MBA FPX 5006 Assessment 3 Strategy Implementation

MBA FPX 5006 Assessment 3 Strategy Implementation

MBA FPX 5006 Assessment 3 Strategy Implementation

Formulating and Implementing a Strategy

In the territory of organizational leadership, effective leadership and change management strategies are essential for superior outcomes, particularly in IT and software companies. The strategic analyst’s role is pivotal, utilizing SWOT, VRIO, and PESTEL analyses. SWOT helps evaluate internal strengths, weaknesses, and external opportunities and threats, aiding in competitive positioning. VRIO assesses resource value and rarity for strategic leverage. PESTEL examines external factors like politics, economics, society, technology, environment, and law (Jurevicius, 2021). These analyses, under the strategic analyst’s guidance, enhance Vengile Software Company’s competitive advantage, market position, and adaptability in a dynamic business environment.

Strategic Framework for the Company

AFI Model

The company has strategically employed the Analyze, Formulate and Implement (AFI) model to enhance its organizational effectiveness, a widely adopted approach among IT-based organizations globally aimed at improving strategic management and employee performance. The AFI model operates through three distinct phases, commencing with the analytical stage, wherein a comprehensive understanding of the company’s internal and external dynamics is achieved. Subsequently, the formulation phase entails the development of a strategic plan, while the final implementation stage puts this plan into action (Rowland et al., 2023). The utilization of the AFI model underscores Vengile Software’s commitment to optimizing its strategic management processes and elevating employee performance, aligning itself with contemporary best practices in the IT sector.

The VRIO Analysis

Resource/Capability Valuable Rare Inimitable Organized Strength
Brand Loyalty Yes Yes No Yes High
Financial Resources Yes No Yes No Medium
Innovative Products Yes Yes Yes Yes High
Multiple Sources of Income Yes No No Yes High

The VRIO assessment centers on components that possess value, rarity, distinctiveness, and organized attributes. It reveals that brand loyalty stands at a notably elevated level, financial resources ranging from high to medium, the presence of innovative products is abundant, and multiple revenue streams are also consistently strong.

Internal Environmental Analysis Findings

The organization effectively leverages its financial, human, and intangible assets in the pursuit of competitive advantage. The significance of the internal environment and resources cannot be overstated, as they are instrumental in shaping the organization’s future trajectory and in retaining a committed workforce and managerial cohort, thus reinforcing the capabilities of the marketing team to secure a superior position in the marketplace. The internal environment of the company is predicated on factors well within the horizon of the organization’s leadership and decision-makers. Azeem et al. (2021) highlighted that organizational culture is indispensable for business operational success and organizational innovation appear to be key drivers for gaining competitive advantage

One pivotal aspect is the governance structure, a characteristic that wields a direct influence on the organization’s strategies. It is incumbent upon the organization to exercise sound IT governance practices to facilitate the creation of a structural framework aligning its strategic endeavors with broader business objectives. In essence, effective IT governance serves as the requirement to synchronize organizational strategies with overarching corporate goals (Dairo et al., 2021).

External Environmental Analysis Findings

The analysis of the external environment, often encapsulated within a PESTEL framework, becomes a key aspect of organizational strategy (Fernandes, 2019). In this context, we explore the various dimensions of the external landscape, each bearing relevance to the organization’s operational context.

‘P,’ representing the Political dimension, underscores the influence of government policies and IT regulations on the organization. While we do not receive direct financial support from the government, its policy decisions and reform initiatives significantly affect our organizational outcomes.

‘E,’ pertaining to Economic factors, encompasses considerations of interest rates, tax policies, and broader socioeconomic trends. These economic dynamics impact spending patterns and workforce availability, with a burgeoning talent pool resulting from the increasing unemployment rate in the US.

‘S,’ the Social aspect, enquires into cultural elements, population dynamics, and aspects related to demography, gender, and ethnicity. Notably, varying immigration policies in the US introduce diversity-related challenges. Therefore, the organization is compelled to adopt equitable policies promoting compassion and impartiality.

‘T,’ representing Technological factors, involves critical considerations regarding outsourcing decisions based on salary structures and the requirements of research and development (R&D).

Lastly, ‘L,’ or Legal considerations, involves the evolving legal environment within the country. Legal reforms, such as those addressing age discrimination and disability laws, have implications for discouraging discrimination within business firms. Additionally, the increase in the minimum wage is a vital legal aspect that necessitates attention.

MBA FPX 5006 Assessment 3 Strategy Implementation

A comprehensive analysis of the macro-environment and industry competition is crucial for achieving sustained success. Factors such as global warming highlight the importance of implementing eco-friendly practices (Pieloch-Babiarz et al., 2021). Porter’s Five Forces model offers additional strategic insights. According to Statista (2023), the substantial size of the IT industry in the US, which is projected to reach approximately $454.70 billion in 2023, presents significant buyer power and revenue potential through a focus on digital transformation. With an estimated 200 suppliers, market analysis and proposal requests are essential to ensure favorable supplier power. However, the robust economy leads to a moderate threat of new entrants, which can be mitigated through expanded production, quality improvements, and cost reductions (CFI, 2022). The availability of software substitutes in the market poses a related threat that must be addressed through competitive pricing and cost-control measures. Lastly, the emphasis on fairness in the US necessitates ethical practices and equal competition with industry peers. Together, these environmental and competitive factors enable us to make informed strategic decisions to maintain market leadership.

SWOT Analysis


Our company has several core strengths that give us a competitive advantage. We have experienced rapid growth in recent years, allowing us to scale our operations and expand our market reach. This growth is fueled by our vast customer reach across multiple regions and demographics. We also enjoy high customer satisfaction thanks to our user-friendly software and effective advertising campaigns. Our software in particular provides an intuitive and seamless user experience. Along with creative and memorable advertising, this helps drive brand affinity and loyalty.


However, we must also acknowledge key weaknesses that need to be addressed. Our cyber security protections have some vulnerabilities that could put customer data and company information at risk. We need to implement more robust security measures and protocols. Moreover, our innovation processes could be improved to encourage more ideation and accelerate product development cycles. Finally, our management strategies are outdated and prevent us from responding quickly to market changes. Updated management training and frameworks are needed.


We have exciting opportunities ahead to fuel the next stage of growth. Expanding our cloud-based offerings can attract new customer segments and enable recurring revenue streams. Pursuing strategic partnerships with major tech companies could help us scale faster while tapping into shared resources and capabilities. Enabling more remote work and virtual collaboration for our workforce unlocks flexibility and widens our potential talent pool.


However, we must also remain vigilant about external threats. Customer preferences may shift rapidly, especially given emerging technologies and competitors. We need to stay agile and customer-focused. Digital piracy risks could escalate as our brand grows, necessitating proactive protections. Ongoing changes in the macro environment may present additional challenges. Being prepared to continuously adapt and improve is imperative.

Strategic Actions to Align Structure with Governance

To optimize IT governance, organizational leaders must align on strategic priorities and ensure active participation across divisions. A shared understanding of core objectives will enable cohesive decision-making. Cross-functional involvement in governance processes will break down silos and identify dependencies. Ongoing reinforcement of strategic goals through governance policies and training will sustain alignment (Azeem et al., 2021). These structured frameworks for strategy-driven governance will facilitate appropriate oversight and value creation.

Ethical Responsibility

Beyond formal governance, we must prioritize ethical responsibility in all operations. This entails considering our impacts on the environment, employees, customers, and society. As an ethical company, we must take a long-term view when evaluating risks, resources, and relationships (Rossi et al., 2021). Fair labor practices, sustainable operations, regulatory compliance, and diversity and inclusion initiatives demonstrate an ethical approach. Embedding ethical responsibility throughout our culture builds trust and integrity with stakeholders. It also reinforces our commitment to equal and transparent competition. Overall, ethical governance and corporate citizenship provide strategic and social benefits.


Azeem, M., Ahmed, M., Haider, S., & Sajjad, M. (2021). Expanding competitive advantage through organizational culture, knowledge sharing and organizational innovation. Technology in Society, 66(1), 101635.

CFI. (2022, October 27). Threat of new entrants. Corporate Finance Institute.

Dairo, M., Adekola, J., Apostolopoulos, C., & Tsaramirsis, G. (2021). Benchmarking strategic alignment of business and IT strategies: Opportunities, risks, challenges and solutions. International Journal of Information Technology, 13(6).

Fernandes, J. P. (2019). Developing viable, adjustable strategies for planning and management—A methodological approach. Land Use Policy, 82(1), 563–572.

Jurevicius, O. (2021, October 1). PEST & PESTEL analysis: The ultimate guide – SM insight. Strategic Management Insight.

PielochBabiarz, A., Misztal, A., & Kowalska, M. (2021). An impact of macroeconomic stabilization on the sustainable development of manufacturing enterprises: The case of Central and Eastern European Countries. Environment, Development and Sustainability, 23(6), 8669–8698.

Rossi, M., Festa, G., Chouaibi, S., Fait, M., & Papa, A. (2021). The effects of business ethics and corporate social responsibility on intellectual capital voluntary disclosure. Journal of Intellectual Capital, 22(7), 1–23.

Rowland, D., Thorley, M., & Brauckmann, N. (2023, April 20). The most successful approaches to leading organizational change. Harvard Business Review.

Statista. (2023). IT services – United States | statista market forecast. Statista.

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MBA FPX 5006 Assessment 1 Strategic Process and Analysis

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