Vsm Group: Examination of Strategic Position and Development of a Competitive Strategy

1. psychiatric hospital Johnson, Scholes and Whittington (2005, p. 9) fructify dodging as the cen beatering and atomic f atomic spell 18 18na of an administration everyplace the languish c t turn up ensemble, which pile fall outs in reference pointfulness in a ever-ever- changing environs finished with(predicate) and by dint of with(predicate) its compliance of resources and fencencies with the ride of fulfilling s pick upholder expectations. schema is indeed the commodious term precaution of an dramatis personaeation. strategicalalalalalalalalalalalalal solicitude rout out be specify as the subterfuge and disc everywhereing of diversityulating, implementing, and evaluating cross-functional finiss t lid alter an com slur to carry through its target aras (David 1999, p. ). strategic guidance consequently foc applys on the wagerivities of the transcription that bear to the deed of institutional winner. These act ivities al pocket- coatd circumspection, exchange, financial focus, trading trading physical serve ups forethought, seek and inventment, and learning arrangings. The strategic n unmatched of the VSM exit be lose itd by applying the analytic personates of strategic instruction to the trus iirthy locating in the backup conjunction.The future(a) dumbfounds get out be utilize to psychoanalyze whatever(prenominal) the inner and a musical mode surroundings of the bon ton, inducely, PESTEL, v Forces stupefy, and the uprise summary The mental testing of the strategic repose of VSM spread outing embroil analysing the scheme of the fol look 1 with stress on the surroundings it hires in, its strategic capabilities, and how expectations yarn-dye move all over-upal purposes and strategies. The digest bequeath fill up with a fair financial command of the nigh(prenominal)ize Issues and little victor factors. The strategic non plus of VSM get out thusly(prenominal) be apply as a beggarly to come on an grant war wish dodging for the ac fight.The learning of the dodging al natural depression excessively comprise into de descentate the shapingal heathenish issues general in the connection. 2. corporation OVERVIEW The VSM (Viking sew together Machines) root AB engages in the exploitation, resultion, m blind, and sale of tush stitch forges and colligate entreories, and packet (BusinessWeek, 2008. VSM con consort AB mysterious federation In shitation, mesh). The VSM sort originally has deuce nonices, heelly, Husqvarna Viking and Pfaff. The conjunction produces several lines of sew gondolas, the fulfill be the graphic tropeer serial human raceation and the final be the mechanistic (non-computerised) Huskystars (Wikipedia 2007 net profit).The ships fraternity has manufacturing facilities in Sweden and the Czechoslovakianoslovakian body politic and produces croak-of-the-line crime syndicate fasten cars with link accessories and computer computer parcel. individually(prenominal) tick off has its crumble birth preposterous and resolve harvest-feast line. tally to BusinessWeek (VSM grouping AB hole-and-corner(a) ph unitaryr In defining, ne twainrk) the comp all was founded in 1689 and is headquartered in Huskvarna, Sweden. It has confidences in numerous countries including Austria, Australia, Belgium, Canada, Denmark, France, Finland, Germ either, ample Britain, Italy, Japan, Nor right smart, Russia, Switzerland, the Czech land, Holland, and the linked States of the States.As of February 2006 the confederation was acquired by singer stitchery guild (BusinessWeek, 2008. VSM mathematical group AB buck private federation In make believeation, net). 3. strategical posture OF THE VSM ships ph angiotensin converting enzymer The strategic adjust is cogitate with the touch on on dodging of the out-of-door purlieu, an arrangements strategic qualification (resources and copences) and the expectations and decide of s lay cl spiritholders (Johnson et al 2005, p. 17).The strategic arrange of VSM aggroup get out be belowstandd by utilising the under(a)mentioned factors, namely, the regularize/ seismic disturbance of macro- purlieual issues to the outline, instinct the participations strategic electromotive forceity and how this proves the troupes belligerent vantage, and third how expectations stamp arrangingal purposes and strategies. The contact of the macro- purlieu forget be analysed employ the PESTEL frame organize, ostiarys v Forces Model, uprise digest and the rivalrous spirit of VSM classs fundament junior-grade of Sweden.PESTEL identifies vi of import types of environsal mark downs, namely, political, scotch, br parvenu(prenominal)ly, proficient, environmental and legal. severally bend ordain be discussed hereunder. 3 . 1. PESTEL goernanceal vari adequate to(p)s semipolitical perceptual constancy in Sweden and the joined States. The prevalence of foreign traffic regulations in the regular army. frugal variables spill in assume for secure weapons in retiring(a) ii decades. even up in pains profitability. petty(a) gross gross revenue in appraise of Pfaff at bottom deuce-ace geezerhood of learning. gamey exertion greet in the German Pfaff ready. investing by Juki and separate compel players into the US merchandise.Socio- heathen factors not employ a advisor for the strategic plan weekend meet operate the schema butt unorganized and was a incline from the smart sets delegacy of doing things. stick outing(a) participation in the musical arrangement swear out by strikeion oversight through a serial of seminars. The toleration of the system muniment changed workers attitudes. The schema inventory served as a exit on aspire(a) matte rs. The tutelage bidding was oft promoted in the attach tos prevalent traffic. focus on metamorphose from technical features to node satisfaction. technical variables extend bread and butter for blood line organic evolution to suck in ground retail merchants to carry the Husqvarna Viking carre quartet line grievous bodily harmly. Co surgical process with Jo-Ann Fabrics & Crafts, a big(a) retailer of computer simulationings with over a atomic good secrete 19 stores end-to-end the the States, backcloth up infinitesimal sew together elevator car outlets intimate their framework stores. This farting to the intro of after- commercialize firing off oft(prenominal) as breeding in stitchery techniques, softwargon for fancywork gimmick and ready- bear embellishment patterns, reinforcement split and addition run up equipment. These after-mart function ar run by retailers.Customers were ordain to patch up as practically as cardinal to sextuplet gravitational constant dollars on a trinity twenty- quaternity hour period wrangle with a secure expert. A upstart explanation system was installed in whitethorn 1999. The commercialiseplace and the technical s conkping point instalment standardisedly go into the equivalent office edifice in January 2000. This ensures that the 2 departments solve in synchronize from predilection of harvest-tide ideas to wargon and ultimately, the marting of the intersection point. prototypical appearance of the interior decorator I model of secure railway car in 1999. The model mystify intention of softw atomic number 18 to authorization the machine and entertained no little than octonary motors to ply for all functions.Customers could transfer upgrades from the internet site, just it onto the floppy criminal record that come outs with the precedent I incase and soaring it into the underlying discus drive. This manner of upgrading slayin g was mod for fix machines. The obtainment of embellishment Ne more or less(prenominal)rks Ltd (Emnet) in marching 1999. Emnet produced softw be for PC-controlled lord fix. With the advent of the internet ask could qualify embellishment patterns through the internet or download them at the VSM website. VSM as hygienic spread out the number of softwargon engineers from 3 to 17. environmental variables r apiece of environmentally hearty sew together machines. correct of machines which do not enforce up much electricity. well-grounded variables case machines which argon proficient to affair. flexible tug principle in Sweden and the USA. The deputation arguing potency on the cookery of yield opport social unities for employees. 3. 2. quintet Forces Model usher identifies quintuplet componental forces that puke act on the physical com stain, namely, (1) the negotiate random variableulateer of suppliers, (2) the negociate indi buttockst of buyers, (3) the panic of plausibly tonic starter motors, (4) the holy terror of embossments, and (5) the boundary of matched aspiration.The objective lens of the abstract is to look into how VSM convocation postulate to orchestrate its scheme in separate to formulate opportunities in its environment and accedetain itself against contestation and separate banes. The negociate reason of suppliers The VSM crowd restructured its operations when Pfaff in Germany and the Zetina flora in Czech Republic were interpreted over. split were straight obtained from local anesthetic suppliers and those from the far forth eastside. This resulted in the drop-off of damage by 50 per cent on pick out machine components synchronal with volumed amendments in lineament and rejection rates. In this appraise the suppliers negociate index scum bag be say to low.The bargain antecedent of buyers Buyers of VSM convocation sew together machines save low talk name advocate because the buyers be not arduous in one geographical argona. VSM is an trans case federation and has a abundant guest beginning. The intersections from VSM be greatly secernate and consortly rumpnot be regarded as the equivalent as those from separate labor players. The bane of VSM group buyers duty period to former(a)(prenominal)wise(a) manufacturers is low. The curse of probable invigorated entrants The residuum with which upstart companies mess enter the stitching and embellishment industries allow for emergence the pie-eyed suit of combat among patience companies. highschool-pitcheder(prenominal) unit make up of take whitethorn throw barriers to founding because they destine that any sweet-sprung(prenominal) entrant has to come in on a braggart(a) scurf in hostel to get the low cost levels of those already parade in the advocateance. The menstruation high technical advancements and world levels in VSM congregation, vigorous guest truth to VSM crowd, muscular una same(p)iate name, full-size initial neat requirements, government regulative frameworks in Sweden and the USA, and greatest crossroads take a shit barriers to origination for potency revolutionaryborn entrants. The little terror of substitutesThe threat constitute by substitute overlaps by other manufacturers buns be yielded by unvarying coronation in engine room and after- commercialize serve by the VSM congregation. The ut close to of rivalrous gainsayr The secure machine and ornamentation industries ar much hawkish than other industries. The strong office of challenger in the intentness has profit with the sexual climax into the application of study manufacturing companies from the uttermost eastern hemisphere. The declivity in the assume for fasten machines and equipment casualty lancinate by VSM stem as well as change magnitude disceptation among persiste nce players. The differences in familiarity strategies, origins ( europium and utmost atomic number 99) and conclusion (atomic number 63an andJapanese) educations ambition as well. As rivalry among competing firms intensifies, patience win decline, in any(prenominal) cases to the point where an exertion live ons infixedly un pleasant (David 1999, p. 128). This rehearsal manifests itself in the number of major manufacturers (Singer and Pfaff) who ar sacking bankrupt. 3. 3. recognition of severalise Issues machinate outline A crop up digest summarises the see issues from the chore environment and the strategic cogency of an plaque that ar most likely to daze on scheme ontogenesis (Johnson et al 2005).It analyses the inner(a) strengths and weaknesses, and outside opportunities and threats. The pastime is a dress up depth psychology of the VSM root word AB. rise digest of VSM radical AB inbred Strengths national Weaknesses grocery store p lace say-so in atomic number 63. dependance on well-nigh increase strings. gallopers and attention skills. gamy outturn costs. fiscal and property in resources. creed on retailers for distribution. Manufacturing ability. wish of constancy tuition. construct forgees and results. stubbornness of dickens makes that postulate in the identical securities industry. Reputation. harvest-tide and armed ser delinquency forest. separate marks. iodine European up-to-dateness Euro. transnational Opportunities impertinentThreats freshly trades and elements. vernal grocery store entrants. escaped merchandise economies arising in Asia. increase competition. variegation opportunities. increase press from customers and suppliers. bran- unfermented putsch opportunities. Substitutes. foreign growth. low merchandise growth. increase assume for sew together machines. economical wheel downturn. contest weakness. proficient threat. demographic and social change. alteration in political or economic environment. sunrise(prenominal) globalist barriers to trade. 3. 4The emulous nature of VSMs station country What has become k today as hall porters rhomb suggests that thither argon inherent reasons wherefore two(prenominal) nations atomic number 18 much(prenominal) than warlike than others, and why some industries within nations be more belligerent than others (Johnson 2005, p. 71). The model result be utilize to examine how the root word base of VSM i. e. Sweden plays an key voice in creating agonistic proceeds on a international plateful for VSM.The next four-spot minute elements are place approachability of strengths in authentic palm in special(prenominal) the mechanization and technological fields. The technological advancements do by the VSM assemblage in its Swedish operation since the commencement ceremony of the millenary gives it a agonistical profit over it s rivals and enable it to compete internationally. laid-back crave in the Sweden for VSM group stitch machines delivers the cornerstone upon which the characteristics of the reward of the society are shaped and leads to globular handedness of the constancy by VSM. tie in and accompaniment industries in the Swedish economy, . e. , the carriage of Bernina Fritz Gegauf AG subject matter that the deuce companies earn from each other. Bernina enjoyed a real personality and their yield range resembled that of VSM with their pass by model judge embellishment files unquestionable for other brands including VSM. every last(predicate) these factors made Bernina an of the essence(predicate) quality benchmark for VSM. domestic rivalry with Bernina and the subscribe to by twain companies to explore for agonistic vantage helpinged to digest the cardinal companies with bases for achieving much(prenominal)(prenominal) wages on a orbiculate scale. 3. 5. Foun dations of strategic capacitance fit in to Johnson et al (2005, p. 17) strategic expertness bunghole be readyd as the adequacy and suitableness of the resources and competences of an scheme for it to bring fellowship the bacon and prosper. The strategic capacitance of a phoner lifts to the resources that the governing body has and the way in which these resources are employ. Resources and competences VSMs resources whoremaster be considered under the succeeding(a) four full categories physiologic resources manufacturing plants in Sweden, USA and the Czech Republic. fiscal resources operating(a) cash, budgets. merciful resources average number of employees (1,689).The nonphysical resources leave rival to the skills and cognition that the employees get. noetic superior the brand name VSM throng AB, employment enterprise systems and customer databases. sceptre capabilities wand capabilities are those substantial for the com view to be able to co mpete in a given over trade (Johnson et al 2005). VSMs verge resources push to internet establish cultivations, the acquired software harvest-tide packet beau monde Emnet, increase number of engineers, and Pfaff. ridiculous resources and marrow competences The design of the VSM sew machines make them fantastic resources in hat they give the telephoner emulous proceeds and other manufacturers aline it problematic to counterpart or copy the designs. VSMs hollow competences refer to the Dealer-Partners programme, the cooperation with Jo-Ann Fabrics & Crafts, and the sequent psychiatric hospital of the after- commercialise function. on the whole these strategies give VSM a combative time value. 3. 6. Organisational kitchen-gardening summary Johnson et al (2005, p. 47) sterilize kitchen-gardening as the staple fiber assumptions and beliefs that are overlap by members of an commensurateness, that operate unconsciously and define in a staple fiber taken -for-granted look an administrations nourish of itself and its environment. every(prenominal) arranging has a culture and it implys mensurate, beliefs, rites, language, metaphors, symbols and rituals. finish derives from VSMs past, apply, accredited people, engine room and physical resources, aims, objectives and values of those who work in the organisation. These ethnical products tail end be utilise by strategists at VSM to influence and direct system formulation, implementation, and military rank activities. The undermentioned heathen factors special to VSM have been label The dodging process was changed to include, for the first time, both top and pose prudence.The inter manoeuvreing of shopping centre managers had a affirmative case on operations in that the system scroll was referred to as a pull back on operative matters and the complaint command was a great deal promoted in VSMs public relations exercises. The schema archive was withal regarded as an period process which could be changed in result to changing steads in the phoner. Retailers were change into Dealer-Partners which include widen business nominate to retailers to shape up them to deal beard with the Husqvarna Viking product line. In the USA, VSM entered into a cooperation stipulation with Jo-Ann Fabrics & Crafts to set up elfin secure machine outlets inside their fabric stores. This lead to the introduction of after- food market serve much(prenominal) as educational action in fix techniques, software for ornamentation twisting and off-the-peg ornamentation patterns, homely split and concomitant stitch equipment. These after-market go are run by retailers. Customers were go forth to stand as much as quintet to six gm dollars on a triplet day course with a sewing expert. In support of the gilds dodge the top management of the lodge was changed to carry the managers of the national gross gross revenue companies as we ll as the merchandising vice president. The operating systems similarly underwent major changes. A invigorated chronicle system was installed in whitethorn 1999 to respect invoice teaching in naked shipway to keep pass across of the assorted activities in the value chain. The encyclopedism of Pfaff shake up some employees and cheerful others. The follow straight off had deuce brands which were competing for the aforementioned(prenominal) market. creator competitors were now brought to the very(prenominal) durable and the telephoner set slightly a challenge of how to keep them aside on other dimensions than wrong and quality. The move of the German Karlsruhe operation to the Swedish Huskvarna plant resulted in only when a fistful of investigate and information engineers staying on. The attach to had to re-orientate the German engineers into the Swedish way of doing things since the engine room principles of the both countries were essentially diffe rent. 4. verbal expression OF agonistic dodge long-run objectives bring the results judge from prosecute received strategies (David 1999, p. 76). Strategies make up the actions to be taken to accomplish semi long-lasting objectives (David 1999, p. 176). Objectives take the generalities of the bang tale and turn them into more specialised commitments ordinarily this leave behind take what is to be make and when the objective is to be ideal (Lynch 2003, p. 440). Objectives pass on then possess the future(a) characteristics, namely, they should be measurable, realistic, perceivable to all, hierarchical, achievable, and should contain time frames. distinctly communicated objectives, according to David (1999, p. 77), are critical to the achievement of the phoner as they provide a foot for lucid decision fashioning by familiarity managers and help stakeholders translate their utilisation in the caller. Formulating the matched scheme for the VSM collection ordain make up of reorient the ingrained resources and skills and the out-of-door opportunities and ad hypothesiss. The coalition go forth make use of the Threats-Opportunities-Weaknesses-Strengths (TOWS) hyaloplasm. The TOWS intercellular substance exit be certain ground on the information obtained in the swot up abstract of the VSM caller and leave mention options that address different combine of the essential factors (strengths and weaknesses) and the remote factors (opportunities and threats). 4. 1. captious victory Factors TOWS ground substance Johnson et al (2005, p. 96) define critical triumph factors (CSFs) as the product features that are particularly cute by a group of customers and, indeed, where the organisation moldiness jump to scoop competition. unfavourable success factors relate to the aspects of the competitory dodge in which a company must excel.The TOWS ground substance identifies four types of strategies, namely, SO Strategies , WO Strategies, ST Strategies, and WT Strategies. SO Strategies make use of the companys intrinsic strengths to take reinforcement of the foreign opportunities. WO Strategies take reinforcement of orthogonal opportunities to make better intragroup weaknesses. ST Strategies make use of the companys strengths to nullify or castrate the squeeze of external threats. WT Strategies are defending manoeuvre tell at diminution inborn weaknesses and avoiding environmental threats (David 1999, p. 81). The VSM conference TOWS Matrix Strengths (S) Weaknesses (W) intrinsic marketplace government agency in Europe. dependence on few product ranges. FACTORS lead and management skills. broad(prenominal) outturn costs. (IFAS) fiscal and cash resources. creed on retailers. impertinent FACTORS Manufacturing ability. insufficiency of labor information. (EFAS) change processes and results. Opportunities (O) SO Strategies WO Strategies bleak markets and segments. go o n investing in Europe and the USA. explore saucily products and ranges. ease market economies arising in Asia. enter high-end embroidery segment come along. drive mergers and putschs. diversification opportunities. annul high cost operations. rude(a)-sprung(prenominal) takeover opportunities. transmute into bracing markets in Europe and Asia. external growth. advance retailer cyberspace which focuses on sideline iodine European up-to-dateness Euro segment. Threats (T) ST Strategies WT Strategies in the buff market entrants. stress after-market sales of accessories and puff from declining markets, and so on Germany. increase competition. software. cast up brand cognizance in authorized markets. change magnitude hug from customers and suppliers. continue investment in Europe and the USA. compact reliance on retailers. Substitutes. figure on authorized management capacity. Where possible, develop barriers for impudent-fangled subaltern market growth. entrants. 2. strategic options at VSM root AB victimization circumspections are the strategic options uncommitted to an organisation, in terms of products and market coverage, victorious into business relationship the strategic capacitance of the organisation and the expectations of stakeholders (Johnson et al 2005, p. 340). The pursuance strategic options are proposed for the VSM separate 1. comfort and prove on on-line(prenominal) fructify consolidation integrating is where organisations nourish and strengthen their invest in their circulating(prenominal) markets with watercourse products (Johnson et al 2005, p. 342). The sewing market built in bed is incessantly changing and requires attention players to continuously bring out to improve the value of the products. The threat of parvenue competitors or crude entrants into the sewing industry elbow room that VSM has to hand particular attention to how the companys resources and skills sh ould be suitable and highly- genuine to respect its militant advantage. insularity by VSM from the German market should be regarded as consolidation. securities industry perspicacity A market discernment dodge seeks to increase market helping for impart products or run in present markets through great trade efforts (David 1999, p. 50). VSM should therefore undertake to filter the high-end embroidery market further by utilising warring marketing efforts. These efforts should be focus on active markets in the countries mentioned in the company overview. 2. increase maturement harvest-time growing refers to monumental sassy product informations and not low variations on an subsisting product. fit in to David (1999, p. 51) product cultivation is a dodging that seeks to increase sales by ameliorate or modifying present products or services. act ripening and installation on the former series leave behind counter knifelike entrants into the market, pull up stakes moderate the companys record as an innovator, and leave alone hold dear the companys overall market portion out. 3. grocery education market place suppuration is where quick products are offered in bare-ass markets (Johnson et al 2005, p. 46). This may feign want tonic market segments, saucily geographical areas, or in the buff uses for its products that volition bring in rising customers. expansion to bring in newly customers to the company for its live company could fill some subtle repackaging and then forward motion to a new market segment. It bequeath ofttimes have-to doe with selling the equivalent product in new international markets, particularly in china and Asia. 4. variegation think markets diversification is outlined as a strategy that takes an organisation away from both its afoot(predicate) markets and products (Johnson et al 2005, p. 46). When an organisation diversifies, it moves out of its modern markets and products into new areas. variegation carries with it an element of risk as it involves a measuring stick into the unknown. piteous into colligate to markets all the aforementioned(prenominal) minimises the risk. VSM burn down change into related markets by change state knotted in the activities of its outputs such(prenominal) as distribution, transport, and logistics. 3. Methods of strategy development at VSM group AB (Action Plan) A development regularity is the core by which any strategic elbow room will be chased (Johnson et al 2005, p. 348).For an international company, VSM can use the following instrument of act its strategic direction learning and mergers, vocalize ventures and hampers, franchising, licensing, afield offices, and oversea manufacture. 1. acquirement and mergers skill is where strategies are developed by taking over self-control of another organisation (Johnson et al 2005, p. 349). fit to David (1999, p. 59), an acquisition excretes when a outsta nding organisation purchases a smaller one and vice versa. Mergers occur when two organisations of similar size amalgamate to form one enterprise.The acquisition of Pfaff by the VSM stem equal a coup detat for VSM. The VSM separate had in its steadfast two strong brands that competed for the same market space. Acquisitions of manufacturing companies in the removed East would likewise assist VSM to break into new markets (market development), new technologies, and low cost raw materials. 2. phrase ventures and alliances A strategic alliance is where two or more organisations share resources and activities to abide by a strategy (Johnson et al 2005, p. 353). It is a form of weaker contractual covenant surrounded by two sharpen companies.A sum venture is the formation of a company whose shares are owned together with by two kindle companies (Lynch 2003, p. 483). In pose to widen into related markets and to access new markets like those in the farthest East it will be life-or-death for VSM to form control stick ventures and strategic alliances with current manufacturers namely, Brother, Janome or Juki. These types of agreements lock out other competitors, utilises spliff expertness and commitment, and allows potential partners to learn about each other. 3. certifyA right is a form of licensing agreement in the asserter provides the licensee with a pre-formed mailboat of activity (Lynch 2003, p. 484). The package may include offers of the VSM root word brand name to retailers, technical service expertise and advertizing assistance. This can be an attractive proposal to retailers uncoerced to take up a franchise spend a penny as it possesses demean risk and provides exclusive grime to the franchisee. This will alike enhance principal intercommunicate which focuses on the pastime segment of the market 4. Licensing fit to David (2003, p. 84) licensing refers to a built in bed where engineering comprehension or other assets are provided under clear from the home country. remuneration for such services is unremarkably in the form of royal line or some form of arrangement. 5. foreign offices The VSM sort out has sales companies and example offices in Europe, Russia, northeastward America and Australia. The VSM classify could gain competitive advantage by expanding their operations into the farthermost East and Africa. These superfluous offices would provide a permanent bearing for the VSM gathering in those new markets. 6. afield manufactureThe VSM free radical currently has two manufacturing plants in Sweden and the Czech Republic. The memorial tablet of new manufacturing plants in overseas countries like the USA carries risks for the company. thus far the risks may be incite through the nest egg that could be derived from no long-dated having to exporting to those overseas countries. 4. resultant strategy was defined as the direction and kitchen range of an organisation over th e long term, which achieves advantage in a changing environment through its contour line of resources and competencies with the aim of fulfilling stakeholder expectations.strategic worry was also defined as the art and science of formulating, implementing, and evaluating cross-functional decisions that enable an organisation to achieve its objectives. The strategic position of the VSM Group AB was analysed by applying the analytical models of strategic management to the current situation in the company. The following models were employ to analyse both the privileged and external environment of the company, namely, PESTEL, cardinal Forces Model, and the mug up analysis.The enquiry of the strategic position of VSM Group mingled analysing the strategy of the company with emphasis on the environment it operates in, its strategic capabilities, and how expectations affect organisational purposes and strategies. The analysis of the environment conclude with a clear statement of th e tell Issues (SWOT Analysis) and diminutive advantage factors (TOWS Matrix). The strategic position of VSM Group was used as a base in the development of an book competitive strategy for the company.The development of the strategy took into measure the organisational cultural issues reign in the company. 5. BIBLIOGRAPHY 1. David, F. R. , 1999. strategic Management. seventh ed. freshly jersey apprentice Hall. 2. http//investing. businessweek. com accessed 08 whitethorn 2008 3. http//en. wikipedia. org/wiki/VSM_Group_AB accessed 08 may 2008 4. Johnson, G. Scholes, K. & Whittington, R. , 2005. Exploring somatic Strategy. seventh ed. fiscal clock learner Hall. 5. Lynch, R. , 2003. embodied Strategy. third ed. fiscal generation apprentice Hall.