Strategic Decisions in Debonair

The effectiveness in the process of strategic decision making is important for the success of every business organization (Slack and Brandon-Jones, 2018). Appropriate decisions are essential in helping the company achieve an increase in revenue, increased market share and its general well-being. Debonair is one of the providers of solutions in the transport and logistics sector. The organization operates on a vision of being recognized in the transport and the logistics industry, by delivering excellence and consistent quality to the customers in an ethical manner. Debonair has the vision of delivering value-added solutions towards the client’s success within the operational market. This work presents a report on Business Strategy Game (BSG) that was performed on Debonair. The BSG simulated the operation of the business in comparison to other companies in the simulator including Alpha-Trainers, Enomenos, Crewz and Essential Comfort. The paper outlines and evaluates the strategic decisions of good quality and the reasonable price in the BSG simulation. Besides, the report applies and evaluates the models and concepts that underpin the strategic approach employed. Therefore, the paper is essential in explaining the strategic decisions in the BSG and the related factors.

Outline and evaluate the major strategic decisions made during the BSG

Good Quality Product

Considering the market position of Debonair, the decision to embrace good quality product is likely to help the organization to grow to another level. The approach will help it’s solutions to stand out in the market against those of the competitors, hence, promoting its well-being. High-quality products will attract new customers and retain the existing ones, a factor that will improve its well-being. Through the approach, Debonair is likely to increase its number of clients as compared to its competitors. The appropriate quality of the products in the organization is usually the source of the competitive power over other players in the market. When the business fails to produce items of the desired quality, the clients lack reasons to stay buying them because they fail to get value for their money. Low-quality products are also characterized by their failure to meet the needs of the customers (Bocken et al., 2016). Therefore, the decision to improve the quality of the solutions and services offered by Debonair will help it gain competitive power over other players in the market.

The quality of the product is perceived as the ability of the item to deliver the customer value or work while meeting their needs. Debonair can only achieve this strategic direction through sufficient efforts to comprehend the needs of the customers, and coming up with the solution that meets their requirements. Through the approach, the business will satisfy the customers sufficiently (Shaw, 2016). Besides, the quality of the product increases the willingness of the clients to pay for them. Therefore, the strategic decision for Debonair to improve the solution and service quality is essential for its general well-being.

Usually, the quality of the product is attained through various ways such as the control of the process to improve its efficiency. There should be mechanisms to ensure that the entire exercise of delivering the solution and service is attributed to the highest possible quality (Kerzner and Kerzner, 2017). Besides, incorporation of the quality goals into the organizational culture helps the company to achieve the product quality. Typically, the corporate culture is a powerful tool for conveying the message and promoting activities within the operation of the business. The common typical aspects within the culture mission and vision among many others. The corporate culture helps to ensure that the organization integrates the product quality requirements in its entire operation. Therefore, Debonair must incorporate the quality aspects within its culture to attain the effectiveness of its strategic decision to deliver suitable product quality. Additionally, Debonair can achieve service quality through innovation which normally provides the solution to various quality problems within the operation of the business.

The improvement of the product quality is likely to yield more income especially through increased sales attained from both the new and existing customers. The image rating and the general organizational reputation in the market will also improve, hence, promoting the growth of the company. Therefore, an increase in quality will increase the net revenue of the business and its general well-being (Sodeyfi, 2016). The failure to produce high-quality products makes the organization to lose some of its existing customers and fail to attract new clients. Therefore, the business loses its competitive capabilities in the industry. Therefore, Debonair delivery of the appropriate solution and service quality to the customers is an important strategic decision that will improve its performance in the sector.

Reasonable Pricing

The product pricing refers to the setting the appropriate cost that the customers pay to get the product. Since ancient, product pricing has been utilized as one of the robust strategic decisions to help the business grow to another level. In the pricing process, it is important to determine the best product cost to ensure that a reasonable price is achieved for effectiveness. As a strategic decision for Debonair, reasonable pricing is projected to help the business increase its customer base for effectiveness (Nagle and Müller, 2017). The fair pricing strategy is likely to help the business attain its goals of more revenue, increased profit margins and a big market share.  

The strategic decision to embrace low pricing is worthy Debonair’ adoption considering its position in the market as compared to the competitors in the sector. Setting a reasonably fair price that attracts new customers, retains the existing ones and the makes the organization make the profit is the best approach for the well-being of the company (Buckley and Casson, 2016). The outcome of the BSG clearly shows that the service pricing of the company can be altered for its well-being in the sector. A competitive price is likely to aid the business stand out of the list of the competitors in the sector.

Pricing is a tool that is utilized by many companies in many different ways to improve their well-being, hence, the approach will help Debonair achieve a better market position in the industry. Firstly, fair pricing will help the business to retain its existing customers because they will find value and lack a reason to switch to other competitors in the sector. Secondly, fair pricing attracts new customers (Nagle and Müller, 2017). The aspect will help the organization to find to attract new buyers who are seeking fair priced-products. Lastly, fair pricing helps the company to make more profit. The three benefits of the fair service pricing are likely to give Debonair high competitive power over other players in the sector. Therefore, the strategic decision is critical for the growth of Debonair in the market.

Reasonable pricing is important because it helps the business to attract customers while making the profit at the same time. Low pricing makes the organization to reduce in its profitability. The fact is true because there will be more investment while the outcome is low (Pred, 2017). The right product pricing should consider the coverage of the production cost and the profit for the company for effectiveness. On the other hand, too high product price scares away the customers, an aspect that makes the company lose its competitive power. When the customers realize that the cost of the items is exploitative, they are likely to switch to other players in the market who offer them cheaply. In other cases, the clients tend to seek the substitutes of the products within the market. Therefore, Debonair must be careful in its strategic decisions to ensure that its solutions and services are priced reasonably.

Usually, reasonable pricing is achieved by a series of strategies that helps to realize a better outcome of the products. The key aspects include cost-cutting of the production cost. The decision to review the entire product making process to ensure that there is efficiency is essential towards the delivery of the better outcome. All forms of losses that may subsequently lead to high pricing of the products should be minimized as much as possible for better results (Buckley and Casson, 2016). Besides, the low pricing can be attained through appropriate product sourcing, which translates value to customer satisfaction. As an approach to support the strategic plan of reasonable pricing, the business attains low cost through the control of the expenditures such as excessive or unnecessary costs on the staff.

Additionally, creativity and innovation provide a powerful tool towards that helps the organization to achieve low-cost products (Pred, 2017). The tactic helps to provide cheaper options for the solution that is essential in the realization of general cost saving in the exercise. The fact is true because the strategy provides better ways to improve the process, hence, realize the best results to the company. Generally, Debonair can attain the strategic decision of fair solution and service pricing through an evaluation of its entire value chain and ensure that costs are saved as much as possible. Notably, the adoption of the reasonable product price will help the organization to achieve its goals of revenue, industry position and the market share.

Apply and evaluate at least six supporting strategic and management models, concepts and ideas that underpin your strategic approach

 In this context, Debonair can survive the fierce competition in the industry by embracing a unique strategy to help the business to attract and retain a large customer base. With the mission of receiving recognition for being a leading company in excellence, it is imperative to focus on both ultimate objectives as well as customer demands. The selected strategic and management tools are also required to enhance consistency in the delivery of standard services and further promoting responsible businesses and environmental practices. Due to robust technological development, the models must foster innovation in order to ensure the business proactively responds to the emerging needs of the customers and fix possible challenges associated with the turbulent business environment. Arguably, numerous transformations have occurred in the transport and logistics industry where a great focus is currently accorded to sustainability and efficiency in the practices (Zerfass et al., 2018). Companies prefer trading with partners who value environmental conservation, responsiveness to emerging needs and focuses on creating value in their services. Through the business strategy, various models and management strategies were applied in order to enhance the achievement of the ultimate objectives. Therefore, the frameworks played a crucial role in guiding the company to continually provide logistics solutions and services to its customers based on their demands.

Before focusing on providing quality products and services at a reasonable price, different models were considered to foster the effective implementation of the key strategies. In light of this, strategic models are conceptual tools that helped in allocating key resources in order to achieve business goals and objectives. For all scenarios, these goals were grounded on the alignment, issues, self-organisation, and goals to offer multiple needs of the company at different levels of growth. With all types of strategic management models, it was possible to closely monitor the outcomes and further follow the specific approach set in the strategic plan (Elmes and Barry, 2017). Additionally, a multi-stage approach was embraced in including; outlining the strategic plan, predicting the desired outcomes, evaluating the current business performance, creating an action plan, and actual implementation. In regards to this, different activities were performed such as projecting sales, assessing the capability to effectively run a transport and logistics services provided company, and making adjustments depending on the results. Importantly, effective strategic and management models include different elements such as performing environmental analysis, establishing organisational dimension, formulating strategy, implementing, and evaluating and controlling the strategy. Since the process is continuous and dynamic, I ensured various elements interacted with each other to ameliorate the ability to accomplish overall objectives. Nevertheless, differences in background and experience regarding the application of the models influenced the explicitness and detail of the information. As a result, multiple simulations were performed to enhance maximum use of scarce resources in order to survive stiff competition and meet strategic goals as well.  

To maintain or improve the business position in the sector, various strategic and management models were utilised. First, Blue Ocean Strategy was applied to help in creating uncontested market space or enhance the competitiveness of the company. The model entails developing operational and administrative policy with the capability to spearhead business success by outdoing the competition in the industry (Kim and Mauborgne, 2017). Notably, a great value boost for customers and business was created by developing appropriate strategies that enhance effective service delivery based on users wants. In light of this, the initial objectives were to compete in the existing transport and logistics sector, exploit existing demand, and making the value-cost trade-off.  In fact, the organisation focused on creating and capturing new demand, breaking the value-cost trade-off, and aligning the entire business system of activities in pursuit of low cost. Having adopted a low pricing strategy for quality products and services, it was essential to develop superb measures to reduce operational and administrative costs significantly. With the ever-changing customer wants, blue ocean strategy played an instrumental role in ensuring the business proactively responds to this needs in order to maintain existing customers and further attract others. While applying a low pricing strategy, profitability depends on the amount of revenue generated. In spite of aiming to create uncontested competition, the business didn’t spend a substantial amount of money to offer quality products and services to the customers at a relatively low price (Kim and Mauborgne, 2017). Hence, multiple application of strategic and management models improved the effectiveness of this strategy that led to the accomplishment of significant success as well as the survival of the fierce competition.

            Secondly, a strategy map was used to precisely communicate a strategic plan that could help to obtain high-level business goals. Strategy mapping played a central role in enhancing excellent communication of data in a digestible manner. In light of this model, financial perspective primarily focused on increasing profits which directly depends on revenue generation (Nagle and Müller, 2017). In order to grow revenue, effective measures were put forth to manage costs depending on business capability. In regards to customer perspective, strategy mapping provided insights about key variables that were to be addressed to meet quality standards and further offer its products and services at a relatively low price. Internal perspectives entailed focusing on innovation, customer management, and operational excellence. Since innovation was one of the pillars of the company for excellence, strategy map provided the opportunity to formulate most effective measures that could promote creativity and innovation among employees while delivering the services. Influencing workers to focus on achieving a common goal essentially requires an effective communication strategy that enhances the continuous flow of information. In this case, a strategy map helped in ensuring all the organisational goals were timely communicated as well as providing needed support which culminated in the realisation of predetermined objectives. Additional benefits that were associated with strategy mapping includes; providing a simple and visual representation which was easily referred to during implementation and unified all goals into a single strategy (Elmes and Barry, 2017). The tools also helped in better understanding vital elements of the business strategy that requires substantial attention and enhanced employees’ commitments in meeting specific objectives.

            Strategic plans were also based on the SWOT model that shed light on how to capitalise on the strengths to seize all the potential opportunities. Through the SWOT model, both the internal and external environment was deeply examined. Consequently, it was possible to identify areas the business was doing very well and those to improve to attain a competitive edge (Fleisher and Bensoussan, 2015). Arguably, a strategy plan becomes effective when the company has the required mechanisms to enhance successful implementation. Based on the simulation, SWOT analysis allowed evaluation of the business capability to execute a low pricing strategy for quality products and services. Therefore, the results provided the opportunity to efficiently use its resources towards achieving ultimate objectives. The fourth management model employed in the simulation includes the McKinsey 7-S Model to determine the changes that were needed in the business processes and strategies and align with the overall goals. The soft elements that were analysed include current strategy, structure, and systems while soft elements involve shared values, skills, style, and staff (West, Ford and Ibrahim, 2015). For the business to succeed, these elements were aligned with each other to ensure the entire organisation focuses on meeting common objectives. Crucially, the strategy was accorded the highest priority on both short and long-term goals. The model helped in keeping up with the latest trends and technological development essential in enhancing efficiency, reducing operational costs, and improving quality.

            Furthermore, the Deming Cycle was used in order to improve productivity. The approach was implemented by considering four crucial elements including; Plan, Do, Check, and Act. During planning, all essential activities that could help to reduce costs were identified and communicated to the employees before actual implementation. Once the entire deliverables were completed, the model provided the opportunity for fresh re-examination whether all the projections were implemented as initially determined or not. Ultimately, the results were used to determine areas to focus on to ensure to organisation stayed committed to achieving specific objectives (Goetsch and Davis, 2014). Finally, Need Gap Analysis model was used to compare the current organisational achievements, its expectations, and measures that were required to bridge the gap. The model was used to specifically identify internal deficiencies in the company that deterred the effective implementation of the strategic plan (Kim and Mauborgne, 2017). In this case, the focus was given on desired sales and measures that were required to achieve improved sales and meet consumer’s needs accurately. Eventually, this model significantly helped to make continuous improvements in the operational processes, which led to the accomplishment of key objectives.

Conclusion

            In summary, development and success of the low pricing strategy for quality products and services relied on the use of multiple management tools. These tools provided insights into the key expectations, businesses capability, consumer expectations, and industry challenges. Having such data played a central role in ensuring the company focused on key issues that enhanced achievement of strategic objectives. Similarly, it was possible to get a comprehensive view of the company position in meeting its goals. Through the tools, there was continuous and effective communication among employees. Consequently, possible challenges were timely identified, which provided the opportunity to focus on key strategies. 

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