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1428 Downloads 19 Pages 4808 Words
Business strategy means company set out strategy for achieving a goal of the organization. It is also known as long term business planning and it cover more then 3 to 5 years. The present report is based on primark organization, it is as Irish clothing retail operating it bossiness in Austria. It offer a diverse range of products in which it includes beauty products, kids clothing and mens wear. The present report covers, environmental audit for the organization is analysed. Along with this, the role and responsibilities of personnel who are charged with strategy is assessed. Apart form that, the contribution of SMART targets tot eh achievements of implemented strategy is evaluated
Primark is multinational company its deal in fashion in European countries like in Austria, UK, Ireland, German etc. Business strategy is very crucial for accomplish the objectives of the corporation, it is provide the framework to the manager to implement the planning and policy of the organisation. Strategy assist to increase the efficiency of the employees by successfully apply the procedure of the task.
Strategic planning: it is process through which organisation formulate the plan or the framework to achievement of the business goals or win market competitions. It provide the information to the business manager about the present position and the future opportunity of the business.
Vision: it is define as the long term aim of the organisation it concern what the corporation need and where it can be achieve for the company like Primark. Mostly visions are made for long term success of the business by applying the appropriate functional strategies of the firm.
Mission: it is primary purpose of the business or the organisation. Mission provide reason why a enterprise is stay in that particular segment of trade for Primark the mission of the company is gain advantage of the market by providing the desire of the customer in fashion segment. Mission assist to employee of the organisation to perform their assign task to achieve the organisation's objective.
Objective and goals: mostly people are thought that these both are same but in the reality this two are quietly different form each other. Goals refer the desire of the human or an organisation it is ultimate stage of business for the example a company goals to reach the highest ranked in the market of a particular market segment of the goods or services while the objectives refers as the progress of the achievement of the goals of the business. It measure of the accomplishment of the goals of the organisation on step by step.
Core competencies: it is primary elements of organisational success, it provide the competitive business climate on the other revelry firm in the market. It stimulate to the company to enter in the new market through expanding it business operation in more region of the nation and foreign demography. For example an fashion manufacturer the core competence of the organisation will be obtaining of the raw material, production of the goods and its distribution sources will be include in it.
Strategic planning is a wider term in the business has to work for its future growth. If the trade operations are made for the development of the business entity it is essential to take care of all those elements which can affect the business and its future growth. Thus, it can be said that the strategic planning a wider term and it directly related with the future suitability of the entity and it is very important to take care of all those elements which are going to affect this strategy. The essential elements which are to be kept in mind while making the strategic planning are described as under:
Engagement: Strategic planning is a process not an event. So the essential element of this planning is to engage all the staff members in formulating and implementing of the plans. It is very important to have the involvement of the workers in making the strategic plan. This can provide the insight on the issues related with the plans and procedures.
Communication: Strategic planning is the process in it the interaction can be made with the employees so that they can provide their valuable suggestions to the management. So it can be said that the strategic planning is a long term process and in it the communication of all the relevant materials and data is necessarily to be communicated with all the staff members. By this the employees will be able to have a knowledge of all those elements which are related with the strategic planning so that the process can be made in the most effective way.
Innovation: It is the another most important factor which can affect the strategic planning. In it the new technologies of the plan are made and implemented. It is very important for the development of the business to take care of all latest technologies and advancements which are going to take place in the market so that these all trends can be used in formulating strategic plan.
Project Management: it is the another most important factor, in it the employees of the company make the various strategies to obtain the desired goals. The management of the entity must be effective so that the actions can be taken in the most efficient way. To have the better management the company can provide the training to the staff members so that they will be able to create a good culture and environment. By this all the activities related wit the strategic plan will be done and completed in the most efficient way.
Culture: the strategic planing is related with the tools and techniques which can be adopted in the business. The culture of the business is made by the employees sop it is very important for the company to have the best talent in the entity so that the good and healthy culture can be made and the desired goals can be achieved.
Strategic planning is the most important factor which is to be made by the management of the company. If the planing is made in the most efefct6ive way then all the tasks can be done in the most effective way. This is a long term approach and in it the role of other factors and techniques is very high. If the employees will be trained properly then thy will be able to perform better in providing the best services to the entity. The plan is relay ion its making and the tools which can affect its business positions. Along with the employees there are some another factors which can affect the strategic planning these are the communication level and innovative tools. It is very important for the company to use the effective and innovative tools and techniques in formulating the strategic plan and this can be done paying attention on the factors which are related with the strategic planning process.
The business is relied upon the various elements of the plan and its implementation process. If the factors are used in the most effective way then the business can grow faster. Primark is a fashionable garments company it is very important for the company to take care of all those elements which can tale place in the business while operating trade activities. Along with this there are some other tools which are having vital role in making the strategic plan these are the marketing strategies the role the governmental, policies and the regulatory authorises. The management of the planning process is also having a great role in making and implementing it in a most effective way and this can be done by taking care of the role sand responsibilities of the employees of the company. Thus, it can be said that the strategic planning is made for the success and development of the business and it is very important for the company to formulate the plan in such manner that it can sustain in long run.
Strategic position is the situation in which the organisation makes its value and create the policies to defeat the rivalries. Strategic position of the company can be divided in to two parts such as one is premium price and the next is lower cost of the entity. Primark is the UK based entity and it is operating its business activities in the filed of the fashionable garments and clothing entity. The company has the motive to sustain in long run and this can be done by using he strategies of handling the business situations. The corporate can provide the services as per the needs and demand of the customers. So the company has to pay attention on its various elements which are to be opted while carrying the trade operations. It should work in such manner that at a lower cost it can meet the expectations of the customers and by this the sales of the entity can be increased. This can lead the entity to defeat its rivalries as well. So the management of the company must work for the development of the business. So it can be said that the entity has to work for the development of the trade activities and the personnel departments. By this it will be able to manage its identity and existence for the long run. Thus, strategic position of the company reflects the desired future position of the business in the upcoming years. So the corporation must make its existence in such manner that it can be able to sustain in the long run as well.
Organisational audit is a wider concept in it the internal and external environment analysis of the business is done. As fare as the internal analysis is considered in the SWOT evaluation of the business strategies is done. And tin the external analysis the PESTEL analysis can be conducted. So by doing the study if the internal and external analysis the business will be bale to address the issues of the tare operations. Organisational audit is a wider term in the impact of the regulatory, governing, political and legal regulations on the business is evaluated. And this will be enable the entity to address the issues related with the trade operations. The purpose of the audit is to evaluate the problems which can occur in the business so that it can be ensured that the company is operating its activities properly or not.
Pestle analysis for the Primark company are as follow
Political factor: There are many political factors that affect the Primark company. Government made rules and regulation which affects the organization activity. Further company need to follow those rule such as health and safety act, data protection act. Etc, this all affect the activity of the organization.
Economical factor: There are many economic factor such as at the time of rescission company is facing a problem loss because buying power of the customers decrease. So Primark sale its product to Customer at discount price. By offering product in offer and discount price help in maintaining a profit of the company.
Social factor: Customer taste and preference change with the changing lifestyle (Goetsch and Davis, 2014). They want something new every time so company need to more product according to the needs and demand of the customers. It help company in increasing the sales.
Technological factors: there are new technology come in market which primark need to adopt so that they can make more innovative products. Advanced technology help in increasing the productivity of company and also it help in lowering the cost of production.
Environmental factor; Primark need to make a product buy keeping in mind that environment is not get be harmed. All the wastage should be recycled instead of throwing it in water (Jang and Kim, 2015). There are many policy created for protecting a environment such as by using a limited use of resources and by avoiding a exploitation which is a big dilemma.
Legal factor; There are many legal policy which company need to followed strictly. This legal policy are imposed by the government. Such as taxation if company charge high tax form the primark company then they need to sale a product at higher price (Van den Brink, Van der Laan and Moes, 2013). It help in maintaining the profit. While if government charge low price them company van lower it price.
SWOT analysis of the Primark company
New strategy for primark is as follow
substantive growth strategy: In this strategy primark can can focus on its growth. The following strategies are franchising. It help in company in issue more and more franchise without any investment. While horizontal integration is that Primark can merge with other company in the same industry. It help increasing monopolistic power of a company/.
limited growth strategy: this strate3gy for primark involve product development and innovation. The organization can make new innovative product so that it can easily retain the existing customer and attract anew customer of selling its products (Gendron, 2014). Further company can also develop its existing products and it can also develop a new products for increasing a market penetration
Retrenchment strategy: Remedial action taken when organization face the retrenchment. It can use the following strategies so that can control the sales turnover. When company sale decrease the it can reduce the cost of the products. Further it can sold its unnecessary assets So that it can manage the profit of the organization. It also focus on regrneating a revenue by increasing the price level or by working on the stock turnover ratio
Business strategies played a prominent role in sustain and growth of a business. There are various strategies for market entry, substantial growth of the business and for the limited growth of the business. These strategies used by the organization specially for MNCs. Primark requires to use these strategies carefully and implementing in a effective way so that they can achieve there goals and objectives. There are following strategies which is used by the company:
Strategies for Market entry:
Direct exporting: This strategy is used by Primark for entry in a new market. It used when the company wants to expend their business much wider so that they can increase their profitability through a new market. In this strategy the identify countries where they want to export their products and also select their an appropriate distributors in that country.
Licensing : It is another strategies for market entry. It is an arrangement where a company transfer their right to their agent or distributors for use their products and services. Primark can use this strategy for increasing their market share.
Franchising: As we know that Primark is well known brand in UK. Therefore they can use their brand through franchising foe selling their products in to another country.
Strategies for substantial growth:
Diversification: Diversification is a strategies which is used by the organisations for substantial growth in their business. Primark requires that they can diversified their business activity in to the different sector to maintain their profitability. They can investing their capital in to various business which gives a good rate of return for their investments.
Product development: It is another strategies for substantial growth for their business. With the help of this strategy Primark can increase their existing product range or they can also come up with a new product range for their customers.
Market development: In this strategies company can make a new product range for different market segmentation. Primark can choose a different segment it can be niche market, young market or any other. It is used by the company for maintaining their market share and profitability for their business.
Strategies for retrenchment:
Turnaround: It is a retrenchment strategies which is used by the companies if they feel that they faces continuous losses in their business, declining market share etc. in this strategy Primark can close their store where the market share and business declining continuously.
Disinvestment: In this strategy company reduces the scope of their business. They can sell a portion of their business which is facing the maximum losses. So that they can protect themselves for future financial losses in their business.
Primark is a leading fashion brand that offers superior quality clothing brands for its consumers. Expansion of business operations requires a strategic approach for implementing the actions plans that are formed by management for expanding the operations of the enterprise. Different types of strategies are used by enterprise for accomplishing this objective and some specific strategies have been used (Frynas and Mellahi, 2015). The action plans used by enterprise aids in entering into new market area and enhancing consumer base in existing market. Direct exporting strategies have been used for selling clothing brands in new market areas. If products will be directly sold ion market than it will aid in saving investment cost of firm for starting a new manufacturing plant. When expansions are done in new country than there is need to take approval of government (Hair and Ringle, 2012). Legal and regulatory frameworks are different across diverse nations and due to that it becomes complicated for executing desired operations. When clothing products will be directly exported than it will aid in saving various cost and time of firm. This is the most suitable strategy which will aid in selling large number of clothing products to large consumer base.
Moreover for substantive growth company has adopted product development strategy. Consumers are getting more aware due to technological advancements and fashion trends are also changing at faster pace. It is vital that clothing brands of enterprise should be developed as per the needs and preferences of buyers (Global retail challenge, 2016). For achieving this objective designers can be hired which will support in developing the product as per the needs of consumers. Attractive clothing brands can be launched by Primark group for selling large amount of products. In addition to this Turnaround strategies also have been planned by management. It is a backup plan that has been used by company if expansion strategies of business fails in delivering required results. However it is assertive to always form a backup plan for reducing the risks and dangers that are associated with implementing strategies in business. Two strategies including product development and direct exporting aids in meeting required objectives of business in successful manner (Morgan, 2012). But there are some risks and dangers that are associated with these strategies and it can be reduced by making a backup plan. Primark has decided turnaround strategy for reducing the danger that is associated with it.
Roles and responsibilities of personnel requires some strategy implementation which divide work among employees according to their roles and also considering of level of organziation. Employees of Primark need to change their strategy which are implemented because through this, they may get successful implemenation of startegy. Moreover, personnel roles and responsibilities need to be clear and concise because they can understand and communicate well by providing some information to employees and other parties (Muhammad. and Abdullah, 2016). CEO of Primark is responsible for communicating strategy to employees moreover, it is also responsible in guiding of strategic planning.
Strategic planning in Primark are resposible for maintaing their record because it is very essential in strategic planning which help in avoiding legal responsibilities within organziation. Furthermore, they need to mainatin ethical and legal standard which is involve at time of implementation of strategy. In organziation proper monitoring is also require because if any probloem rises then they can make some changes at that time only. Monitorining and controlling involves of periodic overview of activities because they help in evaluating employees performance properly (Barney, 2012). Thus, from this they can implement their roles and responsibilities accordingly which help in meeting out goals easily and effortlessly. However, they can implement their startegy by considering all factors which may affect on personnel. Firm need to analysis all strategies because they help in identifying proper roles and responsibilities for implementing of their target. Moreover, through startegic implementation organization need to mainatin and consider all legal and ethical factors because through this no biasness among organization involves.
Organization need to consider some legal factors related to personnel that are equal opportunities to employees, discrimination act, employment act and health and safety act. Through this, they may able to implement all strategies correctly and accurately. Through defining of roles and responsibilities CEO of firm need to consider all planning accurately because this will results in development and performance of individual. In addition to this, they may also allow some essential and corrective actions which are requires at time of implementation. Thus, it leads to encouraging overall performance of startegic planning.
Keeping the analysis Primark in focus the organisation should implement various resource for its growth and long term sustain in the market. Being such a huge company prim ark must access in all the senses and may attain success in all the aspects of the business. Every business is required to forecast and plan the future requirement of resources so that the organisation may out suffer for the long run of the business (Al-Deen and Hendricks Eds., 2013). So considering the case of Primark their are various strategic resources which can be implemented for the future , some of them are given below.
Managing plus size clothes :
As Primark is huge organisation dealing with vast variety of products related to the men, kids, babies ad women but lacks in providing plus size clothes, considering the fact most of the people in UK are suffering from obesity and look for plus size clothes as if we talk about UK out of 100 , 80% people are suffering from this problem and Primark don't provide clothes for these size people till yet as some of the stores are already providing due to which customers have stopped going to the store for their needs and desires (Morgan 2012). So if Primark would focus major on maintaining plus size clothes it may enhance the growth of the organisation on the whole.
Scope of online shopping :
As we all deal with the digital word today and pay more attention to online stores for shopping and avoid carrying heavy bags and roam around in the city for the shopping where Primark is still lacking behind in providing online products to their customers who could not reach to the stores (Van den Brink, Van der Laan and Moes 2013). As we are aware with the fact that most of the crowd is busy working in offices and organisations and they hardly make up time for shopping and so they prefer online shopping which saves their times plus their unwanted cost.So if keeping these strategies in mind Primark would attain success and will able to sustain for long term in the market which may result in the overall growth and desired targets will be attained.
SMART objectives are formulated in business for meeting the decided targets on timely manner. It is required that proper action plans should be formed and they should be implemented in organized way so that These objectives are as described-
SPECIFIC – Primark has set specific objectives where major goal of the organisation was to expand business operations in new market areas. Management of the firm decided to adopt market entry strategy for selling clothing brands of enterprise to large market area (Peteraf, Stefano and Verona, 2013). Asian countries including India and Pakistan will be targeted for selling clothing products of the enterprise. Direct exporting strategy has been planned which will aid in reducing the overall investment cost of the enterprise and it supported in gaining huge profitability (Primark .2016).
MEASURABLE - Major objective for expanding the operations of business will be broken into small targets. It will aid in measuring performance of the business in successful manner and also supports in assessing performance of business against set targets (Barney, 2012). It has been decided that in three month company will try to gain 2 % market share of chosen area.
ATTAINABLE – The goals set by Primark company are feasible and easily attainable. On the basis of target set some small term goals will also be set and it supports in achieving the long term objectives set by business.
RELAIBLE - The target for gaining 2 % Market share in target market areas of Primark group is reliable and attainable. Proper qualification have been used and analysis of external and internal business has been done for setting targets which makes them reliable (Eden and Ackermann, 2013).
TIME-BOUND – Targets are set on time bound basis and it has been decided that within three months company will try to achieve its desired objective is a time bound objective and it is required that proper monitoring should be done (Frynas and Mellahi, 2015). When objectives are set in time bound manner it aids in measuring and monitoring performance of business against set targets.
Form the above report it can be concluded that primark can expand it business all over the world by entering into a new market. By conducting a Swot analysis of company it become easy to identify the weakness and strength. External analysis help in determining a political factor and social factor which affect the business activity. Further it can be concluded that, a the time of decreasing a sale company can lower the price of its products and also sale its assets. Primark also need to advertise its products and services so that many of people came to about its products and services.
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