The strategic management refers to the formulation as well as the implementation of various key goals and initiatives that were undertaken by the concerned management of an organisation (Hill, Jones and Schilling 2014). The various initiatives and the goals that have been set by the concerned organisation tends to take into account the various resources that are present within the company as well as the findings of the internal and the external environmental analysis of the area wherein the concerned business organisation has been operating (Hill 2017). The following essay attempts to throw some light on the matters that pertain to the strategic management of the organisation that has been dealing with the childcare activities within the Australian territories, G8 Education Limited. The report opens with the discussion on the background of the organisation. The report proceeds to deal with the macro-environmental analysis of the company in discussion, in the form of PESTEL analysis. The report nears its end with the analysis of the company on the basis of the model put forth by Michael Porter, commonly known as the Porter’s Five Forces Model.
Founded in the year 2006, the Australian child-care centre operator, G8 Education Limited is one of the largest companies of its kind that have been listed in the ASX (G8education.edu.au 2018). The concerned company aims to be one of the leading providers of the highest quality of child-care services within the Australian territories. The company majorly focusses on the matters that pertain to the developmental and the educational services in the field of child care. The company is known for the association of the highly qualified people within the concerned business organisation and aims at serving the entire population of Australia (G8education.edu.au 2018). The various products and the services offered by the company might include the variety of services that are related to the education that needs to be provided to the children residing within the territorial boundaries of Australia. The company in discussion, the G8 Education Limited, has been observed to have been holding a high position in the indexes of Australian Securities Exchange as well as possess the stock market ticker of “GEM” (G8education.edu.au 2018). The company in discussion might be known for the redefinition of the ways of conducting business in the industry dedicated to the Consumer Services. The company has been known to have earned a revenue of about 796.8 million dollars in the year 2017 (G8education.edu.au 2018).
The PESTEL analysis of the organisation might help to shed light on the various factors that are related to the matters that pertain to the challenges that might be faced by the concerned company in order to deal with the various competitive forces that might be prevalent within the given are wherein the company might have been operating (Rothaermel 2015). The PESTEL analysis of the concerned company in discussion, G8 Education Limited is tabulated below.
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Political |
The company might need to focus on the various factors that are related to the political stability of the country in discussion as well as the importance of the early child learning industry that exists within the Australian boundaries. The company is also affected by the interference of the Australian government within the concerned industry wherein the organisation has been functioning, the consumer services industry. |
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Economic |
The economic factors that are related to the concerned industry relate to the matters that pertain to the matters that are related to the intervention of the government in the free market and the Customer Service industry within Australian market (Wheelen et al. 2017). The other factors that might have influenced the rate of unemployment within the Australian Customer Service industry. |
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Social |
The social factors that might relate to the demographic factors and the skill levels of the Australian population. The levels of education and the standard of the education that is maintained within the Australian early education industry. |
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Technological |
The technological factors that might affect the G8 Education Limited within the Australian industry refers to the matters that are implemented by the competitors of the concerned organisation. The company might also be affected by the cost structure of the Customer services industry that has been present within the concerned market, the Australian early child learning industry. |
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Environmental |
The concerned company in discussion might need to implement the green technology within the concerned campus. This helps in the matters that pertain to the reputation and the goodwill of the company. The concerned organisation might also be affected by the changes in the climate and the weather conditions that exist within the concerned company. |
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Legal |
The legal factors that are known to affect the early child learning departments of G8 Education Limited are might relate to the employment laws, the laws that are related to the discrimination among the various members who have been employed within the concerned organisation. |
Thus, the PESTEL analysis of the concerned organisation states that the company in discussion, the G8 Education Limited might need to pay attention to the various matters that are analysed in the preceding section in order to implement the overall improvement in the operations of the organisation. This might help the company ta achieve greater success in the matters that pertained to the overall performance of the organisation thereby gaining a better competitive advantage in the market.
The Porter’s Five Forces analysis might help the concerned company in order to figure out the ways that might help the concerned company in bringing a sustainability within the competitive advantage within the industry wherein the concerned business organisation might have been featuring (Dobbs 2014). The finding of the analysis might also help the concerned company to deal with the various factors that are related to the exploration of the various opportunities within the concerned sector wherein the company might have been operating, the Customer Services sector in this case.
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Bargaining Power of Suppliers |
The bargaining power of the concerned suppliers might relate to the factors that pertain to the increase in the costs if the various raw materials that are required to continue with the smooth operations within the industry. The increase in the number of the child-care services within the Australian industry has led to the conditions that are related to the increase in the bargaining power of suppliers. |
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Bargaining Power of Buyers |
The company has also been facing issues in the matters that pertain to the bargaining power of the buyers of the various services that are provided by the company in discussion, G8 Education Limited. The bargaining power of the buyers in this case might be high due to the huge number of the early child learning facilities that are present with the given territories (Rastogi and Trivedi 2016). The increase in the bargaining power of the concerned buyers leads to the conditions wherein they might bargain in order to receive better discounts and waivers. |
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Threats of New Entrants |
The threats that might be posed by the new entrants within the concerned market might be low due to the fact that the company aims to provide the concerned clients with the best of the services. This might help the company to hold a better position within the given market (Aithal 2016). The maintenance of the better performance of the company might help the company to uphold the better performances within the concerned market thereby keeping the threats posed by the new entrants in a low position. |
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Threats of Substitution |
The threat of the substitute of the organisation might be low within the Australian territories due to the fact that the concerned company might be providing the concerned clientele with the better services within the concerned territory (Burns and Dewhurst 2016). Thus, the company might retain the clientele of the organisation thereby leaving very little scope for substitution. |
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Industry Rivalry |
The industry rivalry within the concerned sector is observed to be high due to the huge amount of competitiveness that exists among the various organisations that have been operating within the concerned industry. |
The above analysis reveals that the concerned company in discussion has been facing higher threats from the suppliers and the buyers who have been associated with the concerned organisation. The company might also be facing a large number of issues due to the high competition within the sector wherein it has been operating. However, the company is observed to have been facing lesser threats in the matters that pertain to the threats of the substitution and the threats of the new entrants.
Conclusion
Thus, from the above discussion, it might be pointed out that the concerned company in discussion, G8 Education Limited, must be advised to take into consideration the various facts that are related to the matters that pertain to the implement the overall improvement in the operations of the organisation. This might help the company to achieve a better competitive advantage in the market. The Porter’s Five Forces analysis might help the company to deal with the various factors that are related to the bargaining power of both the suppliers as well as the buyers of the organisation in order to achieve a better place within the concerned industrial sector wherein the concerned business organisation might have been featuring, the Australian educational industry, in this case.
References
Aithal, P.S., 2016. Study on ABCD analysis technique for business models, business strategies, operating concepts & business systems.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan International Higher Education.
Dobbs, M. E., 2014. Guidelines for applying Porter’s five forces framework: a set of industry analysis templates. Competitiveness Review, 24(1), pp.32-45.
G8education.edu.au 2018. [online] G8education.edu.au. Available at: https://g8education.edu.au/wp-content/uploads/2018/03/G8-Annual-Report-2017.pdf [Accessed 17 Aug. 2018].
G8education.edu.au 2018. Company Overview – G8 Education. [online] G8 Education. Available at: https://g8education.edu.au/about-us/company-overview/ [Accessed 17 Aug. 2018].
G8education.edu.au 2018. Home – G8 Education. [online] G8 Education. Available at: https://g8education.edu.au/ [Accessed 17 Aug. 2018].
G8education.edu.au 2018. Introduction – G8 Education. [online] G8 Education. Available at: https://g8education.edu.au/investor-information/introduction/ [Accessed 17 Aug. 2018].
Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an integrated approach. Cengage Learning.
Hill, T., 2017. Manufacturing strategy: the strategic management of the manufacturing function. Macmillan International Higher Education.
Rastogi, N. and Trivedi, M.K., 2016. PESTLE technique–a tool to identify external risks in construction projects. International Research Journal of Engineering and Technology (IRJET), 3(1), pp.384-388.
Rothaermel, F.T., 2015. Strategic management. McGraw-Hill Education.
Wheelen, T.L., Hunger, J.D., Hoffman, A.N. and Bamford, C.E., 2017. Strategic management and business policy. Pearson.
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