Strategic Management For Gamplement Plc: An Analysis

The situation of the company in the initial period (Year 20X0)

For a business, the concept of strategic management is considered as a process for establishing goals, objectives and procedures for making the organisation to be more proactive. According to Lynch (2018), in practice, the approach of strategic management has appeared as an effective deployment for the resources or the staff in order to achieve the goals of the organisation. The concept of strategic management enhances the entire direction through developing its policies and plans for achieving the objectives (Küng 2016). As such, by allocating the resources for implementing the plan, the strategic management for the organisation tends to gain a competitive edge over their rivalries.

The current study aims to discuss the progress of the Gamplement plc during its first three business years. Addressing its operational and strategic decisions, the study will discuss the confrontation of the organisation with the crisis.

In the year 20X0, the executive board of the concerned company faced the issue of replacement despite having good performance. Here the chairman of the board explained the new strategy. The hierarchical department of Gameplement plc decided to replace their executive board. Herein, after the annual meeting with its shareholders, such rumours got confirmed after announcing the new management team (Lynch 2018). As confessed by the chairman of the organisation, due to the poor financial results, they were bound to make such a decision. Taking into account their competitors, the concerned company basically desired to maintain their market share as well as the financial prospects that were in line with those rivalries in a comprehensive manner. However, currently, the organisation is seeing and producing one single product named GPC classic, the target audience of which is only domestic. It is noteworthy that it has been operating in a business to business context as most of its customers are retailers.

General		20X0 Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper
Net loss/Net income	mEUR	826
Share price	EUR	253
Totoal revenue	mEUR	15273

1. Market		20X0
Total sales of GPC classic	Units	48378
Revenue total	more	15273

GPC classic for the domestic market (market 1)		20X0
Sales	Units	48378
Planed revenue	Units	15273
Planned sales	more	51000
Market share	%	1315

2. Production		20X0
Final inventory of GPC classic	Units	0
Quantity of actual production of GPC classic	Units	48378
Use of production lines	%	110
Use of staff	%	1008
Productivity for index 1	Index	102
Productivity for index 2	Index	101
Cost of manufactured goods	EUR/Units	2079

It is worth to mention that the strategic decisions were made based aiming the long-termed sustainable growth for GAMEPLEMENT plc. On the other hand, the operational decisions were made based on the outdated plants for manufacturing as per the standards of the poor ecology. Herein, focusing on the channel of distribution, a conservation marketing mix was done for the long-termed development of the said organisation (Morden 2016). However, as per the scenario of the case, it has been understood that a large base of industry experts criticised the new management in a constant manner due to having less economic expertise and poor vision.

GAMEPLEMENT’s production in the previous year (20X0)

Based on the discussion made above, it can be stated that the strategic decision-making process has been entailed a broad set of activities through which an organisation can identify the concerned issue for establishing the desired goal. On that note, the concerned organisation is involved in identifying the issues in order to achieve their predefined goals. From a personal standpoint, it can be stated that as per the scenario, the appropriate alternatives got adopted and selected by means of solving the problems along with monitoring, evaluating and implementing them through an effective process of decision making (Papulova and Gazova 2016). For instance, the ‘Rational Model of decision making was used in this regard, following which the hierarchical department of the organisation involved the four steps.

On the other hand, in order to make the operational decision, the hierarchical department initially clarified the objectives by involving their decision making. Here they identified the intended decision to be achieved depending on the scale of the decision consequences. From a personal standpoint, it is felt that the concerned data was gathered from external sources.

In terms of internal impact, it can be stated that the factors such as emotions, ethics and attitude can be some key factors to be considered in this regard (Lo and Shi 2021). Considering attitude as an internal factor, it can be stated that it influences the management decisions through guiding the choice evaluation along with guiding in the assessment of appraisals and goals in accordance with the scenario (Alhawamdeh and Alsmairat, 2019). On the other hand, in regard to ethics, it is seen that for the concerned organisation, the ethical decisions led to sustaining the trust, demonstrating respect, caring, fairness, and responsibility that is consistent with better citizenship. It is noteworthy that for various periods, certain ethical behaviours provides a foundation to make better decisions through setting the ground rules (Calabretta et al.. 2017). In addition to the above, emotion helps to arise the decision as well as the judgement while degrading the decision making. For example, the management can predict the incidental emotions as well as the decisions in this regard (D’Auria and De Smet 2020).

On the other hand, in regard to the external factors, it can be stated that for the concerned case, the objectives of the firm, environmental factors and economic factors led to make the management decision. For example, as per the objective of the organisation, the hierarchical department of Gamplement plc can divide the job for their job responsibility among the staff and expect a better performance from them as per their capabilities (Burlow et al.. 2017). Similarly, considering the environment, some previous research has argued that the management decision is being influenced by the external environment of the company. Here the managerial persons aim to enhance the adaptive characteristics, following which the decision-making behaviour can be self-adaptive and leads to the positive interaction between individuals and the environment of Gamplement plc. In addition to that, the economic prospect is another area of concern for the decision making that basically focuses on behavioural and human consideration in this regard (Knowling et al.. 2021). For example, in the area of behavioural as well as human consideration, the managers basically decide to foster diversity irrespective of the certain opportunities to be adherence.

On what basis were strategic and operational decisions made?

For the strategic decision making in Gamplement plc, the vision, goals, and mission of the concerned firm have been considered. From the scenario of the case, it has been understood that the executive board of the organisations were involved in making them throughout the process of strategic decision making (Drucker 2016). However, it is noteworthy that making a decision in the individual period have defined the appropriate set of functions having a set of rules as well as a clear goal (Luoma and Martela 2021). Considering vision, it can be stated that the vision statement helped the hierarchical department to provide the right direction regarding the behaviour of the employees as well as providing inspiration. Here the strategic plan focused on its marketing strategy, following which the vision statement inspired its consumers to perform better.

On the other hand, the mission of the organisation has been appeared as a broad factor to be set for the Gamplement plc by its executive board members. Herein, by conveying the ethical and the moral position of the organisation, it got direction to do the proper things in the right manner (Marques, Moniz and de Sousa 2018). In addition, considering the goals of Gamplement plc, the goals appeared as critical for the process of strategic decision making. Since the goals of Gamplement plc guide the choices as well as provide the quantifiable and measurable way for assessing the strategic direction of the company, therefore the concerned factors helped to align the appropriate value of the company to be articulated within the business process (Patria, Wahyuni and Kusumastuti 2019).  

Undertaken Assumptions for the economic development:

1. Year-one revenue expectancy
	<Product 1>	<Product 2>	<Product 3>	<Product 4>
Number of units sold annually	5,000	7,500	10,000	15,000
Average sales price per unit	$500.00	$900.00	$700.00	$600.00
Annual revenue per product	$2,500,000	$6,750,000	$7,000,000	$9,000,000
Total year 1 revenue	$25,250,000
2. Year 1 cost of goods sold
	<Product 1>	<Product 2>	<Product 3>	<Product 4>
Expected gross margin per product	10.00%	15.00%	30.00%	20.00%
Annual cost of goods sold per product	$250,000	$1,012,500	$2,100,000	$1,800,000
Total year 20X0 cost of goods sold	$5,162,500
3. Annual maintenance, repair, and overhaul
Factor (%) on capital equipment	10%
4. Number of years for straight-line depreciation	5
5. Annual tax rate	30%
6. If long-term debt is being used to finance Operations, enter the total loan value.	–
7. Account receivable and payable %	20%

	Fixed Expenses
Fixed Expenses
Bldgs / Real Estate	$                84,600
Leasehold Improvements	39,000
Capital Equipment	42,300
Location / Admin Expenses	166,500
Opening Inventory	17,300
Advertising / Promo Expenses	26,000
Others	13,000
Total Expenses (Fixed)	$              388,700
	Variable Expenses
Inventory of Materials	20%
Direct labour (includes payroll taxes)	30%
Other expenses	20%
Other expenses	10%
Salaries (includes payroll taxes)	2%
Supplies	2%
Total Variable Expenses	84%
Breakeven Sales level   =	$391,992.74		Year 20X0	Year 20X1	Year 20X3
Net income (loss)		-$391,992.74	$14,008,463.00	$14,288,632.26	$14,860,722.24
Cumulative income			$13,616,470.26	$27,905,102.52	$42,765,824.76
Positive Cash Flow?			TRUE	TRUE	TRUE
Undiscounted break-even year		1	years
Actual break-even period		0.03	years

Based on the above assumptions, it can be stated that in the year 20X0, the company was confronted with a crisis. In support of this statement, it can be stated that from the scenario of the case study, it has been understood that the executive board of Gameplement Plc has been replaced due to the poor ongoing strategy of the company (Bildad, van Laar and Hegner 2018). Herein due to the poor manufacturing plants, the lone termed development of Gameplement Plc got affected in a broad manner. Here, the above assumptions point out the lack of sustainable growth of the concerned company in the first year. As per the case scenario, the new management plans to take over its sustainable and monetary growth from 20X1. In this said period, the management is expected to fulfil the desired expectations in this regard (Claeys 2017). Therefore at the end of year 20X3, the Gameplement Plc enhances a positive cash flow. As per the assumptions stated above it, the year 20X0 was an uneven break-even year and the actual period of break-even as per the undertaken assumptions.

Which internal and external impacts led to management decisions in the various periods?

Conclusion

It can be concluded that the notion of strategic management is viewed as a method for establishing goals, objectives, and processes in order to make an organisation more proactive. In practice, strategic management seems to be a successful deployment of resources or personnel in order to meet the organisation’s objectives. Strategic management is a notion that improves an organisation’s overall direction by formulating policies and strategies for accomplishing its goals. The strategic management of the organisation seeks to obtain a competitive advantage over its competitors by allocating resources for implementing the strategy. The current study has examined Gamplement plc’s development throughout its first three years of operations. The study has demonstrated the organisation’s strategic and operational decisions as well as how it dealt with the catastrophe.

Considering the aforementioned discussion, it can be concluded that the strategic decision-making process entails a comprehensive collection of actions via which an organisation may identify the relevant issue in order to achieve the desired aim. On that basis, the concerned organisation is tasked with detecting challenges in order to meet its predetermined objectives.

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