Strategic Management Report of Next Plc
Added on 2020-07-23
15 Pages3660 Words91 Views
STRATEGICMANAGEMENT
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................11. Evaluation of organisation's objectives, structure and external and internal mechanism.12. Evaluation of company's competitive advantage...............................................................43. Value Chain Analysis.........................................................................................................74. VRIO................................................................................................................................105.Recommendations.............................................................................................................11CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................13
INTRODUCTIONThe term strategic management refers to the process of formulation and implementationof organization's goals and objectives. It is a very crucial component in any business firm as it isresponsible for achieving qualitative position in market. Any business needs to plan strategies toachieve long term success. Management of strategy by top management is a dynamic processwhich keeps on changing due to external changes and internal modifications. The leading retailer of UK, Next Plc was founded in the year 1982 by Joseph Hepworthwhich has headquarters in Enderby. The company majorly deals in clothing for both men andwomen, home products and footwear having more than 700 stores worldwide. The entity is alsoengaged in online business offering wide variety of products. 1. Evaluation of organisation's objectives, structure and external and internal mechanism.Objectives:The main consent of Next Plc is to meet growing fashion need of customers thereby producingbest quality of products.The entity focuses on sustainable growth by providing competent returns to shareholders in formof dividends or buyback of shares.It concentrates on increasing its profit margin by increasing its sales performance.Next emphasizes on increasing its directory customers by providing online purchase facilitieswhich will increase its sales and profitability (Schot and Geels, 2008). Through efficient management of inventory, cost and positioning of product the entity willincrease its net and gross profit margins. The entity focuses on providing satisfactory customer services to both its online and retailclients. Structure of firm:Next has a huge market segment for both men and women providing clothing,accessories, footwear and home products both to national and international consumers. It haspositioned its products as fashionable, targeting the young and teenage groups who are exclusivefashion followers. It has retail stores comprising of around 700 outlets in the UK andinternational markets. It has a wide range of customer directory which includes around 3 milliononline customers (David, 2011). Next Sourcing is another business firm engaged in branding and1
designing Next products. Lipsy is a women store, involved in branding and designing teenagewomen products through online, retail and wholesale markets. SWOT Analysis:An organization needs to evaluate its internal working so as to execute any strategicbusiness plan. The strengths and weaknesses of Next Plc focuses on entity's internal working andhow changes in external environment impacts business decision making process. (Source: Management Technology Policy, 2016)Strengths:The key strength of Next Plc are its sales ratios due to quick delivery of products. Nextemphasizes on quality products and excellent customer service through next day delivery ofproducts ordered online. It has been successful in brand positioning through various promotionsand advertisement (Ambrosini and Bowman, 2009). Next has a creative and responsive approachwhich acts as a strength to build its future statements. The company also focuses on maintainingthe social and environmental balance. Weaknesses:Next Plc is an expensive store focusing on trendy and fashionable clothing as comparedto other home stores and shops. The entity has a weakened position to change its profit margin asa result of change in demands and supply of the market. It has more of formal collection thancasual which also shift customers to other stores. 2Illustration 1: SWOT Analysis
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