Apple Report

TABLE OF CONTENTS

Executive Summary 2

1.0 Introduction 3

2.0 Discussion 4

2.1 Objectives (Company's Core Vision and Mission) 4

2.2 External Analysis 5

* Situation Analysis 5

* Pestel Analysis 6

* Porter's Five Forces 7

* Key industry success factors 8

2.3 Internal Analysis 9

* Capabilities and Core-Competencies 10

* Value Chain Analysis 11

* VRIO Framework 12

2.4 Strategies of Gunns Ltd 13

* Functional Level Strategies 14

* Business Level Strategies 14

* Corporate Level Strategies 15

* Network Level Strategies 15

* Global Level Strategies 16

2.5 Challeneges 17

3.0 Conclusion and Recommendations 17

References 18

1.0 INTRODUCTION

A successful organization in today's world is aware of the fact that the present business environment is composed of a competitive marketplace that requires high quality products and services. According to Hunger & Wheelen (2011)" the organization needs strategic management to outperform those that do not. A firm cannot afford to follow intuitive strategies once it becomes large, has layers of management, or its environment changes substantially. As the world's environment becomes increasingly complex and changing, strategic management is used by today's corporations as one way to make the environment more manageable". Due to that purpose, the main objective of this report is to evaluate the requirements of an effective strategic management. In the process of strategic, the Gunn Ltd will be analysing and discussing in this report. The strategic management will be focus on internal analysis which are capabilities and core competencies, and value chain analysis. In the external analysis, it contains PESTEL framework and five forces. The last part will be evaluation of current strategy of Gunn Ltd. A side objective of this report, it will be demonstrate how the significant of strategic is effected in today organizations.

2.0 DISCUSSION

2.1 OBJECTIVES (COMPANY'S CORE VISION AND MISSION)

2.2 EXTERNAL ANALYSIS

* SITUATION ANALYSIS

The situation analysis, as considered by Bansal and Voyer (2010) would be important for analyzing the company's actual condition, because through which the company's current business environments and the company's internal conditions could be clarified thereby to make insights of the company's general competitiveness and sustainability in the current time. In this part of the report, external analysis would be undertaken with different frameworks.

* PESTEL ANALYSIS

According to Fred (2009) external forces can be separated into five categories: (1) economic forces; (2) social cultural, demographic, and environmental forces; (3) political, governmental, and legal forces; (4) technological forces; and (5) competitive forces. With the external forces directly influencing all products, serveries, markets, and organisations in the world, thus it's clear that they share a correlational relationship. Economic forces in fact plays a major role in developing the paper industry in Australia, as such industry requires substantial amounts of investment and as it was clear from the proposal by Gunns Ltd of building a mill for 2m$ and the search for a financing body for the program such as the government and the banks. While the social cultural demographic and environmental forces influence Gunns Ltd and any other player in the industry, basically due to the ride in demand for paper and increased technology leading to high levels of consumption and waste.

As for the political forces the case illustrates the need of some sort of political connections to get the support required as it's an industry with few major players and usually the political influence plays a key role in securing investments or getting the support required in order to continue with a certain project. While the technological forces as stated above play a huge factor in reducing cost and increasing efficiency that's what makes the R&D departments an important factor within organisation in the pulp and paper industry. And finally the competitive forces in this industry are few since the finance opportunities are minimal even Gunns Ltd suffered to gain its finance after ANZ decided to pull out until they got financed by Sodora of Sweden . However, as it was stated in the case study Gunns Ltd acquired its governmental support due to the fact that the less than 7% of Australian hardwood pulpwood currently being processed onshore.

* PORTER'S FIVE FORCES

The porter's five forces analysis could provide insights of the industry where Gunns Ltd is in, and the detailed analysis could be seen in the following table:

Table 1: Porter's Five Forces Analysis

Forces Justifications

Power of Buyers Barely None

Currently, as it was stated in the case study the demand is exceeding the supply, thus there would be a minimum to no bargaining power of users. And locally as well since there are a few suppliers with the demand increasing. Nonetheless an essential driving force within the paper industry is coming from new technology. The pulp and paper industry has during several years been driven by technology and a high product orientation. Due to structural changes within the networks on the supplier side the bargaining power has increased from the supplying side of technology

Power