Business Strategy Implementation Assignment Sample

Introduction Business Strategy Implementation

Every organization has its own strategy which they implement in order to achieve the objectives of the organization. Sony Ericsson mobile communication AB is a mobile manufacturer. The company is a joint venture which was established in 2001 by Japanese consumer electronics company Sony and the Swedish telecommunication company Ericsson. In this project report we will learn about the strategies that are used by the company Sony Ericsson in order to achieve goals effectively and efficiently. The roles and responsibility of organization for implementing a strategy for betterment in future running of the organization, more detailed study about how to implement a strategy.

Various strategies relating to substantive growth, limited growth and retrenchment

Growth strategies can be classified into two fundamental categories: concentration and diversification. Concentration refers to that state when companies have good potential growth; they’re not much to worry about the competitors in the market, and focus on the existing resources to have better future (Kohtamaki,, 2012). It is further divided into two part Vertical and Horizontal. Whereas in diversification it is appropriate when present condition of the company is not so stable and the existing market is not presenting good future then company can diversify to another line business. Diversification has greater risks and it is divided into two sub category Related and Unrelated (Aaltonen, Ikavalko, 2002).

Vertical integration – This type of strategy can be used by a company when they have strong competitive position in the growing targeted market. This strategy can have advantage in cost, stability and quality of products and making more difficult for the competitors to sustain in the same industry (Osarenkhoe, Bennani, 2007).

Horizontal growth – This strategy involves in expanding the company’s existing products into new locations or new market segment, or offering more products and services to the existing market, or a combination of both.

Related diversification – in this category of strategy company can diversify but into the related market so that they can utilize their existing resources like technology, customers, distribution, location to present a new set of product into the market.

Unrelated diversification – In this strategy of growth involves diversification into a new line of business assignment which is not related to the existing one (Huber, 2011.). The main reason of companies to diversify into new line because of not sustaining in the existing market or the needs and wants of product are rare, or competency level is relatively high.

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Mergers and Acquisitions Strategy – This strategy can be fruitful internally and externally through mergers and acquisitions a company can improve their values as well as the can bring innovative and better technology for manufacturing the goods and services. Internally it may take time but through mergers and acquisitions any company can improve its presents condition and its give them an opportunity to diversify into new segment of products and services.If company is struggling with limited growth should analyze existing market as well as the new market is there any opportunity to gain competitive advantage (Harvard, 2013). Market penetration strategy involves in increasing the market share in the existing market segment, and it can be achieve by selling more product and services to the established consumers and by targeting new consumer within the existing market. Secondly, this involves producing a new product for the existing consumers, and offering them new facilities to fulfill the needs and wants and also make positive impact in competitors market (Speculand, 2009). Retrenchment strategy used when company is finding difficult to sustain in the existing market or either company is not able to invest in the product in that case they either divest and stops the production of the product or can try to reduce the cost of the manufacturing which can lead them to lower the price of the product.

Appropriate strategy for Sony Ericsson

During 2001 to 2010 Sony Ericsson’s was having huge competitive position in the growing targeted market. They were the leading company in range of products like Smartphone, mobile phones, mobile music devices and wireless system (Faupel, 2012). Company adopted the Vertical integration strategy to concentrate on their existing products and produce more innovative products for the consumers. Company’s strategy was to release such products with digital photography as well as the multimedia capabilities such as downloading and viewing video clips. At that time they introduced products which facilitates digital camera and color screen which were the things to imitate and their competitors were lacking in that (Al-Ghamdi, 2008). In 2005, company launches the innovative mobile phone with 5megapixel camera and in 2008 the world’s first 8 mega pixel camera mobile phone was launched. Company always tried to meet the needs and wants of the consumer through this strategy but they failing in that and their competitors were giving more facilities with cheaper prices were making their impact in the market.

The appropriate strategy for Sony Ericsson at that moment was make merge with a company who was dealing in new technology and adopting the change in the environment (Feure, Chaharbaghi, 2005). Merger or acquisition with any other software or telecommunication would have help them to sustain in the market and through this firm could have made new and innovative products for the consumers which were switching their brand constantly. Sony started merging with company like Gaikai which was a cloud service which is to assist Sony to expand in its cloud gaming industry. After that company made very much beneficial mergers and acquisitions which assist company to have sustainable market, and their diversification strategy help them to enter into new market and make new opportunity for them (5 essential steps to successful strategy implementation. n.d.).

Roles and Responsibility for the strategy implementation in two different organization

Every organization in order to implement the formulated strategy has various types of roles and responsibility. Two organizations working in different sector and industries such as Sony Ericsson and Apple have to focus on their planning process and utilization of resources. Technology plays an important role in manufacturing their products effectively and efficiently, as they both deals in service and manufacturing industry. Both company aims to plan their technological resources and implement them in such a way that they can achieve their goals efficiently and sustain in the market for longer period (Kohtamaki, Organization purpose is to achieve goals by implementing their technology in efficient and effective manner. Apple is implementing technological features to adopt the environment according to the changes in order to improve their products and services, whereas Sony Ericsson is maintaining their quality of product to differentiate among the other leader providers of same goods and services. Strategy implementation strategy consist of three major factors such as: Designing future strategy, alignment of the organization in order to implement that strategy and last factor is making changes on implemented strategy (Osarenkhoe, Bennani, 2007).

Designing future strategy includes the strategic communication between internal and external part of the organization, in which internal part of the organization includes the members and employees of the organization and external part of the organization consist of the stakeholders. They major role of implementing strategy is to overcome the changes in near future, to achieve competitive advantage it is very important to make effective and efficient use of the employees by their respective management, which in near future are expected to make decisions in hectic situations or may be have to take risk in order to gain competitive edge over competitors (Doole, Lowe, 2008).

Whatever, strategies used by both Sony Ericsson and Apple, it is necessary for them to utilize their available resources effective and efficient manner. If one the company has adopted to implement product development strategy then the procurement of raw materials is very important as it have major impact on the quality of the product. Strategies implemented should be well communicated and must have an impact on the various stakeholders, to create interest among the working pattern of the organization (Speculand, 2009). Strategic implementation process can be achieved by formulating a marketing plan. The responsibility of implementing strategy lies in the hands of two parties identified as middle level managers and outsider.

Resources requirements to implement a new strategy

Every organization requires strategy to run their according to the needs and wants of the market. In an organization there are various department which works together to achieve the goals of the organization, strategies are made in reference to all department such as Human Resource, Finance, Research & development, and technology department (Huber, 2011). Various departments collectively works to sustain in the market as well as to fulfill the needs and wants of the targeted consumers.

Human Resource – It one the most important department of the organization, this department takes care of the employee and their working needs and wants are fulfilled by this department only. Strategy used by Sony Ericsson is product development, than there is need of new innovative product to be manufactured by the organization to sustain in the market (Al-Ghamdi, 2008). Employees must be trained according to the strategy implemented by the organization so that they both can work together and achieve the organizations goals and objectives.

Technological – To sustain in such competitive market organization has to adopt new technology according to the changes in the market. As their competitors like Apple are constantly bringing up the new technological products to the market (Feure, Chaharbaghi, 2005). Sony Ericsson needs to work according to the implemented strategy which helps them to gain new technology and support their product to sustain in the highly competitive market.

Research & development – company should have a particular separate department of research & development which will only analyze the current changes in the market or the needs and wants of the consumer. Company should sustain by maintaining the product variety according to the targeted market (Huber, 2011). Apple has one of the best research & development departments which is assisting them such facilities that they are the leader in their sector.

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Propose targets and timescales for achievement in Sony Ericsson

For measuring the effectiveness and efficiency of the organizational strategy, it is necessary to analyze SWOT (Strength, Weakness, opportunity, and threat). To monitor a strategy, there are three different criteria and techniques are used such as Acceptability, Suitability and Feasibility.

Suitability – Suitability deals with underlying principle of the strategy that does it make economic sense, would the organization can achieve economies of scale, or would it be suitable in terms of environment and capabilities.

Feasibility – Feasibility is concerned with the availability of resources required for implementation of the strategy. Resources include funding, people, time, and information.

Acceptability – Acceptability is concerned with the expectation of stakeholders mainly share holders, employees, customer with the expected outcomes, which can be in form or return, risk and stakeholder reactions.

As discussed above, the future strategies of the firm will be vertical interactive strategy. For monitoring such strategy Suitability criteria will be the most efficient techniques. This technique will assist in monitoring whether the implemented is strategy will meet the expectations of the shareholder or not (Osarenkhoe, Bennani, 2007). According to this criterion we could find whether vertical interactive strategies are addressing the constraints and key opportunity of an organization. The main aim of every organization is to fulfill the needs and wants of the targeted consumer and expands their business in order to generate high revenue. Feasibility is a technique which used to measure the imposed targets of an organization, for example financial targets of Sony Ericsson by implementing interactive strategies (Aaltonen, Ikavalko, 2002).

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From the above report we can conclude that the strategies used by the company Sony Ericsson are not assisting them to attain the overall objective of the organization. Their competitors have more percentage of the market share in the industry. Their internal and external environment is not suitable for their objectives and goals. In research we have found that suitability technique is best for the firm to sustain in the market and promote their product effectively and efficiently.

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  • Aaltonen, P., Ikavalko, H., 2002. Implementing strategies successfully. Integrated manufacturing system.
  • Al-Ghamdi, M. S., 2008. Obstacles to successful implementation of strategic decision: british experience. European business review.
  • Faupel, C., 2012. Value based performance management. advances in management Accounting.
  • Feure, R., Chaharbaghi, K., 2005. Researching strategy formulation and implementation in dynamic environments. Benchmarking for quality management & technology..
  • Kohtamaki, M.,, 2012. The role of personnel commitment to strategy implementation and organizational learning.
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