Matalan's Strategic Analysis and Skills

This assignment examines Matalan, a UK retail company, through a strategic lens. It analyzes the external factors influencing the business using Porter's Five Forces framework, highlighting both threats and opportunities. The analysis also identifies essential skills currently possessed by Matalan and those requiring development for future success.

WORK-BASED LEARNING

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1. Business Environment of the organisation.........................................................................1
2. Discussion of two management practices that can have impact on the performance of
employee.................................................................................................................................6
TASK 2............................................................................................................................................7
1. Carried out an audit of the personal and professional development for Assistance manager.7
2. How personal development change an individual as a person...........................................8
3. Required skills, Knowledge and competencies..................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business environment refers to various forces or surroundings that affect business
operation and performance. Such forces have both negative and positive impact on the
performance of an organisation. In this study of work-based learning, chosen organisation is
Matalan, that is a British based clothing, fashion and home-ware retailer company (Matalan,
2019). The study is categorised in two major parts, where the first part will evaluate business
environment by applying various analytical tools and techniques such as; PESTLE, SWOT and
Porter's Five forces analysis. Along with it, two management practices will also discuss that can
affect employee's performance.
The second part will cover the auditing part for personal and professional development
for the required position. Impact of the personal development on the person will analyse and
lastly, it will cover the identification of new skills, knowledge and competencies will require for
professional development.
TASK 1
1. Business Environment of the organisation
PESTLE Analysis
 Political factor- Many political factor affects a retail industry such as; employment laws,
tax policies and the political stability of the country (Agarwal, 2018). Employment laws
are put in place by the UK government to ensure that employees have access to certain
rights in the workplace. It includes; workplace pension schemes, rise in national
minimum wage and holiday leave. This factor appears as a threat for company as they
tend to mean bigger costs for company and that result in, Matalan making redundancies
in order to cover the cost. Other than that, lack of political stability in UK have negative
effect on the company. Factors such as price of oil can affect Matalan's ability to move
products. On the other hand, Collapse with Rana Plaza Factory highlighted the dire
condition and enable company to help families live in Bangladesh.
Company is suggested to not affects by the employees laws and for reduce the
prices they should make changes in the operation of production pattern. Other than that political
stability is not in control of the company (Choy and Chua, 2019).
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 Economic factor- After the recession in 2008, when unemployment rates were high. This
kind of uncertain times are difficult for Matalan, because they need consumer to buy their
products. It is suggested for the company to maintain their price so that consumer can
spend money to buy the products. It is essential for retailers that people have jobs and
money to spend (Lejeune, Beausaert and Raemdonck, 2018). The economic criteria make
important for Matalan to keep their cost low. They are suggested to hire more young
workers on zero hour contracts. By this they can keep their cost down.
 Socio-cultural factor- This factor created by buying behaviour of consumers, social
responsibilities level, cost inflation, etc. The company known for providing cheaper rates
products from their competitors but increase in taxes like VAT can have negative impact
on the performance as it affect the cost of products and change the buying behaviour of
customer. In 2017, the UK government increased VAT from 17.5% to 20%. The major
effect of this is on lower income families. Corporate social responsibility is also a major
part of the social factor. Stakeholders in Matalan are more aware that the public, their
consumers want transparency in the company (Li and Robertson, 2018). It is suggested to
the company to being responsible towards the environment, ethical business practices,
etc. Under this factor consumers loyalty and changing trend is an opportunity for
Matalan.
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 Technological factor- Technology plays an important role in Matalan. Consumers are
getting more affected by social media, digital marketing and online shopping, etc. Other
than that, Technological factor is an opportunity for the company to improve their
operations and bring innovation in their services. Company have strong driver of mobile
app that allow consumer to do click and collect services. The company introduces an app
that replace plastic reward card, this maximises sale (Moutinho and Phillips, 2018). It is
recommended to the company to do continue technological advancement to stay ahead of
its competitor.
 Environmental factor- This factor can affect the image of company in society, in
consumer's mind and in market. It is important for Matalan to reduce their carbon
footprints. The major problem created by the organisation is by the process such as dying
fabrics can lead to water pollution. The environmental law can affect the operation of
Matalan. The company is recommended to maintain their ethical standard towards
environment.
 Legal factor- There are various issues faced by company in terms of copyright issues,
pressurise by legal laws and legislation (Musonera and Weber, 2018). The main legal
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Illustration 1: Effect of VAT rise by income groups
(Source: Matalan, 2019)

battle is going between Primark and Matalan over copyright issues. In this legal battle
Primark want Matalan to destroy the slogan bearing merchandise. Laws regarding
working hours, working condition, employees can have negative effect on Matalan. With
regards to global issues companies are under more pressure to provide fair and safe
working condition for workers. This factor appear as a threat for the company to and it is
suggested that they should fight for their right with Primark and implement safe and
secure working that can improve productivity of the employees (Reuer, 2019).
SWOT Analysis
This analytical tool provides and understanding of the internal strength and weaknesses
and external opportunities and threats of the company.
Strengths
 People- Matalan have strength of the staff that are very clear and concise with
communication, not just to one another but also to consumers. This help the company to
reduce any confusion that can have direct affects on sales and performance of the
organisation.
 Commercial- The another strength of the industry is driving e-commerce or click and
collect service. The company is also strong at driving the Matalan App by providing
various vouchers and benefits (Rimmer, 2018).
 Products- The company provides high quality products at affordable rates.
Weaknesses
 The biggest weakness of Matalan is weak management that need to be understand and
improve by the company. Because weak management increase business risk and reduce
profit of Matalan.
 The company has high staff turnover. It can hurt the ability of the company to compete in
the market.
 They have outdated technology that have effect on the performance of the industry.
Opportunities
 The company have opportunity to bring innovation in the products and services by
continuous R&D that will help the company to produce unique products and services to
meet consumer's need (Wadhawan and Seth, 2018).
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 The company have opportunity to adopt new technology within the industry and the
working pattern to better meet consumer's need with new and improved products and
services.
 In the globalising world they have an opportunity of international expansion.
International market offers Matalan new opportunities to enhance their sales(Agarwal,
2018).
Threats
 Change in rules and regulations of government of UK can appears as a threat for the
company. It can negatively affect Matalan.
 The competitors of the company is also a threat for the organisation as they bring
substitute option for consumers (Lejeune, Beausaert and Raemdonck, 2018). Intense
competition can lower down profit of Matalan. The biggest competitor of the company
are; Primark, Next plc, Peacock retail company, Marks & Spencer, Woolworth, etc.
Porter's Five Forces Analysis
 Bargaining power of Consumer- The level of this force is moderate to high as the
switching cost is low in the UK market (Porter's Five Forces Analysis, 2019). Consumers
are getting conscious for their expenses and easily switch where they get good product at
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Illustration 2: Porter's Five Forces Analysis
(Source: Porter's Five Forces Analysis, 2019)

low price. It is essential for company to market themselves for the concern to consumers
and cut their cost as possible to be in the market and attract as much as customers.
 Bargaining power of Supplier- Matalan is facing big challenge from supplier because of
high level of competition in the market. Supplier have power of switching easily from
one manufacturer to another (Li and Robertson, 2018). Power of supplier is high as there
are fewer choice of supplier for the company to get the best quality raw materials
(Matalan. 2019). Company developing various strategy to make loyal supplier so that
their switching cost can be low such as; developing relationship programs to having a
good relation with the suppliers.
 Threat of substitute- Threat of substitute product is low in the UK market because the
level of competition is high and there are many competitors providing alternatives but no
substitutes for low price of Matalan Products (Matalan, 2019).
 Competitive Rivalry- They have a high level of competitive rivalry. The major
competition of the company are; JP Boden & Co., La Redoute, Bonprix, ASOS, Topshop,
Primark, etc. The company have a high number of competitor and they offer equally
attractive product and services (Moutinho and Phillips, 2018). From all the competitors,
Primark power is high to influence the business of Matalan. It is disadvantage for the
company. Switching cost of consumers is not that strong because online services and
click and collect service is one of the best services that grab the consumers effectively.
Other than that, to beat the competitive rivalry, Matalan needs to bring innovative ideas
and implement in the company.
 Threat of new entrants- The level of this force is low as to come in the highly
competitive market and make position in compare to Matalan is quite difficult for any
new organisation as it need enough money, strategies, R&D to come into the retail
market in UK. Along with it there are some legislation that require to follow such as;
effective employment law, consumer law, company law, etc.
2. Discussion of two management practices that can have impact on the performance of
employee
Training and development
Training and development programs is help to develop the performance of employees at
the Matalan company. Management of company is provide the best training to their employees
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for improve performance and also increase productivity of work (Musonera and Weber, 2018).
This impact to the performance of employees by giving scope of study to their employees.
It is important for employees performance in acquiring competencies and help
organisation to retain its employees through satisfaction and motivation. That is enhances worker
of the Matalan and productivity as well. By the Training and development program employees
are gain lots of knowledge and information regarding to the work task. Like in the training
program employer of Matalan give coaching and instruction of work then employees are had
proper instruction of work (Types of Training programs, 2019). Company provide various
training and development programs such as; On-boarding training, orientation training, Skill
development training, etc. By that proper instruction employees are give their hard contribution
to achieve goals and objectives (Reuer, 2019). This help to improve profit and productivity of
company and the individual. The training programs help individual in improving the skills that
are necessary in the workplace and to meet business objective.
Employee relation
Employees relation is important for best and better result of work. Employees who are
working in the organisation like Matalan have their own opinion and style for work. Strong and
effective relations between the employees are plays an important role in organisation and also in
the employee's life. Positive relations are always helped for work effective and best. Employee
relation is the set of organisational function and practices that are deals with the issues related to
peoples as staffing, compensation and benefits.
This impact to the significant role in the Matalan to enhance the performance of
employees (Lejeune, Beausaert and Raemdonck, 2018). Like employees are positive and
effective relations with their team members then they all are always ready to help to each other
in the organisation for achieving goals and objectives of organisation. Positive and strong
relation of employees are always helped to improve profit and productivity of organisation in
positive ways.
TASK 2
1. Carried out an audit of the personal and professional development for Assistance manager
I am working as an Assistance Manager in Matalan Retail Company. The position in the
company helped me in experiencing many changes in my own.
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Matalan have a positive working environment and as working their I develop or gain
some personal and professional developments. For example; in the workplace environment and
under the position I need to lead employees and other departments that change the way of
leadership. Along with it, I experienced that not only one style efficient to manage people in the
organisation and I learned various styles of management.
Before working on the current position, I was not so efficient in the technical skill but the
work environment and the support of seniors helped me to develop the skill by providing proper
training and development.
2. How personal development change an individual as a person
Personal development is essential for me to bring the change and make me compete-able
for the position. The biggest change these skills brings to me is my professional development. By
this I am able to manage employees in the company.
A working in Matalan, there are various changes I experienced. The change from
working in Matalan enhance my confidence to speak as a team leader that is required to manage
the people in company (Musonera and Weber, 2018). It will change my way of thinking in a
specific situation and make me able to take decisions immediately in the company.
Personal development program in the company aims to develop and improve skills that
can be helpful for an individual not only in professional life, it is also essential and beneficial in
personal life. This not just change the way of thinking, behaving in the situation and managing
the situation in the organisation but it also helps individuals in the personal life outside the
organisation.
3. Required skills, Knowledge and competencies
As per the position requirement, I had many skills and some of the skills was need to be
improved. After working at Matalan, I got many new skills and improve the skills also by proper
help of seniors and with the working environment.
Leadership skills- This was my weakness for the position and a must requirement in an
individual. After working on the position as Assistance Manager, I learn to lead the team and
other employees in the company towards achievement of the goal. For this many things will help
me such as; environment of the workplace, seniors in the company, many leadership programs
conducted by previous leaders and owner of Matalan and other than that, various books, courses
also helped me.
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Socialising skills- This skill I got from the workplace of Matalan as I got chance to
enhancing employee motivation, it was required to being socialise with people in the company. I
able to develop this skill by observing my senior manager and this helped me to motivate
employees and enhance their productivity (Lejeune, Beausaert and Raemdonck, 2018).
Technical skills- For the professional development as per the position and in the
technological advancement world, technical skill is improved in the workplace. Technical skills
was improved by taking training.
Discipline- Discipline is important for any job role in the organisation. The working
environment of the company help me in understanding the value of this basic skills.
CONCLUSION
From the present study it has been evaluated that Matalan is a famous retail company in
UK. The company affected from many external factors. Some factors are an opportunity for the
company and some factors are threat. For that company developed some strategy to overcome
the present threat. From five forces, it has been concluded that they are high level of threat from
the competition. For the present position, some skills are available and some skills are need to
develop by training, etc. The professional and personal development help an individual as a
personal and on the professional level.
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REFERENCES
Books and Journals
Agarwal, V., 2018. Development of Higher Education through Academic and Administrative
Audit. Development.
Choy, W. K. and Chua, P. M., 2019. Professional development. In School Leadership and
Educational Change in Singapore.(pp. 69-86). Springer, Cham.
Lejeune, C., Beausaert, S. and Raemdonck, I., 2018. The impact on employees’ job performance
of exercising self-directed learning within personal development plan practice. The
International Journal of Human Resource Management. pp.1-27.
Li, L. and Robertson, J., 2018. An analysis of the importance of volunteers during events.
Moutinho, L. and Phillips, P., 2018. Strategic analysis. In Contemporary Issues in Strategic
Management. (pp. 46-79). Routledge.
Musonera, E. and Weber, J. M., 2018. Analysis of Marketing Strategies in the Social Media:
Facebook Case Analysis. Journal of Marketing Development & Competitiveness. 12(1).
Reuer, J., 2019. Small retailers surviving in a world influenced by global players and
digitalization.
Rimmer, A., 2018. How do I prepare a personal development plan?. Bmj. 363. p.k4725.
Wadhawan, N. and Seth, A., 2018. Understanding Consumer Buying Behavior: A Study with
respect to Baby Care Industry.
Online
Types of Training programs. 2019. [Online]. Available Through:<https://www.uscreen.tv/blog/6-
types-online-employee-training-programs/>.
Matalan. 2019. [Online]. Available Through: <https://www.matalan.co.uk/corporate>.
Matalan. 2019. [Online].Available Through:<https://www.matalan.co.uk/>.
Porter's Five Forces Analysis. 2019. [Online]. Available
Through:<https://www.cgma.org/resources/tools/essential-tools/porters-five-
forces.html>.
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