Strategic Management: Next PLC

Strategic management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
PESTEL Analysis...................................................................................................................3
Porters five force model.........................................................................................................6
VRIO ANALYSIS..................................................................................................................8
SWOT Analysis......................................................................................................................9
Value chain analysis.............................................................................................................11
Strategies for Next PLC company........................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Strategic management can be describe as a on going process which includes planning,
monitoring as well as analysing and evaluating need and requirement of organisation (Ansoff
and et.al., 2018). There are various factors that needs to be identified as well as analysed in order
to develop effective strategies. Strategic management will help in creating successful strategies
as well as plan for organisation. This will directly lead to gaining comparative advantage over
other rival companies. For this report chosen company is Next PLC. This is well known British
organisation that is performing it business function is multiple nations. Next Plc organisation is
dealing in retail sector and major products of this company is clothing, footwear, home products
as well as other fashionable accessories. This company is offering its products and services to
different part of the world and it headquarter is located at Enderby, England, United Kingdom.
This report will includes in depth detail about strategic management. It consist of posters five
force model and PESTEL analysis.
MAIN BODY
It is very important for Next Plc company to manage its strategies as well as develop
strategic plan in order to perform business function is effective and efficient manner. By
managing strategies, respective strategies will be able to gain competitive edge over other
companies. It is essential that this company is analysing its micro and macro factor for creating
strategies (David and David, 2013). This will help in identifying and evaluating the business
environment as well as take better business decisions. This will lead to ensure the company is
conducting organisational operations in such a manner that desired objectives could be timely
accomplished. There are various models and business concept that will help in organisation to
performing business activities in effective manner. PESTEL analyse and Porters five force model
will help in strategic management in effective manner.
PESTEL Analysis
This is considered as an effective framework that could by used by marketer in order to
perform business activities manner. It is essential for this company to identify and manage
external environment of in order to take better decision for organisation. PESTEL analysis
includes different factors such as political, economical, social, technological, environmental and
legal. There are various changes in macro environment which will lead to affect Next PLC

company as well as its operations. By identifying and analysing all factors of external business
environment respective company will be able to develop better strategies for growth and
development of organisation. PESTEL analysis in context of Next Plc is mention below.
Political factor – This factor play a crucial role in determining long term profitability of
business. Political factor is major concern with different types of rules and regulation that is
developed by political and government party (Hill, Jones and Schilling, 2014). It is essential for
respective company to follow all rules and policies for smooth functioning of organisation.
Political factor includes stability and instability of political party, level of corruption, taxation
policies, trade restrictions and many more. UK have stable government that is developing
different policies for growth of retail sector. This will lead to have positive impact on business
and its activities. There are various strict taxation policies which is affecting the performance of
NEXT Plc company is negative manner.
Economical factor – This macro factor of business includes inflation rate, interest rate,
foreign exchange, saving, GDP and many more. Economical factor will lead to have significant
impact over business as well as its performance. UK nation is one of those countries which has
continuously increasing GDP and high economic rates. This will lead to increase the
performance as well as productivity of organisation (Eden and Ackermann, 2013). This company
is dealing in retail industry and due to high economic growth rate of nation customers will be
able to expand on purchasing of high quality fashionable products. This factor will lead to
increase sales and profits of respective company.
Social factor – It is essential for organisation to analyse as well as evaluate various social
factors in order to increase performance of business. There are many social factors such as
attitude, personality, perception, belief, customs and many more. Next PLC company needs to
consider all of these social factor while taking business decisions. This company is providing its
products and services to different types of customers. It is important for respective business to
identify as well as analyse market trends. This will help in develop better and appropriate
products for satisfying needs to customers. It has been analysed that needs and requirement of
customers are continuously changing. This can have negative impact over performance as well as
sales of respective company.
Technological factor – It has been analysed that technology is growing very fast and this
will lead to have huge impact on business. Technological factor includes new and innovative