitability. 

In context of a new entry threat, the company’s position gets affected when a new fashion brand enters its target market segmentation. To eliminate this threat Totto can develop its products or services according to the customers’ needs and market demands.

Value chain analysis

Totto is a Latin America based multinational organization that mainly deals with sophisticated briefcase, backpacks and different clothing products with added featured with advanced technology. The firm infrastructure of this company is quite simple and the business managers of the organization lead the business and make the importantstrategy for the business development (totto, 2022). The HRM of this company is quite different as these companies arranges a traininmg session before the interview season and in that season all the organizational values and ethics are conveyed to the candidate. The organization used advanced technology for their product strategy. The innovative lock system of the product of this organization guides to increase the customer satisfaction level.

Value chain analysis of Totto

(Source:totto, 2022)

The organization expands its business in different countries and its logistics activities mainly occurred through road and aquatic transformation. Apart from that, the marketing strategy of the organization is mainly performed through digital media.

VRIO analysis

VRIO analysis us is an effective way for the strong foothold in the current competitive market. The company must analysis and follows the vrio analysis strategies in the company. In the context of Totto Company the company strongly followsthe strategies of the VRIO analysis. The brand value of this company is very high and the company holds a very reputed position in the current completive market. The product of the company is not very imitable by the company. The product of the company is very unique thereby making it difficult for other organization to imitate it in any way thus helping organization gain competitive benefit. It further includes the uniqueness of the Totto Company and its positive approaches towards the competitive market. Totto Company has focused on the great organizational value of the company.

Process of strategic decision making

The success of an organizational business depends on the effectiveness of the strategic decision-making process. The organizational business of Totto is found to be based on a decision-making strategy in which evaluating the competitive market is concerned. This strategic decision-making process is found to be applicable for recent terms (Alhawamdeh and Alsmairat, 2019). In the future of this organizational business, this strategic decision-making process may not be applicable at all times. The competition within the market is increasing day by day.

Current organizational environment:

The current environment of the mentioned company is found to have a competitive environment in which consideration of new innovative implementations is included. A high beneficial business is associated with as per the case study of Totto, net cash flow results in an increase in the following years to $39064 in 2021 which was $33700 in 2020. As per the presented graph of the case study, the evaluation of stores is found to have increased up to 480 which was started from only 5 in the year 1991 (Totto, 2022). The framework of this company’s business can be continued for the long term. Still, it can be customized for acquiring more beneficial results from the business. Based on five important stages the evaluation of the strategic decision-making procedure can be considered. 

  • Defining the problems associated with organizational business is the first step of an influential decision-making process.
  • After identifying the issues, the required information is to be gathered on the basis of which future decisions can be considered (Abdel-Basset et al. 2018).
  • Developing options to choose an appropriate business operation and different marketing strategies are to be considered also.
  • Evaluating all available options and understanding the relevance of each available business opinion can be helpful for this company to ensure a more profitable business in the future.
  • Choosing the most appropriate future decision-making strategy and implementing appropriate actions within management is necessary for this company.

The strategic decision-making process of Totto can be more impactful by considering the above-mentioned options (Totto, 2022). The continuous process of the current available strategic decision-making process can be more impactful by considering these steps. 

Analysis of three-dimensional strategies

The business procedure of an organization can be evaluated by considering three different dimensions of business strategies. The three most important dimensions are value, perimeter, and imitation. An effective strategic initiative can be taken by implementing important sequences of value (Burke and Abayasekara, 2018). Each of these three components is found to be effective in the overall strategic development of an organization. Besides that, the three Ds in a three-dimensional strategic analysis is direction, dedication, and decisions. Dimensions of business-related strategic decisions are based on three axes namely, acquisition, analysis, and attacks.

Three dimensions of business strategies

(Source: Roseti et al. 2018)

Financial strength:

The financial strength of an organization needs to be appropriate in producing the required services to the targeted customers. Financial stability within an organizational business can be helpful for a company to focus on increasing efficiency by implementing required marketing and other strategies (Lau and Sun, 2018). One of the key components of a sustainable business is financial sustainability. Growth and rate of capital return can be ensured by maintaining stable financial outcomes from a business. As per the available case study of the company, growth in the acquisition of new markets is found in which more stores are found be established by this company. In terms of generating more profit, the management team of the company, Totto can consider influential decisions which are an important part of three-dimensional strategic analysis. Finance-related decisions need to be considered based on the previous financial performance of the organization. The rate of ROI (Return on Investment) can be increased by implementing a financial development strategy (Roseti et al. 2018). The cash flow process of this organization can be developed by considering the effective implementation of financial decisions.

Analysis of relative market share:

In order to understand the performance of this company within a competitive market, evaluating market share is necessary. In this regard, relative market share plays an important role. The calculation of relative market share is done by subtracting the value of an organization’s market share from 100. The percentage of shares that are not controlled by the organization is to be considered as the relative market share value (Gallagher et al. 2018). In terms of identifying a lower rate of market share, more acquisition of market share by other companies can be mentioned. As per the case study, the stores of this company have been found to increase in the following years. This indicates an increasing level of relative market share of the company Totto.

Understanding the future trends:

In order to make effective and beneficial business-related decisions, understanding future trends is necessary. The organizational management team needs to be capable of forecasting future trends as per the demand and changing nature of perspectives and needs of customers (Toledo and Scognamiglio, 2021). In this regard, direct interaction with customers is necessary. The dedication component of a three-dimensional strategic model can be helpful in this regard. The business procedure needs to be dedicated to growth and sustainability. This kind of dedication can ensure an influential and beneficial outcome for the business of Totto in the future. Understanding the need for innovations for future development is associated with this (Do?a and Liu, 2018). Considering transformation for the future improvement of the organizational business can be mentioned as an important part of this strategic dimensional process.

Strengths of the relative market:

RPS (Relative Price Strength) is often found to be connected with the relative market share process. In terms of ensuring a strategic development of Totto, the strengths of the existing market need to be identified (Araújo et al. 2019). Based on the market strengths, a future business process can be customized. The direction attribute of three-dimensional strategic analysis can be regarded as the associated one with this. The direction of the current business needs to be understood to implement the required business strategies within an existing business. A beneficial competitive advantage can be acquired by considering this attribute. The three-dimensional strategic analysis can be considered required for this company to understand the relevance of this type of dimension (Umar, 2020). Having a director of business can help a company to make decisions about future business processes.

Action plan:

Making anaction plan can be helpful for an organization to develop and improve overall performance. In terms of maintaining sustainability within a competitive market, this characteristic of an organizational business needs to be considered for evaluation (Estlund, 2019). Based on organizational strengths, as well as weaknesses, an action plan is to be prepared. A certain time is to be considered for fulfilling the desired development, included within an action plan. Market analysis of competitor companies is necessary for understanding the need of implementing new strategies for better outcomes for the business. Technological development can be considered by this company to ensure a profitable result from an action plan. A course of actions in which responding to each associated event is included is considered an effective contingent action plan. According to Ran and Weller (2021), drafting a plan and making arrangements for implementing the plan are included in this process. Overall development of this component can be ensured by following the included actions within an action plan.

Sustaining Competitive Advantage of TOTTO

TOTTO is one of the leading fashion organizations based in Latin America that was recently recognized in the global fashion industry. Jofin Joseph established the organization in 1987 and primarily the organization mainly produced backpacks for men and women but in the present day, the company focuses more on clothing and accessories for different age groups. In the current situation, the retail store of the organization was situated in more than 30 countries with around 650 stores all over the world. In 2019, the organization provided job opportunities for more than 10000 people only in Asia and Latin America as most of the market area of the organization is located in that region.

For more expansion of their business performances TOTTO has taken some strategic action in the context of improving their business performances as well as financial performances development. The strategic action that was implemented into the business process of the organization guides to increase the sustainability of the long-term competitive advantages that look after the financial strength as well as the relative market share of the organization. Apart from that, the strategic action implementation into the business process of the concerned fashion organization guides to increase the suitability, accessibility, and feasibility in the competitive market. According to Velikorossov et al. (2020), improvement in financial performance can be possible by observing the financial position of the organization, setting a suitable budget for a fiscal year, and maintaining the business plan by monitoring the financial state of the organization.

Sustainability of long -terms corporate competitive advantages of TOTTO

In order to increase sustainability in the context of long-term business profit, the organization has taken a strategy of building the financial goals of the organization and leveraging money options for the organization. The financial strategies guide to recognizing the business financial risk factors of the organization and assist the management in changing the financial strategy as per the organization's requirements. As per the perception of Hutsaliuk et al. (2020), storing financial strategy guides the organization to evaluate the financial performances of the retail stores and provides them guidance for improving their present financial condition. In the initial state, the products of the organization were distributed through a chain business process that took a long time to deliver the products to the customers and to resolve the issue, in 1990, the management thought of opening some retail stores in different parts of Latin America.

The financial performance of the organization decreased with time. In 2019, the total net sales of the organization were around $586086 Billion and in the pandemic situation, the organization performed well so the net sales of the organization were increased to $596497 Billion. In contrast, the financial performance of the organization was decreased to $580935 Billion and it happens to its irrelevant business strategy in terms of financial performance. Apart from that, in the previous year, the gross profit of the organization was also decreased so the company needs some strong financial strategies that can improve its financial condition.

Proper budget making and mitigating the depreciation cost can be very helpful to resolve the financial issue of the organization. As stated by Cappa et al. (2020), the budget-making policy guides to increase the financial strength of the organization by predicting the financial risk factors as well as preparing an optional business plan to resolve the uncertain situation. Depreciation cost in the fashion industry is the most relevant financial loss that affects the total asset as well as business productivity. The annual profit and the liabilities of the organization were also affected by the budget-making policy as well as reduced the depreciation cost in the context of the product-making policy (Yigitcanlar et al. 2021). The financial suitability makes an organization more strong in the competitive global market for competing with rival organizations.

The pricing policy of the organization affects financial growth and provides a profitable position in the business market. As opined by Otero and Wilson (2018), the pricing policy of TOTTO should change for the benefit of common people as the organization set a high price rate for providing a quality product to the customer, which negatively affected the financial growth of the organization. In the post-pandemic situation, most of the business organizations in the global business market change their pricing strategy to make their product reasonable for all types of people, whichTOTTO should follow to remedy the situation. On the other hand, as per Chen et al. (2020), a low pricing strategy can also distract the people from the brand so that should be remembered for the high acceptability of its product.

Effect of the emergence of many other firms

The emergence of the new firms has a great impact on the business performance as well as the financial growth of the organization. In the current situation, there are several global fashion brands that run their business successfully like Burberry so to compete with all the fashion companies the organization should take some innovative business strategy that leads to enhancing the suitability, acceptability as well as feasibility of TOTTO (Calabreseet al. 2019). Apart from that, the alternate changes in product strategy, pricing strategy as well as promotional strategy guides to increase the acceptability of the organization will also have a positive impact on the business productivity and financial growth of TOTTO. According to Aeni (2021), integrating sustainability of TOTTO guides take a positive as well as relevant decision-making policy that guides to increases the opportunity to identify risk factors and enhance the problem-solving skills of the management team. Suitability of products to the customers enhances the relevant sustainability and feasibility of the organization by more than 23.1% even in the uncertain period of COVID 19 pandemic situation.

Sales performances of TOTTO

(Source: Totto, 2022)

The figure discloses that the sales performance of the organization was not at all consistent in the different periods and the sales structure fluctuated severally. In the different regions, the organization has earned different sales profits and it is seen that in North America the organization has earned the greatest sales profit. In the figure, a prediction of sales was also seen in the next few years (Calabreseet al. 2019). With the emergence of new firms in the business market, the chosen organization changes its business strategy in terms of product quality, price of the product as well as promotional techniques.

In very recent times, the organization has opened its stores in Asia and other regions of Latin America so the organization will more focus on the requirements of the regional customers as well as the local trends of that area (datanyze 2022). Apart from that, in order to compete with the new fashion firms, the organization changes its promotional strategy that mainly performs through digital media and different social media campaigning policies. In the present day, TOTTO has mainly focused on its target customer, which is the younger generation and tries to serve as per their requirements. As per the perception of Calabrese et al. (2019), the proper recognition of the customer requirements leads to an increase in their financial performance by more than 12.6% and has a positive impact on the feasibility of the organization.

Significance of new technological trends in the business performances of TOTTO

New and advanced technological trends in the fashion industry in terms of product making policy, promotional technique as well as sales policy has greatly affected the business performances of the organization. As per Yigitcanlar et al. (2021), technological innovation has a great impact on business performance, and with the emergence of different promotional techniques, the organization has totally changed. In the present day, the organization has shifted its promotional performances to the digital platform-based marketing system (datanyze 2022). For that purpose, a technical team has been recruited by the organization that mainly looks after the marketing activities of TOTTO and implements different technical tools Mailchimp and SendGrid, which are two email-marketing tools that have been integrating with the emergence of popular applications.

 In order to handle the advanced tools, the organization has arranged several training sessions that guide to make the employees with the new technological development. Apart from that, as stated by Velikorossov et al. (2020), after the implementation of the technological trends, the sales performance will improve by around 12.5% from the present situation. On the other hand, as per the point of view of Hutsaliuk et al. (2020), the advanced technological implementation can also integrate some risk factors in the initial stage as the employees are unknown about the process of the application of the advanced technology.


  • Formation of research and development team: The organization can recruit a research and development team for the proper market research and that will be helpful for recognizing the current market trend as well as the requirements of the regional target customers (Ulubeyli, 2017). The research and development team is also effective for implementing innovative marketing as well as product strategy that guides to enhance the business performance as well as the sales ratio of the organization. 
  • Expanding target consumer: TOTTO can focus on the wider demography rather than the target demography. The organization mainly focuses on the young generation as their target customer base but if the organization will launch some products for the children and senior citizens that acceptance of the brand will increase greatly. Totto must maintain and keep up the excellent service and support to focus on the target customer base. The organization must utilise more online tool and social media platform to reach to the maximum customer all over the world. Utilizing the online platform can help this accompany to share their brand message and provides offers and discounts to attract the visibility of customers towards the brand. Utilizing agile method and SAFE framework can assist the organization in understanding the procedure of expanding successfully.
  • Product differentiation and innovation: TOTTO can focus on the product design as the innovative design and attractive color in terms of fashion clothes or backpacks products increase the customer attention to the brand that also increases the sales revenue as well. The organization can apply this product differentiation strategy by understanding the suitable place and potential market where the company serves its best product. The organization must identify its competition and other aspects that are offered by the company using SAFE framework effectively. The organization is needed to recognize the chances to distinguish the products from the competitors. This fashion organization must create a roadmap effectively to implement successful product differentiation strategy.
  • Technological integration with business process: The implementation of advanced technology can also be effective for the business strategy of TOTTO. The advanced technology will increase the security level of the luggage and backpacks. Apart from that, the technology will also be helpful for the product as well as a marketing strategy (Warland et al. 2019). Biodegradable products that will not be harmful to the environment can be used that improve the ethics of the organization and increase the customer volume as well. In the technology integration, scrum methods can be most appropriate for development of product. Through this methodology, organizations can explore more and develop its strategies for effective implantation.



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(datanyze 2022). Company profile, Available at:[Accessed in 19th April, 2022]

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