Global Strategy论文模板 – Business Strategy for the Logic Factory

Introduction

Company Overview and History     

The Logic Factory is a high-performing multinational enterprise that operates in the United States, the United Kingdom, India, and the Netherlands. The company specializes in developing advanced customer software solutions in many industries, including aviation, maritime, logistics, manufacturing, and metals. The company was established in 2007 in the Netherlands and later expanded to the Indian market in 2008. Additionally, the company launched dedicated customer hosting services. The overlying mission for the company is to assist consumers in making long-lasting and sustainable enhancements in performance and establish a satisfactory organization. The company aims to establish itself as the best for consumers, providing high-end scheduling, planning, optimizing, and sustainable services (The Logic Factory, 2021).

Products

       The Logic Factory is an expanding multinational enterprise specializing in developing advanced software interventions for consumers across various industries. The company boasts of fully executing projects in Delmia Quintiq planning and operationalization. Moreover, the company provides hosting, supports, and maintains Quintic markets. The company offers consultancy services in the supply chain, optimization, and implementation (The Logic Factory, 2021).

Market of Operation

       As a Quintic-centric organization, the Logic Factory operates in many global industries, including but not limited to aviation, maritime, logistics, manufacturing, and metals. With its headquarters in Den Bosch, the Netherlands, the Logic Factory operates in various markets such as India, the United Kingdom, and the United States. The company’s operation in various global markets provides worldwide consumer outreach, thus enhancing product accessibility and customer loyalty (Montgomerie & Roscoe, 2013, p.3).

Assessment of the Current Performance

       Since its founding, the Logic Factory has continued to experience significant growth and profitability, expanding to four countries and offering an expansive product range. The number of employees for the company has also increased significantly to operate the rapidly growing market share. The company continues to experience significant improvements in performance and profitability, owing to the rapid improvements in operation industries. The company recorded a profit margin of $25 million, indicating considerable improvement (The Logic Factory, 2021).

The MNE and Its environment Internal and External Environment Analysis

Internal Analysis

VRIO Model

       Cardeal & Nelson (2012, p.5) noted that internal analysis of organizations helps create a comprehensive assessment of the organization’s internal capability to manage its resources and operations effectively. The VRIO analysis evaluates the value, rareness, imitability, and organization. Through VRIO, the model assesses the various resource dimensions. Arguably, the value implies the cost of the resource and the ease of obtaining it from the market. The rareness of the resource implies how limited or rare the resource is, while imitability represents the difficulty in imitating the resources. Moreover, organization implies the arrangement of resources to effectively support the products (Vallejo et al., 2017, p.10).

Logic Factory VRIO Analysis

       The organization’s resources contribute significant value to its performance. The company’s organizational resources include human capital and management, the existence of an integrated value chain, possession of the intellectual property, positive organizational cultures, innovation, confidentiality, technology, partnerships and resources, and the existence of branches across various countries (Cassidy et al., 2013, p.9). The management of the Logic Factory is driven by the overarching objective of creating sustainable performance and profitability for the organization. The management seeks to promote innovation and advancements in products. Arguably, the company has a dedicated human resource force driven by the principles of innovativeness and creativity. The company’s unique managerial and human resource competencies cannot fit into other organizational structures due to the company’s positioning in the market and its loyalty to the brand. The Logic Factory possesses the requisite capital for investment in research and development to enhance the managerial and employee ability to develop core competencies and products (Cascio, 2014, p.7; (Choo et al., 2021, p.5).

       Plausibly, the company has a well-established brand reputation, loyalty, and equity that enhance market sustainability and expansion. The organization can create brand loyalty and equity by utilizing its unique resources and innovative capabilities to produce high-quality products and services. The brand image of the company is easily recognizable. The company has invested in creating an effective marketing strategy, thus honing customer loyalty to facilitate premium product pricing. The resource of brand reputation, loyalty, and equity are unique to the Logic Factory alone, thus offering a unique, sustainable competitive advantage in the market (Graebner et al.,2017, p.11).

       In addition, the organization has a functionally integrated value chain system that allows it to manage and implement its processes, resources, and products. The company regulates the consumer experience, which is hugely influential to the company’s brand image. The organization achieves this through vertical integration of the supply chain. The company designs and creates premium products and services to generate core resources from the other products. Due to the internal ability to self-sustain its systems and services, the Logic Factory achieves a competitive edge over its competitors that outsource many operations and resources (Chatzoglou et al., 2018, pp.7).

       The Logic Factory also owns patented intellectual properties unique to the company. Its mission and objectives are unique to its operations, thus fostering a unique message to the market and consumers. The company owns intellectual property rights in producing and supplying its products and services, technology, and other unique resources that offer them a competitive edge in the market. Besides, the organization limits the imitation and redistribution of its products and services to prevent the competitors from duplicating them. As a Microsoft and other multinational operations partner, the Logic Group possesses unique skills and competencies to integrate advanced technologies and systems into their designs and regulate licenses on the duplication or imitation of its products (Raj & Srivastava, 2016, p.5).

       Plausibly, the company also boasts of a unique organizational culture that enables the company to achieve competent leadership, communication, and competencies. The company has instilled a unique culture of innovation and open communication to facilitate communication and interaction between employees and leaders and within employees to nurture the culture of innovation and advancement within the company (Prifti & Alimehmeti, 2017, p.4). Also, the organization has partnered with other companies such as the PTV Group, which enables the integration of logistical and geographical functions into the development of planning solutions and the integration of unique software for navigation purposes. Moreover, the company has partnered with Microsoft to expand skills development and knowledge at the company’s development center in India. The company is driven by the culture of fostering a conducive environment for free expression, knowledge sharing, innovation, and multiculturalism to integrate different systems and cultures into the operating model (Hawawini et al., 2002, p.3). The culture of innovation and communication has been entrenched in its operation since its inception. The company achieves this by enforcing various confidentiality and non-disclosure agreements to prohibit sharing of the company’s ideas and resources with external parties. The culture of employee motivation allows them to dedicate time and resources to fulfill tasks. Furthermore, the company has a presence in various markets and locations that facilitate easy access to and distribution to global consumers. These investments offer the company a unique competitive advantage specific to them (Cardeal & Nelson, 2012, p.4).

Strategic Resource Implications

       The Logic Factory should develop human capital resources to facilitate effective operations. The company should also nurture and protect the existing internal skills to enhance retention and facilitate knowledge utilization to achieve unique, innovative objectives. The organization should implement adequate employee compensation, training, and development strategies to motivate them and encourage innovativeness (Lazarević et al., 2020, p.5). The company should also protect its unique resources and skills against exploitation by competitors. Research and development should be integrated into the company’s operational framework to facilitate innovative developments and marketing (Dombrowski et al., 2013, p.6). Also, the company should protect its unique organizational culture to achieve continuous improvements and enhancement of outcomes.

The Logic Factory’s Sustainable Competitive Advantage

       The above VRIO analysis has highlighted the most resources and competencies of the Logic Factory possesses sustainable competitive advantages. The company is vested in commendable resources and competencies that are rare and cannot be easily imitated, thus providing access to various markets and creating consumer value that has created sustainable customer loyalty.

External Environment Analysis

PESTEL ANALYSIS

Political Factors

       The Logic Factory is a multinational enterprise operating in various countries. As a result, political issues in the various countries of operation significantly affect its operation. The country faces political challenges in the various countries it operates, such as political stances on the type of business to operate, the nature of employees, the type of resources to use, and the political oppositions to innovation and expansions of products. As a result of political interference, the company faces threats to its expansion and market penetration in some global markets (Murnieks et al., 2016, p.6).

Economic Factors

       Aside from political challenges, economic issues associated with economic laws and policies also affect the operation of businesses. The Logic Factory operates in markets in the European Union, Asia, the Americas, and other markets with various financial and economic restrictions and policies (Brown et al., 2019, p.3). Harmful economic policies significantly affect the implementation of company objectives. Fiscal policies and financial laws also limit the operation of businesses. Some markets have strict economic policies on competition and other business factors that significantly affect the company’s operations (Choo et al., 2021, p.5).

Social Factors

      Society is rapidly changing owing to the continuous effects of globalization. As a result, the company should critically analyze and address the business’s social issues. The integration of cultures plays an influential role in market analysis and development. The nature of consumers is rapidly evolving, with consumption now influenced by many characteristics such as levels of education, cultural changes, family demographics, and changes in lifestyles and attitudes. Consumers are now aware of their rights and thus play a critical role in shaping the market dynamics. The company should effectively analyze the various social factors that affect the business to influence decision-making (Dwivedi et al., 2021, p.6).

Technological Factors

       Technological advancements have been lauded as crucial components of modern business operations. There is a growing need to integrate advanced technologies in company processes and systems to enhance effectiveness and efficiency. The need for automation, research and development, and market efficiency play a significant role in determining effective technologies. The organization should also focus on developing new supply chain strategies to facilitate production, logistics, and distribution of products (Singh et al., 2018, p.2).

Environmental Factors

       Environmental factors, such as the environmental consequences of company operation to the environment, strategies on product recycling, disposal of organizational waste, the company’s carbon footprint, and the environmental sustainability model, should be critically analyzed to ensure that the company adheres to its environmental responsibilities.

Legal Analysis

       The Logic Factory operates in different economies with different legal and regulatory guidelines. The company should ensure that it adheres to the legal and regulatory policies of the countries within which they operate. Additionally, understanding the prevailing legal conditions and the impact of any changes on the business allows the company to manage its resources and services effectively. Consumer laws, employment policies, health and safety standards, and international trade legislation significantly influence business operations (Shen, Puig & Paul, 2017, p.3).

The Logic Factory and its Global Strategic Options

The ANSOFF Matrix

Market Penetration

Market penetration strategies offer the company unique opportunities to explore existing markets to pursue higher profitability and global expansion. Penetrating new markets segments requires careful market studies and the use of sustainable strategies and technologies that will facilitate compelling market exploration and launch of sustainable competitive products (Stephan & Stride, 2015, p.3). The Logic Factory offers unique industry solutions to consumers in various markets. As a result, the company’s product range seeks to solve the current marketing demand issues that require critical intervention (Alkharabsheh et al., 2019, p.7). The company operates across marine resources, logistic solutions, aviation resources, metals, and products and services. With its ability to provide support and maintenance services and host quintic environments, the company possesses the unique capability to expand its market share. More so, there are opportunities to explore new global markets in other countries to increase global presence and enhance customer satisfaction (Dahlan et al., 2019, p.5).

Market Development

       Market development involves expanding the business operations within the current economies in which the business operates. The Logic Factory can achieve market development by segmentation its consumer base based on different consumption parameters. For instance, the company can divide its consumers based on different price categories, product specificity, and other preferences that influence consumption decisions. Moreover, the company can explore foreign markets to increase its market share and achieve sustainable growth and profitability. Accordingly, the company should expand its consumer outreach to provide products and services to global consumers using online trade channels, B2B and B2C strategies (Agwu & Onwuegbuzie, 2018, p.4).

Product Development

       Product development involves the creation of new products for the existing market. The company can create an effective product development strategy that allows the company to launch new product categories into the existing market segments to increase the product range and achieve customer satisfaction and competitiveness. To achieve effective product development, the Logic Factory should partner with other companies to enhance product development and facilitate the effective distribution of products to the target market. Additionally, the company can develop different product pricing strategies to segment the consumers and the market and offer the desired pricing range. Moreover, to achieve effective product development, the company should extensively research the market preferences and demands and develop sustainable products and services that address the prevailing consumption deficiencies (Schellenberg et al., 2017, p.5).

Market Development as an Effective Strategic Option for The Logic Factory

       The internal competencies and resources of the Logic Factory offer a unique advantage to facilitate effective market development. As a result, the company should explore a market development strategy to achieve a sustainable competitive advantage that enhances organizational growth. The company should explore new market segments in the current business territories and develop sustainable products that address different marketing needs. The market development will involve growing the company’s business into other cities within the current markets and exploring new business opportunities in other international markets (Graebner et al.,2017, p.5). To achieve sustainable segmentation for effective production, marketing, and management, the company should effectively differentiate its consumers and market segments. The company should explore the potential of electronic commerce in facilitating business growth and development. Additionally, targeting a new consumer demographic will facilitate effective growth. The company should also partner with other manufactures and distributers to explore other markets (Chatzoglou et al., 2018, p.4).

       The objective of market development for the company is to explore international markets and achieve global development. The organization should develop its markets in the United States, the United Kingdom, India, and the Netherlands to explore new consumer categories and expand to other regions and cities within the countries. Additionally, the company should explore other markets in the EU, Africa, and Asian countries to expand its global market share. Arguably, the organization can explore these markets through strategic partnerships with other international organizations to facilitate the production and delivery of products and services (Vaikunthavasan et al., 2018, p.5).

       The choice of the new market for exploration will be hugely determined by the affordability of resources such as land, labor, and raw materials. Additionally, the existence of supporting organizations significantly influences the choice of investment (Samiee & Chirapanda, 2019, p.3). The penetration into new markets and development of the existing markets will also depend on adequate capital, the legal and regulatory environment, economic policies like taxation, economic and political stability, and the market growth potential (Shen, Puig & Paul, 2017, p.2). Besides, the company should explore underdeveloped markets to increase demand and create barriers for competitive entry. Entering new markets will also provide a competitive advantage as the company will determine the cost and pricing of products and services. Arguably, the company should explore the new markets by exporting products and services to the desired markets. Also, the company can explore joint venture capitals, acquisitions, and other foreign direct investments to facilitate effective market penetration (Meyer et al., 2009, p.3) and (Denisia, 2010, p.5).

Balanced Scorecard Analysis

       Evaluating the performance of the market development strategy will provide a significant basis for assessing organizational performance. The market development strategy is assessed based on the key performance indicators of efficiency, effectiveness, and internal competencies. The company will choose the right ideas and convert them into projects or milestones in implementing the strategy. There is a need to convert the input into high-quality outputs (processes, products, and services) with minimal resources and within the shortest possible time (Farmanesh et al., 2017,p.4). The efficiency of the strategy will be measured based on the feasibility of the inputs and accuracy of the outcomes, the lead time, and the amount of labor, materials, expenses and other resources input into the strategy. More so, the strategy’s effectiveness is assessed based on the ease of transforming ideas into sustainable market outputs by converting consumer and market needs into innovations (Frösén et al., 2016, p.4). The effectiveness of market development is also assessed based on the availability of sufficient resources and capabilities to implement the processes and milestones within the appropriate time (Dombrowski et al., 2013, p.3).

Conclusion

       In summary, the Logic Factory possesses unique internal competencies and resources necessary for effective market development. The company’s mission is to help consumers make long-lasting and sustainable enhancements in performance while creating a satisfactory organization. The company provides high-end scheduling, planning, optimizing, and sustainable service. The company should develop its market through market segmentation, developing new products, and exploring new local and international markets from the above analysis. The practical implementation of the market development strategy depends on the effective utilization of resources and competencies, efficiency of processes, and effectiveness. The organization should protect its unique resources and skills against the competition. There is a need for increased research and development to facilitate innovative developments and business growth.

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