Vsm Group Strategy
I. Introduction
VSM Group manufactures markets and sells consumer sewing machines, holds a leading position in the medium to high-end segments of household sewing machines on the world market. After redirection, VSM had carried out a set of strategies to pull itself from inferior position into an enjoyable place. In this report, the strategic position of VSM in 1997 will be analyzed first, along with three divisions, the environment, strategic capability, expectations and purposes. Strategic options will be identified and evaluated based on business-level strategies and corporate-level strategies. Finally, some feasible strategies which will match VSM’s situation better will be recommended.
II. Strategic Position
The strategic position is concerned with the impact on strategy of the external environment, internal resources and competences, and the expectations and influence of stakeholders. (Gerry Johnson and Kevan Scholes, 2002) It acts as an important role in the strategic management that can indicate the present and foreseeable developments of the organization, and thus ensure the continuity of the organization by extrapolating the trends and by gearing them to the field in which the own organization operates. Therefore, to adopt the strategic management more appropriately, analyzing the strategic position of VSM Group before the new CEO was appointed and the organization had been redirected in 1997 is necessary and crucial for the further strategic planning.
2.1. The Environment of VSM Group
Environment is complex and changing by diversified environmental variables. Many of those variables will become the sources of competition, as well as give rise to opportunities and other will exert threats on the organization or both. The environment of VSM Group will be examined by PEST analysis and Porter’s Five Forces analysis.
2.1.1. PEST Analysis
PEST analysis, a useful approach of examining the Political-legal, Economic, Social-cultural, Technological
VSM Group manufactures markets and sells consumer sewing machines, holds a leading position in the medium to high-end segments of household sewing machines on the world market. After redirection, VSM had carried out a set of strategies to pull itself from inferior position into an enjoyable place. In this report, the strategic position of VSM in 1997 will be analyzed first, along with three divisions, the environment, strategic capability, expectations and purposes. Strategic options will be identified and evaluated based on business-level strategies and corporate-level strategies. Finally, some feasible strategies which will match VSM’s situation better will be recommended.
II. Strategic Position
The strategic position is concerned with the impact on strategy of the external environment, internal resources and competences, and the expectations and influence of stakeholders. (Gerry Johnson and Kevan Scholes, 2002) It acts as an important role in the strategic management that can indicate the present and foreseeable developments of the organization, and thus ensure the continuity of the organization by extrapolating the trends and by gearing them to the field in which the own organization operates. Therefore, to adopt the strategic management more appropriately, analyzing the strategic position of VSM Group before the new CEO was appointed and the organization had been redirected in 1997 is necessary and crucial for the further strategic planning.
2.1. The Environment of VSM Group
Environment is complex and changing by diversified environmental variables. Many of those variables will become the sources of competition, as well as give rise to opportunities and other will exert threats on the organization or both. The environment of VSM Group will be examined by PEST analysis and Porter’s Five Forces analysis.
2.1.1. PEST Analysis
PEST analysis, a useful approach of examining the Political-legal, Economic, Social-cultural, Technological
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