STRATEGIC MANAGEMENT

Strategic Management

Strategic Management

Introduction

The company that has been selected for the topic is Blockbuster LLC. The company has the business in the rental movie and game entertainment activities. The company is having global operations in the regions that includes US, Europe, Latin America, Australia, Canada, Mexico and Asia. The headquarters of the company is located in the city known as McKinney, in state, Texas that has employed more than 25,000 people. In the year 2011, the company earned the revenues figure amounting to $3,240.7 million which was 20% less than the revenues earned in the year FY2010. The operating loss of the company was $128.2 million in the FY2011 as compare to the figure of $351.3 million in the FY2010. The net loss of the company in FY2011 was $271.6 million as compare to the year FY2010. Therefore, it is quite clear that the company needs to improve its financial performance in the future.

The company requires a proper marketing strategy in order to increase their revenues further in the future. This is a major task for Blockbusters because they need to remain competitive in the industry and must make efforts to increase the profitability. The company cannot afford to earn further losses in future. However, the improvement in the financial performance is going to take place gradually and the company must make proper efforts in this regard. The review of the financial, operational, marketing and sales strategy matters for the company to a very large extent. The company Blockbusters LLC needs a comprehensive strategy in this regard in order to take positive efforts for the development of the company's operations. Therefore, all the issues and aspects related to the Blockbusters LLC will be discussed in detail. Discussion of the topic

The discussion of the topic is going to comprise of two factors that includes SWOT Analysis and PESTLE Analysis. The description of these two factors are:

PESTLE Analysis

PESTLE Analysis is a mandatory requirement when it comes to assessment and analysis of the external environment where the company is having their business operations. It is only after a thorough assessment; Blockbusters LLC would be in a position to conduct their business operations in the future. Therefore, the description of the five factors of PESTLE Analysis are:

Political

In a PESTLE analysis, the biggest factor is the political aspect of the county. The legislation carried out by the US Congress creates an impact on the business operations. Though, in US, the stability is a major factor and the US Congress is also very responsible in this regard. The business firms faces an impact of the political factors to a very large extent. Therefore, it is vital for the Blockbusters LLC to assess the political factors in the best possible way.

Economical

Economic force have a significant impact on company operations this include the GDP. It refers to the total annual value of production of goods and services of a nation. The reasonable level of economic growth produces a positive impact on the economy and all ...