MBA501 Dynamic Strategy and Disruptive Innovation Case Study 1 Sample
Your task
Individually, you are required to conduct an external and internal environmental analysis for Codan (ASX: CDA): https://codan.com.au
Assessment Description
This assessment is based on environmental analysis related concepts discussed in weeks 2 and 3. You must introduce Codan, followed by a detailed external and internal analysis by applying PESTLE and VRIN frameworks. The environmental analysis outcome should indicate strengths, weaknesses, opportunities, and threats that Codan management should consider when developing strategies. The template for this individual analysis will be shared in week 2.
Assessment Instructions
Individually, you are required to research Codan and address the following assessment criteria.
A. Introduction to Codan
This section should include an introduction to Codan. It is important to briefly capture the scale (revenue, staff strength, etc.), history, industry dynamics, and competitors in this section.
B. External Analysis
Need to conduct a detailed PESTLE analysis based on the template discussed in week 2. You must capture Codan implications by using the specific PESTLE template from workshop 02. You should support your points with evidence and academically-oriented literature.
C. Internal Analysis
Need to apply the VRIN framework to Codan and identify resources and capabilities that would provide a sustainable competitive advantage. It is important to justify your VRIN analysis and engage scholarly views and literature in this section.
D. Recommendations
The environmental analysis should capture at least two strengths, weaknesses, opportunities, and threats. You should provide suggestions and ideas to the management of Codan on what they can do about each of the high impact findings emerging from the environmental analysis.
Please do NOT produce a SWOT analysis; the purpose of this section is to consolidate the key points emerging from the environmental analysis (PESTLE and VRIN) and explore ways in which Codan Cheese can address them. Therefore, the recommendations’ points should logically link with your environmental analysis.
Case study analysis template
The template relevant for this assignment will be shared in week 2. This template will contain the PESTLE and VRIN frameworks discussed in weeks 2 and 3.
In preparing for this assessment, you must note the following aspects:
o Need to incorporate academically oriented articles and books into the analysis.
o A minimum of five academically oriented articles and books apart from industry reports, credible online news sources, business magazines, websites, etc.
o Concepts relevant for this assessment are in workshops 1-3.
o Watch the assessment briefing webinar conducted by the Subject Coordinator – refer to the subject welcome message from the Coordinator for the date and time.
Solution
A. Introduction
Codan Limited is an international company headquartered in Mawson Lakes, Australia. It was founded in 1959 and since then the company has engaged in manufacturing and supplying metal detection, communications, and mining technology. They also develop solutions for private businesses, governments as well as NGOs. University Assignment Help, As of August 2021, the company has a total market capitalization of $2.2 Billion with sales of around $233 Million (Forbes, 2021). The company has established its business in over 150 countries with a wide distribution network of agents, dealers and distributors. They have around 500 employees scattered across countries like Australia, Canada, the USA, Denmark, the UK, and many more. The company faces tough competition from companies such as Minelab Metal Detectors and Tait communication. However, under the leadership of CEO Donald McGurk, the company is continuously driving the environment of long-term sustainability and constant innovation.
B. External Analysis
PESTEL analysis stands for Political, Economic, Social, Technological, Legal and Environmental analysis which helps in understanding the macro-environmental factors that impact the businesses (Yüksel, 2012). With the help of PESTEL Analysis, the business situation of Codan will be analysed.
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C. Internal Analysis
VRIN framework helps in analysing the competitive advantage that businesses have over their competitors (Talaja, 2012). With this framework, Codan’s level of competitive advantage will be analysed.
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The VRIN analysis of the core competencies of Codan are as follows:
Brand Name: With constant product innovation and development, successful mergers and acquisitions and perfect execution of new projects, Codan has managed to build a strong brand portfolio (Businesswire, 2021). These achievements provide a strong competitive advantage making it valuable, rare, non-imitable as well as non-substitutable.
Research and Development: Since the beginning, Codan has vastly invested in its research development department leading to several breakthroughs and product innovations (Codan, 2021).
Marketing: Codan uses several below-the-line strategies to position the product and they have been quite successful in promoting their products.
Distribution Network: The distribution network of Codan is spread all across the globe. They have a wide global network of distributors, dealers and agents that help them sell products in 150 companies.
Customer Loyalty: Witnessing the profitability, many companies have entered the industry but Codan has managed to create strong customer loyalty. With a strong corporate strategy can firm can increase their customer base using the right marketing strategies (Chandler, 1990).
D. Recommendations
Analysing the external as well as internal factors, several strengths, weaknesses, opportunities and threats related to Codan were found.
Strength:
Codan has good returns on Capital Expenditure and they were successful in executing new projects.
They also have a successful track record of product innovation.
Opportunity:
An increase in customer spending has brought good opportunities for Codan Limited to increase its market share.
Online channels are opening ways for the company to capture new customers.
Weakness:
However, the company had limited expansion in other product segments.
The sale of the company is high, however their marketing aspect is still untapped and selling propositions of products are not clearly defined.
Threats:
In certain global markets, there have been shortages of skilled workforce and they were unable to organise their resources.
The organization even faces tough competition from its international competitors.
In order to improve the business conditions, Codan can consider the following recommendations:
• They should develop a strategic plan addressing the budgeting procedure and organising their resources accordingly. During this process, avoid rational allocation as much as possible as it hampers the activities of the company.
• In order to address the shortage of skilled labour force, Codan can introduce new incentive and reward policies so that they could attract the rare talented individuals. They also need to create development plans to improve the skill set of employees (Chandler, 1998).
• Since the company has limited expansion in other segments the company can focus on developing new products and marketing them effectively. In order to do that they need to effectively research the market, make strategic SMART goals and reach their desired market using the 7 Ps of the marketing mix (Anjani et al., 2018).
Using the right strategy Codan can easily overcome its weakness and deal with its threats. They need to be prepared strategically so that they can easily grab the upcoming opportunities and implement good decisions effectively.
E. Reference List
Anjani, H.D., Irham, I. and Waluyati, L.R., 2018, Relationship of 7P Marketing Mix and Consumers' Loyalty in Traditional Markets. Agro Ekonomi, 29(2), pp.261-273. https://journal.ugm.ac.id/jae/article/download/36400/22908
Businesswire, 2021, Codan Limited to Acquire Zetron, Inc, retrieved 5 December 2021.https://www.businesswire.com/news/home/20210331006048/en/Codan-Limited-to-Acquire-Zetron-Inc.
Chandler, A.D., 1998, Corporate strategy and structure: Some current considerations. Society, 35(2), pp.347-350. https://link.springer.com/content/pdf/10.1007/BF02838161.pdf
Codan, 2021, Codan Launches Next Generation Manpack At Dsei 2021, retrieved 5 December 2021 https://codancomms.com/impact/news/codan-launches-next-generation-manpack-at-dsei-2021
CODAN, 2021, The Company, retrieved 5 December 2021 https://codan.com.au/who-is-codan/the-company/
Forbes, 2021, Codan, retrieved 5 December 2021 https://www.forbes.com/companies/codan/?sh=218bb1b57773
O'Neill, A. 2021, Australia: Gross domestic product (GDP) in current prices from 1986 to 2026*, retrieved 5 December 2021 https://www.statista.com/statistics/263573/gross-domestic-product-gdp-of-australia/.
O'Neill, A. 2021, Australia: Inflation rate from 1986 to 2026, retrieved 5 December 2021 https://www.statista.com/statistics/271845/inflation-rate-in-australia/
O'Neill, A. 2021, Australia: Unemployment rate from 2016 to 2026, retrieved 5 December 2021 https://www.statista.com/statistics/263695/unemployment-rate-in-australia/
Talaja, A., 2012, Testing VRIN framework: Resource value and rareness as sources of competitive advantage and above-average performance. Management-Journal of Contemporary Management Issues, 17(2), pp.51-64. https://hrcak.srce.hr/file/138240
Yüksel, I., 2012, Developing a multi-criteria decision-making model for PESTEL analysis. International Journal of Business and Management, 7(24), p.52. https://www.researchgate.net/profile/Ihsan-Yueksel/publication/274863692_Developing_a_Multi-Criteria_Decision_Making_Model_for_PESTEL_Analysis/links/569aaf1708ae6169e55dad01/Developing-a-Multi-Criteria-Decision-Making-Model-for-PESTEL-Analysis.pdf
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