Case Study Analysis: The Stag International
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Case Study Analysis: The Stag International
PEST Analysis
Political Analysis
Stag International is a multinational company conducting most of its operations in India. India is located in the South Asian continent and is the second most populated country in the world after China.Stag International is a multinational corporation that conducts the majority of its business in the country of India. India is located on the South Asian continent and is the world’s second most populous country, after China, in terms of population. Indian states have many centralized regions, according to Joshi and Akbar (2012), who count 28 states in all. The population of the country exceeds one billion people (Joshi & Akbar, 2012). India is also one of the countries with the fastest economic development and the greatest purchasing power in the world (Peng, 2013). It is recognized as the fourth best country in the world in terms of buying power and the second best in the world in terms of economic growth. The enormous surge in economic growth is primarily due to India’s position as the world’s largest producer of software. As a result, the enormous population and purchasing power of the country aided in the formation, development, and long-term viability of Stag International.
In addition, India is a democratic nation with a president who is elected by the people. The leaders of their choice are chosen by the people to manage the government. The democratic nature of the country has increased political stability in the country, resulting in an atmosphere that is favorable for corporate development. As a result of the reduced number of civil wars in the country, numerous foreign investors are attracted to the country to invest in it. India is a nation that provides services to everyone and collaborates with numerous international organizations in the areas of accounting, payment processing, and computer system maintenance (Basu & Chandra, 2015). In addition, the country possesses characteristics that are beneficial in tackling the global problem. The most important factor is that the country is less vulnerable to swings in export prices. More than three hundred million middle-class consumers live in India, which is the country’s largest domestic market. As a result, political stability in India played a significant role in the establishment of Stag International.
Analysis of the Economic Situation
India’s economy is one of the world’s fastest-growing in the globe. It is the world’s second-best fast-growing economy in terms of GDP growth. Either negatively or positively, a country’s economic history has the potential to influence the company’s operations. In order to maintain its position as one of the world’s fastest-growing economies, India fosters the creation of corporations and firms. The Indian government Helps the companies by providing them with favorable tax treatment and other benefits. The Indian government imposes an advantageous tax regime on its residents and businesses. As a result, there are very few fees associated with exporting and importing goods into and out of the country. Stag International is a multinational company. It brings in and exports a large number of different things into and out of the country. As a result, taxation policies implemented by the government have aided the development of Stag Company. Because of this, Stag International Company has a significant possibility to improve its companies on the global market, resulting in widespread recognition. In addition, the country has a high rate of employment. That means that the vast majority of its citizens are able to support themselves financially. As a result, Stag International is now offering fitness and sports items to the general public.
Social, economic, and demographic factors all have a role.
The Stag International organization is involved in the fitness and sporting goods industries, and they sell their products by partnering with athletes. A big proportion of the Indian populace has chosen to pursue a career in the public sector. More than ten million people are involved in sports careers and are proud to be in that area of work. One of the reasons for this is the large number of people living in the country. Not every individual can get a white colour job. In addition, a huge portion of India’s population participates in athletic activities. According to estimates from the Indian sports sector, more than 80 million Indian individuals have participated in at least one category of sports activity. There are numerous sports that Indians are interested in participating in (Choi, Zahra, Yoshikawa, & Han, 2015). Following tennis, Indians are drawn to a variety of sporting activities such as soccer, swimming, basketball, football, volleyball, Judo, and adventure sports. Sports such as soccer, swimming, basketball, football, volleyball, and adventure sports are also popular among Indians. The large number of people who participate in sports provides a tremendous development opportunity for Steg International, Inc. But the organization’s only shortcoming is that it does not offer a comprehensive selection of fitness and sports equipment and accessories.
Factors related to technology
Technological advancements also have a great impact on the development and growth of the Stag Industry. As a result of the rapid improvements in technology throughout the world, complex machinery that increase production rates have been developed. As a result of technological advancements, the creation of sports and fitness products has become more straightforward in recent years. Additionally, technological advancements have aided in the advancement of globalization. In today’s world, importing a goods from another country takes only a few hours to a few days, depending on the country. As a result, Stag International is able to simply import and export its products. The advancement of technology, on the other hand, has resulted in improvements in transportation networks. As a result, the level of competitiveness has greatly grown.
Problem Statement
Mr Rakesh, the Chairman of Stag International, is confronted with a multitude of difficulties. The business is the most well-known tennis brand in India, and it ranks among the top five most valuable companies in the world. The first difficulty facing the chairman of Stag International is deciding whether to diversify into domestic distribution, go after market share, do both, or just sit back and watch the company grow. He also wants to set up the business for the fourth generation to take a leadership position in the organization and move the company forward. As the company reached its 90th year as a premier exporter and maker of sports equipment in India, the chairman was confronted with difficult decisions about strategic choices, strategic intent, and business resourcing, among other things.
Furthermore, Stag International is concerned with a variety of issues, including what the company should do in order to grow sales. Another issue is whether Stag international hold on to knitting and concentrate on advancing the main business of selling branded fitting and sports products. Another issue is to consider diversifying into synergistic goods and how the company ride the retail opportunity in the country. Another challenge is to demonstrate production and factory related issues managed by Vice Chairperson Vivek. Finally, there is a problem of identifying the presence of the company’s brand and long operation history to assess the external funding access.
Problem Analysis
There are various problems faced by the head of Stag International. The case is about the leading table tennis brand in India and one of the best top companies globally. This shows that the organization would go beyond its share of the market to focus on domestic distribution. According to the case, the head of the organization is needed to set the business layout to step forward and steer the company for the fourth generation. As a result, the dilemmas faced by the chairman of the organization comprised explaining about strategic choices and extent, which also portrayed business resourcing. The organization is resourcing its 90th year existence where it tops exporter and manufacturer of sports products in India. According to Brown and Whysall (2013), the case is justified by the challenges and difficulties faced by stag members, particularly different business interest families. The difficulties may risk the future of the Stag business model and the relationships between people in the organization. Also, this gives knowledge on the subject of strategic management in businesses owned by families. The case study discusses the significance of a management proposal with emphasis on the use of resources (including time, finance, and people) and the view of the business’s longevity. The main assumption is that it is important to consider, culture, values, and beliefs of the family and activities in the strategic management of people in family-owned companies( Jayaram, Dixit, & Motwani, 2014). As a result, self-confidence is highly strengthened in the company.
Besides, it can be stated that the organization is trying to encourage greater monitoring by stakeholders that have been considered the primary objective of the company. The company’s goal for this decade is to reform the governance system of the organization. The sports like volleyball, adventure sports, soccer, basketball, and many others directly affects the business (Drygas et al., 2013). The company targets a wide range of customers, including young individuals in the middle and upper class. Sporting products can be a perfect way of spending money and getting good profits.
Identification of Solutions to the Problem
From the case study, the attention of the organization’s executives was not experiencing any challenge but has the primary objective of developing the main business to a higher level. There was a notion that environmental awareness was not effectively permeating the business. There are many implications that the company’s situation has changed. Currently, all sports products and goods have the environmental influence determined from the designers’ first idea (Korschun, Bhattacharya, & Swain, 2014). Already there is a concern about the fate of sporting goods at the end of their useful life. That is whether the products can be recycled or not.
Besides, the company will strive to diversify its businesses. It should consider producing many varieties of sporting and fitness products. Business diversification will align all the guidelines and policies of the government with respect to enhancing the provision of integrated services (Haley, Haley, & Tan, 2012). This is done to ensure projection and maintenance of the countries abroad, therefore, responding to demands and international and national anticipations of Indian players. The essential thing is to let the shareholders know is that product safety is important. The organization must always prove the quality of their products (Saarinen, 2019). Sometimes sportsman’s life may be compromised by equipment failure; thus, their quality and longevity must be guaranteed. The organization must obtain the price survey made concerning the goods in the market, particularly in sports that involve high quality. Also, the company will derive new marketing strategies such as advertising to increase product popularity in the market.
Assessment of Solutions to Problem
One of the challenges the chairman of Stag International was facing was how to enhance sales of the manufactured and imported products. Introducing new and advanced marketing strategies is an effective way of enhancing sales. Advertising products gives the brand dissemination (Sahin, 2021). It ensures the product popularity. Also, Stag international will give its customers credibility, security, and certainty when buying the product through promotional events of their sports shoes. Also, advertising offers an opportunity for customers to try the product (Sallam & Algammash, 2016). This will give the product superiority in the market, attracting more buyers. Also, through organizing promotional events, publication of the product on the media, and advertising, the brand will be continuously present in the consumers’ minds (Eagleman, 2013). For instance, when people see that many international players are using the product, brand credibility will be enhanced to a greater extent. When consumers see that the sports stars are participating in promotional events and using the product, they will trust the product. Promotional events will clear many questions on the minds of consumers concerning product credibility. According to Kaser and Oelker (2015), sports lovers always copy the world great figures. They always want to look the same as the sports stars. Using these stars to promote the product will buy more security, ensuring more sales. Therefore, advertising and promotional events ensure the credibility of the product, increasing sales.
Also, the manufacturers and distributors of the sporting products will follow various strategies with respect to selections they choose to sponsor and give uniforms to international teams (Nufer, 2013). According to the case study, Stag International is one of the companies providing the best quality uniforms for national teams. The organization will sponsor international teams depending on their GDP (Keller, Parameswaran, & Jacob, 2011). The interaction of the company with the richest individuals and countries creates a good market for its products.
Recommended Course of action
Following the challenges presented in the case to study, there are some recommendations suggested to the company to enhance their product and to ensure the satisfaction of their customers. First, Stag International Company must observe workers’ rights and ensure production site disclosure within the country and abroad (Winarta, Wendri, & Sutama, 2018). This will act as a contractual condition for licensing, marketing, and sponsorship. Further, the organization need to take advantage of the features of different platforms and use contexts to always provide the best experience in an integrated manner.
Also, the manufacturers and distributors of the sporting products will follow various strategies with respect to selections they choose to sponsor and give uniforms to international teams (Nufer, 2013). According to the case study, Stag International is one of the companies providing the best quality uniforms for national teams. The organization will sponsor international teams depending on their GDP (Keller, Parameswaran, & Jacob, 2011). The interaction of the company with the richest individuals and countries creates a good market for its products.
Recommended Course of action
Following the challenges presented in the case to study, there are some recommendations suggested to the company to enhance their product and to ensure the satisfaction of their customers. First, Stag International Company must observe workers’ rights and ensure production site disclosure within the country and abroad (Winarta, Wendri, & Sutama, 2018). This will act as a contractual condition for licensing, marketing, and sponsorship. Further, the organization need to take advantage of the features of different platforms and use contexts to always provide the best experience in an integrated manner.
References
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