Strategic Management Analysis of Angelicoussis Shipping Group - Essay Sample

Introduction

This paper is an analysis of the management, marketing, and the overall shipping administration strategies of Angelicoussis Shipping Group. Strategic management entails human resources management, analyzing the internal organization, setting objectives, evaluating strategies, and evaluating the competitive environment (Konsta and Plomaritou, 2012). Maritime practitioners and executives can use strategic management techniques to thrive in an uncertain and competitive business environment. Angelicoussis Shipping Group is the biggest ship-owner in Greece and the largest purely private ship owning group in the world, the group. The success has been attributed to the proper implementation of management and marketing strategies within the operations of the group.

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Management strategies used by Angelicoussis Shipping Group include the expansion strategy, which has seen the ship rise from one ship to 130 shipping vessels, the diversification strategy where the company has spread into various segments over time. The group has also applied the strategic alliance strategy and the cost leadership management strategies in its operations. Marketing strategies employed by the group include the analysis of opportunities and threats in a marketing environment and the segmentation approach.

Methodology

The main goal of this report is to explore and analyze historical data for Angelicoussis Shipping Group Ltd and the strategies used by the company management. This report will analyze the company statistics published on the web and in print publications, which will include the amount of cargo shipped, the continents it is sent, trends from year to year, company projections, fleet capacity, among others. Concerning the company manager John Angelicoussis, this paper will focus on his profile, his managerial strategies, and the overall business model he adopts. This paper will review the Angelicoussis Shipping Group Ltd website for statistics and other journals and publications done on the topic of the maritime sector.

Literature Review

In this review, an analysis of four concepts will be outlined: the shipping management concept, the shipping marketing concept, management strategies, and marketing strategies. This report reviews four materials published on the topic of Maritime management strategy. These materials have been reviewed under two categories; materials addressing strategy implementation in the shipping sector, and those seeking to address performance evaluation and usefulness of KPIs (Key Performance Indicators).

Shipping Management Concepts

Shipping refers to the transportation of a large number of goods via cargo ships. In this process, containers packed with goods are loaded onto vessels, and they are sailed to their destination points. This process requires specialized management since it involves a varied set of activities. Shipping management consists of the organization and management of companies that manage ocean-going ships, emphasizing the unique characteristics and the framework within the sector (Plomaritou et al., 2011).

A strategically organized, planned, and controlled maritime transport system is an essential determinant in the success of a shipping company. A maritime shipping organization is a multifaceted interaction of ports, ships, cargo, and management personnel. A set of procedures affecting the maritime transport system and its subsystems are involved. (Lutteman and Eriksson, 2015). The shipping management concept includes four steps of processes:

Planning the Voyage. It comprises of the commercial aspect of the shipping process. This process can either involve voyage charter, bareboat charter, or liners. (Lorange, 2005). Port operation costs, freight rates, cargo type, and distance between desired destinations are key factors determining the planning phase.

Voyage Realization. This phase entails processes like loading cargo, navigation through the sea towards the debarkation port, and unloading of cargo. To attain the final result of the voyage, efficient management of processes is essential in this phase. Proper management of activities in this phase indicates an appropriate understanding of the elements affecting the shipment (Goulielmos, Giziakis, and Pallari, 2011)

Analytical Phase. This phase entails the analysis and research of all voyage aspects. In this phase, negative and positive navigation performance effects are evaluated, errors are determined, and the voyage financial assessed results (Lorange, 2005).

Management of Staff. Management involves activities for making corrective and preventive measures to improve and enhance an inclusive maritime shipping process (Cariou and Wolff, 2011).

Shipping Marketing Concepts

In any company, the first concept in marketing is to evaluate the requirements of the consumers. Companies can, therefore, make decisions based on these needs to fulfil the consumers rather than compete with their rivals. The customer is the centre of focus in any supply chain, including the maritime transportation industry. The customer orientation concept in businesses has caught the attention of managers and academics. How a company is prepared, in terms of efficient service delivery, and the level of knowledge about its customer needs is termed as customer orientation.

Shipping marketing largely relies on safety as the key driver to being influential in the business. The company's history of damages and losses and the image and the ship-owner reputation in the market play an essential part in the choice of a shipping service provider by a charterer. The key concept in shipping marketing is that marine transportation companies focus on providing safe shipping services to their clients, at a fair price, at the right time and place, and with suitable promotion (Lorange, 2005).

The expression of performance within a specific sector is referred to as a Key Performance Indicator (KPI). Some of the KPIs in shipping include:

• On-Time in Full Delivery. This indicator refers to the complete and timely delivery of goods and services in the desired conditions (Konsta and Plomaritou, 2012).
• Average Days Late. The consequences of late deliveries are evaded by tracking late orders.
• Rate of Returns. Returns may be made due to shipment errors or damage.
• Order Picking Accuracy. It is a measure calculated from deliveries made to wrong customers (Konsta and Plomaritou, 2012). Time is required to track down the intended order and re-send it to the desired customer.

Management Strategies

The techniques for directing and controlling a business organization to achieve fixed goals is called setting management strategies. Top performance within organizations can only be achieved if management strategies are implemented. In the long-run, the policies are anchored throughout the company (Lorange, 2005). In the shipping industry, these strategies include leadership strategies, strategies for operational activities and business administration, and strategies for goal-setting,

Cost Leadership. This management strategy involves reducing the cost of production to offer relatively less expensive services or goods in a market sector. Efficient leaders perform everyday tasks in a strategic execution process. The production of highly standardized shipping services at a lower cost relative to other shipping firms enables a firm to take advantage of economies of scale (Lutteman and Eriksson, 2015). A continuous cost reduction approach in all business aspects is the key to maintaining this strategy.

Expansion Strategy. In this strategy, a company seeks to attain higher profits, command a larger market share, realize more significant impacts, and attain a faster growth. A company is said to be following the expansion strategy when it broadens operations from the perspective of technology alternatives, customer functions, and customer groups (Plomaritou, 2008).

Diversification Strategy. In this strategy, a firm seeks to widen its scope o across different market sectors and products. The idea is to expand into new markets or sectors which the firm is not formerly in, while creating a new product for the new markets (Plomaritou, 2008). New business possibilities are opened up by the use of this strategy. This strategy expands a firm's business horizons and diversifies company products in the target markets.

Investment / Portfolio Strategy. It simply refers to the approach adopted while investing. A portfolio strategy is a plan an organization lays to enable it to achieve the investor's goals (Plomaritou, 2006). Having a portfolio/investment strategy helps the management discard prospective investments that may poorly perform in the future.

Warfare Strategies. This strategy applies the principle of a business situation, where competitors are termed equivalent to sides in a military conflict, and the market share is viewed as a territory in dispute (Plomaritou, 2006). The warfare analogy is useful in developing strategies and tactics that will make a company competitor-driven as well as customer-driven

Strategic Alliance. The agreement between two or more firms to carry out a mutually beneficial venture while each firm retaining its independence is referred to as strategic alliance (Plomaritou, 2006). In this case, a project may include cooperation in the manufacturing, development, or sale of products and services.

Joint Ventures. It is an involvement between two or more international or domestic enterprises to carry out a business project (Plomaritou, 2008). The companies involved agree to pool their resources towards achieving a specific goal.

Technology Strategy. It is a general tactic consisting of objectives and principles for using technology to realize company goals. Technology Strategies identify staff members with responsibility for managing the technologies and defines how the technology aligns with business goals (Plomaritou, 2008).

Marketing Strategies

A strategy in marketing refers to a business game plan for reaching potential customers. The following are some of the marketing strategies in the shipping sector.

Marketing Implementation Procedures in Shipping Companies. The critical steps of marketing implementation in shipping firms are the diagnosis phase, planning, organization, implementation, and control (Plomaritou, 2006). Diagnosis entails discovering potential markets. In the planning stage, business objectives and missions are determined. The organization defines who will meet which goals. Implementation is applying action plans. Control includes the follow-up and correction of all pro...