Business Strategic Management

 

This task focuses on a study of the Competitive Environment and Business Level Strategy for a chosen Strategic
Business Unit within a larger corporation. You are required to write a report with reference to at least 20
separate scholarly journal articles and your subject core text. This report will include the following headings
and response categories:
1. Hurdle requirement Pass/Not Pass:
a. The item is in the medium of written English. Sentences are structured and conform to academic
writing guidelines. The paper has an identifiable structure including an introduction, a main body,
and conclusion. The paper follows the Harvard Referencing Style. The examiner can proceed with
further assessment.
2. Corporation Identification:
a. Identify a corporation with product or service portfolios that span multiple business units.
i. In your discussion, define, with reference to scholarly articles, the term “corporation”.
ii. In your discussion, define, with reference to scholarly articles, the terms “product
portfolio” and “service portfolio”.
3. Business Unit Research:
a. Business Unit Identification.
i. Identify a single strategic business unit within the corporation.
1. In your discussion, define, with reference to scholarly articles, the term “Strategic
Business Unit”.
b. Identification of Product and Service Lines.
i. Identify the product and or service lines of the business unit.
1. In your discussion, define, with reference to scholarly articles, the terms “product
lines” and “service lines”.
4. Business Unit Revenue:
a. Identification of Revenue Centre.
i. Identify the largest revenues created for the corporation by the chosen business unit.
1. In your discussion, define, with reference to scholarly articles, the term “revenue”.
5. External Environment Analysis:
a. Identify the Political, Economic, Social, Technological, Environmental and Legal operating
environment of the selected business unit.
i. In your discussion, define, with reference to scholarly articles, the terms Political,
Economic, Social, Technological, Environmental and Legal.
1. Provide a definition for the term “operating environment”.
6. Source of Sustainable Competitive Advantage:
a. Identify the source of sustainable competitive advantage for the selected business unit.
i. In your discussion, define, with reference to scholarly articles, the four factors of
sustainable competitive advantage.
7. Strategic Direction:
a. Make recommendations for the future strategic direction of the selected business unit.
i. In your discussion, define, with reference to scholarly articles, the term “strategic
direction”.

 

 

Introduction 

 

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This paper discusses the competitive environment and business level strategy of "Reliance Industries." It is a famous organization that operates in a wide range of products and services. The paper covers different aspects. The first aspect it discusses is related to corporate identification. After this, it explains the business unit research, business unit revenue, external environment, source of sustainable competitive advantage, and strategic direction. The main motive behind the study of all these aspects is to learn the competitive environment and strategic management of "Reliance Industries." In order to support the study, the content is collected from secondary research sources. The use of secondary research sources will prove very effective for this paper. It is because the paper can integrate with the recent as well as previous research findings of different scholars. With the help of this paper, the target audience can learn a large range of strategic management and competitive environment aspects. Therefore, it is right to say that the competitive environment and business level strategy analysis will provide a significant glimpse of the working of "Reliance Industries."
Corporation Identification 
Corporation Introduction 
Rothaermel (2015) explained the corporation as a legal entity that is different and separate from its owners. Moreover, Wheelen (2017) also defined the corporation as an entity that enjoys a large number of responsibilities and rights that an individual possesses. In a similar manner, Reliance Industries is a legal organization that has its separate entity from its owners. The company has the sole logo, right to enter into contracts, and hire employees. Therefore, it can be said that Reliance Industries is a corporate house with separate legal roles and responsibilities. The Reliance Industries motto “Growth is Life” captures its success in existing markets (Nseindia.com, 2017). 
Product and Service Portfolio 
Moreover, Vinayak (2017) defined the product and service portfolio as a process of collection of products and services offered by an organization. The Reliance Industries product and service portfolio is a combination of different product and service lines. For example, the product and service portfolio of Reliance Industries contains; hydrocarbon production and exploration, retail and telecommunications, marketing and petroleum refining, and petrochemicals (Nseindia.com, 2017). This can easily understand with the help of below-mentioned table: 
 
Product and Service Segments
Product 1
Product 2
Product 3
Energy and Materials Businesses
Petrochemicals
Oil and Gas Exploration
Refining and Marketing
Consumer Businesses
Retail
Digital Services
Media and Entertainment

 

Business Unit Research 

 


Business Unit Identification 
Saeidi (2015) explained the strategic business unit as a fully-functional unit of a business that has its separate vision and mission statement. The strategic business unit mainly operates as a different unit. But, it is also considered the important part of the parent or main business Unit Company. The “Reliance Industries” operates a wide range of strategic business units. The Reliance Communications is one of its famous strategic business units. The Headquarter of the Reliance Communications is in Mumbai (Referenceforbusiness.com, 2017). The company is engaged in the providing GSM telephony and integrated services to its customers. It is operated with sole vision and mission statement. Apart from this, it can be said that the digital network of Reliance Communications covers more than 21,000 cities and towns. Therefore, it can be said that the “Reliance Industries” is a famous and integrated business unit with different strategic business units. 
Identification of Product and Service Lines
The product line is explained as a group of different products under a single brand sold by a particular company. In the similar context, the service line is defined as a grouping of all services related to a particular division (Slack, 2015). For example, Jeevan Labh and Shubh Labh are two same services of a single company named as “Life Insurance.” The product and service line of “Reliance Industries” can understand with the help of the below-mentioned table: 
Product line
Range of Products
Refining
Reliance Gas and GAPCO
Petroleum Retail
Reliance Petroleum retail, reliance aviation, Auto LPG, A1 Plaza, R-Care and various others.
Petrochemicals
Polymers like Repol, Relene, Reon, Repipe, and Chemicals such as Relab
Polyester & Fibre Intermediates
Recorn, Recron IDY, Recron SHT, Recron Fancyy, etc. (Referenceforbusiness.com, 2017).
Oil and Gas Exploration and Production
Crude oil and natural gas
Retail
Reliance Fresh, Reliance Retail, Reliance Super, Reliance Mart, Reliance Market, Reliance Digital, iStore etc.
Textiles
Vimal, Vimal Gifting, V2 etc.
Media and Entertainment
CNBC TV18, CNBC Awaaz, CNBC Bajar, IBN 7 etc.
TV Channels
ETV News Bangla, ETV News Kannada, Colors, Rishtey, and ETV Haryana Himachal Pradesh (Referenceforbusiness.com, 2017)
 

 

Business Unit Revenue 

 


Rothaermel (2015) explained the revenue as an income generated from the sale of goods and services, or any other use of assets and capital, linked with the main and subsidiary operations of an organization before any expenses and costs are deducted. Moreover, it can also describe as an amount of money that an organization receives during a particular period, including deductions and discounts for returned merchandise. The Reliance Communication business unit created big revenue in favor of its corporation which is "Reliance Industries." The Reliance Communication offered the biggest revenue during March 2013. At that time, Reliance communication provided the total income of approximate 12,820 billion dollars (Moneycontrol.com, 2017). This is the combination of sales turnover, net sales, and other income. The sales turnover during 2013 was 11,267 billion dollar. On the other hand, the net sales and other incomes were 11,267 and 1,553 billion dollar. After 2013, the company offered the less amount of total revenue to its Main Business Unit. The recent revenue generated by Reliance Communication is $9,154 billion. It includes sales turnover of 8,823 billion dollars, Net sales of 8,823 billion dollars, and other income of $331 billion (Moneycontrol.com, 2017). Therefore, it can be said that the Reliance Communication is contributed a big part of “Reliance Industries” total revenue.

 


External Environment Analysis 

 


PESTEL Analysis of Reliance Communication 
The PESTEL analysis is defined as an important tool to conduct external environment analysis. With the help of this tool, the organizations measure their macro-environmental factors that have a significant influence on their functioning's (Moutinho, 2018). In a similar manner, Reliance Communication is an important business unit of "Reliance Industries." The External environment of Reliance Communication does not only influence the working of Reliance Communication but also its corporate house which is Reliance Industries. Therefore, the PESTEL Analysis will give a significant understanding of its political, economic, socio-cultural, technological, environmental, and legal environment of India where the company operates. The PESTEL Analysis of Reliance Communication is following: 
 
Political: The first and foremost element of PESTEL analysis is a political evaluation. The political environment depicts the political circumstances of a nation where the company operates. The political environment of India is a combination of different factors. These factors are; skilled government, reduced costs, experienced political environment, assistance provided, and positive tax policy.
Economical: Another element is the economic environment. The economic environment discloses the factors that define how an organization becomes profitable and how it performs different functions. The economic environment of India is very sound than others (Krishnaswamy, 2017). The government has developed different policies regarding public investments in research and development. Therefore, this develops the economic condition of the country as well as the operating organization.
Social: The third element is the socio-cultural environment. It is an area that contains the shared attitudes and beliefs. The social and cultural environment of India is based on different factors. This factor includes; workforce diversity, cultural diversity, education level, growing demand, and stable social structures.  
Legal: The fourth environment is the legal environment. The legal environment is a combination of different factors like advertising standards, equal opportunities and various others (Hill, 2014). The legal environment of India is a combination of different legal laws and regulations. For example; The Workforce act 1948, Companies Act, 156. All these acts collaboratively determine the legal environment of Reliance communications.
Environmental
The environmental factors have become important due to the growing scarcity of pollution targets, raw materials, and doing business as a sustainable and ethical company. In India, the natural variables are considered the important part of the capital business (Huang, 2015). The Reliance communication is engaged in different environmental initiatives like water conservation, tree plantation, and various others. All this is performed with the sole purpose of becoming environment-friendly.
Technological 
The technological environment represents the technological landscape of a nation. In India, the new technological innovations are at peak. It is because of effective government support and well-developed skills and mindsets of individuals. Due to the high technological innovation, Reliance Communication took a great place among the eyes of its customers. 

 


Definition of Operating Environment 

 


Ginter (2018) defined the operating environment as an alternative term for external environment. It represents the functioning structure and working scenario of an organization. Moreover, () explained the operating environment as a surrounding in which a business organization operates successfully. 
Source of Sustainable Competitive Advantage 
The sustainable competitive advantage is defined as a process of evaluating the significant capabilities and competencies of an organization. The sustainable competitive advantage is a combination of four different factors (Ethiraj, 2016). These factors are; valuable resources, rare resources, imperfectly imitable resources and non-substitution able resources. The sustainable competitive advantage of Reliance Communication can understand with the help of below-mentioned table:
 
Valuable Resources
Rare Resources
Imperfectly imitable resources
Non-Substitution Resources
Infrastructure, wide range of products and services, innovative and latest technology
Talented workforce, Competitive business strategies, efficient mobile and internet towers
Comprehensive portfolio offered by Global Cloud Exchange a subsidiary of Reliance Communications (Referenceforbusiness.com, 2017)
Network coverage with a 4G and 5G speed

 

Strategic Direction 

 


Bettis (2016) explained the strategic direction as a central force that moves a business organization towards its intended objectives and business goals. The mission, vision, tactics, core values, and strategies of an organization contribute to the establishment of a strategic direction. Therefore, it can be recommended to the Reliance communication to focus more towards the development of competitive business strategies and sustainable resources. The presence of both will help the company to satisfy its target customers as well as win their confidence for a long time. Moreover, it is also recommended to Reliance communication to perform allocation of resources and ongoing evaluation of progress effective and on a timely basis (Della Corte, 2016). The use of these initiatives will ensure the significant progress of company towards its ultimate business objectives. Apart from this, it is also recommended to the organization to award its employees with right equipment, training, and tools to carry out their assigned roles and responsibilities. These initiatives will create a path of success in favor of Reliance Communication. So, it can be said that the Reliance Communication needs to adopt these recommended strategies and establish a strategic direction to succeed in a particular market and country.
Conclusion 
After studying all this, it can be concluded that Reliance Communication contributed enough towards the success of “Reliance Industries.” The Reliance communication does not only create the reliable customers for the “Reliance Industries” but also improve its existing revenue and profitability. The external environment in which the Reliance Communication operates is sound as per it’s working. So, it can be said that the company will perform a significant growth in its near future and win the confidence of different customers. 

 


References 

 


Bettis, R.A., Ethiraj, S., Gambardella, A., Helfat, C. and Mitchell, W., 2016. Creating repeatable cumulative knowledge in strategic management. Strategic Management Journal, 37(2), pp.257-261.
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Moutinho, L. and Vargas-Sanchez, A. eds., 2018. Strategic Management in Tourism, CABI Tourism Texts. Cabi.
Moneycontrol.com. (2017). Reliance Communications Profit & Loss account, Reliance Communications Financial Statement & Accounts. [online] Available at: http://www.moneycontrol.com/financials/reliancecommunications/profit-loss/RC13 [Accessed 1 Apr. 2018].
Nseindia.com. (2017). Annual Report Reliance Industries. [online] Available at: https://www.nseindia.com/corporates/corporateHome.html?id=shldinfo_annual_reports&radio_btn=company¶m=RELIANCE [Accessed 1 Apr. 2018].
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