Individual Strategic Management Report

Individual Strategic
Management Report

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................4
INTRODUCTION...........................................................................................................................5
TASK 1............................................................................................................................................5
Analysis of external Macro environmental factors using PESTEL............................................5
Analysis of micro factors by using Porter’s Five Forces............................................................7
Analysis of internal factors by using VRIO................................................................................8
TASK 2..........................................................................................................................................10
Identification of competitive strategies.....................................................................................10
Strategic directions....................................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

EXECUTIVE SUMMARY
This report has been drawn on a company named as Lidl based in Germany to show the
contribution of strategic management in an organisation. It has included identification of internal
and external opportunities and threats which the chosen entity can have. Along with this, a
suitable framework has been developed by comprising strategic options on the basis of current
strategic position with the use of different frameworks to exploit global opportunities in order to
gain competitive edge. This has been conducted with the use of PESTEL analysis for assessing
external factors and Porter's Value Chain Analysis has been used for analysing internal factors.
This has been followed by evaluation of organisation competitive strategies in a critical way for
making recommendation by applying Perter's Generic Strategies of Competition.
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INTRODUCTION
Strategic management is one of the significant fundamental activities which is associated
with setting objectives, analysing the competitive environment, assessment of internal
organisation and evaluation of strategies. The main aim is to ensure better performance and
sustainability in the marketplace. There are certain acts which are which are carried by
organisations for increasing profitability (Aubry and et. al., 2012). This helps in making plans
which can provide protection against predictable as well as unfeasible contingencies. This
assignment is prepared on Lidl Stiftung & Co. KG, which has its headquarters in Neckarsulm,
Germany. It is a global discount supermarket chain having 10,000 stores in the regions of Europe
and United States. It is currently facing high competition in Europe with the presence of other
successful entities along with new organisations entering in the market. Therefore, by
considering this Lidl is planning to expand its business in Asian market and this is why it has
chosen Malasiya. Furthermore, this report covers critical evaluation of current position in which
external and internal MACRO environment factors have been analysed with the use of PESTEL
analysis and Micharl Porter's Value Chain Analysis. Along with this, strategic recommendations
for the chosen organisation in order to gain competitive advantage in which various alternatives
have been included. Furthermore, strategies have been developed by using Porter's Generic
Strategies of Competition model.
TASK 1
Analysis of external Macro environmental factors using PESTEL
PESTEL analysis is a tool or structure used for analysing and monitoring the external
forces on which organisations do not have any control. These are present outside the business
entity and generally used for entering a particular foreign market. It helps in analysing current
situation so that appropriate actions and decisions can be made. It has been used in the context of
Lidl which is provided below:
Political factors- These factors are associated with the policies made by government.
There is a high degree of intervention by federal and state government. Tac policy, trade
restrictions, foreign trade policy, labour law, environmental law etc. have impact on the business
of organisations (Burgess and Radnor, 2013). There should be adequate stability in order to carry
business. Lidl is a successful company which gets number of benefits because Germany is the
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