V and Y Production - Strategic Analysis- Rational Model

Strategic Analysis- Rational Model

Strategic Analysis is the process of conducting research on the business environment within organization operates and on the organization itself.

In this case, we will use the strategic analysis to understand of the environment in which VYP is operating, together with an understanding of the organization's interaction in order to improve the effectiveness of the organization.

Analytical methods used in strategic analysis include:

1) SWOT Analysis

2) PEST Analysis

3) Porter's 5 forces Analysis

SWOT ANALYSIS

* A SWOT Analysis is a simple and widely used tool that helps in understanding the strengths, weaknesses, opportunities, and threats involved in a business activity.

Strength

* Good Reputation in industry for the production of documentaries

* Good Team spirit within directors & staffs

* Solid personal relationship

* Experienced top level management

* Good Cash flow position

* Good leadership

* Several new series program considered to be successful in terms of audience viewing figures.

* Charity work undertaken by VYP Opportunities

* Produced new children & parents programmes

* Proposal to expand into corporate ad videos

* Increase international sales

* Open new branch in overseas

* Re commissioned drama series

* Off peak programme (documentaries) to attract customers

* Use Activity based costing to improve product profitability analysis

Weakness

* Small number of skilled employees

* Depending heavily on outsourced & freelance workers, and facilities

* Little equity finance available

* Some of producers are poor in forecasting/poor control

* No new technology/

* Lack of IT solutions to make business more efficient

Threats

* High competition with others

* Economic crisis may impact on revenues