Essays on Strategic Management for Hornby Case Study

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The paper "Strategic Management for Hornby" is a good example of a marketing case study.   Hornby is an iconic brand for children’ s toys and models popular with collectors. The company is highly associated with the electric trains, tracks, speed controllers, buildings and scenery among other items (Thompson, 2003). The company has its main focus on development, production and supply of different toy models. The company has been able to survive the market despite the stiff competition in the toy market. Before the company attained the current status, the company has in several occasions come close to being absorbed completely or exiting the market in some cases.

Current revival for the company involves a strategy where it moved from being a sole producer of children toys to become a serious enthusiast and collector (Thompson, 2002). This report is based on Hornby hobbies strategic analysis. This is through carrying out environmental analysis, organisation culture, strategy development, strategic choices and change management. Environmental analysis There have been several factors that have affected the macro-environment in which Hornby is working on. There are different factors in the market which includes tax changes, trade barriers, government policy and new laws.

To analyse the Hornby environment, it is vital to carry out PESTEL analysis for the macro environment (Thompson, 2002). Political factors Hornby operations are affected by the government policies which have an impact in its operations. This includes the level of government in the economy. Most of the sales made by the company are from the UK market. Despite the efforts to expand into the global market, the company is highly affected by UK political issues. The company has been affected by the UK laws on the market.

The industry has both national and international regulatory entities. The European council and parliament have a role in the legislation of the toy industry in the UK. During the early years of operations, the company was affected by the world wars which determined the company production (Thompson, 2003). In the UK, the country has a moderate level of inflation estimated at 2.2% and with a population of 65.3 million. The country has a positive political risk with a government which has focused on deficit reduction economy development.

The country business regulations are efficient based on the level of competition and anti-monopoly policies. This has affected the company operations. The company has benefited from the fact that there are no restrictions to a business establishment in the UK and the government provides protection. The company has been operating in a country with a transparent financial system. The UK is a constitutional monarchy with a parliamentary system which is based on democracy. This has ensured that the company operations in the UK are in a stable environment.

Based on the transparency international corruption index, the country has a minimal level of corruption. The country is also a member of several trades, political and economic unions which affects the operations of the business (Thompson, 2003). Economic Economic factors have a great impact on the toy industry. The country-level of economic growth, GDP and inflation rate is the main factors that affect the operations of the toy industry. The UK market has a low inflation rate. The country has been working hard to minimise inflation as well as ensuring that there are no monopolies.

The anti-monopoly policies have led to an efficient and perfect competition in the toys market. The country labour force is a highly qualified labour force which is also highly efficient. The economic conditions for the country have made it possible for the company to expand. With the favourable economic conditions, Hornby has been able to survive the market conditions (Thompson, 2003).


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