Executive summary

The first section of the report has carried out a comprehensive strategic issue analysis by capturing a sensitive global level issue which might question the current strategic position and value definition of the business. The rising world crude oil prices are making a number of strategic implications in multiple industries. The effect will be really significant especially for manufacturing companies who largely use oil and electricity for their production purposes. Linea Aqua being a premium swimwear manufacturer deals with a number of foreign customers such as Nike, Addidas, Victoria Secret, etc. The company has been maintaining a hybrid value definition which promises a premium quality product under optimum labor and sustainability standards at a reasonable price. The report has critically analyzed how the above mentioned value definition is challenged by the forecasted global issue of rising crude oil prices. Both cost and demand side implications have been identified at a strategic level. Finally, recommendations have been put forward to turnaround the negative impacts identified within the context to secure the company’s competitive position and sustainability within the industry.

1.0 introduction
Today, global business environment changes at a rapid rate and therefore businesses should be on alert regarding these new developments and its immediate and long term impact on the overall business model and strategic position. Failure to identify the global level developments will question the company’s strategic relevance within the industry (Johnson and Scholes, 2008). The world energy crisis is creating some serious implications to a number of industries globally. The depleting oil resources and rising crude oil prices can be viewed as the major issues within this context. Rapier (2017) in one of his articles published in Forbes has estimated that, oil resources will get depleted within the next 40-50 years and this might increase the oil price $150 per barrel in 2022. The above predictions have been made by looking at the deteriorating spare production capacity of oil. Having predicted this future oil crisis, many multinational companies have already started to invest on sustainable energy sources. Solar, wind, electric batteries and other nuclear power sources can be depicted as examples. Bullard (2018) in his recent article published in Bloomberg has identified that solar and wind power is becoming popular within US as renewable energy sources.

As you can observe in the above graph, wind and solar power purchase agreements show a growing trend from 2010 to 2018 and it is predicted that this trend will continue in future as well. Another interesting finding is that oil demand for cars is already falling. This is a fine example which reflects the direction of world’s energy consumption. According to Bullard (2018), there is a phenomenal growth in hybrid and electric vehicles in the automobile industry. Similarly, finding alternative energy sources has become a strategic priority in other sectors as well. Having witnessed these dynamics within the world energy market, this report will discuss the strategic issues that might affect the current position of “Linea Aqua” which is an export oriented swimwear manufacturing company.

2.0 Company background
Swim wear SBU attached to the Mas Holding was introduced in early 2001 under special business unit “Linea Aqua”. This can be recognized as one of the major model of strategic partnership. This partnership includes, Speedo International and Brandot International. Having analyzed their product base, it include grate range of product base namely, Leisure Swimwear, Swimwear, children swimwear and competition swimwear. Over the period they were able to strength their business activities and as such now they are dealing with more than 12 foreign countries when they carrying out business activities. With that their reputation was affected and improved by grater amount as an export focused company. Under this new expansion, they are providing more than 6000 employment to the society.