Analysis Report of Strategic Issues


In today’s era, to make the business sustain in the long run, it is highly significant for organizations to perform strategic analysis in an effectual manner. Strategic analysis can be termed as the use of various tools with an aim to prepare business plans with making evaluation of existing opportunities and challenges that company is facing in the market. In the present report, to have in-depth understanding about strategic analysis, the firm, Royal Group Mail PLC has been chosen which is a postal service company based in United Kingdom. Here, 3 key strategic issues facing the organization will be discussed. Also, the resources and capabilities of company along with key factors that give business its competitive advantage will be highlighted in the report. Apart from that, there will be study on the extent to which organization’s competitive strategy addresses its strategic issues.

Identifying 3 key strategic issues facing the organization with a clear explanation of why they are “strategic”

With respect toRoyal Group Mail PLC, three key strategic issues being faced by the organization are uncertainty, globalization and innovation. In today’s scenario of business environment where there is intense competition in between firms, these three strategic issues are the major one because of which firm may get highly affected in terms of reduced profits, hampered goodwill and decreased customer base. The reasons because of which these three issues are considered to be strategic are:


Uncertainty makes all firms uncomfortable and so, it is in case of Royal Group Mail PLC. With the changing scenario where techniques and customer’s tastes and preferences are changing at a fast pace, it is highly significant for company to have proper plans so as to deal effectually with the uncertain situations occurring in business. This uncertainty generally occurs in terms like new regulations imposed by government that may affect business, global economy in which there is ups and downs, changes marketing tactics used by competitors as well as entrance of new techniques in the market (Muller, 2011). For Royal Group Mail PLC, this is a strategic issue as because of the same, firm gets negatively impacted in a way that because of alterations occurring in the business environment, firm needs to bring changes because of which employees get stressed and demotivated that disturbs the work flow of organization. With respect to customers, when employees get demotivated, they perform inefficient services which makes the customers dissatisfied and thus, affects the profits and goodwill of business in the market.


For Royal Group Mail PLC, challenge of globalization is on their top concern. It is because; for the expansion, it needs to enter in new markets for which to understand the foreign languages is necessary so that existing products and services can be made successful (Williamson and, 2013). Globalization is a strategic issue for Royal Group Mail PLC because if company wants to design new products and services among new customers, at first, it has to do proper market research and in case if it will not be successful then business has to face severe losses with regard to reduced profits and customer base as well as hampered goodwill. Therefore, in order to resolve this issue, it is important for organization to understand the international markets and cultures in an effective manner with the help of collecting information and doing analysis on the same so as to assess the probability of gaining success (Gorgenl, 2011). Under this strategic issue, one more problem with which firm has to go through is that of incredible degree of government intervention. In every economy where Royal Group Mail PLC is operating as well as wants to establish have their own government interventions according to which organization has to change its strategies and policies so as to save itself against any kind of legal obligations that regulatory authorities can take against them (Mennen, 2011).


As in the present competitive era, all firms are looking for providing innovative products and services and creative more ground-breaking culture, Royal Group Mail PLC is also required to do the same. It is because; if the firm would not be adopting innovation in business, staying in the market and beating competition would not be possible. This is the reason; it is considered as a strategic issue where especially the large companies are facing major problem with respect to innovation (Top Ten Problems Faced by Business, 2017). It is due to the fact that in big organizations, this is the responsibility of CEOs to bring innovation in company so that competitive edge can be gained in the market and firm would come in the position to beat rivalry. Apart from that, as per the changing tastes and preferences of customers also, it is vital to bring innovation byRoyal Group Mail PLC otherwise, there will be the risk of their switching over to other companies providing the same products and services. Therefore, to resolve this strategic issue which is a threat for business, to bring innovation time to time is important as well as maintaining a sense of control over the organization is equally important (Chadzingwa, 2010). Thus, it can be said that if company will not give due emphasis on the strategic issues then it may lead to create problem in survival and sustainability of business in the market (Mennen, 2011). So, to keep it growing and developing with an aim to have a leading position in industry, giving due importance to strategic analysis is crucial.


From the above report, it can be concluded that in the present scenario, major issues faced by Royal Group Mail PLC are uncertainty, globalization and innovation. If organization would not give due consideration on the same, sustaining in the long run will become highly difficult for the business. It has been assessed that if firm would make prior strategies to deal with uncertain changes in the business environment as well as if it would focus on leading innovation, to reduce the chances of risks and keeping customers satisfied will become easy. Thus, it can be said that strategic analysis plays a crucial role in making a firm successful in market with gaining a competitive edge over others.


  • Chadzingwa, M. M., 2010. Human resource management in Southern African libraries. Library Management. 31(6). pp. 451–465.
  • Gorgenl, V., 2011. A Strategic Analysis of the Construction Industry in the United Arab Emirates: Opportunities and Threats in the Construction Business. Diplomica Verlag.
  • Mennen, M., 2011. Strategic Analysis of the BBC. GRIN Verlag.
  • Muller, C., 2011. Case Study and Comparative Strategic Analysis of Toyota and Ryanair. GRIN Verlag.
  • Williamson, D. and, 2013. Strategic Management and Business Analysis. Routledge.
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