Strategic Decision Making Report: French Connection PLC Analysis

This report delves into strategic decision-making, focusing on the French Connection PLC. It begins with an analysis of the external environment using PESTAL and Porter's Five Forces models, identifying threats and opportunities. The report then explores the strategic capabilities of the organization, highlighting strengths and weaknesses through a SWOT analysis. Furthermore, it examines the strategic choices available to the company and evaluates these choices to recommend the most suitable path forward. The report emphasizes the importance of strategic planning in achieving organizational goals and maintaining a competitive edge within the fashion industry, providing a comprehensive overview of the factors influencing strategic decisions and their implications for the company's performance and market position.

STRATEGIC
DECISION
MAKING

Table of Contents
TASK 1............................................................................................................................................3
Analyse the external environment of the organisation and justify the threats and opportunities
................................................................................................................................................3
TASK 2 ...........................................................................................................................................6
Describe the strategic capability of an organisation and also identifies the strength and
weakness ................................................................................................................................6
TASK 3............................................................................................................................................8
Develop suitable strategic choices..........................................................................................8
TASK 4..........................................................................................................................................10
Evaluate strategic choices for an organisation ....................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Strategic decision making is the process by which managers can decisions for the
betterment of the organisation. These decisions are concern with organisational activities and the
overall organisational environment. Companies make strategics towards achieving their goals
and objectives, and improves employees efficiency. It also helpful in compete with the external
environment of the organisation as well as internal also. Employees behaviour and their activities
are affected by internal or internal factors of the market (Nielsen and Nielsen, 2011). So as these
factors also reduces the chances of gain competitive advantage of the company, and its market
growth. Internal factors of the organisation can be reduces with the help of SWOT analysis, it
involves strength, weakness, opportunities and threats of the organisation. SWOT analysis is
helpful in evaluate the overall internal activities of the employees and suggest strategics to
reduce them. Due to this, strategic decision making also develops a healthy an dwell being
environment in the organisation. There are so many external factors in the organisation that
affects on employees performance and their behaviour. These factors are as – political,
economical, social, technological and legal (PESTAL) . They also impact on organisation's
image and its market share and increase the number of competitors. This report is based upon
the French connection PIC, that deals in clothing brand and styles. The company is a wholesaler
of fashion accessories, home-ware and clothing. It is extends in UK, Canada, Malaysia US and
through franchise and wholesale arrangements globally.
TASK 1
Analyse the external environment of the organisation and justify the threats and opportunities
The external environment of an organisation is combination of the all outsider influences
and factors that affect the activities of the company. Organisation should have to act or react to
manages its flow of operations. External environment involves entities, factors, events and
conditions that are surrounding overall the organisation. It not only affect organisation's
activities and operations but also determines its risk and opportunities. External environment also
known as operational environment that is totally opposed form internal environment. Managers
can analyse the external factors with the help of PESTAL analysis, it is helpful in order to
reduces the external factors that impacts on employees performance and their productivity as
well (Robert Mitchell, Shepherd and Sharfman, 2011).

PESTAL analysis is helpful in order to evaluate the external forces of the market and make able
to the organisation to achieve goals and objectives. . The analysis is also demonstrate what what
opportunities and challenges are there. The factors that are involve in PESTAL analysis are as
follows: - Political factors – It includes political stability in the market, government of the
organisation, taxation policy, environmental law, labour law, trade restrictions and so on.
Basically it consider the relationship of the company with its government. It plays an
crucial role in the success of an business organisation. In French connection PLC,
political factors establishes balances between free markets and system of control. Along
with this, the government of every nation's don't supports any illegal or immoral
corporate activities. In context of cited organisation, these factors determine the extent
by which a government impact its economic conditions. For example- if central govt. of
UK may impose new tax or duty on products so as it change the financial condition of
company. Economical factors – Economic factors relates with the health and wealth of any
business organisation. In French Connection PLC, economic factors helps to analyse the
economic conditions of business. It relates with how the economy UK impact on French
Connection PLC growth and success; economic factors decrease or increase product's
prices. Along with this, this would also influence the purchasing power of customers;
change demand and supply of goods. It is assistive in finding these problems such as-
unemployment, economic growth, international trade and current levels of inflation, so as
managers can make a better strategic plan (Hacklin and Wallnöfer, 2012). There are
some economic factors that impacts on company's performance, such as- credit
accessibility, interest rates, inflation, unemployment rates, and disposal income of buyers. Social factors – There are so many social factors that affects the performance of French
connection. Social factors involves distribution of wealth, education level of employees,
changes in lifestyle and trends, population demographics etc. Basically it represents the
culture of the society with the firm operates its business. These circumstances affect on
the mentality of consumer's and individual's in given market. Social factors are also
known as demographical factors. For example – in holiday season, customers of UK

prefer to buying trendy and western clothes so as French collection PLC should has to
produce products that are enable to meet buyers needs and demands. Technological factors – Technological factors impact on employees performance
because there are so many working techniques are available in market, due to these tools
and technologies employees can work easily but they cannot develop their skills and
knowledge (Citroen, 2011). In French Connection PLC, there are some technological
such as – rate of technological obsolescence, new discoveries and innovations or new
technological platforms. Along with this, these factors refer with development and
invention of new techniques, changes in information and improves customer services in
order to know users requirements and expectations.
 Legal factors – legal factors involves profit margins, viability of certain markets and
product transportation. It assess the legality of business towards products and services.
Porter's 5 model -
Porter's 5 forces model is a framework for evaluating the level of competition between
industry and organisation strategy development. For French connection PLC, the model design
to determine the intensity of competition in industrial organisation. It also develops the
attractiveness of competitive advantage that refer for overall company's profitability. These are
the 5 forces that are involve in porter's model, such as – power of supplier, power of customers,
threats of substitutes products, competition in an organisation, and potential of new entrants in
the business (Dekkers, 2011). In French Connection PLC, these factors are also impact on its
productivity and efficiency , it also increases competition form new entrants and affect on the
quality of product and services.
Strategic capability analysis – The analysis is helpful in order to evaluate the capabilities of the
employees so as managers can easily improves it. Along with this, managers create polices and
strategics towards implement them in the overall organisation. It increases the financial liability
of French Connection PLC so that company can growing despite in the presence of competitors.
Limitation of porter's 5 Model it focus more on macro analyse less, so as it is not a proper
tool for analyse the external or internal environment because it is not specific. But it is helpful in
accomplish competitive advantage for business organisation. Five forces of porter's are as
follow: -

 Threat of new entrants – There are so many competitors and new entrants are available
in market, porter's framework helps to provide capability to compete with all those
factors. For French connection PLC, it is very challenging to stand in marketplace
because customers needs time to trust upon these kind of new organisations. This
framework helps to reduces the all barriers for new companies and start-ups. Supplier power – External environment also develops the supplying power of managers.
It is very essential to manage and organise the prices of the product therefore customers
can easily attract towards them (Gary, Wood and Pillinger, 2012). For French
Connection PLC, supplier power involves- reason of low pricing, how to switch cost, the
number of supplier in market and who is controlling prices. Along with this, supplying
gives strengthen to distribution channels and provide ability to vertically integrate with
customers. Supplier of raw material and components to the firm is helpful to supplying
sources of firm to organisation. Bargaining power of customers –bargaining power of customers also determine the
market outputs. Customers only prefer those products which rates are less than another.
In French connection PLC, buyer power is high means buyer has many alternatives and
if buyer power is less so that it acts independently. Industry rivalry – industry rivalry involves competition form external market. The model
helps to provide suggestion in order to compete with external market and it also increases
the chances of sustainable competitive advantage with the help of innovations.
 Threats of substitutes – there are various kinds of product are available in market,
therefore it is very difficult to produce attractive and innovative products for customers.
Along with this, price and quality of product is also attracts the customer's, so as the
managers of French Connection PLC, have to produces that type of product which has
the combination of prices, quality and attractiveness.

(Source: Porter's 5 forces Model, 2017)
Performance and efficiency of employees in French Connection PLC can be
summarized through SWOT analyse: -
STRENGTH
 Internal capabilities that may help an
organisation reach its objectives.
 Has worldwide recognition through
product being sold globally.
 Reliable cash flow.
 Market demand in all seasons.
 Production is able to cope up with
customers.
WEAKNESS
 Internal limitations that may
interference with a company's ability to
achieves its goals.
 Costs.
 They have micro business units
competitive market.
OPPORTUNITIES
 External factors of the organisation that
may be able exploit is advantage.
 In future company have lost of chances
to create their own new market.
 Company have opportunity of growing
THREATS
 Current and emerging external factors
that may challenges the company's
performance.
 There is a growing competition and
Illustration 1: Porter's 5 model

economy of the country and it is enable
to raise up demand of the product.
lower productivity.
 Tax changes.
 Financial capacities.
TASK 2
Describe the strategic capability of an organisation and also identifies the strength and weakness
To understand the strategic capabilities of an organisation, firstly managers have to
understand the strategic choices of the company. Strategic choice approach, relate with the
decision making process of French Connection PLC, because if strategics are not develops
properly so as leaders cannot take sustainable decisions. The main aim of strategic choices is to
concentrate on developing polices and to make them in a specific planning situations, either their
substance or timescale (Kandemir and Acur, 2012).
Strategic capability analysis – The analyse is helpful to improves the performance of
the organisation and their employees so as they can produces good quality products and services.
Strategic capability analysis is helpful in company's competitive position that is change by its
capability to perform at a high level. In today's world, every organisation should have to change
their abilities in order to respond customers demands and needs. It is also helpful in competitive
threats that are commonly faced by French Connection PLC, if company is not to compete with
its external threats so as its market growth goes down rapidly. There are some positive benefits
of strategic capability analyse, such as - Bridging the gap – It bridges the gap between success and failure components. Strategic
capabilities helps to achieve market growth and development for the organisation
(Elbanna, Child and Dayan, 2013). So as it provides that kind of policies by using them
managers can easily improves their productivity and efficiency.
 Understanding organisational capabilities – Strategic capability analysis helps to know
the capabilities of the organisation, so that managers can develop their strategic
accordingly. Due to this, they can easily makes their goals and objectives. If goals are set
on the basis of organisational capabilities so it is easier to achieve them for managers.

Strength and weakness of French Connection PLC in context with competitive
advantage: -
Strength relates with power and quality of the organisation, it shows its ability towards
goal achieving. Every business organisation has to develops its capabilities and sustainability so
as it can easily stands in capital market. Strength of an organisation helps to compete with
competitive advantage of market. A strength is a positive aspect for every business organisation,
it adds offers and values in French Connection PLC a competitive advantage. It involves all
tangible assets such as available equipment, credit, loyal customers, existing channels of
distribution information and processing systems, credit, capital, copyright materials and patents
or various valuable resources (Schmoldt and et. al., 2013). It seeks with quality of the product,
proper utilization of available resources, market growth and market shares, a wide range of
customers and achieve competitive advantage for company. Along with this, managers of French
Connection PLC, can easily judge their capabilities and performance and make strategics
accordingly. Strengths helps to face challenges and threats that are concern with external
environment and it also reduces the impact of outside factors on company's growth and success.
There are so certain teams that are specialist in or they have a unique knowledge, credentials and
reputations in order to provide a competitive advantage and adds values in goods and services.
There are so many characteristic that detrimental for growth and success of the
organisation. Weakness reduce from the value of the product and offers, it is beneficial for
competitors of a business, an apparent weakness would be an irrelevant place for French
Connection PLC. For example – if a company is situated in north side, but its customers are
extend in south or east area so as company is not able to easily understand their choice and
demands. As along it is very difficult for company to supplying products in north area because it
increases it transportation cost (Wu and Pagell, 2011).
Components which are known as weakness can rarely be remedied with appropriate
restructuring or investment. Weaknesses of an organisation can be find out through these factors
or questions – why they do badly, what they are avoiding, who are competitors, and how they
can compete with external markets. Weaknesses also can be identify through SWOT analysis, by
using it managers of French Connection PLC, can easily evaluate the internal factors of the
organisation that affect their performance and not gaining competitive advantage from external
market. It is very hard to figure out weaknesses and reduces them as well.

TASK 3
Develop suitable strategic choices
It is an essential requirement of every business organisation is to develop their strategic
choice. Strategic choices are concern with strategic planning of the organisation, by which
managers can easily develops their aims and goals. It is the process that is helpful in making long
term decision of French Connection PLC. Strategics choices are develop in order to
implementation of a healthy and wealthy business organisation. There are some factors that are
involve in the development of strategic choices, such are as follow: - Choice of infrastructure type – The first factors that is involve in strategic choices is to
choose the type of infrastructure. When managers are planning for their business so as
they have to chose the type of their industry. Infrastructure involves technical levels
network design and set up of organisation. In French Connection PLC, team leader also
identifies all those factors so that they can easily implement their strategy and make it
more effective. There are various ways to built infrastructure of the company, such as
meshed, ring, and tree (Nummela and et. al., 2014). They are suitable and appropriate for
different regional needs and situations. Choice of infrastructure, helps in develop goals
and objects of the company. If the overall structure of the is well being so as employees
also fell comfortable in operating activities. Strategic choices also plays an important role
in achievement of competitive advantage of company, so as by applying them managers
can easily compete with external factors of market. It is the central activity in order to
make strategic decision and decisions should be developed for a long period of time in
order to accomplish growth and success. Choice of financial tool – Appropriate financial tools are also very important in the
success of every business organisation. In French Connection PLC, managers have to
regulate that kind of financial tools by which they can easily manages budgets and
financial statements of overall business organisation. It is impossible to manage bunch of
all financial accounts and reports, because they are diversifying timely. So as managers
have to implement financial tools and techniques by which sales revenue and other
profits of French Connection PLC can be manage in well being manner. These financial
tools and techniques also available for private and public investments in any project of
the company (Abdulrahman and et. al., 2015). Revenue based capital for running

projects, public funds, community financing and private capital and bank loans in order
to identifies the financing mix for a successful task or project. Choice of financial model
is concern with investment and capital model of strategic choices. In that public or
private sectors can be invest through direct or indirect methods of investment. The main
aim of any strategic choice in terms of financial tools is to increase public investment so
as the overall capital ofFrench Connection PLC, can also be increase. Along with this it
also involves to regulate attractive techniques by which peoples can easily influence in
projects.
 Choice of business model – an accurate and effective business model an important role in
the extension of business inn marketplace. Choice of appropriate business model reduce
the chances of failures of any project. A good business model involves attractive
techniques of marketing, innovate products and services, quality of products and a key
group of customers. If all those factors are mix up with marketing strategy of an
organisation so that it is sure that it can be able to achieve competitive advantage.
Business models describes the duties of employees in infrastructure projects or their
operations (Parayitam and Dooley, 2011). Along with this, business model should be
able to deal with external factors and new competitors, so as it can gives better
productivity to the organisation. It also refers that a product should be maintain its quality
so that it can easily attracts the number of customer. In term of strategic choices, it
provides effective ideas and thoughts to improves their strategy and policies, and
accomplish the competitive advantage of the company.
 Developing a new product – Manager of French Collection PLC, should have to timely
upgrade their products and services. This can enable to increases the number of
customers towards organisation. For that, employers have to use new technologies and
inventions in order to improve the quality of existing products and develop a new one
also.
 Expansion of new market - Employers have to plan a specific strategy for the expansion
of new market; for that they should have to know buyers needs and expectations. In
addition, market research is also profitable that determines about the marketability of
products and services in given market.

Among all of these above mentioned strategic choices, the best one is – developing a new
market. Because it helps an organisation to achieve the benefits of competitive market. If
employers are enable to gain customers attraction with new products so as they can easily gain
the benefits of target market. Strategic choices helps to reduces the elements of failure and
develops success factors. They are also able to compete with external market of the organisation,
so as managers can achieve their competitive advantage. It involves all the external and internal
factors of business that affect on its performance and efficiency.
TASK 4
Evaluate strategic choices for an organisation
Evaluation of strategic choices and decisions helps to improves the decision-making in an
business organisation. Strategic choices are concern with business planning, by which companies
can develop their growth and success. It determines course of action that increases sales revenue
and profits of French Connection PLC. On the other hand, it is path to success by which
managers can achieves their growth and development. There are two important factors of
strategic choices, such as – setting objectives and strategic planning. Setting objectives are the
essential part of strategic choices, because if managers cannot set their goals and objectives so as
they are not able to achieve target market (Eweje, Turner and Müller, 2012). In strategic
choices, managers also have to develop their strategic decision making process so as effective
and efficient strategics can be create (Smith, 2014). An appropriate strategy can changes the
overall market image of the organisation. There are three choices are involve in strategic choices
such as – choice of business model, choice of financial tool and choice of infrastructure. All the
above mention three strategics managers have to choose choices according to their business type.
In French Connection PLC, manager has to prefer the choice of business model, because it also
involves another both choices.
Choice of business model help to built an effective business model and it also able to
measure future growth of the company. Along with this, an appropriate business model capable
in identifies forthcoming risk and uncertainness so as managers can prepare their plan
accordingly (Chai, Liu and Ngai, 2013). Due to risk and uncertainness, sometimes market share
of business goes down and it can't achieves its competitive advantage.