Strategic Management Assignment Sample

Introduction of Strategic Management Assignment 

Smarter Logistics in Ningbo is an integrated third-party logistics and supply chain solution company providing transportation and distribution, warehousing, selective order picking, and packaging services in China. Strengthening its market position and developing innovative technology makes the company’s competitive pressure very high. PESTLE, Porter’s five forces, and the Resource-based view are used in this report to assess the firm’s external threats and internal capabilities for continuous growth.

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Set 1: Individual Report

Answer 1: How strategy adopted by Ningbo Smarter Logistics impacts the company’s decisions and activities

Ningbo Smarter Logistics has a strategic plan that deals with efficiency, flexibility, and the application of technology to remain competitive in the logistics industry. This paper has shown that the company’s decision to leverage its strategic approach runs deep and has impacted its operations, strategy, and market outlook. An RBV is one well-celebrated model that can be used to explain how such a strategy influences the decisions and actions made by Ningbo Smarter Logistics. It focuses on how a firm is configured or positioned vis-à-vis its competitors using resources and capabilities as a differentiation map. Through the application of the RBV model for analysis of Ningbo Smarter Logistics strategy, we can gain insights into how the strategic nature of the business is defined by the company’s resource base (Ningbo Smarter Logistics, n.d.). According to RBV, a firm’s resources, or assets, capabilities, processes, and knowledge, are the key components of competitive advantage, or the ability to outperform rivals. These resources need to be; valuable, rare, hard to imitate, and bundled to create value – all factors that enable a firm to achieve competitive advantage. Nonetheless, Smarter has managed to match people and resources with its strategic directions with emphasis on the modern evolving logistics industry (Barney et al., 2001). With the help of IT support and automation of its processes, Ningbo Smarter Logistics was able to increase its efficiency, decrease its expenditures, and deliver a higher-quality service. Technological integration is a strategic management choice of the company that over time has turned into a strong and mobile competitive advantage outcompeting everybody else in the logistics value chain. The application of the RBV model can also be evidenced by Ningbo Smarter Logistics emphasizing technology and automation (Grant, 1998). The company has also embarked on massive spending on smart logistics, the application of robots in storage, and predictive analysis. These technological capabilities are some of the most strategic that cannot be easily imitated by competitors hence providing the company with a competitive edge. Investment in automation technologies has enabled Ningbo Smarter Logistics to cut down on labour expenses, both in managing inventories and improving the efficiency of delivery, to avail turnaround time (Exploring Corporate Strategy, 2008). These strategic decisions involve are an integral part of the RBV model since technological resources are one of the most important components of the company’s resources.

The strategy used at Ningbo Smarter Logistics has also affected its choices of clients and suppliers. Paying much attention to the value of a customer, the company has achieved much success in developing its service and sustaining customer and client relationships. It has also improved service delivery through a tracking system and incorporated real-time data tracking to give accurate delivery estimates to its customers. This concentration on service providing and customer satisfaction is a tactical movement, taking into account the firm’s competencies in the technology of logisticians (Otache, 2024). These resources such as sophisticated tracking systems and customer relations solutions enable Ningbo Smarter Logistics to deliver a unique and more value-added service to its clients. Moreover, Ningbo Smarter Logistics’ strategy has impacted some of its supply chain management activities. The company has established a flexible and efficient approach supply chain system where it can shift the production and supply of its products easily and can also easily adapt to sudden changes that affect the transportation system as well as supply cutbacks. By leveraging the available technology, the company is in a position of being able to identify potential threats in the supply chain and be able to act on them in real time (Priem & Swink, 2012). This flexibility is one of the important strategic assets that are hard for rivals to imitate because it entails huge IT expenditure and thorough knowledge of the supply chain mechanisms. From the RBV perspective, this capability is considered to be a strategic asset and directly influences the operational choices of the company. Another internal resource that has a bearing on sustainability integration into Ningbo Smarter Logistics’ strategy is the company’s capacity. There is pressure on the logistics industry to work more sustainably and, thus, Ningbo Smarter Logistics has embraced green technology solutions into its operations. This is through employing energy-efficient cars, using recyclable/Green packaging materials, and constantly working on the ideal logistic strategies in the provision of the products (Agrawal et al., 2006). First, sustainable development represents a strategic management decision because it involves the exploitation of a valuable resource – organisational reputation – which has now become a powerful asset and a very sensitive and relevant issue for customers. Again, from the RBV perspective, sustainability forms a firm’s competitive advantage over rivals and at the same time ensures its long-term viability, given that this industry is prone to> Handling increased regulation on its environmental impact. In addition, they show that the company prioritizes innovation as a strategic management priority. Ningbo Smarter Logistics has continued to allocate resources towards R&D in a bid to improve the company’s position as an industry innovator, especially taking into account new trends and technologies in the logistics industry. This is an innovation capability, which gives additional freedom in trying out new possibilities as well as implementing proper technologies such as artificial intelligence as well as the Internet of Things, the latter of which has enhanced operations. What the RBV model indicates is that these innovation capabilities are resources that are scarce and are valuable since they give the firm a first-mover advantage in implementing strategic changes and incorporating them into the organizational routines before its rivals do so (Teece, 2015).

Answer 2: The external and internal factors of Ningbo Smarter Logistics and how the company responses to them

1. External Analysis

PESTLE Analysis:

• Political Factors: Tariffs and import/export relations between China and their counterparts, especially the USA and the EU, affect Ningbo Smarter Logistics operating environment. They are also expensive to organizations, and any changes in tariffs of transportation of products and the rules and regulations of government may also lead to certain costs or may even hamper the process of transport of goods and services.
• Economic Factors: Global economic features, including a viral outbreak like COVID-19 and oscillations in fuel prices, influence global trade flows and pressure logistic solutions. As the economy deteriorates, growing demand for freight services is encouraging for Ningbo, but inflation and rising operating costs make profitability difficult to achieve (Hill & Jones, 2003).
• Social Factors: Changing customer tastes and switching to online purchasing and faster delivery puts pressure on logistics firms to develop more effective and flexible solutions. Consequently, Ningbo has to build up capacities to accord with such expectations.
• Technological Factors: The major disruptive technology that characterizes the management of the supply chain is emerging technologies such as automation and artificial intelligence. As a result, it becomes necessary for Ningbo Smarter Logistics to adopt technology as it would be a primary option that would enable the company to reduce its cost of operations and also do more competing in the market.
• Legal Factors: It is crucial because non-adherence to regulatory standards of global shipping or customs procedures hampers operation. Fluctuations in any of them could affect the cost structure and working of the company’s operations and relations with labour laws (Barney & Hesterly, 2005).
• Environmental Factors: Issues of sustainability have become apparent, especially with growing pressure on the logistics firms to embrace sustainable solutions. The government of Ningbo will need to apply green technologies relating to the efficient consumption of fuel and embrace environmental standards in eradicating carbon impact.

Porter’s Five Forces:

• Threat of New Entrants: Because there is no strong barrier to entry because it belongs to the logistics industry, it is a high threat. But Ningbo has several contacts already developed which can give it some advantage over other players on the market.
• Threat of Substitutes: Moderate, risks may stem from digital solutions or a better system of logistics management.
• Bargaining Power of Buyers: Very high, this is due to high levels of competition, customers get freedom of choice in how they want their products to be delivered thus forcing Ningbo to set very competitive prices and standards.
• Bargaining Power of Suppliers: Moderate as transport providers, fuels & technology are important in the transportation of goods in Ningbo (Grant, 2016).
• Competitive Rivalry: Very high, especially in light of the competition with global market leaders, DHL as well as UPS, and competitive local Chinese firms who seek to cut down the prices and introduce new solutions to the market.

Ningbo Smarter Logistics is at the mature stage of the industry life cycle and the company experiences high competition but it has a stable position to generate sustainable growth through integration of technology and sustainability.

1. Internal Analysis

Products, Services, and Markets:

Smarter Logistics Co., Ltd is a Chinese logistic service provider specialising in shipping, warehousing and supplying, freight forwarding, and customs brokerage services. It operates with domestic and international companies, focusing on trade facilitation of China with its trading partners. Its core target market encompasses manufacturing companies especially those operating in the World Wide Web and fast-moving consumer goods. A combined flow of various integrated logistics services not only aids Ningbo in catering to different sectors but also offers tailor-made solutions bringing a high degree of customer satisfaction (Grant, 2016).

What the Company Does Well:

From the RBV point of view, Ningbo Smarter Logistics has created a competitive advantage in terms of a network of shipping routes, information technology, and human capital. The firm‘s key competencies are in international 3PL services relating to logistical and supply chain issues. They have developed a long-standing partnership with several suppliers within China which is now a global manufacturing centre hence guaranteeing successful service delivery irrespective of the prevailing vends in the global market. It has highly developed computerized operations that enable central stock control and delivery of various services to clients promptly. Based on Porter’s Value Chain, an important strength seen in Ningbo is healthy Inbound & Outbound Logistics. The firm has made strategic investments in technologies thus improving on internal factors such as storage, vehicle management, and clients (Grant, 2016).

What Others Cannot Do:

Based on the concept of the VRIN model (Valuable, Rare, Inimitable, Non-substitutable) of resources, Ningbo Smarter Logistics has several resources that can be described as a source of competitive advantage. Through its accumulation of detailed market information, well-developed supplier partnerships, and superior logistics software the company is a strategic actor in the logistics business. These are scarce resources, especially given the company has a wide network and the team and experience in the global business environment and cross-border trade. In addition, its in-house technology cannot easily be copied because a huge capital investment is necessary, which is another competitive advantage. Similarly, Ningbo’s solutions also involve elements that have no close substitutes in the market as clients depend on a precise amalgamation of sea delivery, storage, and supply chain services offered by Ningbo (Dyer & Singh, 1998).

Internal Capabilities for Improvement:

In this regard, while Ningbo Smarter Logistics has its competence, it has to act in the context of opportunities that can improve its internal environment. If we look at a SWOT analysis of this company, the company has done well in technology adaptation but they need to work harder, especially in the diversification of their markets. The diversification could help to mitigate the volatility of the conventional trade areas and improve the growth rates. In addition, threats such as increased competition forces and changing client needs call for innovation. This is particularly critical in light of L’Oreal’s ability to train the employees on better skills and enhance its investment in sustainability, and automation to sustain competition.

Conclusion

Therefore, this paper shows that through a vast network, technological advancement, and industry experience, Ningbo Smarter Logistics sustains a competitive advantage in the logistics industry. Resource management and its application, along with the firm’s strategic assets, are identified as its strengths; however, there is a need to work on market coverage and new product development perspectives.

Set 2: Strategic Solution Slides

Introduction

Ningbo Smarter Logistics is widely established in budget logistics services hence mainly focusing on the cost advantage within the logistics industry. High-tech tracking systems and service solutions that boil down to increased customer satisfaction. In this competition, it deals with other firms such as firms such as SF Express and JD Logistics, Michael Porter’s Generic Strategies apply here where Ningbo competitively opted for cost leadership and differentiation strategy. Also, tools such as the BCG Matrix help to make correct strategic choices for market expansion and service differentiation to maintain competitive advantage as the industry progresses rapidly.

Analyse the strategic solutions

First, to sustain competitiveness, there are several strategic measures that Ningbo Smarter Logistics can employ – in line with Michael Porter’s Generic Strategies. A cost leadership strategy can help implement the company’s objective of targeting the price below that of the rivals, due to realized scale efficiency. For instance, the company can fine-tune its logistic lines and acquire technology to reduce prices and enhance service delivery.

On the other hand, a differentiation strategy can be of great benefit for Ningbo to stand out from competitors as a provider of additional services like advanced tracking systems or specific logistic solutions. It could assist the centres in attracting client-servant relationships for specific services and improve customer satisfaction. Third, a focus strategy that has a cost focus or differentiation focus for specified market segments can efficiently serve clients from niches in Ningbo (Agrawal et al., 2006).

Furthermore, strategic lock-in can help to avoid customer churn as the lock-in mechanisms may include such things as exclusive contracts or integrated solutions that are difficult for the customer to change. Last, the application of game theory can have more effective decisions in competitive situations and thus, Ningbo could easily counter the strategies of the competitors (Dyer & Singh, 1998).

A critical evaluation of the organisation’s strategy

As of now, Ningbo Smarter Logistics has been operating under the cost leadership strategy through busty operations to offer affordable prices. Nevertheless, to further establish a framework for the creation of competitive advantages and given the memorized changes in market structures, the firm must employ strategies of diversification and market penetration. It can need to seek new areas of the market for growth in which it could offer complementary services to the logistics services and avoid board dependence on the fundamental logistics services (Grant, 2016). There are various ways through which market penetration can be achieved within the same or similar segments such as the Use of promotions and steps leading to improving on the customer loyalty. By putting into use, the BCG Matrix tool it will be easier to discern which services to outbound about investing in growth areas and exiting the declining fields.

Therefore, the adoption of integration approaches including undertaking a strategic alliance or partnership with the technology providers can enhance capability. That is why, working with tech firms can increase data analytical and tracking systems, which will benefit customer care and organizational effectiveness (Priem & Swink, 2012).

Conclusion

Overall, it is observed that the Ningbo Smarter Logistics Company has implemented this marketing strategy of cost leadership in a very efficient manner, and in turn, the company has succeeded in establishing its strong position in the market. Still, it is significant for the company to add new services/goals and practice market initialization strategies to stand its ground competitively. Through using strategic partnerships and improving operation effectiveness, Ningbo can effectively meet the market requirements and competition conditions. These adaptations will work for continuing growth and here the company will be placed strategically in the changing logistics industry.

Set 3: Individual Reflective Essay

Introduction

Ningbo Smarter Logistics gives fine examples of how it is possible to deal with the confusion of the logistics business if the accents are made on the structural points. The sharp business emphasis on efficiency, flexibility, and technology has placed this firm in a competitive field. This essay will also analyse how the organization’s strategy helps in its strategic evaluation in terms of competitive advantage and pursuing strategic intent. Additionally, there will be a description of the author’s ideas about the things learned in this particular module, with more emphasis on tactics for creating competitive advantages and steps made to enact them.

Strategic Solutions for Competitive Advantage

Current Strategy: Cost Leadership vs. Customer Differentiation

The business strategy of Ningbo Smarter Logistics is mainly a customer differentiation strategy, the company aims at satisfying the customer’s needs at every single level. As applied by the company the approach can be effective given that the market is dominated by high rivalry and numerous options available to clients. It is though important to assess whether in this case, the company should attempt to employ some of the elements of cost leadership in its present strategy especially if it is experiencing pressure from competitors who offer cheaper prices. The image of incorporating some aspects of cost leadership in its operation would enable the company to expand its customer base during difficult economic periods (An & Lifen, 2017). As operations are brought down to the next level of optimisation and operating expenses are cut down through newer technologies then it was identified that the company could increase its competitiveness without diluting the services being offered to those of inferior quality. This is because the forces were equally suggestive of differentiation that might be crucial for establishing sustainable growth as well as cost-efficient forces that might be critical for optimisation of cost factors (Restiana, 2023).

Skills For Promoting Strategic Direction

The following are the functionalities of Ningbo Smarter Logistics that greatly help the company to achieve its strategic objective: The company enjoys diverse shipping channels, and supplier links, which consequently present it with a competitive edge in service delivery. Moreover, efficient purchases with better logistics software to control the central stock of the inventories are more effective in offering a service to customers (Gandrita, 2023). Also, the company has a strong culture of research and development; it ensures that the company adapts to a fast-changing environment and embraces new trends and technologies in the market. By investing in ideas that create innovative opportunities and utilizing innovative technologies like artificial intelligence and automation integration, Ningbo Smarter Logistics proves its orientation toward constant development (Gandrita, 2023).

Reflection on Module Experience

This module has offered a lot of light in the analysis of the strategic management processes in organisations such as Ningbo Smarter Logistics. I have been able to understand how firms surmount basic external and internal constraints by employing theoretical constructs such as the RBV and the PESTLE analysis. By examining these cases, I have realised how strategic management should create alignment between its vision and organisational capabilities in order to create a strong foundation for competitive advantage. Based on the analysis of this module one major issue that stands out is the importance of innovation in terms of sustaining competitive advantage. Currently, the logistics industry is dynamic and requires industries and or companies to adopt to the changing technology. Strategizing the adaptation of new technologies is well illustrated by Ningbo Smarter Logistics hence making it a perfect example of how organizations can handle market transformation. Also, the emphasis on the sustainable development goals entails that in industries, companies are very concerned with the environment which I feel is perfect for me since I believe in the development of sustainable business industries.

Strategic Actions for Implementation

The actions performed by Ningbo Smarter Logistics can be described as proactive when it comes to meeting market requirements. The adoption of smart logistics solutions and automation technologies while not only having incremental impact on fabrication and shipment but also the strategic move toward making the company the logistics industry trailblazer. Also, the need for customer satisfaction with business services, personalization, and real-time tracking also stress the value of learning the client requirements (Jabbar & Hussein, 2017). For the future development, Ningbo Smarter Logistics needs to extend its market share place through the expansion of services provided. Such a strategic move may help reduce risks generally related to the fluctuation of the market and, particularly, the preferences among consumers. In addition, continual training and updating of human capital to new technologies will continue to be important to assure organisations of an adequate supply of innovative workforce (Kulkarni et al., 2020).

Conclusion

So, the research found that Ningbo Smarter Logistics applied their strategic capabilities efficiently and achieved competitive advantage in the logistics industry. The application of the RBV analysis shows how the firm deploys its valuable, rare, and defensible resources to overcome rivals. Through the acquisitions of hi-tech solutions like robotics and self-diagnosis systems, Ningbo realizes greater productivity, lower expenses, and better client relations. It also makes a great deal of sense in a highly competitive and rapidly changing supply chain environment and meets with the current and emerging customer trends on the issue of speed. The focus on sustainability also contributes to the company’s market position as it adapts environmentally friendly options into its systems. Regulatory demand is also met, and there is an opportunity to create new value for environmentally oriented clients by increasing the value of the company’s brand. Ningbo’s organisational fit with the environmental factors such as business supplier relationships and the established logistics networks enhances its pursuit of superior service. Such orientation in the company helps the company to respond to changes in the market and new technologies constructively. Before, the analysis showed that Ningbo Smarter Logistics had effectively built up a sound strategic framework for the continuous assessment and modifiability of the competitive advantage. This means that further changes in approaches are imperative due to the dynamics of the logistics field as well as the existent opportunity to expand. In this manner, sustainable development and growth in China City can be realized, making Ningbo a leading logistics city.

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Author Bio

Andrew Carter   10 years | MSc in Management

I am Andrew Carter and graduated with distinction, earning a Master of Science degree in management from Cranfield University. I am very well aware of the problems students face as I was a student once. I want to take them out of such a situation and for that I have been helping them for 10 years. I have completed more than 500 management papers for students in provided time.