Corporation Identification
The drilling innovation company is having its operations globally, international political factors highly influence the performance of the selected business unit of Tesco Corporation. This will be taking into consideration the tax rates, legislation acts and obviously, the country’s stability where it is operating. As because, Tesco Corporation is performing its part in creating the employment scopes, and therefore, assists towards the growth in the demand in respect of the products as well as services and also the diversification of its workforce. Classification of product occurs with the help of BCG Matrix. This will be classifying products through market share of the product and rate of growth that the product might be having. In regard to this classification, a product manage will be deciding the investment level a specific product might require and what returns will be received that product. Another goal regarding product portfolio management is considered being cash flow management, in which BCG Matrix will do the propagation to balance the cash flow in every products equally. The different product and service lines are top drive drilling system sales and rentals, casing and tubing running, deepwater completions, certified pre-owned top devices, tubular services, aftermarket sales and services, re-certification of top drives, catwalks, casing accessories, centralizers as well as reaming shoes.
The selected organization in this context is Tesco Corporation. Corporations are defined as a business establishment that is chartered by a state as well as providing various legal rights as an entity that is separate from its owners. The characterization of this kind of business is done with the help of limited liability of its owners, issuing shares of stocks that are easily transferable. Tesco Corporation specializes in developing as well as commercializing the drilling technologies as well as services. Focusing on safety as well as effectiveness, the company is providing quality products as well as services. Moreover, Tesco Corporation is generating real value in respect of customers.
A product portfolio will comprise every product that Tesco Corporation is comprising of. Product portfolio is consisting of different product categories, different line of products and finally the product itself. There is the management’s need concerning the three levels in respect of the portfolio of a product. There is manager’s need for managing the products, managing the line of products and finally the senior level management, which manages the general assortment. (Dess 2016).
Classification of product occurs with the help of BCG Matrix. It will be classifying products through market share regarding the product and rate of growth that the product might be having. In regard to this classification, a product manage will be deciding the investment level a specific product might require and what returns will be received from such a product. Another goal regarding product portfolio management would be cash flow management, in which BCG Matrix will do the propagation regarding the balancing aspect of the cash flow in every product equally (Vogel 2013).
Service portfolio is containing the explanation of various services that is having an engagement all through the lifecycle of the service. It is also representing the commitment as well as investment that is made by the service providers across every customer and market spaces.
Product Portfolio
Service Portfolio Management makes sure that the service provider offers the correct service combination for meeting the requirements of the customers. Moreover, service portfolio take into consideration the sub processes such as,
- Define – The purpose of this process is defining the service results that are being desired.
- Analyze – The purpose of this process is analyzing the influence of new services that are proposed or changed services on services that are available in service portfolio.
- Approve – The purpose of this process is submitting change proposal to change management as well as initiating the design stage in respect of the new or changed services when the authorization of the proposal is made.
- Charter – The purpose of this process is communicating the decisions, allocating the resources as well as chartering of services (Hubbard 2014).
A single strategic business unit within Tesco Corporation is considered to be the development and commercialization of drilling technologies and services.
A strategic business unit is also a fully-operational business unit that is having its independent entity, but needs to do the reporting directly to the organizational headquarters regarding its operational status. It is functioning in an independent manner and is focusing on a target market. It is having its own support functions like HR, training departments and so on (Harrison 2017).
The different product and service lines are top drive drilling system sales and rentals, casing and tubing running, deepwater completions, certified pre-owned top devices, tubular services, aftermarket sales and services, re-certification of top drives, catwalks, casing accessories, centralizers as well as reaming shoes.
The product lines are considered being the assortment of similar products under a single brand that is being sold through the similar company. Companies are selling multiple line of products with the help of their varied brands (Frynas 2017).
The service lines are considered being the assortment of every products and services associated with one particular business division (Morschett 2015).
Revenue is considered to be the generation of the selling of products or services, or any other utilization of capital or assets, having an association with the major organizational functions prior to the deduction of any costs or expenses. Revenue is normally depicted as the top item within an income statement from which the subtraction of all the charges, costs as well as expenses are made for arriving at net income. This is also regarded as sales turnover.
The largest revenue centre that is identified for the corporation by the business unit is revenue from the products segment. The revenue from the products segment for Q12016 was $16.6 million and included six top drive units (Goetsch 2014).
- Political Factors – As because, the drilling innovation company is having its operations globally, international political factors highly influence the performance of the selected business unit of Tesco Corporation. This will be taking into consideration the tax rates, legislation acts and obviously, the country’s stability where it is operating. Since, Tesco Corporation plays its part in creating scopes in respect of employment, it also therefore, assists towards the growth in the demand in regard to the company’s products as well as services and its diversification of workforce (Bettis 2014).
- Economical Factors – These factors are considered being the major aspect in regard of Tesco Corporation since they are most likely to leverage costs, demands, profits as well as prices like taxation changes or other factors that might be influencing the monetary access. It’s significant to mention that although there’s occurring business development globally, still the organization is very much dependent on certain specific markets where it is having a considerable amount of market share (Stead 2013). Having mentioned that, internationalization and diversification are considered being two significant strategic scenarios that the company is pursuing over the years and a significant reason for it in becoming successful (Morden 2016).
- Social Factors – Because of different social changes, trends are indicating that the products and services that are in demand are majorly affected by the beliefs and attitudes of the clients and in turn get affected by the aspect of social conditioning.
- Technological Factors – The technological advancements has helped in bringing different new scopes in respect of Tesco Corporation. In addition, Tesco did the investment of a major amount regarding projects that are associated with energy efficiency for fulfilling its long-term goal of reducing its carbon footprint.
- Legal Factors – The policies as well as legislations of the government are also affecting the performance of Tesco Corporation directly (Steinbach 2017).
- Environmental Factors –With the increasing organizational pressure to address the issues associated with the environment and also towards the adoption of operational methods that will provide societal benefit, Tesco Corporation is possessing clarity in commitment towards the reduction of its carbon footprint by 50% till 2020. In India, the corporation is trying to do the reduction of their organizational wastes.
Operating environment is considered to be the conditions, entities, events, as well as factors that surrounds the Tesco Corporation, which is influencing its activities as well as choices, and determining its scopes as well as threats. It is also called as external environment (Barney 2015).
- Strong research and development capabilities – Tesco Corporation will be gaining a strong competitive gain within its industry when it’s having a strong capability regarding research as well as development. Strong research and development will be reflected in the development of product methods of Tesco Corporation. Organizations having strong capabilities of research often leads in marketing innovation (Zhao 2017).
- Accessing intellectual properties – The next sustainable competitive advantage source that can be exploited by a business is to hold an intellectual right that will be existing in the structure trademarks, trade names, copyrights as well as patents.
- Exclusive re-selling or rights of distribution – To hold special rights to distribute is one more source regarding sustainable competitive advantage. When an organization is holding exclusive rights regarding a product or service within a region, then the sourcing of that product can only be done from the distributor or holder of those rights (Peteraf 2014).
- Ownership of capital equipment – The exploitation of the source regarding competitive advantage is majorly done by organizations functioning in industries in which there is the requirement of heavy machinery. For instance, the industries in which capital equipment ownership is considered being a competitive gain that take into consideration publishing, manufacturing, oil exploration, construction as well as mining.
- Better product or customer assistance – An organization that is having the ability for promptly responding to the requirement of consumers as well as providing additional assistance will be having a competitive advantage in respect of the competitors.
- Low cost or high volume production – When the business is having the ability for producing in increased quantity, then it will be gaining a sustainable competitive advantage through the reduction of its margin of profit as well as recouping it with the help of high volume sales as well as revenue (Slack 2015).
- Economic factors – This factor is explaining the fact that a manufacturing company that is operating in a developing country will be having a competitive advantage over an organization that is manufacturing in a developed country since the economic system in the developing nation is more constructive in regard to start-up overhead as well as cost of labour.
- Improved database management and data processing abilities – This competitive advantage source is having considerable clarity. An organization that is demonstrating the capacity for processing data very fast will be having a competitive advantage over other organizations having lower capacity for processing (Rothaermel 2015).
- Strong strategy of marketing – Within the market, the organization having the best strategy for marketing is regarded as the winner. The competition for gaining a stronger competitive advantage within the market is the basis for the big organziations like Tesco Corporation spending huge amount of money in respect of marketing research as well as advertising on an annual basis.
- Accessing the working capital – For accessing the working capital is considered being the strongest sustainable competitive advantage an organization will be having in comparison to its competitors. Accessing the working capital is the distinguishing factor within a billion dollar organization as well as a million dollar organization.
- Excellent team of management and operations – There is the requirement for having a skilled business management team to harness the scopes that are creating the required competitive gain.
- Monopoly or entry barrier – Certain businesses have achieved competitive advantage since their industrial entry is being restricted by immediate situations. Pertinent industrial example in which entry barriers are creating competitive advantage are sector for oil exploration as well as mining (Eden 2013).
A sustainable competitive advantage is important in the long-term successes as well as business viability. Competitive advantage are the organizational strengths an organization is possessing that is establishing its basis to be differentiated from the competitors.
- Asset Driven – Sustainable competitive advantages are in general resulting from the foundational assets of an organization like the loyal customers, reliant suppliers or effective functional methods. Each if these are considered to be the catalyst regarding competitive advantage.
- Difficult in copying – This is considered to be the most intrinsic aspect in respect of sustaining competitive advantages. When an organization’s product, service or functional strength can get easily replicated, the advantage will not be sustainable. Therefore, when an organization is having various synergized factors then it will be difficult to copy (Hill 2014).
- Branding – The collective impact of advertising in regard to building a brand over a period of time will be contributing as well towards a sustainable advantage.
- Enduring – In respect of competitive advantages, the perceiving of the customer’s value is required to be enduring. To build advantages in respect of temporary trends is innately very restraining (Gans 2017)
Strategic direction for Tesco Corporation is considered being the course of action that will be leading to the actualization of objectives relating to the strategic aspect of the company.
Conclusion
This assignment is discussing about The different product and service lines are top drive drilling system sales and rentals, casing and tubing running, deepwater completions, certified pre-owned top devices, tubular services, aftermarket sales and services, re-certification of top drives, catwalks, casing accessories, centralizers as well as reaming shoes. The product lines are considered being the collection of similar products under an individual brand that is being sold by the organization. Organizations are selling multiple product lines under their different brands. The service lines are considered being the collection of the products as well as services associated with one particular business segment. Within the market, the organization having the best strategy for marketing is regarded as the winner. The competition for gaining a stronger competitive gain within the market is the basis for the big organizations like Tesco Corporation spending huge amount of money in respect of marketing research as well as advertising on an annual basis. To hold exclusive rights for distribution is one more source regarding sustainable competitive advantage. When an organization is holding exclusive rights regarding a product or service within a region, then the sourcing of that product can only be done from the distributor or holder of those rights. Within the market, the organization having the best strategy for marketing is regarded as the winner. The competition for gaining stronger competitive advantage within the market is the basis for the big organizations like Tesco Corporation spending huge amount of money in respect of marketing research as well as advertising on an annual basis.
Reference
Barney, J.B. and Hesterly, W., 2015. Strategic management and competitive advantage concepts and cases. Pearson.
Bettis, R., Gambardella, A., Helfat, C. and Mitchell, W., 2014. Quantitative empirical analysis in strategic management. Strategic Management Journal, 35(7), pp.949-953.
Dess, G.G., McNamara, G. and Eisner, A.B., 2016. Strategic management: Creating competitive advantages. McGraw-Hill Education.
Eden, C. and Ackermann, F., 2013. Making strategy: The journey of strategic management. Sage.
Frynas, J.G. and Mellahi, K., 2015. Global strategic management. Oxford University Press, USA.
Gans, J. and Ryall, M.D., 2017. Value capture theory: A strategic management review. Strategic Management Journal, 38(1), pp.17-41.
Goetsch, D.L. and Davis, S.B., 2014. Quality management for organizational excellence. Upper Saddle River, NJ: pearson.
Harrison, J.S. and John, C.H.S., 2013. Foundations in strategic management. Cengage Learning.
Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an integrated approach. Cengage Learning.
Hubbard, G., Rice, J. and Galvin, P., 2014. Strategic management. Pearson Australia.
Mitchell, W. and Leiponen, A., 2014. Virtual Special Issue on Innovation, Intellectual Property and Strategic Management. Strategic Management Journal.
Morden, T., 2016. Principles of strategic management. Routledge.
Morschett, D., Schramm-Klein, H. and Zentes, J., 2015. Strategic international management. Springer.
Peteraf, M., Gamble, J. and Thompson Jr, A., 2014. Essentials of strategic management: The quest for competitive advantage. McGraw-Hill Education.
Rothaermel, F.T., 2015. Strategic management. New York, NY: McGraw-Hill.
Slack, N., 2015. Operations strategy. John Wiley & Sons, Ltd.
Stead, J.G. and Stead, W.E., 2013. Sustainable strategic management. ME Sharpe.
Steinbach, A.L., Holcomb, T.R., Holmes, R.M., Devers, C.E. and Cannella, A.A., 2017. Top management team incentive heterogeneity, strategic investment behavior, and performance: A contingency theory of incentive alignment. Strategic Management Journal.
Vogel, R. and Güttel, W.H., 2013. The dynamic capability view in strategic management: A bibliometric review. International Journal of Management Reviews, 15(4), pp.426-446.
Zhao, E.Y., Fisher, G., Lounsbury, M. and Miller, D., 2017. Optimal distinctiveness: Broadening the interface between institutional theory and strategic management. Strategic Management Journal, 38(1), pp.93-113.
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
