Strategic Management: Analysis of Primark

STATEGIC MANAGEMENT

Executive Summary:
The main aim of this project is to implement plans for allocation of resources in order to
achieve objectives with the help of development of plans and designing policies. With the help of
strategic management, it can gain competitive edge over its competition (Camilleri, 2017). The
company chosen for analysation of strategic management is Primark. For evaluation of the
intensity of competition in the market Porter's five forces are used. The model of Porter's five
forces explains the intensity of the competition, threat of entry of new competitors, the power of
bargaining of the suppliers, risk of substitution and its threats are used for evaluation of the
performance of Primark. This project analysis the macro environmental factors with the help of
Pest analysis. This analysis explains the factors relating to politics, social, economic and
technology. For achieving growth this project uses the Ansoff Matrix which states different
strategies of growth for Primark. VIRO analysis in this project talk about the value, rarity,
imitability and the organization of the company. At last this project recommends the strategies
derived from the theories and model for being utilized by the company.

TABLE OF CONTENT
INTRODUCTION ..........................................................................................................................4
MAIN BODY...................................................................................................................................4
1 : Porter's five forces on Primark...............................................................................................4
2 : PEST analysis of Primark.......................................................................................................6
3 : Recommendation for Primark.................................................................................................8
CONCLUSION ...............................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Strategic management is the allocation of resources for implementation of plans for
achieving objectives with the help of development of plans and designing policies (Camilleri,
2017). With the help of strategic management, a company can gain competitive edge over its
competition. The chosen organization for this project is Primark. This project analyses the
performance of Primark on with the help of different theories and models which are, Porter's five
forces and Pestel analysis. With the help of these models and strategies this project recommends
the best strategies which can be utilized by the company for gaining competitive advantages.
With the help of Pestel analysis this project analyses the macro environmental factors which
affects the business of the company. These factors are, political, economic, social, technological,
environmental and legal factors which influence the business externally.
MAIN BODY
1 : Porter's five forces on Primark
Managers and investors use a certain model for analysation of the internal environment of
a company for influencing their decision-making. This model states the 5 forces which are
important for evaluating the intensity of competition in the market. With the help of this model
the intensity of the competition, threat of entry of new competitors, the power of bargaining of
the suppliers, risk of substitution and its threats are used for evaluation of the performance of
Primark. Porter's five forces for Primark are explained in the following ways,
Threat of Substitutes:
The usual definition for this force in porter's five forces consists of product which are of
other industries or products from other competitors. In this particular economy it has been seen
that the change of demand occurs due to changes in prices of the substitute. With increase in
availability of more substitutes the competition of Primark increases with increase in change in
demand of the product of the company (Johannsdottir and McInerney, 2018). This might cause
company to refrain from increasing its prices. Primark tries its best for minimizing the