Strategic Management Literature review Example | Topics and Well Written Essays - 2000 words

Strategic Management - Literature review Example The next fundamental aspect of consideration is the most applicable strategy that would be viable if applied by the business. Identifying a viable strategy needs a comprehensive consideration of all the factors that influence its application. The value chain analysis model offers a comprehensive strategy that is applicable to a number of businesses. The effectiveness of the strategies used would determine the position of the business to cope with the challenges from the macro-environment. Strategic Situation of Kepak Kepak’s Business Environment Kepak is among the three dominant meat processors in the beef industry, in Ireland, one of the countries that have extensive beef industries with high production levels since the 1970s. Agribusiness and food are among the industries that are major boosters of the Irish economy. This is evident from its recognition by the Irish government, in 2010, as a one of the industries that hold the potential to boost the country’s exports. ... Several emerging trends in the macro-environment, most of which are beyond the firm’s control, present situations that the management must strategically address to stay in business. The firm’s management, for instance, faced a great test responding to the distressing economic situation in Ireland’s food and agriculture sector in late November 2010. Being amongst the most significant contributors in the sector, Kepak, through its management, had the obligation to find alternative remedies to the situation. Two sectors were in need of prompt action to revert the situation, making the business environment present seriously challenging features to the management. The five forces model, developed by Porter, is of particular relevance in evaluating Kepak’s business environment and recognition of the best position that presents a powerful situation. The model highlights five forces that create the competitive power in any business environment. The business presen ts a scenario in which consumers preferring high quality to low quality beef can easily switch to a competitor’s substitutes if they are of comparatively high quality. Industry rivalry is an inevitable reality since it is an open market with Kepak as one of the three most known processors and other small-scale processors, which also brings the threat of new entrants. The bargaining power of suppliers and buyers presents one of the vital considerations that the firm must take when planning in the industry’s business environment. Analysis of the Kepak’s Strategy The year 2010, for instance, posed a great test to the management of Kepak because of the unpredictable nature of the business environment. The cost of operation incurred