Case Study Assignment Help Online

Case study 1.

 

Question 1

Severstal is facing many external factors which are impacting their performing and operations. Based the PESTEL analysis, the following factors have been analyzed, these factors contributed and played a part in the overall global strategy of Severstal which helped them in maintaining their market position and grow their profit margins and overall operations in their market. these factors are divided as per the PESTEL analysis i.e. political, Economic, Global, Technological, Legal, and environmental factors. These are all external factors, factors which are not in the control of the company.

The factors are:

• Political factors

After analyzing the external environment of Severstal the biggest political factor came out to be appointment of US president Donald trump in 2017, as this hampered and disrupted the state of the global steel market as trump introduced new trade laws and withdrew the US from the global agreement of steel manufacturers. Severstal handled itself in this account by maintaining their position in the market and then latter using their aggressive strategy of withdrawing operations form the US they were not affected by this factor in the long run. Severstal enjoys a great relationship with the Russian government allowing them to get grants and financial assistance when needed, and continue their operations without any inconvenience, so it is safe o say that the political factors will be in their favors due to their aggressive strategic decision.

• Economic factors

 The great recession of 2008 was the biggest economic external factor for Severstal which it tackled very well, they maintained a steady flow of revenue and profits throughout the recession and maintained the position of number three in the market after the recession ended. The current dynamic state of the world economy can provide a challenge for Severstal as after the pandemic the economies of many countries are essentially resetting and this is affecting the pricing and manufacturing techniques and behaviors of many industries including the steel industry. Severstal’s global strategy will prove to be benefited by this as they decided to saturate their operations and focus on their strengths rather than diversifying and exhausting their resources.   

• Sociological factors

The sociological factors that affect Severstal are many and varied, after analyzing their strategy we can say that they have a strong public image in their home country and city and are positively impacted by the sociological external factors. They have worked on them in the past and have a proven track record in that area as ESG: environmental, social and governance matric was a thing that shareholders cared about a lot, and they handles it swiftly maintaining a good relationship with their stakeholders in the process. Other sociological external factor can be increasing awareness of sustainable manufacturing techniques which are in the vision of environmental growth, customers and stakeholders are very keen on these awareness issues and Severstal will benefit in keeping this in mind while making any strategic decision in the steel industry.  

 

 

• Technological factors

The main technological factor in the external environment of Severstal  is that there’s going to be more focus on more sustainable products and technologies that enable the same. They will have to comply with this and innovate their manufacturing technologies that will enable them to move towards a more sustainable product manufacturing system which will create more demand for their product, their strategy which will now have a more focused operational system will benefit from this, as well as their attempt to constantly improve their management across all its departments and stabilize the management structure of the whole organization will also prove beneficial in utilizing this factor.

• Legal factors

There are many legal factors in the external environment of Severstal, after the formation of their global strategy they have minimalized the affect of external legal factors as they have tackled them in the past and overcome them, the privatization of government owned assets in the emerging economies of the BRIC countries and the Middle East  posed a drastic threat for Severstal and many other companies but Severstal tackled it with their leadership and utilizing their strengths, other things like US’s trade union and federal protectionist measures hindered their growth in the US market which they solved with their aggressive strategy of withdrawing operations from the US, and after that they supported the steel industry by participating in Lawsuits filed against US government for their abrupt behavior under trumps presidential rain, which could have been a external factor affecting Severstal’s global operations. 

 

• Environmental factors 

After analyzing the external environment of Severstal the environmental factors which could affect its strategy and strategic position in the market are that the steel industry and customers are getting  more focused on sustainable manufacturing techniques which will help in reducing the carbon footprint which is a great environmental danger, Severstal should mole their manufacturing and operations in such a way that it will compliment this change and awareness, as suggested above they can change many things to do the same. Environmentalists from all around the world are focusing on the matter and steel industries are often regarded as the huge contributor in the global carbon footprint increase hence it  important for Severstal to avid such complication, and the worlds governments has also agreed to use more sustainable measures to improve the worlds environment and this can impact the strategic position of Severstal in the long run, this impact can be both positive or negative depending on the decisions of the company although the strategies of Severstal points them in the positive direction.

 

Question 2

Potter’s five forces framework looks at the companies competitive environment and determines its standing in the market as well as its attractiveness in the industries, this framework looks at the competition in the industry, potential of new entrant in the industry, power of supplier, power of customer, and threat of potential substitute. By analyzing these five components  we can determine the attractiveness of a company in its respective industry, in this case the attractiveness of Severstal in the global steel industry.

Buyers power:

Severstal has a strong buyers power as they are well established in the market and has higher profitability rates than their competitors, this allowed them to control the prices from the buyers end and use a effective pricing strategy that benefited their profitability rate, as given in the case study  At the start of the Great Recession in 2008 Severstal produced 19.2 million mt of steel, positioning it as the third largest producer by volume in Russia and fourteenth in the world, with revenues reaching $22.4bn ($5.4bn EBITDA).) further proving their high buyers power and strengthening their awareness in the steel industry. The high profits and revenue streams allows the company to control negotiations even in the highly volatile and dynamic steel industry, this will surely be helpful in maintaining the strategic position in the market. the company has demonstrated their buyers power when they were able to maintain steady profits and revenue during the great recession  of 2008, which further signifies the advantage it has over its competitors solidifying their strategic position in the market.

 

Sellers power:

 

Severstal has sellers all around the world but their ability to control pricing is low as the external factors of the markets made it that the prices for raw materials of steel are ever rising and mergers and acquis ions all around the world are also an factor in this, the incidents like the great recession of 2008 and industrial changes in the US played a role in this, the exchange rates fluctuations also played a role in weaking the sellers power for Severstal, as stated in the case study many acquisition and mergers affected the external environment of the steel industry and Severstal as such vertical acquisitions resulted in increased negotiating power for steel producers in relation to their suppliers and buyers. Although prices of raw materials (iron ore and metallurgical coke) continued to increase, Severstal’s strategic position was maintained due to its strategic decisions, management and leadership across some of its departments, they also eliminated the lack of leadership by opting an aggressive strategic move of stopping their operations in the markets where they were struggling to maintain a strong strategic position because of the factors discussed above.  

 

Threat of substitute:

 

The threat of substitute is moderate as the customers are looking for a more sustainable product and product manufacturers of the same nature, but the advantageous positioning of Severstal somewhat minimalizes this threat. Severstal has allowed its resources to breath and focus on their strong markets which will intern help them to reduce the threat of substitute, as they have a strong brand image in their home country which in turn results in strong and loyal customer support. By consolidating their operations unit Severstal stayed true to its word which was possible due to strong leadership and determination of its management. The company has managed to subdue the threat of substitution by maintaining a strategic position in the market, they stuck to their strategic plans event when the markets were down which created a strong brand image and in turn a loyal customer base for the company.

 

Threat of competition:

 

The threat of competition is high for Severstal as the steel market is highly volatile and dynamic an competitors consistently look for opportunities to grow and diversify, as proven by the mergers of many big player like TATA steel and many others, the steel industry is highly competitive and the market of steel products is increasing massively which will result in a spike in competitors in the industry as higher demand attracts more players. As per the case study there will be an increase in global construction for about 4 % and this will initiate higher competition. The companies competition has strengthened because of the oversupply of steel from China, and mergers and acquisitions happening in other Asian countries, China has saturated the market as they cover 49% of the overall steel market, Severstal were able to somewhat tackle this due to changes in trends and market behavior or because of the highly dynamic nature of the steel industry, an increase in demand due to the rising construction activity throughout the globe helped Severstal by tipping the external environment in their favor on which the company capitalized and maintained their position in the market.

 

Threat of new entrant:

 

The treat of new entrant is high in the steel industry as the demand for steel is very high as global construction rates is rising resulting in the entry of new competition in the market, but Severstal holds a prominent position in the market and their strong strategic decisions have proven fruitful for them in maintaining this strategic position, and the steel industry is very volatile and dynamic so a new entrant making an immediate impact in the market is very less likely. Severstal has a track record of maintaining a steady competitive advantage in the market by sticking to their long term strategic plans and being flexible when needed, they are capable of dealing with the threat of a new entrant under the strong leadership of their managers as stated in the case study  Alexey Mordashov, remained bullish and confident about the company’s future despite the difficult recent years. His approach was to stay flexible and cautiously  optimistic about Severstal’s new strategic direction: the company’s strategic plan was to maintain its vertically integrated business model and further consolidate its remaining business units, driven by a strong focus on cost reduction and operational improvement programs.  This attitude proves their capabilities to deal with a new entrant and the challenges it may present.

 

After the analysis of  Severstal the attractiveness of the global steel industry is high as it has a higher buyers power and low seller power and high threat of competition as it Is a very volatile and dynamic environment and is affected by many external factors, on the basis of potters five forces model, Severstal is in a good position in the highly attractive global steel industry.

 

Case study 2

 

Question 3

 

Potters generic strategies framework is a tool that assists in the management of the organization it facilitates the growth and increase profitability for the business for a company and helps them in maintaining or gaining a sustainable advantage amongst its competitors. The framework consists of mainly 3 theories which is a extension of two basic strategies that being cost leadership and focus strategies, the three main strategies are Cost leadership, Differentiation and focus strategies.

The focus strategy is further divided in two parts, Cost focus and cost differentiation.  

 

 

The figure above describes the division of focus strategy in two strategies. It is formed on the basis of scope and competitive advantage. And also the cost leadership strategy operations the same variables.

 

Cost leadership strategy:

The cost leadership strategy focuses on increasing the profits by reducing the cost of products resulting in more demand and higher buy rates, it also facilitates in increasing the market share by charging lower prices. It doesn’t encourage a drop in quality of the product or service but does allows the business to charge less and give more, maximizing their outputs and resulting in a larger market share in its respective industry.

 

Differentiation strategy:

This is a more product centric strategy which focuses on improving the quality of the products using innovation and good research it relies on the ability to deliver high quality products or services. It works with the same product but encourages some improvements and innovation on the product and marketing strategies around it. 

 

Focus strategy:

Focus strategy is like the name suggests, it focuses on a niche market and delivering the expected quality of products and services the is the quality expected from that niche market. it works by creating a loyal customer base and high brand value, this keeps the competitors from entering in the company’s market place and reduces the risk of new entrant substantially.

 

According to the analysis, Air Asia and the Tune group’s strategy is inspired or is similar to the cost leadership strategy from potters generic strategies, as they focused on providing quality services and products in a low price, the vision of its founder was that to provide low cost products so that more people can use it, especially the ones who cannot afford it. Tony Fernandes used cost leadership strategy across all of his venture under the Tune companies umbrella which included, Tune air ( air Asia) Tune sports, Tune talk , tune studio, tune hotels and many more.

With Air Asia tune company specially benefited from applying the cost leadership strategy as they were able to stand out from the market and provide lower rates on flight tickets without compromising on the quality of service provided. Air Asia positioned itself amongst its competitors purely by providing and maintaining the lowest rates when it came to the prices of the flight tickets, they maintained the strategic position in the market and generated a great profit out of it. As stated in the case study the profitability rate and revenue stream of Tune Air was very high and  the market capitalization of Tune Air alone was MYR6.4bn and The Tune company had many other names under its business portfolio.

Air Asia alone was standing out from its competitors by using competitive strategies which allowed them to stay ahead in the competition and expand in other markets as well as stated in the case study "The AirAsia brand grew more quickly than other profitable low-cost carriers, such as South West Airlines in the USA and RyanAir in Ireland. Fernandes credited Tune Air's organizational structure and associate network with a large portion of its quick success. AirAsia was able to quickly establish additional hubs, routes, and destinations without having to operate them day in and day out by setting up separate joint venture firms in Thailand, Indonesia, and eventually the Philippines. As a result, by 2011, AirAsia had 14 hubs operating in four different countries, connecting passengers between 154 routes (including X) and 80 destinations (includingX) across 10 ASEAN countries. There were 225 routes available as of 2016. And in 2018 the company generated a high revenue. 

They utilized the profits they gained from their cost leadership strategy and invested in other ventures lie expansion and other businesses under the Tune company portfolio. They created great value by providing their services in reasonable rates and made it affordable for a larger market generating more demand and tapping into untapped markets of middle class families. They recognized the markets potential and capitalized on it perfectly. Through strategic planning and a strong vision they achieved this successful business venture.

Question 4

Ansoff’s matrix is a tool which is a 2 by 2 grid used to identify new markets and product or service opportunity, it is used to develop new product services or strategies for the business to grow and increase its profits.  The four points in the Ansoff’s matrix are market penetration, product development, market development and diversification.

 

     As described in the figure above Ansoff’s matrix looks at the market and risk levels to asses the best strategies to tap into untapped markets or develop a new product or service, using its four points it enables the marketer to formulate his strategy and determine the best course of action.

 

Market penetration:

It is the least risky out of all the four options as it concentrates on improving sales of existing products through better marketing strategies in an existing market.

 

Market development:

This option dose not require a new product or service as it focuses on using the existing products and taking them in a new market, it can be a new target market, demographic or market segment which hasn’t been explored yet.

 

Product development:

This option focuses on developing a new product and utilizing your loyal customer base, this requires R&D and innovation. Developing a new product and selling it to your existing customer base is the main focus of this option.

 

 

 

Diversification:

This is the riskiest option out of the four as it requires the functions of both product development and market development. This focuses on developing a new product and introducing it in a new market, this is an option which is very high risk high reward in nature but can be detrimental for the business if failed as this will require a large amount of investment and resources in accomplishing all the objectives that are required for a successful launch of a new product in a new market.  

 

AIR ASIA and Tune groups use of Ansoff’s matrix:

Air Asia used all the four options in their tenure as a business, they utilized one of the four options at some point of their operations, which resulted in successful and profitable business and a versatile business portfolio for the business,

• Market penetration: Air Asia used market penetration when they provided their flight tickets at the lowest prices while maintaining the same level of quality in their services, they worked on their existing services and improves them as time passed.

• Product development: Air Asia used this by developing a new venture for their existing market named Air Asia X which served as a sister venture to Air Asia, providing its customer with reasonable flight tickets with facilities like SMS booking and kept upgrading with the times.

• Market development: Air Asia tapped into new markets with their existing services by providing quality services in lower prices than their competitors.

• Diversification: The Tune company diversified their business portfolio using this point, they created new services like Tune Talk and Tune hotels and tapped in new market segments in Malaysia and other countries. Their wide portfolio is the perfect example of diversification as per Ansoff’s matrix.

Air Asia and Tune Company shows the perfect example of covering all the points of Ansoff’s matrix and using them to grow and diversify your business while increasing your profitability and overall business.

 

Suggestions for Air Asia and the tune company to further improve their business using their current capabilities, these suggestions will ensure future growth in all the aspects for the company. The suggestions are as follows:

 

• Air Asia should utilize its diversified portfolio: going forward Air Asia should use the Tune companies diversified portfolio and work with its assets and use markets and marketing strategies along with their strengths which will help them in improving the management and operational aspects of the company. Having a management system which learns from its various departments or ventures in this case can greatly benefit the business of the company.

 

• Introduce a more premium range of services: Air Asia has established itself in the sense of providing the lowest cost without compromising the quality of the product, which enables them to experiment with their products to avoid stagnancy on the service life cycle, the company can venture in a new product category of premium range services for a different market segment.

 

• International expansion: Air Asia can utilize the resources from the Tune company and expand in untapped international markets with their masterful strategy of providing low prices and giving quality services, this strategy can create a market anywhere in the world as many countries has a market segment which has lower spending power.

 

• Improve their management systems: as seen in many cases large organizations have a disbalanced management system which is effective in some sectors and efficient in some, for a proper functional organization which ensures that it will stand the test of time in current dynamic situations a perfect balance of the two is required, although the company is under great leadership it is important to keep the management system in check and always work towards improving and enhancing it for the better. 

 

Our Online Case Study Assignment Help:

Best Assignment Experts offers a comprehensive online solution to these challenges. Our team of experts spans a wide range of disciplines and is well-versed in the intricacies of case study assignments. Whether you're delving into a complex business case, a medical case study, or any other study area, we have the expertise to guide you.

Here's how our online case study assignment help can benefit you:

1. Expert Guidance: Our experts provide valuable insights and guidance to help you understand the nuances of your case study. They will assist you in comprehending the case, identifying the key issues, and formulating effective solutions.
2. Thorough Research: We conduct comprehensive research, ensuring your case study is backed by credible sources and data. This research underpins your analysis, making it academically sound.
3. Structural Excellence: Our experts are adept at structuring your case study clearly and coherently. Your case study will flow logically from the introduction to the conclusion, ensuring your arguments are well-presented.
4. Academic Rigor: We emphasize the importance of academic rigor in case study assignments. Your work will reflect critical thinking and deep analysis, essential for academic success.
5. Customized Solutions: Every case study is unique, and we tailor our solutions to match the specific requirements of your assignment. Your work will be original and customized to your needs.