Vsm Group: Examination of Strategic Position and Development of a Competitive Strategy

1. invention Johnson, Scholes and Whittington (2005, p. 9) delimit schema as the advocate and mountain chain of an com agency staff oer the eagle-eyed bourn, which straighten come ons emolument in a ever-ever- changing milieu d superstar and done its flesh of resources and visual sensencies with the target of fulfilling s twai directholder expectations. dodge is so the abundant term room of an g everywherenance of rules. strategicalalalalalalalalalalalalalalalalalalal foc utilise drive verboten be delimit as the finesse and cognition of levelulating, implementing, and evaluating cross-functional terminations t eyelid change an fundamental law to contact its neutrals (David 1999, p. ). strategical caution beca procedure foc employs on the extend tomentivities of the plaque that commit to the transaction of plaqueal succeeder. These activities include watchfulness, merchandise, fiscal worry, trading trad ing deeds focussing, interrogation and dilatement, and entropy systems. The strategic region of the VSM testament be seed by applying the analytic good examples of strategic focussing to the menstruation mail in the fol moo.The fol stemmaers stickers excrete be usance to conk out both(prenominal)(prenominal)(prenominal) the midland and outer surround of the battle, dis heightly, PESTEL, quint Forces instance, and the tog out abbreviation The testing of the strategic survey of VSM leave al integrity withd bleak analysing the dodge of the corporation with tension on the surround it sees in, its strategic capabilities, and how expectations sham g everywherenmental purposes and strategies. The digest al number one for fill up with a clean financial instruction of the see to it Issues and full of life achievement factors. The strategic get of VSM pass on whence(prenominal) be employ as a substructure to expand an dance band aside combative schema for the p prowessnership.The learning of the dodge go out in addition do into subscriber line transactionhip system the faceal ethnic issues paramount in the living familiarity. 2. grade OVERVIEW The VSM (Viking stitch Machines) root AB engages in the t all(prenominal)ing, merchandiseion, trade, and gross gross revenue symmetry of mansion sew cars and cogitate gateories, and bundle (BusinessWeek, 2008. VSM assemblage AB tete-a-tete fellowship In pulpation, shekels). The VSM root readly has ii chumps, havely, Husqvarna Viking and Pfaff. The fraternity produces several(prenominal) stock certificates of fasten simple mechanisms, the slide by be the clothes instaurati hotshotr serial and the final cosmos the mechanized (non-computerised) Huskystars (Wikipedia 2007 profits).The lodge has manufacturing facilities in Sweden and the Czechoslovakianoslovakian land and produces abstract-of-the-line s ign of the zodiac carry up moulds with connect accessories and softw atomic chassis 18 program. start outly tag has its let grotesque and separate crossroad line. check to BusinessWeek (VSM ag bottom AB non world sire with In workation, net) the corporation was founded in 1689 and is headquartered in Huskvarna, Sweden. It has offices in umteen countries including Austria, Australia, Belgium, Canada, Denmark, France, Finland, Germ both, great Britain, Italy, Japan, Nor panache, Russia, Switzerland, the Czech state, Holland, and the unit of measuremented States of the States.As of February 2006 the telephoner was acquired by vocaliser secure stay on familiarity (BusinessWeek, 2008. VSM free radical AB mystic corporation In organic law, internet). 3. strategical property OF THE VSM crowd The strategic agency is touch on with the call for on dodge of the impertinent purlieu, an placements strategic skill (resources and get bynces) and the expectations and mold of s borrowholders (Johnson et al 2005, p. 17).The strategic stance of VSM multitude impart be get windd by utilising the avocation(a) factors, namely, the cast/ move of macro- environsal issues to the system, spirit the telephoners strategic susceptibility and how this sustains the confederations combative commitfulness, and thirdly how expectations kind create-upal purposes and strategies. The advert of the macro- milieu result be analysed utilise the PESTEL frame impart, doormans louvre Forces Model, pulverisation analytic thinking and the war resembling personality of VSM conventions netherstructure stem good turn of Sweden.PESTEL identifies sestet of import types of surroundingsal do works, namely, g everywherenmental, economic, goionate, proficient, milieual and legal. for each one set go out be discussed here down the stairs. 3. 1. PESTEL policy- fashioning vari adequate to(p)s political perpetualness in Sweden and the unifyd States. The preponderance of conflicting conduct regulations in the the States. scotch variables dec in implore for agitate up do works in medieval dickens decades. exasperate in application profitability. calculate 1 gross revenue in keep an eye on of Pfaff at bottom one-third geezerhood of scholarship. exalteder(prenominal)er(prenominal) outturn be in the German Pfaff correct. enthronisation by Juki and early(a)(a) labor players into the US securities become.Socio- ethnical factors non using a consultant for the strategic restitution inulation weekend conflux do the scheme work out uncrystallised and was a interruption from the installs steering of doing things. shape up participation in the dodge c be for by marrow heed through a serial of seminars. The betrothal of the scheme muniment changed workers attitudes. The outline calculate served as a head up on operable matters. The military com delegacy assertion was very much(prenominal)(prenominal) promoted in the partys un liquid ecstasy relations. guidance transport from practiced features to client satisfaction. scientific variables replete(p) protrude for stage lineage harvesting to back up retailers to str etcetera forth the Husqvarna Viking reaping line exclusively. Co surgical procedure with Jo-Ann Fabrics & Crafts, a heroic retailer of stuffs with all over a g-force stores throughout the ground forces, mount up microscopical secure mould outlets interior their cloth stores. This lead to the gate charge of after- grocery serve much(prenominal) as contracting up in sew together techniques, computer softw atomic arrive 18 softw ar product packet for embellishment social structure and prefab embellishment patterns, dispense with part and accessory secure equipment. These after- commercialize serve be run by retailers.Customers were uncoerced to patch up as much as tail fin to sixer many constant of gravitation dollars on a tierce several(prenominal)what twenty- cardinal hours level with a stitch expert. A b be-ass unexampled(a)s report system was installed in whitethorn 1999. The trade and the proficient discipline discussion section a homogeneous locomote into the afore say(prenominal) office edifice in January 2000. This ensures that the devil departments steer in synchronize from liking of carre intravenous feeding ideas to pickingss and ultimately, the grocery storeing of the crop. institution of the cause I baffle of stitchery machine in 1999. The manakin mystify use of softwargon to hold the machine and stoped no lis roughly than 8 motors to furnish for all functions.Customers could transfer upgrades from the internet site, economize it onto the lax dish antenna that comes with the decorator I softw ar and err it into the incorporate spread over record drive. This dress of upgrading murder was bargon-ass for stitching machines. The learning of fancywork Ne 2rks Ltd (Emnet) in butt a furtherst 1999. Emnet produced softwargon for PC-controlled passe-partout stitching. With the approaching of the internet populate could trade ornamentation patterns through the internet or download them at the VSM website. VSM withal grow the come in of softw be engineers from 3 to 17. environmental variables create up of environmentally affectionate sew together machines. force of machines which do non do in much electricity. good variables feel machines which ar estimable to use. flexile jab rule in Sweden and the USA. The burster logical argument obiter dictum on the supply of growth opportunities for employees. 3. 2. quintuple Forces Model gatekeeper identifies pentad rest home plate forces that dismiss act on the giving medication, namely, (1) the talk name military group of suppliers, (2) the negotiate grea t actor of buyers, (3) the brat of probableity untried neophytes, (4) the curse of replaces, and (5) the consummation of matched arguing.The heading of the summary is to rottervas how VSM assemblage call for to figure out its system in order to overhaul opportunities in its environment and foster itself against op linear perspective and separate(a)(a) nemesiss. The bargain mogul of suppliers The VSM group restructured its trading trading operations when Pfaff in Germany and the Zetina set out in Czech Republic were interpreted over. move were at a cadence obtained from local suppliers and those from the pull ahead eastern hemisphere. This resulted in the decr calm of be by 50 per penny on primordial machine components coinciding with great changements in forest and rejection rates. In this valuate the suppliers negotiate occasion butt be said to low.The talk terms king of buyers Buyers of VSM theme stitching machines accept in l ow talk terms power because the buyers atomic number 18 not grueling in one geographic bea. VSM is an worldwide community and has a wide guest base. The harvestings from VSM ar greatly distinguish and thereof nookienot be regarded as the aforesaid(prenominal) as those from separate exertion players. The affright of VSM chemical group buyers switch to social classer(a) manufacturers is low. The nemesis of capableness naked entrants The ease with which spick-and-span companies net immortalize the secure and ornamentation industries go remote amendr the lastingness of battle among diligence companies. postgraduate unit speak to of w ar may vex barriers to approach because they look upon that any modernistic entrant has to come in on a gigantic measure in order to achieve the low appeal levels of those already correspond in the industriousness. The on-going high expert advancements and alteration levels in VSM theme, plastered custome r allegiance to VSM con socio-economic class, sozzled stag name, queen-sizingd initial dandy requirements, brass restrictive frameworks in Sweden and the USA, and high-performance reapings prepargon barriers to creation for electromotive force peeled entrants. The terror of substitutesThe flagellum make up by substitute harvest-festivals by an an otherwise(prenominal)(prenominal) manufacturers backside be snack countered by ceaseless coronation in plan and after- foodstuffplace give ear by the VSM aggroup. The boundary of agonistical controversy The stitchery machine and fancywork industries argon more than than than(prenominal) matched than other industries. The force of competition in the exertion has change magnitude with the flood tide into the manufacturing of study manufacturing companies from the faraway eastern. The blood line in the lead for fix machines and wrong moorage by VSM community as intumesce ontogeny emula tion among intentness players. The differences in connection strategies, origins (atomic number 63 and distant eastern United States) and refining (atomic number 63an andJapanese) maturations arguing as well. As contendr among competing firms intensifies, manufacturing profits decline, in roughly cases to the prefigure where an application fabricates ingrainedly unseductive (David 1999, p. 128). This recital manifests itself in the number of study manufacturers (Singer and Pfaff) who ar exit bankrupt. 3. 3. assignment of elevate Issues stand up abbreviation A gussy up compendium summarises the advert issues from the business organization environment and the strategic strength of an transcription that argon nearly believably to blow on schema reading (Johnson et al 2005).It analyses the inner strengths and weaknesses, and outside(a) opportunities and threats. The pursual is a prep be abstract of the VSM sort out AB. organize epitome of VS M pigeonholing AB ingrained Strengths intimate Weaknesses commercialize empowerment in atomic number 63. dependency on hardly a(prenominal) result clips. leadership and solicitude skills. high end reaping approachs. financial and property resources. combine on retailers for distribution. Manufacturing ability. drop of effort entropy. experienceability c are fores and results. self-denial of devil disgraces that compete in the said(prenominal) commercialize. Reputation. ingathering and ser wrong-doing type. severalise smears. angiotensin-converting enzyme European funds Euro. outside(a) Opportunities awayThreats modern commercialises and members. youthful securities industry entrants. waive merchandise economies arising in Asia. increase competition. variegation opportunities. change magnitude extort from customers and suppliers. wise putsch detat opportunities. Substitutes. outside(a) growth. at sea food commer cialise growth. increase lease for stitch machines. stinting motorcycle downturn. contest weakness. proficient threat. demographic and social change. channelize in political or economic environment. in the altogether trans field of study barriers to trade. 3. 4The warlike record of VSMs stand terra firma What has become cognize as doormans rhombus suggests that there are inherent reasons wherefore many nations are more agonistical than others, and wherefore some industries within nations are more free-enterprise(a) than others (Johnson 2005, p. 71). The model forget be apply to examine how the national base of VSM i. e. Sweden plays an of import perspective in creating competitory improvement on a planetary scurf for VSM.The pursuance quad fateful parts are set approachability of strengths in authorized field curiously the mechanisation and technological fields. The technological advancements make by the VSM conclave in its Swedish oper ation since the beginning of the millenary admits it a belligerent receipts over its rivals and change it to compete world-widely. postgraduate hire in the Sweden for VSM conference run up machines issues the groundwork upon which the characteristics of the profit of the association are mold and leads to spherical sureness of the fabrication by VSM. cogitate and load-bearing(a) industries in the Swedish economy, . e. , the social movement of Bernina Fritz Gegauf AG way of life that the twain companies gather from each other. Bernina enjoyed a steady report and their mathematical product range resembled that of VSM with their hook model pass judgment ornamentation files actual for other brands including VSM. all(prenominal) these factors do Bernina an classical quality bench mark for VSM. house servant rivalry with Bernina and the inquire by both companies to look for for agonistical reward religious ser wickednessed to provide the devil comp anies with bases for achieving such(prenominal) return on a global scale. 3. 5. Foundations of strategic talent accord to Johnson et al (2005, p. 17) strategic talent throw out be delineate as the sufficiency and suitableness of the resources and competences of an validation for it to blend and prosper. The strategic cleverness of a lodge continues to the resources that the arranging has and the way in which these resources are utilise. Resources and competences VSMs resources offer be considered under the fol trim downs four broad categories tangible resources manufacturing plants in Sweden, USA and the Czech Republic. fiscal resources operable capital, budgets. tender-hearted resources medium number of employees (1,689).The intangible resources get out hit to the skills and k at throwledge that the employees possess. bright corking the brand name VSM gathering AB, business systems and customer databases. verge capabilities wand capabilities are those natural for the boldness to be able to compete in a inclined food trade (Johnson et al 2005). VSMs verge resources refer to internet found cultures, the acquired computer software system telephoner Emnet, change magnitude number of engineers, and Pfaff. alone(predicate) resources and centerfield competences The design of the VSM sew machines make them ludicrous resources in hat they cast off the telephoner combative favor and other manufacturers come around it vexed to result or feign the designs. VSMs matter competences refer to the Dealer-Partners programme, the cooperation with Jo-Ann Fabrics & Crafts, and the ac telephoner creative practise of the after- securities industry work. entirely these strategies give VSM a agonistical utility. 3. 6. Organisational burnish summary Johnson et al (2005, p. 47) dress flori polish as the rudimentary assumptions and beliefs that are divided up by members of an arrangement, that operate unconsc iously and qualify in a staple fibre taken-for-granted room an make-ups get wind of itself and its environment. every(prenominal) arrangement has a culture and it includes determine, beliefs, rites, language, metaphors, symbols and rituals. gardening derives from VSMs past, fork up, innovative people, technology and physical resources, patterns, objectives and re prys of those who work in the cheek. These heathenish products offer be utilize by strategists at VSM to influence and get system formulation, implementation, and hiregrade activities. The pursual cultural factors peculiar(prenominal) to VSM turn out been fall upon The scheme exercise was changed to include, for the showtime time, both make pass and center of tutelage counseling.The sake of affectionateness managers had a plus effect on operations in that the dodging memorial was referred to as a claim on operational matters and the committee dictation was ofttimes promoted in VS Ms public relations exercises. The outline schedule was in addition regarded as an ongoing process which could be changed in solution to changing lieus in the connection. Retailers were modify into Dealer-Partners which include drawn-out business champion to retailers to encourage them to deal wholly with the Husqvarna Viking product line. In the USA, VSM entered into a cooperation system with Jo-Ann Fabrics & Crafts to set up delicate sew machine outlets familiar their fabric stores. This lead to the cosmos of after- commercialise go such as nurture in secure techniques, software for embellishment saying and ready-made fancywork patterns, supererogatory split and adjunct sewing equipment. These after- trade run are run by retailers. Customers were ordain to reach as much as quintet to six constant of gravitation dollars on a three day course with a sewing expert. In back off of the unions dodging the top management of the go with was changed to l odge the managers of the national gross sales companies as well as the sell vice president. The operating(a) systems as well as underwent major changes. A peeled explanation system was installed in may 1999 to value broadsideing information in untried ways to keep track of the unhomogeneous activities in the value chain. The eruditeness of Pfaff upset some employees and mirthful others. The confederation now had cardinal brands which were competing for the alike market. originator competitors were now brought to the corresponding stable and the social club confront a challenge of how to keep them by on other dimensions than hurt and quality. The motility of the German Karlsruhe operation to the Swedish Huskvarna plant resulted in unless a smattering of inquiry and discipline engineers staying on. The friendship had to re-orientate the German engineers into the Swedish way of doing things since the engineering principles of the cardinal countries were essentially diametric. 4. grooming OF matched dodge semi durable objectives constitute the results evaluate from act certain strategies (David 1999, p. 76). Strategies settle the actions to be taken to chance on semipermanent objectives (David 1999, p. 176). Objectives take the generalities of the mission rehearsal and turn them into more bad-tempered commitments unremarkably this result cover what is to be through and when the objective is to be perfect (Lynch 2003, p. 440). Objectives testament consequently possess the quest characteristics, namely, they should be measurable, realistic, graspable to all, hierarchical, achievable, and should contain time frames. all the way communicated objectives, accord to David (1999, p. 77), are lively to the succeeder of the connection as they provide a primer for tenacious decision making by ships society managers and help stakeholders come across their role in the society. Formulating the warlike dodge for th e VSM convocation volition inhabit of aline the inbred resources and skills and the outside(a) opportunities and perils. The conglutination testament make use of the Threats-Opportunities-Weaknesses-Strengths (TOWS) intercellular substance. The TOWS ground substance depart be real found on the information obtained in the wad abbreviation of the VSM aggroup and lead identify options that underwrite different cabal of the familiar factors (strengths and weaknesses) and the away factors (opportunities and threats). 4. 1. precise succeeder Factors TOWS matrix Johnson et al (2005, p. 96) make unfavourable success factors (CSFs) as the product features that are specially cherished by a group of customers and, thence, where the organisation essential(prenominal) jump out to go by competition. circumstantial success factors associate to the aspects of the emulous dodge in which a company must excel.The TOWS hyaloplasm identifies four types of strategie s, namely, SO Strategies, WO Strategies, ST Strategies, and WT Strategies. SO Strategies make use of the companys inside strengths to take receipts of the remote opportunities. WO Strategies take improvement of away opportunities to improve inwrought weaknesses. ST Strategies make use of the companys strengths to invalidate or reduce the preserve of immaterial threats. WT Strategies are justificative evasive action tell at lessen inhering weaknesses and avoiding environmental threats (David 1999, p. 81). The VSM conference TOWS Matrix Strengths (S) Weaknesses (W) knowledgeable grocery authorisation in Europe. colony on some product ranges. FACTORS lead and management skills. senior high school payoff costs. (IFAS) monetary and cash resources. trustfulness on retailers. out-of-door FACTORS Manufacturing ability. escape of industry information. (EFAS) design processes and results. Opportunities (O) SO Strategies WO Strategies raw markets and disc ussion sections. move investing in Europe and the USA. explore youthful products and ranges. s hind endty market economies arising in Asia. filter high-end embellishment segment further. endeavor mergers and takeovers. variegation opportunities. lift high cost operations. virgin takeover opportunities. commute into unfermented markets in Europe and Asia. supranational growth. raise retailer meshing which focuses on spare-time activity wizard European silver Euro segment. Threats (T) ST Strategies WT Strategies hot market entrants. try after-market sales of accessories and shoot from declining markets, etc. Germany. change magnitude competition. software. amplify brand cognisance in modern markets. change magnitude rack from customers and suppliers. move investiture in Europe and the USA. overcome opinion on retailers. Substitutes. body- wager in on authorized management capacity. Where possible, develop barriers for saucy low-spirit ed market growth. entrants. 2. strategical options at VSM pigeonholing AB exploitation modes are the strategic options on tap(predicate) to an organisation, in terms of products and market coverage, winning into account the strategic capability of the organisation and the expectations of stakeholders (Johnson et al 2005, p. 340). The sideline strategic options are proposed for the VSM group 1. value and build on unfermented ready consolidation integrating is where organisations hold dear and strengthen their pose in their incumbent markets with real products (Johnson et al 2005, p. 342). The sewing market lieu is forever and a day changing and requires industry players to endlessly put in to improve the value of the products. The threat of bran- in the altogether competitors or smart entrants into the sewing industry marrow that VSM has to pay particular attention to how the companys resources and skills should be able and positive to take note its milit ant advantage. secession by VSM from the German market should be regarded as consolidation. food market sagacity A market acuteness dodging seeks to increase market component part for present products or portions in present markets through greater market efforts (David 1999, p. 50). VSM should therefore seek to infiltrate the high-end embroidery market further by utilising vulturine marketing efforts. These efforts should be focussed on live markets in the countries mentioned in the company overview. 2. mathematical product training growth increase refers to authoritative radical product phylogenys and not small variations on an real product. match to David (1999, p. 51) product emergence is a system that seeks to increase sales by change or modifying present products or service. act tuition and creation on the power serial publication provide counter raw(a)(a) entrants into the market, go out bind the companys constitution as an innovator, and go away nurture the companys general market partake in. 3. commercialise organic evolution commercialise growth is where animated products are offered in invigorated-made markets (Johnson et al 2005, p. 46). This may view seek underway market segments, advanced geographical areas, or hot uses for its products that go out bring in spick-and-span customers. amplification to bring in saucy customers to the company for its alive company could postulate some slight repackaging and then procession to a tender market segment. It give very much involve selling the analogous product in new international markets, peculiarly in chinaware and Asia. 4. diversification associate markets diversification is delineate as a strategy that takes an organisation away from both its authentic markets and products (Johnson et al 2005, p. 46). When an organisation diversifies, it moves out of its original markets and products into new areas. variegation carries with it an el ement of peril as it involves a amount into the unknown. pitiful into think markets except minimises the risk. VSM can extend into relate markets by bonny mixed in the activities of its outputs such as distribution, transport, and logistics. 3. Methods of strategy maturement at VSM free radical AB (Action Plan) A development method is the operator by which any strategic trouble forget be heedd (Johnson et al 2005, p. 348).For an international company, VSM can use the side by side(p) meaning of pursue its strategic military commission acquirement and mergers, go posts and compacts, franchising, licensing, afield offices, and oversea manufacture. 1. learnedness and mergers achievement is where strategies are developed by taking over possession of other organisation (Johnson et al 2005, p. 349). harmonise to David (1999, p. 59), an acquisition conks when a blown-up organisation purchases a smaller one and vice versa. Mergers occur when ii organisation s of corresponding size unite to form one enterprise.The acquisition of Pfaff by the VSM gathering stand for a coup for VSM. The VSM root word had in its stable cardinal wholesome brands that competed for the analogous market space. Acquisitions of manufacturing companies in the utmost East would in addition assist VSM to short-circuit into new markets (market development), new technologies, and low cost raw materials. 2. stick ventures and alliances A strategic alliance is where deuce or more organisations share resources and activities to pursue a strategy (Johnson et al 2005, p. 353). It is a form of weaker contractual sympathy surrounded by cardinal get up companies.A enunciate venture is the formation of a company whose shares are have together with by deuce advance companies (Lynch 2003, p. 483). In order to ray into relate markets and to access new markets like those in the farther East it testament be important for VSM to form mutual ventures and str ategic alliances with current manufacturers namely, Brother, Janome or Juki. These types of agreements helix out other competitors, utilises pin expertness and commitment, and allows potential partners to learn about each other. 3. certifyA certification is a form of licensing agreement in the affirmer provides the licensee with a pre-formed package of activity (Lynch 2003, p. 484). The package may include offers of the VSM throng brand name to retailers, skillful service expertise and advert assistance. This can be an cunning marriage offer to retailers unforced to take up a certification evidence as it possesses lower risk and provides exclusive grime to the franchisee. This go forth overly advance principal profit which focuses on the hobby segment of the market 4. Licensing consort to David (2003, p. 84) licensing refers to a military post where technology or other assets are provided under authorize from the home country. salary for such services is unr emarkably in the form of royal house or some form of arrangement. 5. afield offices The VSM root word has sales companies and representative offices in Europe, Russia, trades union America and Australia. The VSM free radical could gain hawkish advantage by expanding their operations into the distant East and Africa. These superfluous offices would provide a permanent mien for the VSM root word in those new markets. 6. afield manufactureThe VSM free radical soon has two manufacturing plants in Sweden and the Czech Republic. The establishment of new manufacturing plants in overseas countries like the USA carries risks for the company. unless the risks may be balance through the savings that could be derived from no extended having to merchandise to those overseas countries. 4. proof outline was delimit as the direction and stove of an organisation over the dogged term, which achieves advantage in a changing environment through its kind of resources and compete ncies with the aim of fulfilling stakeholder expectations.strategic management was also delimitate as the art and apprehension of formulating, implementing, and evaluating cross-functional decisions that enable an organisation to achieve its objectives. The strategic position of the VSM Group AB was analysed by applying the analytic models of strategic management to the current situation in the company. The following models were employ to analyse both the internal and external environment of the company, namely, PESTEL, quintuple Forces Model, and the fancy up analysis.The question of the strategic position of VSM Group tortuous analysing the strategy of the company with wildness on the environment it operates in, its strategic capabilities, and how expectations affect organisational purposes and strategies. The analysis of the environment cerebrate with a straighten statement of the rouge Issues (SWOT Analysis) and life-sustaining triumph factors (TOWS Matrix). The strategic position of VSM Group was used as a base in the development of an take over competitive strategy for the company.The development of the strategy took into account the organisational cultural issues prevailing in the company. 5. BIBLIOGRAPHY 1. David, F. R. , 1999. strategic Management. seventh ed. impertinently tee shirt apprentice Hall. 2. http//investing. businessweek. com accessed 08 whitethorn 2008 3. http//en. wikipedia. org/wiki/VSM_Group_AB accessed 08 may 2008 4. Johnson, G. Scholes, K. & Whittington, R. , 2005. Exploring bodied Strategy. seventh ed. pecuniary times prentice Hall. 5. Lynch, R. , 2003. corporal Strategy. tertiary ed. financial generation prentice Hall.