Business Strategy | Assignment Report

Running head: BUSINESS STRATEGY
Student Name Yolanda Sanda
Student ID P1097328
Assessor Name Oluwatobi Arikawe
Qualification Pearson BTEC Level 5 HND Diploma Business
(Management)
Unit Number & Unit
Title
Unit 32 BUSINESS STRATEGY
Assignment Title BUSINESS STRATEGY
Date of Submission
Assignment Submission
Signature: .................. ........................... Date: ___________________

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Business Strategy
Name of the Student
Name of the University
Author note

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Executive Summary
The report throws light in analysing the business strategy of New Look Company which is
situated in the United Kingdom market. With the help of internal and external environment
analysis, the different internal strengths and weaknesses along with opportunities and threats
have been identified which helped in improving the scenario of the company in a proper
manner. In addition, it can be seen that the Ansoff Matrix has been helpful for generating the
competitive advantage of the company in comparison to other competitors which are present
in the market appropriately.

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Table of Contents
Introduction...................................................................................................................5
1.1 An Environmental Analysis conducted on New Look using PESTLE. (P1)........5
PESTLE analysis......................................................................................................5
1.2 An Organisational audit conducted on your chosen organisation using SWOT
(P1)............................................................................................................................8
Activity 2 (This Activity provides evidence for P2 and M2).........................................11
2.1 Analysis of Strategic Capabilities of New Look Using VRIO Analysis..............11
Analysis of Strategic Capabilities............................................................................11
Components of Strategic Capabilities.....................................................................11
Analysis of Strategic Capabilities of New Look Fashion Retailer Using VRIO
Analysis...................................................................................................................12
2.2 Critical Evaluation of Internal Environment of New Look Fashion Retail
Company.................................................................................................................14
Explanation of McKinsey’s 7S Framework.............................................................14
Diagram of McKinsey’s 7S......................................................................................14
Critical Evaluation of Internal Environment of New Look Using McKinsey’s 7S....15
Activity 3......................................................................................................................16
3.1 Application and Analysis of Porter’s Five Forces Model for New Look................16
Porter’s Five Forces Model.....................................................................................16
Diagram of Porter’s Five Forces Model..................................................................17

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Application of Porter’s Five Forces Model to New Look.........................................17
3.2 Analysis of Competitive Advantage Using Ansoff Matrix..................................18
Analysis of Ansoff Matrix.........................................................................................18
Analysis of Competitiveness of New Look Using Ansoff Matrix.............................19
Activity 4......................................................................................................................20
4.1 Interpretation and Devising of Strategic Planning With help of Porter’s Generic
Strategies and Bowman’s Strategy Clock...............................................................20
Porter’s Generic Strategies.....................................................................................20
Application of Porter’s Generic Strategies and Bowman’s Strategy Clock for
Devising Strategic Directions to New Look.............................................................20
Recommendation of Suitable Hybrid Strategy Based on Generic Strategies........22
4.2 Recommendation of two Growth Strategies for New Look...............................22
Identification of Two Growth Strategies..................................................................22
Justifications for Recommended Growth Strategies...............................................22
4.3 A Strategic Management Plan New Look with tangible and tactical strategic
priorities and objectives..........................................................................................23
Strategic Management Plan....................................................................................23
4.4 Comparison of New Look with Competitors to Provide View on Sales and
Profits for two to Three Years.................................................................................25
Conclusion..................................................................................................................25
Reference list..............................................................................................................26

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Introduction
An organization is working in an environment, through which it gets effected
and is affecting the environment as well. In today’s world, where companies are
going international to gain opportunities, the requirement to study the business
environment increases. Before entering into a new environment, it is important for
the company to analysis the external environment of the entering nation, and internal
environment of the self, in order to understand their own capability to enter into the
market. For a detailed analysis of these criteria, an organizational case will be
considered in the report further (Gernmain & Meek, 2015).
NEW LOOK is a British global fashion retailer with a chain of high street
shops retailing in fast fashion goods for men, women, kids, and homeware. The
company has already invested in various nations with more than 350 stores and
plans to enter into many other countries (New Look, 2018). The report will focus on
the trading of the company in England. For which, the external business environment
through PESTLE analysis and internal business environment through SWOT
analysis will be included in the report (New Look, 2018).
Activity 1b
1.1 An Environmental Analysis conducted on New Look using PESTLE. (P1)
PESTLE analysis
1. Political factors
This is a most important factor while analysing the external environment, the being
the political system of the country has a major effect on business and business
decisions. The United Kingdom is a developed nation and considered to be a very
attractive nation for foreign direct investment. One of the major aspects of this factor