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Business Strategy Assignment 2 BTEC Nguyen Huu Phong 2017

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Contents
Introduction

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1. Stake Holder
2. Strategies

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3. Objectives - SMART
Conclusion

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References

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Introduction
Understanding a company is extremely important and I have presented elements that help us
better to understand the inside and outside of a business in our previous report. In this report,
I will talk about the stakeholders inside and outside the business to see their impact on the


business while they are operating. In addition, I will present my insights on the common
strategies that market-based businesses are taking to compete and grow in the marketplace.
Finally, I will present a methodology that will help us assess the feasibility of each strategy
from which to draw many lessons.

1. Stake Holder
Stake Holder is a name, a way of calling, a business term used to refer to individuals or
organizations related to a particular business through their resources and cash in that
company. They have the right to be directly involved or influential in the specific activities,
strategies, plans and visions of a company. Stake Holders sometimes hold the right to develop
a company at a high level. Best. In general, Stake Holders are like owners, they directly build
and run the management through each position and rank or do not directly run the company.
Stake Holders are usually of two types, the Internal Stack Holder and the External Stake
Holder. When the company operates, the Internal Stake Holder has the most impact on the
company's operations, and the effects of External Stake Holder are not small.

Internal Stakeholders and External Stakeholders in a company
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Internal Stakeholders are often involved in the direct management of specific activities within
a business, who directly make decisions and lead each department within the company to
accomplish its goals. Internal Stake Holder can include: A Project team, Project Manager,
Portfolio Manager. People who are working directly inside the business, deciding the success
or failure of the business.
External Stakeholders are often individuals and organizations outside the business, not
directly involved in the management and operation of the company but can have a significant
impact on the company, This organization sometimes also decides the success or failure of a

business when its effects are large enough. External Stakeholder usually includes: External
Stakeholder: A supplier, Subcontractors, Government, Local Communities, Media, External
customer / client, ...
In general, the Internal Stakeholder and the External Stakeholder have a direct and indirect
impact on the performance of the business, but the impact of the Internal Stakeholder is
somewhat stronger as they are directly involved in the business. The operation of the
company. In addition, external stakes have external influences, but they are not really
powerful because they are synonymous with many different businesses, such as those from
governments or suppliers. Treating and controlling external influences and increasing the
effectiveness of internal business impacts will help businesses stay strong and thrive.

2. Strategies
a. M & A
M & A (Merger and Acquisitions) is a commonly used term used to refer to a control activity
of a business for a whole or a whole enterprise after agreements from both parties. Although
often used by each other, the M (Merger) and A (Acquisitions) have different characteristics
and need to be understood differently. More specific:
- M (Merger) is the fact that two organizations or enterprises of the same business size and
both parties have reached agreement and agreed on the merger. After the agreement comes to
an agreement, both enterprises will jointly remove all legal status of each other from the
name, business rights of the business, tax code, ... to merge together. And create a new
business with a new name, everything new including shares of two businesses also have to reshare.
A (Acquisitions) is much different than Merger, Acquisitions is a company that owns
everything else of a company from its human resources, intellectual property, material assets,
stocks, etc. Based on the legal basis after the two Acquisitions undertake, the acquired
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business will be acquired and the acquirer will disappear. However, there are a few instances
after acquisition where the acquirer still allows the acquiree to operate as an independent
company and all profits are acquired by the acquirer.
Reasons to apply M & A Strategic:
The purpose of M & A is not only to broaden the hold that holds businesses together but also
to occupy a business and investors. When the capital and resources that the investor
contributes to a business are too many and take up too much of the company's voting power
in the decisions and strategies. At the time, we could see it as a M & A because investors
almost took control of the company at a high level. Of course, when capital and resources that
investors contribute to a company are not strong enough to gain control or decision within the
company, it is still considered a normal investment. .
In addition, M & A enables businesses to add new technologies, resources, missing elements
or areas where they want to move towards the young and want to expand the field quickly.
On the market, M & A is used to kill companies that are likely to explode in the future or
threaten to hurt big businesses. Simpler, to remove a rival company out of the competition is
also a purpose of M & A.
Apply to Apple:

Jimmy Iovine, Tim Cook, Andre Young, and Eddie Cue, Source: Apple

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In 2014, Apple officially bought Dr. Beet's Beats fashion headset with over $ 3 billion. This
deal helps Apple improve the quality of its headphones as well as take full advantage of Beats
fashion style. The deal will not only help Apple bring Beats the best sounders, but also attract
a huge fanbase of beats to Apple Music, Apple's second-largest music stream service after
Spotify. It was this hit sale that helped Apple Music Apple rise to No. 2 in the world after

Spotify and only released a short time ago. Although Beats captures Apple, Beats is
independent of Beats, but all activities will be reported directly to Eddy Cue, Apple's chief of
iTunes.

b. Franchise
Franchise is a commercial activity that holds the franchisor and the franchisee. Accordingly,
depending on the case and the field, the franchisor requests the franchisee to conduct the
purchase, sale or service or a commercial product under certain conditions. The franchisee
must carry out the business of a product or service, in accordance with the standards and
manner of the franchisor including all forms, activities, culture and advertising. ,
Decoration, ... The franchisor will control all activities and support the franchisee.
Reasons to apply Franchise:
If a business wants to grow quickly in a short time, the pace of growth is maximized,
franchising is a viable option. However, any business that wants to franchise should be
prepared because if not careful, the business itself will be downhill without braking after
strong growth.
Utilize and inherit the leading technologies of global brands. New investors and
entrepreneurs who want to approach the management and supply chain of top brands
franchise is a completely accurate path.
Less risk in business is a key factor that many individuals and investors choose to franchise.
The rate of franchise failure is very low and it receives a lot of trust from the bank as
individuals seek more capital.
Apply to Urban Station

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Nguyen Hai Ninh and Urban Station - Source: Internet

Urban Station is the famous coffee chain in Vietnam founded by Nguyen Hai Ninh. Once a
brand of coffee is known to many young people with unique space imitating a stopover. With
the franchise model, Urban Station grows dizzily, there are times when this franchise brand
sells more than 11,000 cups of coffee a day. However, due to the inability to control the
supply chain well in the process of franchising, the pressure from the big investors has killed
the culture of Urban Station that Nguyen Hai Ninh wants to create. As a result, he left Urban
Station to set up Coffee House. Since then Urban Station has reduced its market share greatly.
This is an example of franchise success but also a failure to control the bad franchise.

c. Strategic Alliance
This is a strategy that two or more businesses associate together to focus on selling products
or providing services that are almost similar to each other. The point is that these businesses
do not compete with each other but develop together and support the resources and resources
to create a competitive advantage that dominates the market.
Reasons to apply Strategic Alliance
Businesses can indirectly take advantage of each other's advertising campaigns, behind which
they can share advertising costs to help minimize costs for each business. Take advantage of
the strengths and advantages of other businesses to make customers realize the need of
products and services. In addition, the total revenue of each business will increase
significantly after linking together.

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Apply to Apple and Microsoft

Apple invited Microsoft come to Apple Event - Source: Apple
Speaking to Apple, people always think of competitors as Microsoft. They used to be rivals in

the field of computers and always compete hard against each other. However, in the end, they
work together to grow together. Steve Jobs, the legendary Apple CEO, once said, "It's been a
long time since Apple won, and Microsoft lost," proving that they were linked. iTunes is
available on Windows, in exchange for Windows will be installed on MacOS. Thanks to this
factor, sales of both Microsoft and Apple increased markedly as users no longer feel the
barriers between the two brands dominate the computer market.

d. Integration
This is a process that occurs in the supply chain of an enterprise when the enterprise intends
to consolidate the supply chain to maximize enterprise productivity. Integration is of two
types: Backward Integration and Forward Integration. Backward Integration is the process by
which an enterprise wants to optimize its distribution channel by re-selecting suppliers that
are active in the supply chain or, possibly, Besides, it is Forward Integration when the
company wants to build a distribution channel for its own supply chain without having to go
through a third party to save money and reduce dependence on the outside.
Reason for applying Integration
When it comes to sustainable and long-term development in a market where competition is so
high. Optimizing distribution channels in the supply chain helps businesses reduce costs and
reduce dependence on external businesses. Strengthening sustainable development.
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Apply to Apple
Apple's development of a leading company has changed a lot in terms of Backward
Integration and Forward Integration. These changes are so powerful that it can shake up
companies that are Apple's suppliers. With more than 300 billion dollars at its disposal, Apple
wants to maximize its supply chain and limit its dependence on outsiders so they can do
everything themselves for two reasons: cost savings and optimization. More product. For that

reason, in late 2016 to early 2017, when Apple announced it would produce its own iPhone
processor in the future and not cooperate with its supplier Imagination Technology, the
resulting Imagination Technology went bankrupt. Sell yourself. Apple sometimes uses this
strategy to force its suppliers to optimize their supply chains and reduce costs.

e. Differentiation
This is a strategy where the business changes a small point over the core value of the product
but makes the customer feel that it is a big change. These changes mainly focus on factors
such as color, size, packaging, etc. This is considered a temporary innovation strategy and a
great change for the customer. .
The reason for applying differentiation
Applying this strategy helps the product to create frequent changes that create excitement and
limit the boredom of the customer to the product.
This strategy helps businesses to prolong the product and maximize profits from the highest
product as well as keep the customer from using the longest product even though the product
does not really change too much.
Apply to Apple iPhone

iPhone 7 Plus and iPhone 6s - Source: Internet
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One of the best examples of this strategy is Apple's iPhone - the most popular phone in the
world. For 3 years from now until 2014. Apple uses only one design for the iPhone to
maximize the performance of the production chain and maximize its cost savings, though the
number of buyers remains high despite the fact that the iPhone does not have much change.
IPhone 6s only added new colors, iPhone 7 just changed the design of the receiving antenna
array. Only two changes are extremely small and almost no difference but the customer feels

it is a big change and is ready to buy the latest generation iPhone.

f. Niche
This strategy helps businesses focus on a small market and less competition to help
businesses survive and thrive. This market usually only serves a certain group of customers
and not so easy for businesses with good products to gain the trust of customers and limit the
competition from other competitors.
Reasons to apply Niche
Applying this strategy makes it possible for new businesses or new products to survive and
prosper when large markets have too much competition from competitors. Reducing the risk
of failure and easily succeeding is the reason many small businesses choose.
Apply to Apple iPad Pro 12.9 inch and Apple Pencil

Apple iPad Pro and Apple Pencil - Source: Apple
In a tablet market that is so saturated and fiercely competitive from Samsung, Google,
Microsoft, manufacturers from China, and Apple's earlier iPads. Apple still makes the iPad
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Pro with screen up to 12.9 Inch, but instead of continuing to attack the large market with
competition and unsuccessful, Apple has chosen niche market is the business object.
Designers, where Apple has only one competitor is Microsoft, but Microsoft is not too strong.
To make the iPad Pro suitable for those who work in the field of design, Apple has made
Apple Pencil to help them easily create. It was this niche market attack that Apple easily took
over its market share and received positive feedback from designers as it helped them create
great content. with. IPad Pro results remain successful in a sluggish tablet PC market.

3. Objectives - SMART

Having a strategy must have a specific goal for each strategy. To evaluate a strategy, leaders
need a model that helps establish a clear plan and goal. The SMART model has solved the
problem and helped business leaders create a tailored and effective assessment process for
each strategy. The SMART model is based on five factors: Specific - Measurable Achievable - Realistic - Timing, which explains and responds to each of these elements in a
planned and effective manner. Easy to change, calculate in specific cases.

S - Specific: The goal of the strategy must be specific and clear, not too abstract and general
in many goals, especially easy to understand. For example, Apple's goal in late 2017 and
early 2018 is to sell more than 80 million iPhones, this is the specific and clear target as this
is the year Apple announced the iPhone.
M - Measurable: can measure what is obtained and what should be spent, in other words
statistics can be measured by different traditional methods. For example, the number of
iPhones that Apple sells after statistics can be measured through the number of iPhones that
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are enabled after a customer buys them, thanks to which Apple can easily tell exactly the
number of iPhones sold. all around the world.
A - Achievable: Can be achieved and within the ability of the business, not to exceed the
limit is too high. For example, Apple is aiming to sell 80 million iPhones in late 2017 and
early 2018 because this is the cycle of customer change according to their research, the
iPhone generation celebrates 10 years with many breakthroughs. Previously, the iPhone 7
Plus also reached 76 million units worldwide during the same period. These factors are why
Apple can confidently set high goals and still be able to complete.
R - Realistic: The goal must be realistic and not too illusory, in line with the present world.
For example, Apple wants everyone in the world to own the iPhone, resulting in the sale of
70 to 80 million iPhones a year and reaching 1 billion iPhones in the world last year.
T - Time - bounds: There must be a clear and specific deadline for each strategy to not last

for too long. For example, Apple expects to sell 80 million iPhones in the period from
October 2017 to March 2018. The six month period lasts two quarters. This is a clear timeline
and investors are assured of that.

Conclusion
Throughout the report, we understand in part what strategies businesses are usually using to
compete with competitors in the same market and how to grow in that market. In addition, we
also know how to evaluate the feasibility of a strategy when it comes to and understand how
the real business as Apple.

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References


Denisemerald (2009) Stakeholder concept, Available at:
(Accessed:



22 August 2017)
Duy Luan (2014) Apple confirms Beats acquisition for $ 3 billion, Beats continues to
carry its business credit, Available at: />


minh.2306077/ (Accessed: 22 August 2017)
Forbes Vietnam (2015) Urban Station coffee salesman, Available at:

/>


(Accessed: 22 August 2017)
Investopia (2017) Forward Integration and Backward Integration, Available at:
(Accessed: 22 August



2017)
Marketing Strategy (2014) Apple's strategy: positioning in the premium segment,
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apple-định-vị-ở-phân-khúc-cao-cấp (Accessed: 22 August 2017)
T.C (2014) The real reason behind Apple's acquisition of Beats Electronics, Available
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