Strategic Management Analysis - Assignment

Strategic Management
Analysis

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Mission and Vision Statement of Mango Plc. And Support in Development of Sustainable
Competitive Advantage...............................................................................................................1
TASK 2............................................................................................................................................3
2.2 Porter's Five Forces Analysis for Fashion Industry and Conclude About Industry
Attractiveness..............................................................................................................................3
TASK 3............................................................................................................................................5
3.2 Evaluation of Resources and Capabilities by Utilising Value Chain Framework................5
TASK 4............................................................................................................................................7
4.1 Suggestions to Mango Plc Senior Management team to support their position in achieving
sustainable competitive advantage..............................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Strategic management analysis is a field of management which formulate and implement
the goals of the organisation which are decided by to managers of a company after analysing
different factors and external and internal environment. It provide the direction to company
towards specify goals and objectives (Beske, Land and Seuring, 2014). It is a process of
conducting research on firm and its environment to develop a strategy. After analysing the
structure and process, top managers make strategy to executing actions towards achieving the
goals. This project is based on MANGO which is a type of retail industry. It was founded in
1984 by Isak Andic. Its headquarter is located in Spain. Its deals in clothing and accessories
products. In this report there is a discussion about vision and mission statement of organisation
with sustainable competitive advantage. Trends and uncertainties and implications for their
strategies will discuss. Apart from this, strategic capabilities of company and suggestions to
achieve sustainable competitive advantage in fashion industry will discuss.
TASK 1
1.1 Mission and Vision Statement of Mango Plc. And Support in Development of Sustainable
Competitive Advantage
Mission Statement
It is a brief description about the existence of a company or organisation. In two or three
sentences, company explain that what the firm does and why they are different from their
competitors. Managers are use this statement to provide direction, inspiration and focus to
employees at the time of telling about exceptions of customers from an organisation. It is a part
of business plan and strategy (Cavallo and et. al., 2014). The best mission statement is that which
is memorable, clear and concise. It is a declaration of purpose and focus of an organisation which
remain unchanged.
Vision Statement
It is a declaration of organisational goals and objectives and a success which they
accomplish or achieve in long term future period. It is a clear guide for selecting current and
future courses of action. Vision statement is generally made in time frame of eight to ten years. It
helps an organisation to make decisions with declaration the set of objectives. This statement is
used by government office, businesses and non profit organisations.
Mission and Vision of Mango
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Mission of Mango is to improve the accountability of development and financial
management and humanistic non government organisations and their partners. They make
successful strategy which create ideas for sustainability and launch their outlets in all cities in the
world. Their mission is to diversify risk and reduce dependency on domestic market.
Vision of Mango is to create the global brand which provide opportunities of growth and
development for organisation and their employees. They want to achieve their goals and become
the number one fashion retailer value brand across the world.
Sustainable Competitive Advantage
It is an ability, quality or assets of a company which is difficult to exceed or duplicate and
it provide a favourable and superior long term position over their competitors. These are the long
term advantage gain by company for better performance and satisfy the need of customers. These
are not easily surpassable by the competitors of Mango (Cornelissen and Werner, 2014). To gain
the sustainable competitive advantage company need to follow five steps which are as follows:-
 Firstly, they need to understand market segment and services that are not provided by
competitors and then they need to focus on those services because these can be profitable
for Mango.
 They have to develop their understanding about what customer really want and then
establish the value as per their needs and grab their attention.
 They need to improve their level of services, pricing, branding and quality of products
which attract more customers.
 Mango fashions have to identify their strength which support them in future growth and
development and provide them opportunities to gain competitive advantage.
 At last, Mango fashions have to design their business model to deliver and support the
value proposition.
Strategic Objectives
Strategic objectives of Mango is to implement innovative method for external producers
and suppliers. They increase contribution in social actions. Provide training to their employees
for improving their productivity and efficiency in organisation. Vision and mission of Mango
fashions helps to achieve strategic objectives of an organisation. It can be understand by
following points:-
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 Mission of Mango is to enhance their business in long term market. For this, they analyse
the market and competitors strategy which is helpful for making strategies and set
objectives. Vision and mission of a firm are the declaration of their objective which helps
to sustain long term in future and gain competitive advantage. When company enhance
their business in global market then ultimately they achieve their strategic objectives
(Duygan and Meylan, 2015).
 Vision of Mango is to become the number one fashion retailer brand in the world. For
becoming number one they innovate in their products and services and improve quality of
products and services which attract more and more customers by which company achieve
their strategic objectives.
TASK 2
2.2 Porter's Five Forces Analysis for Fashion Industry and Conclude About Industry
Attractiveness
This model is identify and analyse the five competitive forces which shape every
industry. It helps to determine the strength and weakness of a company. It is used to determine
structure and corporate strategy of an organisation in order to search for profitability and
attractiveness of a firm. Porter's five forces model are as follows:-
(Source Porter's five force model, 2017)
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Illustration 1: Porter's five force model

Competitive rivalry- There is a large number of competitors in fashion industry. This
approach analyse that there is a huge competition at marketplace in recent years. Rivalry among
competition is very high when there are few organisations selling equal products and services.
The possibility of shifting to other firm by consumer is very high. Mango is a fashion retailer
industry. Trends are changing very fast in market. If company does not innovate in fashion
brands and meet the requirements of customers then consumer will move to other firm. Company
have to focus on cost minimisation by which they can provides goods to their customers at low
price and gain profit (E. Dobbs, 2014).
Bargaining power of suppliers- It should be analyse that what is the bargaining power of
suppliers. It means that company buy raw material from their supplier for manufacturing of
goods and services. If suppliers charges high price of raw material then company need to buy
from other supplier. But if there are only few suppliers then there bargaining power become high
which tends to minimise the profitability of an organisation. Mango have to focus on controlling
the cost and prices of raw material for better growth.
Bargaining power of customers- This model analyse the bargaining power of customer
which affect quality and pricing of the products and services. Customers have power to forcing
the firm to minimise the prices. There is a large sellers in fashion industry. If Mango does not
reduce their prices as per the choice of customers then they will move to other firm where they
get better quality product at low prices. When customer purchase low amount of goods then they
have low bargaining power.
Threat of substitute products or services- A product have different substitutes with a
minimum differentiation (Engert, Rauter and Baumgartner, 2016). Mango fashions have to
analyse the market and products of competitors and then produce a substitute product with some
extra features and low prices. But if competitors make a substitute product with low prices then it
create a threat for Mango fashions.
Threat of new entrants- This model is consider that how difficult or easy for a
competitor to enter into market. It is easy for new entrance to enter in market with unique
features and quality product. But is create a threat for existing firms. Mango is fashion retailer
brand which deal in clothing and accessories. If there is any new firm enter in same sector then it
create threat for Mango Plc.
Conclusion
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Mango is the second most important company in Spanish textile sector after Zara. It
handle the whole process from designing of a product to reach it to end customers. It use the
material to make garments. It collaborate with suppliers and for long term and working together
in manufacturing factories. It design produce and market women, men and children clothing and
accessories. It generate 2327 billion euros revenue. Top competitors of Mango are Zara, VERO
MODA, Sumo Logic, TRUSSARDI etc. There are more than 1600 employees with large
number of outlets. It is a exclusive brand name in fashion industry. Which make clothes for
every type of customers (Hill, Jones and Schilling, 2014).
TASK 3
3.2 Evaluation of Resources and Capabilities by Utilising Value Chain Framework
Value Chain
It is a set of activities that a firm operate their performance in a particular industry in
order to get valuable goods and services for market. This concept was described by the Michael
Porter in 1985. it is a process in which company buy raw material to create finished goods and
then sell it to their customers. It include designing, manufacturing, marketing and distributing of
goods and services. Its main objective is to establish communication between managers of each
stage to ensure that products are placed in hands of customers.
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(Source Value Chain, 2017)
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Illustration 2: Value chain

Usefulness of value chain analysis
It helps an organisation to create value and gain competitive advantage by analysing the
different activities which ensure that Mango can create the values by these activities (Jenkins and
Williamson, 2015). These activities are: inbound logistics, marketing and sales, operations,
outbound logistics and service. It helps to gain competitive advantage and increase overall profit
of an organisation. Value chain framework include: Resources, capabilities, primary and
secondary activities. Further discussion are as follows:-
Resources
Resources are helps to gain competitive advantage to an organisation with profitability
and sustainability for long run. There are mainly three types of resources which are as follows:-
 Tangible- physical assets as well as financial assets such as machinery, equipments etc.
 Intangible- Brand image, reputation and skills.
 Human resource- skill employees and managers.
Capabilities
It refers to the process, routines and culture of an organisation which helps to identify the
contribution of employees and equipment in enhancing productivity of an organisation. Mango
have to analyse resources and capabilities to gain sustainable competitive advantage. They
should also identify their strength and weakness in context of their competitors. Company should
also ensure that their workforce is more capable to perform their task in effective and efficient
manner (Karadag, 2015).
Utilisation of Resource and Capabilities to Create Value
Company can create value by utilising of resources and capabilities in their organisation.
Mango get the the best quality resources from suppliers and optimum utilisation of resources by
which they can reduce cost and generate more value of goods and services. They have to provide
training to their employees by they become more capable which helps to enhance the
productivity of Mango fashions. By the following ways company can create value in their firm:-
The Faster The Better- It is the first way of increasing value. It refers that if company
use innovative technology and resources then their productivity become more faster. If all the
process from manufacturing goods to deliver it to their potential customer become faster then it
helps to enhance the brand value of organisation and they also gain competitive advantage and
sustain long run in market.
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Offer Better Quality- Another way of creating value is to provide better quality of goods
and services to their customers in comparison to their competitors. Now a days, customers are
focus on quality rather than price (Kwon, Lee and Shin, 2014). So, Mango have to focus on
material of cloth and trends which attract more customers and they also hire capable employees
who contribute in making trendy clothes and create value for company.
Improve Customer Service- Company have to focus on improving customer service by
implementing different promotional techniques and identify their needs and make quality
product as per their requirements. It helps to enhance the brand image of an organisation which
generate more wealth for Mango. Companies are using customer service for gaining sustainable
competitive advantage.
TASK 4
4.1 Suggestions to Mango Plc Senior Management team to support their position in achieving
sustainable competitive advantage
Management team of Mango Plc need to analyse internal and external factor and make
business strategy to achieve sustainable competitive advantage. Internal and external analysis of
Mango Plc is discuss as follows:-
SWOT Analysis
It is a useful technique to identify the strength, weakness, opportunity and threats of an
organisation which helps them to use of strength to gain competitive advantage. Remove their
weaknesses. Use of opportunities for future growth and development and for overcoming the
threats company have to make strategy and plans. SWOT analysis of Mango is as follows;-
Strength Weaknesses
 Strong brand image with around 2714
stores in 109 countries.
 High growth rate.
 Continuous employment training
 Brand image is weak.
 No presence on social media as
compare to competitors.
Opportunities Threats
 New line of goods and services.
 Development opportunity through
online and social media.
 Competitors have better bargaining
power from suppliers.
 Large number of competitors and new
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designers.
PEST Analysis
It is an external environmental factor which affect organisational activities. PEST
analysis of Mango Plc is as follows:-
Political Factor- This factor include rules and regulations made by government which
affect the performance of Mango.
Economical Factor- It includes economic condition of a country which are interest rate,
economic growth, deflation and inflation rate etc. these factor make a great impact on decision
making process of Mango Plc.
Social Factor- This factor include cultural aspects, population growth rate, career
attitudes, income of consumers and age distribution. Mango Plc is a great brand of fashion which
is focuses on youth of the country (Simon, Fischbach and Schoder, 2014).
Technological Factor- It include technological aspects like advancement in technology,
research and development, automation etc. Mango have to use advance technology and advertise
their brand on internet which attract more customers in fashion industry.
Porter's Generic Model
This model is of business strategy is used to gain sustainable competitive advantage. It is
helps to offer great value from customers and also satisfy need of customers by providing them
quality product and beneficial services. Four business strategies of porters model are as follows;-
` Cost Leadership- Main aim of this strategy is minimise the cost of production. This
strategy is adopted by large scale organisations in which they produce high level of productivity
and maximum utilisation of available resources. It adopt the method of just in time. In which
Mango have to make produce as per customer requirement. They also use technology for
manufacturing process. When company minimise their cost then ultimately get maximum profit
and gain competitive advantage.
Cost Focus- In this strategy company is focusing of cost by producing similar products.
It provide advantage to target market segment.
Differentiation Focus- This strategy is focuses on a small number of target segment at a
time. Customers have different needs so it is a responsibility of manager of Mango to make
different types of clothes to satisfy the need of all customers.
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Differentiation Leadership- This helps an organisation to achieve sustainable
competitive advantage because it provide extra value and feature in products and services of their
customers (Wheelen and et. al., 2017). There is a superior quality of products. Mango uses
different channels of distribution to provide goods to their potential customers.
Above mentioned strategies are helps an organisation to minimise cost and maximise
profit. Mango Plc select cost leadership strategy to reduce their cost of production and gain
competitive advantage.
CONCLUSION
From the above discussion it can be concluded that organisations have different mission
and vision statement which helps them to achieve strategic objectives. Porter's five forces model
are helps to analyse different forces that affect performance of a firm. The concept of value chain
is important for an organisation to create more value by utilisation of resources and capabilities
and gain competitive advantage. Business model and business strategies are used to minimising
the cost and maximising the profit by attracting more customers which helps to gain sustainable
competitive advantage to an organisation.
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REFERENCES
Books and Journals:
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dynamic capabilities in the food industry: A critical analysis of the literature.
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Cavallo, E. and et. al., 2014. Strategic management implications for the adoption of
technological innovations in agricultural tractor: the role of scale factors and
environmental attitude. Technology Analysis & Strategic Management. 26(7). pp.765-
779.
Cornelissen, J. P. and Werner, M. D., 2014. Putting framing in perspective: A review of framing
and frame analysis across the management and organizational literature. The Academy
of Management Annals. 8(1). pp.181-235.
Duygan, M. and Meylan, G., 2015. Strategic management of WEEE in Switzerland—combining
material flow analysis with structural analysis. Resources, Conservation and Recycling.
103. pp.98-109.
E. Dobbs, M., 2014. Guidelines for applying Porter's five forces framework: a set of industry
analysis templates. Competitiveness Review. 24(1). pp.32-45.
Engert, S., Rauter, R. and Baumgartner, R. J., 2016. Exploring the integration of corporate
sustainability into strategic management: a literature review. Journal of cleaner
production. 112. pp.2833-2850.
Hill, C. W., Jones, G. R. and Schilling, M. A., 2014. Strategic management: theory: an
integrated approach. Cengage Learning.
Jenkins, W. and Williamson, D., 2015. Strategic management and business analysis. Routledge.
Karadag, H., 2015. Financial management challenges in small and medium-sized enterprises: A
strategic management approach. EMAJ: Emerging Markets Journal. 5(1). pp.26-40.
Kwon, O., Lee, N. and Shin, B., 2014. Data quality management, data usage experience and
acquisition intention of big data analytics. International Journal of Information
Management. 34(3). pp.387-394.
Simon, D., Fischbach, K. and Schoder, D., 2014. Enterprise architecture management and its role
in corporate strategic management. Information Systems and e-Business Management.
12(1). pp.5-42.
Wheelen, T. L. and et. al., 2017. Strategic management and business policy. Pearson.
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