La Trobe Business School
MGT3SMG provides students with a comprehensive understanding of techniques and models applied in organisations to ensure sustainable competitive advantage. This involves application of key theories to decisions and actions taken by an organisation's senior management team to devise a long-term plan with the intention of developing the organisation's core competencies and increasing the organisation's competitiveness. Key topics in this subject include; understanding the dynamics of the internal and external environments, Value Chain Analysis, the 5 Forces Model, corporate level strategy, business level strategy, modes of entry into domestic and international markets, propensity to innovate and level of competition and corporate governance. The focus will be on developing the ability of students to understand, evaluate and effectively apply strategic management knowledge to modern organisations.
SUBJECT INTENDED LEARNING OUTCOMES (SILOS):
Upon successful completion of this subject, you should be able to :
1. Upon completion of the subject, students should be able to analyse the conceptual, theoretical and practical knowledge of Strategic Management in the context of contemporary organisations.
2. Upon completion of the subject, students should be able to apply the theoretical models of strategic management to work-base practices in the context of contemporary organisations.
3. Upon completion of the subject, students should be able to demonstrate the practical application of ethics principles to planning, development, and implementation of Strategic Management in the context of contemporary organisations.
4. Upon completion of the subject, students should be able to demonstrate the practical application of Strategic Management to work-based practices in the context of contemporary organisations.
5. Upon completion of the subject, students should be able to distinguish between major processes involved in developing strategic planning and development in the context of contemporary organisations.
6. Upon completion of the subject, students should prove the capacity to learn independently and effectively in the context of the discipline.
Taiwan is one of the leading countries in terms of advancement in software technology. Alpha Response Technology Solutions (ARTs) has a main production solution in the software. The ARTs is building to analyses the western market strategy. New production and advancement technology need to be making for the betterment for the economics of Rwandan. There is a huge rivalry with the positivo BGH. The new establishment of Alpha Response Technology Solutions plant require for proper training employee and new setup of advanced technology in the proper design. Notebook manufacturing must be made with proper design and style so that to keep a one step ahead of rivalry company positivo BGH.
Background to the case
Proper plants set up of the company Alpha Response Technology Solutions reduce the rate of competition with the positivo BGH. As the CEO of ARTs has a friend with company positivo BGH. They usually shared for competitive rivalry with the manufacturing and the design of CPU and other parts of the notebook. As the CEO of ARTs declared, the manufacturing and the designs were made a duplicate copy by the technicians and utilized to market of Rwandan. As the country, Rwandan is having manufacturing worker at a lowest price and has the inducement in the tax. In the year of 1994, a huge massacre happened in the Rwandan and the Western failed to use the capital in the World Bank for proper development.
Quantitative Analysis of the Case
The President is head of Rwanda who holds the power of creating policies with cabinet, giving orders to the armey, ratifying and negotiating treaties, declaring emergency and signing orders that are presidential. After every seven years, the election is held for choosing President who further appoints other cabinet members and the prime minister of the country. Legal system of Rwanda is based on Belgian and German law systems. In Rwanda, the senate and the President are responsible for appointing the judges of Supreme court. The judiciary system of Rwanda provides good justice.
Subsistence agriculture is the basis of Rwanda’s economy. An important cash crop of Rwanda includes tea and coffee that are exported. Tourism sector of the country is growing faster and provides to the income of the country (Anton, 2015). In Rwanda mountain gorillas is visited safely and visitors pay high price for this allowance. Dance and music are important part of Rwanda’s culture. Products are manufactured here contributes to the economy of the country. The manufactured products include furniture, agricultural products, soaps, plastic goods, cement and small scale beverages.
Development of water supply is always given priority by the Rwandan government. This increases Rwanda’s share of national budget. This step has also focused on the supply of safe water to the citizens (Sekar and Krishnamurthi, 2015). From pre- colonial period, it has been a unified state. The majority of the population here is from one linguistic and ethnic group. Kinyarwanga is the main language of the nation. The country is situated in the Great Lakes region of Africa. Mountains cover major parts of Rwanda.
Majority of the electricity in this country is produced from hydroelectric sources. It also provides the citizens with free education for about nine years (Phillips et al. 2014). The government of the country is trying its best to improve the poverty-stricken situation of the nation.
Special Economic Zone (SEZ) refers to the area in the country, which is secured and geographically specified and administered by a body. SEZ offers incentives that involves simple and liberal economic rules and regulations to business for locating and operating within it (Daru, 2016). SEZ program of Rwanda is designed for addressing domestic as well as private sector constraints such as availability of energy, skills and industrial land, cost of energy, market access and reduced bureaucracy. For industrial development, designated land is provided. In addition to this, competitive regulations, quality infrastructure and streamlined procedures related to administration is also provided.
In 2015 Rwanda launched an investment code for attracting FDI into energy, advanced technologies and tourism. Therefore, it is expected that the FDI inflows will reach USD 1.5 billion per year. This code has been written in accordance with development program of the government that helps in improving the environment of the business (Huggins, 2014). In 2015 Rwanda hosted a business forum which attracted many investors. In 2016, it signed a project with a mining group for USD 39 million.
Condition of ARTS in not stable and therefore it is considering to attack the technology market of Rwanda (Daru, 2016). Presently, it is dominated by positivo BGH. The market condition of Rwanda has mainly attracted the company. In addition to this, the facilities and incentives provided by Rwanda to the business has motivated ARTS to enter Rwanda.
The five forces analyses of ARTS are:
|Potential entrants (high)||Due to increased competition, the risk is high. |
|Buyers (high)||As the company sometimes, fail to understand the needs to the buyers. Therefore, the risk is high.|
|Substitutes (medium)||The company gets some time to analyse the capacity of the substitutes. Therefore, the risk is medium.|
|Suppliers (low)||As there are many suppliers present in the market (Porter and Heppelmann, 2014). Therefore, risk is low.|
|Industry rivalry (high)||Due to technological advancement, then companies can advance increasing the risk.|
| Criteria||ARTS||Positivo BGH|
|Product||GT80S Titan SLI 18.4in Core i7 Notebook|
|OS||Windows 10, Blu-ray write||Windows 10 Home|
|Processor||Intel i7 6920HQ||intel® Core™ M-5Y10c|
Summary of findings
The important findings of the literature case study are based on the PESTLE and the Porter five forces analysis for the Rawandan country. Proper design set up for the notebook and the manufacturing has made entering in the special economic zone. Government must help for the proper set up for the company ARTs. Inclusion for the proper staffs required for knowing of the computer that are needed in the company. In the first part the company ARTs development on the Western market strategy. Both the company CEO are good friend, so they shared the design among each other company. These leads a huge problem with these coping with the design and the manufacturing of notebook. Both the company made the same design as they have same data. By proper structure set up in Rwandan it will help forgetting of low worker at a minimum cost. These will help for the proper working of the company of ARTs. Proper set up will enhance the good running of the company. Competition rate will help to increase the production rate of the company. Government also helps for the economic zone laying company that is ARTs. Government of Rwandan will help the improvement of the company by getting of proper labor at a minimum cost. It will further enhance for the proper working of the company development and must pay tax at a minimum cost. While paying the minimum cost of the tax company must get the less revenue. These are basic findings while carrying the literature study.
It is concluded that the company must make proper planning strategy in Rwandan. So that the other rivalry company that is positivo BGH cannot take any design or manufacturing of the notebook parts. These factors help the proper growth of company of Alpha Response Technology Solutions. The technicians related to the design parts of the notebook help them to proper configure and manufacture the parts involved in it. Proper analyses of the quantitative data help the proper setup of the company in Rwandan and make the proper guidance on the ARTs. CEO of the ARTS must keep the technical copy confidential so that no other person gets any information for their own company expansion.
A recommendation is based on the presented conclusion and the given finding of the study. It is been recommended that the proper strategic plan to be made regarding the involvement of staffs, economic factors. Proper training must be given to the technician’s expert in information technology. The technicians must recommend a unique design and the manufacturing of the notebook. It will help for the further expansion of the company of ARTs in the competitive market. It is also recommended that the company ARTs must enter in the special economic zone. While entering in the special economic zone the company gets an additional advantage from the Government of Rwandan. By getting a touch from the Government, the company must gets the investment of the foreign currency for the development. It will also help to get a low wage labour working for the company and a less tax improvement while working in Rwandan. Meanwhile the Rwandan people also get the benefits from the technology involvement in the ARTs. Company of ARTs makes a motivation among the staffs of their performance, it will enhance for the proper working of the company. These are recommendations to be kept in mind while for the new launching of the plant in Rwandan.