Network Technology PLC is a fast-growing technology and manufacturing group of companies with its shares listed on the London Stock Exchange and regulated by the UK Listing Authority. The company is engaged in the design, manufacture and marketing of hardware and software used in connecting all computer associated equipment in the business and domestic environment, such as personal computers (PCs), (Bartol 2001:1) workstations, printers, scanners, fax and vending machines to local area networks (LANs), wide area networks (WANs) and the Internet. The Company is also engaged in security and access control devices for connection to computer networks, as well as security management software for use within organizations and their enterprise networks. During the year ended March 31, 2006 (fiscal 2006), Network Technology's wholly-owned subsidiary, link Ringdale, acquired certain assets of NLlynx Inc.. In fiscal 2006, the Company acquired certain assets of Madge Ltd.
"Strategic management is the process of decision making which have high medium term to long term impact on activities of the organization including the implementation of those decisions to create value for customers and key stakeholders and to outperform the competitors" Strategic management has three elements such as strategic analysis, strategic choice and strategic implementation. Strategic analysis gives the idea to understand the strategic position of the organization. It is an ongoing activity of organization. Strategic analysis gives the clear picture of the changes in the environment and how these changes affecting the organization and its activities. It gives idea about the resources and competencies present and their contribution to competitive advantage and development of new opportunities. (Bills 2006:3) Also it produces the idea about the people and groups such as manager, shareholders, union, stakeholder etc. associated with organization and their contribution for the development of organization.
Basically strategic analysis develops the relationship between different forces influencing the organization and its choice of strategies. These forces are environment, resource and competences etc.
Network Technology PLC's ability to compete successfully and maintain attractive gross margins is heavily dependent upon its ability to ensure a continuing and timely flow of innovative and competitive products and technology to the marketplace. As a result, the Company incurs higher research and development costs as a percentage of revenue than its competitors who sell Windows-based personal computers. If Network Technology PLC is unable to continue to develop and sell innovative new products with attractive gross margins, its results of operations may be materially adversely affected by its operating costs structure (Bartol 2002:41).
Network Technology PLC has also been lacking in their business marketing strategies and distribution networks. With regards to the personal computer industry, the familiarity of the Network Technology PLC software is not there. The original goal of teaching on an Network Technology PLC computer has been over shadowed by Microsoft. Education is now geared toward a version of Windows which is not compatible with Network Technology PLC ...