Red bull strategy - Coursework Example

Red Bull Strategy Strategic Forecasting Progression Threats and opportunitiesWeaknesses and strengthsStrategy formulationStrategy formulationCreation of scenarios is a process involving multiple dimensions. A basic stride of creating a scenario involves identification of long period strategic decisions. After the identification of the strategic decisions, the organization identifies the aspects that would create significant differences in the identified decisions. The subsequent step is the identification of the uncertain unavoidable micro and macro forces and their significance to the long-term goals.

The final step is combination of probable outcomes of the most influential qualms for the strategic decisions (Cornelius & Romani 2005, P.78).Scenario 1On January 2035 the executive of Red bull is from a seminar and he reflects back 20years back on the pivotal meeting he had with the management ranks in 2014. In that strategic period of time, Red bull has drastically undergone robust growth strides and is the biggest energy drink producing and merchandising company. Reed bull is now selling its products in every province, of each nation around the globe.

The combining ratio of the corporation has become the envy of each company in the retail sector. Profitability of the organization has been increasing every year in the past 20 years, and the company has as a result attained a war chest that has put it in a position to acquire other small companies. The operational, and distribution models of Red bull regionally and internationally are platforms for the exercise and sharing of best practice worldwide. The models have improved Red bull’s efficiency through the implementation of automation and centralization and at the same time have devolved decision making to the location level of Red bull internationally.

The highly advanced quality of production and customer involvement in the product formulation continue offering Red bull distinguished competitive advantage over its rivals. The Chief executive is contented that the actions he took for creation of the future in 2014 have bore excellent results.Scenario 2Red bull is a regional company that has its focus on retail services. In the year 2014, Redbull’s business experienced challenge from retailers that had the capability of merchandising regionally.

The competition was experienced on a combined proportion, which made it very difficult for Red bull, a regional merchandiser to withstand. Red bull is capable of offering special products that are custom made for various segments of its market share. However, the cost of providing the special products adversely affects Red bull’s combined ratio, causing Red bull to realize minimal profitability levels. In the process of planning for its future, Red bull made a decision to practice the same model of operations as that of the competitors as a reinvention measure.

Thus, Red bull has abandoned production of goods and ventured in outsourcing of production to only concentrate on retail services. By the year, 2015 Red bull is burgeoning and has become among the topmost 10 retail organizations. Towards the end of the year 2014, Red bull sopped directly producing products instead, made connections with producers and manufacturers to enable it spread its production risks. Red bull established an efficient retail model, which enabled it to cut down lead-times and losses, and managed to track in real time when the products got to consumers.

The adoption of a value share model of business and a cost based solutions enabled Red bull to experience huge shrinks in losses and the new revenue streams were cashed in as revenues to Red bull. The ‘fast follower’ strategy enabled Red bull to succeed in the arena of risk management when many of its rivals slipped into bankruptcy while others were bought off. Scenario 3Red bull is a consumer products organization with operations in Europe and Asia. In 2014, the environment of low interest made the profitability levels to diminish and the technology used by Red bull in production of its goods impeded it from adapting to the revolutionizing consumer needs.

The management of Red bull faced the increasing consumer’s demands of quality, value and positive health outcomes from the consumption of the products. After getting a positive nod from Red bull’s Management Board, the Chief Executive of Red bull began developing a strategy aimed at producing a leading customer experience industry. The Company President concentrated on developing a corporate whose focus is business intelligence and creation of connections and products to bolster expansion internationally.

Ahead of the 2035 premier board meeting, the Chief executive is satisfied with the accomplishments of the executive panel. The plan that was implemented returned Red bull into profit ways, with minimum ratios of operating costs in the energy drink industry in the past 10 years. Provision of customer based personalized service incorporated with provision of satisfying products has put Red bull the most preferred energy drink provider. One of the wisest decisions was the recruitment of a production intelligence director.

Constant touch between the Company president and the business intelligence executive promoted uninterrupted dissemination of information founded on facts to the Chief executive. The information facilitated quick and thought out decisions by the management team and the information led to new strategies that led to production of cheaper products in the subsequent years. The company has become a leading innovator as a result of the brilliant bold steps taken by the management team.Scenario 4Red bull is a company with many employees of various levels from the top to the operational levels of management.

In 2014, the company began becoming unpopular with the consumers and experienced losses in sales. The management faced the pressure of redeeming profitability and Red bull’s image in the eyes of the consumers. The administration formulated a method where the all the employees participated in a survey. The survey involved denoting shared values and describing the organization’s mission statement. After the survey, the ideas of the employees were incorporated in constructing of a new company mission statement that would be permanent in the company or would last for approximately 50years.

The outcome was a very specific and robust mission statement. The mission statement was customer centric and was also connected to the environment and emphasized on quality. Customer confidence was restored in the in Red bull company and looking back, the Company President is proud of the employment of shared values in reforming the company image and improving sales of the company tenfold. The company has attained the best image in the sector it operates because of the shared value strategy employed 20 years ago.

BibliographyCornelius, P., Van de Putte, A., & Romani, M. (2005). Three Decades of Scenario Planning in Shell. California Management Review,48(1), 92-109.DeFillippi, R., & Arthur, M. (1998) Paradox in project based-enterprise: The case of film making, California Management Review, 40:2(125-139)Windeler, A. & Sydow, J. (2001) Project networks and changing industry practices, Organization Studies 22(6):1035-1060