Business Strategy Framework and Process Analysis

This assignment requires students to analyze their internal and external capabilities in order to get maximum profit and growth. It involves adopting a strategic framework to make changes in their processes as well as services based on this analysis. The student needs to reference various books and journals related to business strategy, marketing, and financial management. This assignment will help students understand the importance of analyzing internal and external capabilities to achieve maximum profit and growth.

REPORT

Table of Contents
INTRODUCTION...........................................................................................................................1
Marketing Plan............................................................................................................................1
Resources and capabilities..........................................................................................................6
Marketing and strategic Framework...........................................................................................7
Justification for most appropriate strategy..................................................................................9
Evaluation and Justification for proposed strategies.................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES .............................................................................................................................12

INTRODUCTION
In a business economy, each organisation is established to gain maximum profits and
growth in order to expand their current market position easily. For this, management of firm
needs to make different and impactful strategies to acquiring higher competitive advantages.
This report is based on River Island which is a street fashion brand and provide clothing,
footwear and accessories to their customers (Kim and Mauborgne, 2014). River Island was
established in the year of 1948 by Bernard Lewis. This firm has around 350 stores in approx. 100
countries. Therefore, organisation needs to operate their business activities based on online
operations. All these marketing as well as business strategies assist expanding business structure
in worldwide. This report represents organisational marketing plan and positioning, strategic
framework and resources as well as capabilities of firm.
Marketing Plan
For a business organisation it is required to make a specific marketing plan in order to
attain their future objectives and goals easily. It is a part of business activities that used to
determine market positioning of a particular organisation. On the basis of these planning, an
organisation can easily create their future targets and objectives that assist in getting desirable
success. River Island is a clothing brand of UK that provide quality services for Men, Women
and Children.
Mission and Vision of River Island – River Island is a well-known brand that cater
stylish, fashionable and unique clothing’s to their customers. The firm is aiming to bring new
and classy fashion in market by their own creation and ideas. Mission statement of firm is to
introduce variety of products for customers who always rely to them (Best, 2012).
Corporate objectives – For a business organisation, it is required to create their own
objectives and targets on the basis of their products and services. These objectives assist in
motive employees toward future success and growth. River Island is a clothing brand which is
aiming to represent new and trendy cloth in target market on the basis of customer's requirement
and need. Main objective of firm is to create their own image on the basis of their unique
products and services.
STP framework
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This is a marketing model that uses to creating a marketing communication plan in order
to priorities decision and strategies. Main objective of this framework is to create direct and
positive relation with different customers to get higher benefits and success as well. This model
is classified in three specific elements that are determine below -
 Market segmentation – For a business organisation, it is required to provide their
services on the basis of market segmentation and need. These processes is based on
organisation's size as well as structure (Slater, Mohr and Sengupta, 2010). Small scale
organisation has a specific market segment in which they can introduce their services
while as large-scale firms operate their business strategies in maximum segments. For
River Island, it is requiring analysing market segments on the basis of different elements
as -
◦ Demographic – This factor determines Age, gender and income of target customer to
represent organisational services. By analysing these factors, River Island needs to
classify their services as well as products.
◦ Psycho graphic – According to this segment customers are classified on the basis of
their Lifestyle, values, culture and beliefs. These are the most important factors that
has major impact on customer's buying behaviour. For River Island, it is required to
distribute their services in several countries by analysing Psycho graphic factors.
◦ Behavioural – This element determines consumer's requirement and need for specific
product. River Island needs to analyse such factors that can be based on technological
and trend changes. All these elements have direct impact on consumer's buying
behaviour, so for this they need to render services in several segments.
◦ Geographic – According to this factor River Island needs to identify several areas
where customers has maximum requirement for specific product. Through this they
can provide maximum services in these areas to getting maximum profit as well as
growth (Hillier, Grinblatt and Titman, 2011).
 Market targeting – This framework determines organisation's target market where they
wants to cater their products and services. In this procedure, River Island requires to
adopt a specific segment to target for their future objectives and needs. These activities of
a business firm determine strategies, tools, planning and techniques to accomplish their
future goals. For River Island, this approach helping in maximise business structure in
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target market on the basis of customer's demand and firm's services. All these business
approaches provide desired benefits when employees of organisation analyse their
customer's requirement and need. Through this, River Island can expand their business
structure at several locations.
 Market positioning - This factor determines positioning of an organisation on the basis
of their products and services. Each and every business firm determine their objectives on
the basis of future requirement and need. By analysing current position of River Island,
firm can easily make possible changes to attempt their objectives and goals. These
strategies assist in expand organisational structure in target market. This process also
requires market and customer analysis to identify their requirement and need in order to
cater exact services. Through this River Island can easily create their own position and
goodwill in target market (Berthon and et. al., 2012).
Strategic positioning
This process is based on organisational audit that helps to represent its strength and
weaknesses. By analysing these factors, firm can easily make positive changes in their products
and services on the basis of customer's requirement and need. Strategic positioning of River
Island can be analysing through SWOT analysis as -
Strength Weaknesses
Denim department - River Island is clothing
brand that provide quality services in denims
on the basis of customer's demand as well as
requirement.
Quality range – River Island introduce their
apparel in quality range for Women, men and
kids-wear. These clothing’s are based on new
fashion and current trends of market.
Celebrity endorsement and events- To
capture customer's attention toward
organisational products and service, River
Island usually conducts celebrity events as well
as endorsements programs (Hinz and et. al.,
Seasonal layout – River Island usually provide
their clothing range in denims. They are not
focusing on seasonal layout that can be a major
weakness of firm.
Limited products blocking - River Island
manufacture their quality cloths on the basis of
customer's requirement and need but their
production activities are limited.
Staff – In a business organisation, it is
requiring that they have trained staff who
understand customer's requirement and provide
them quality services but River Island do not
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2011).
Floor and layout - River Island has their own
identity on the basis of their cloths, floors and
layouts. They provide maximum facilities to
customer's who visit their outlets.
have maximum skilled employees.
Opportunities Threats
Trained staff - River Island Requires to
conduct training session for their employees to
enhance their interpersonal skills and working
capacity to grabbing maximum opportunities.
Festive jumpers - River Island needs to
provide their services on the basis of different
festival to build a strategic positioning in target
market.
Print clothing’s – Now a days, customers are
more attracted towards print clothing’s, so for
this River Island needs to implement such
strategies in their business process to getting
maximum opportunities from market.
High competition – Major threats of firms are
high competition from existing organisations
as NEXT, ZARA, New Look and Primark.
Price war – In competitive market,
organisations majorly faces price wars in order
to capture customer's attention toward their
services.
Strategic planning tools
For a business organisation, it is required to analyse target market in order to serve their
quality products and services easily. In this procedure, River Island needs to implement strategic
tools in order to expand their business structure. Ansoff matrix assist in determining growth of
firm as -
 Market Penetration – This procedure will be beneficial when River Island introduce
their existing product in existing market with new strategies (Khanna and Palepu, 2010).
For this, they need to build new connection with customer's on the basis of their goods
and services.
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 Product development – This strategy will be beneficial when River Island introduce
new product in existing market. For this, they need to implement impactful strategies in
order to spread awareness of their new services. Promotional tools can be a beneficial
approach that assist in product development method.
 Market development – River Island can use different factors in their business firm when
they introduce their existing product in new market (Kapferer and Bastien, 2012). These
are most beneficial approaches that uses to expand business structure at different
locations.
 Diversification – For River Island, it is requiring to make impactful plan when they
announce their new product in new market. In this, company needs to analyse whole
market and customer's requirement to introduce new service easily.
Marketing budget
Particulars 1st year 2nd year 3rd year 4th year 5th year
Initial money 40000 10000 12000 25000 10000
Investment 20000 12000 25000 25000
Total 40000 30000 24000 30000 35000
Marketing
expenditures
Advertisement 9000 8000 3000 8000 5000
Sales promotion 2000 8000 3000 7000 5000
Direct marketing 9000 8000 4000 6000 7000
Total 20000 24000 10000 21000 17000
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Available balance 20000 6000 14000 9000 18000
Resources and capabilities
The framework which is helpful to evaluate resource and capabilities which are present
within the organisation is known as Porter's generic model. This will aid to use their internal
capabilities to attain competitiveness in business operations. River Island needs to implement
their such factors activities in their organisational approaches to gaining higher competitive
advantages easily as -
 Cost leadership – This is a most effective tool and technique which is helps in getting
higher competitive advantages in target market. For this, River Island needs to analyse
target market and competition in order to reduce cost of their services. In this process,
firm needs to reduce wastage in manufacturing activities in order to earn desirable growth
and profits (Govindarajan and Ramamurti, 2011). Cost leadership is a most effective tool
that helps to capture consumer's attention toward organisation and its services. Through
this, River Island can easily create their own image in consumer's mind by impactful
strategies and approaches. These approaches are based on analysis of competitor
organisations and their products cost to make changes in their own product prices.
 The differentiate strategy – These strategies are basically used to represent differentiate
organisational services based on innovative ideas and creative thoughts. In clothing
industry, an organisation can easily face tough competition due to various existing firms.
River Island needs to understand these marketing strategies for distinguish their products
and services from others. This process is based on proper market research and innovative
ideas that they can easily implement in their business activities. Main objective of this
process is to get higher competitive advantages from target market by providing higher
satisfaction to consumers (Nagle and Müller, 2017).
 The focus strategy – According to this strategy, an organisation needs to analyse most
beneficial approach for their business organisation in order to maximise resources and
capabilities for their firm. The focus strategy of firm can be -
◦ Cost focus – According to this strategy, River Island needs to use cost effective factor
to attract maximum customers toward their products as well as services. This business
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approach required proper planning and business framework in which firm needs to
reduce wastages and expenses.
◦ Differentiation focus – This strategy basically uses to differentiate organisational
products and services from others. River Island can implement this strategy by
implementing unique and innovative ideas in their products as well as services.
For River Island it will be beneficial to adopt differentiate strategy in order to introduce
new and attractive services in target market. These are beneficial approaches for Resources and
capabilities.
Marketing and strategic Framework
Marketing mix is an effective tool through which the referred organization take the
different important decision regarding the essential areas of an enterprise and makes it different
from other existing in the same field:
Product – This is one of the most important factor that needs to be consider while taking
decisions for the organization (Grant, 2016). River island as belonging to the retail sector it has
to focus majorly on the quality of the product it is offering in the market. It is providing different
varieties to the customer which assist in developing the satisfaction level of company users.
Price: The company is known to undertake price skimming strategy when it comes to
pricing their products and services. This organisation begins with pricing their products higher
and then gradually reducing it over time. River Island is known to collaborate its efforts with the
designer as well, under those circumstances premium pricing strategy is adopted.
Place: This organisation has marked its presence on the popular destination in the
country i.e. shopping malls and landmarks. This organisation operates through its 350 stores
spread throughout the UK, Asia and Middle east. The company have been taking assistance from
e-commerce platforms as well named as ASOS.com and Nelly.com to deliver product
conveniently (Nath, Nachiappan and Ramanathan, 2016).
Promotion: This organisation has been taking assistance of social media when it comes
to marketing products and service of this enterprise. The tools which are mostly preferred by this
enterprise are Facebook, Twitter and Instagram for the purpose of promoting products and
services. River Island is known to be pro-active on the blogging sites with fashion-oriented
content so that more and more people could be attracted towards the business.
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People: It consist of different employees and customers who are part of the referred
brand. Management of the discussed enterprise ensure that it is providing good quality of
training to its work force so that the standards of services can be raised.
Physical evidence: In order to influence the choice of customer it is important that the
placement of different products in the store is done in such a manner that customer do not find it
difficult to find what they want.
Process: Effective processing system has to be adopted so that continuity in sales can be
ensured. For same effective utilization of advance applications and systems is done in
manufacturing as well as other system (Ottman, 2017).
In McKinsey model, there are seven areas where organisation are categorised into hard
and soft areas. Such as Strategic Framework, system are hard elements which are easy to identity
and control as compare with soft components.
Strategy – It is that factor which has been developed by company for achieving sustained
competitive benefits and it is successfully complete within the market. River Island required to
make that strategies which help them in gaining high competitive advantages in better manner. It
is that strategy which plan deployed by an enterprise for remaining in competitive in the large
industry and huge market place.
Structure – This will represents the way of business department and unit can be
organised or operated which includes information and data of the company. It is one of the most
viable and easy to modify components of given framework. River Island need to maintain and
manage business structure which help them in gaining desired goals and targets. The structure
organisation is develop for their corporate hierarchy, chain of command and department which
outline such business operations and its major functions (Hoffman and Bateson, 2010).
Systems – It is that procedures of the firm which reveal business on regular time period
and also analyse how to make effective decisions in better manner. System are such areas of
company that can determining business and it is mainly focus on on company manager at the
time of organisational changes. This includes regular process, decision making procedure and
standard operations within an organisation.
Skills – These are such abilities and capability of firm employees to perform in better
manner. This includes competencies and capabilities. For organisation changes, it will identify
such skills and ability of company which require to reinforce their new strategies or structure. In
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an organisation, skill involves with capabilities and talents of company employees which can
considering various types of achievements and firm work should be completed.
Staff – This is mainly concerned with employees and their common capabilities that
present in an organisation. Also company need to maintain and manage all organisation functions
such as trained, recruitment, motivation and rewards. River Island required to train their
employees for increasing their skills and abilities in proper way.
Style – It can represents that way of firm to manage and control by higher authorities and
interacted with other people and also they will take proper actions in well organised manner.
River Island leader using management style for achieving potential goals and targets. Along with
this, management take effective leading within the company so this will directly impact on
organisation performance, productivity and corporate culture (Massari and Ruberti, 2013).
Shared value – It was established for developing first and such core values of the firm
are evidenced in the corporate culture and common work ethics. This is the core of McKinsey 7s
model. This is the major standards and regulations which guide their employees behaviour and
firm can taking major actions within an organisation. River Island also need to share their
organisation culture values and beliefs among employees in appropriate manner.
Justification for most appropriate strategy
For a business organisation, it is required to adopt a specific strategic and marketing
framework in order to analyse their current position and goodwill in market. On the basis of this,
firm can easily make changes and modifications in their products as well as services. Strategic
analysis is also a most specific factor that uses to analyse organisational shared vision on the
bases of different elements. These are the most specific strategies of business firm as -
 To analyse internal strength of River Island, management needs to use strategic
framework that assist in getting higher competitive advantages.
 River Island needs to analyse market condition and requirement for their products and
services to render exact goods to them (Belz and Peattie, 2012).
 For marketing analysis approaches, River Island needs to create a effective framework
that assist in analysing effectiveness of their products in order to provide higher
satisfaction to customers.
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These are the most specific and beneficial approach that assist in getting higher
competitive benefits. For this, management of River Island needs to implement different strategic
tools in their business procedure for strategic and marketing frameworks.
Evaluation and Justification for proposed strategies
On the basis of above analysis it has been justify that management of a business
organisation needs to make some effective and impactful strategy for their business organisation.
Through this, they can easily make positive changes and modifications in their business activities
on the basis of customer's demand and requirement (Hoffman and Fodor, 2010). River Island is a
well known retailer in UK that deals in quality and fashionable cloths for Men, Women and kids.
For them, it is requires to amylase current market, customer's need and trend that can affect their
business activities and approaches. Through this, management of firm can easily make positive
changes in their products and services on the basis of customer's requirement and need. To make
a effective strategic position in target market firm needs to -
 River Island Needs to make a effective marketing plan that assist in analysing
organisational vision, mission and future objectives.
 In order to make a effective marketing plan firm needs to implement several strategies
that determine further requirements and needs of market.
 River Island should analyse target market area and customer's who has specific
requirement for organisational products as well as services.
 Strategic positioning is a effective method that assist in analysing organisational strength
and weaknesses to make proper changes and modification in business process. It is also
helpful in internal analysis procedure.
 To create a marketing framework, River Island needs to use marketing mix strategy that
assist in determining organisational overall services and qualities.
 River Island also needs to analyse their resources and capabilities in order to implement
effective strategy to getting higher benefits and growths.
CONCLUSION
From the above report it has been summarised that an organisation needs to make
impactful plan and strategies in order to getting higher competitive advantages. This is a part of
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business activities that used to ascertain market positioning of a particular firm. On the basis of
these planning, an organisation can easily make their upcoming targets and accusative that assist
in acquiring desirable attainment. In this process, firm needs to analyse their internal and external
capabilities in order to get maximum profit and growth. On the basis of this a business firm can
easily adopt strategic framework to make changes in their process as well as services.
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REFERENCES
Books and Journals
Kim, W.C. and Mauborgne, R.A., 2014. Blue ocean strategy, expanded edition: How to create
uncontested market space and make the competition irrelevant. Harvard business
review Press.
Best, R., 2012. Market-based management. Pearson Higher Ed.
Slater, S.F., Mohr, J.J. and Sengupta, S., 2010. Market orientation. Wiley International
Encyclopedia of Marketing.
Hillier, D., Grinblatt, M. and Titman, S., 2011. Financial markets and corporate strategy (No.
2nd Eu). McGraw Hill.
Berthon, P.R., and et. al., 2012. Marketing meets Web 2.0, social media, and creative
consumers: Implications for international marketing strategy. Business horizons. 55(3).
pp.261-271.
Hinz, O., and et. al., 2011. Seeding strategies for viral marketing: An empirical
comparison. Journal of Marketing. 75(6). pp.55-71.
Khanna, T. and Palepu, K.G., 2010. Winning in emerging markets: A road map for strategy and
execution. Harvard Business Press.
Kapferer, J.N. and Bastien, V., 2012. The luxury strategy: Break the rules of marketing to build
luxury brands. Kogan page publishers.
Govindarajan, V. and Ramamurti, R., 2011. Reverse innovation, emerging markets, and global
strategy. Global Strategy Journal. 1(3‐4). pp.191-205.
Nagle, T.T. and Müller, G., 2017. The strategy and tactics of pricing: A guide to growing more
profitably. Routledge.
Grant, R.M., 2016. Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.
Nath, P., Nachiappan, S. and Ramanathan, R., 2010. The impact of marketing capability,
operations capability and diversification strategy on performance: A resource-based
view. Industrial Marketing Management. 39(2). pp.317-329.
Ottman, J., 2017. The new rules of green marketing: Strategies, tools, and inspiration for
sustainable branding. Routledge.
Hoffman, K.D. and Bateson, J.E., 2010. Services marketing: concepts, strategies, & cases.
Cengage learning.
Massari, S. and Ruberti, M., 2013. Rare earth elements as critical raw materials: Focus on
international markets and future strategies. Resources Policy. 38(1). pp.36-43.
Belz, F.M. and Peattie, K., 2012. Sustainability marketing: A global perspective.
Hoffman, D.L. and Fodor, M., 2010. Can you measure the ROI of your social media
marketing?. MIT Sloan Management Review. 52(1). p.41.
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