Strategic Management: Theory and Practice

Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Compare theory and practice......................................................................................................1
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
In any organisation there is a proper planning formulation are required to run any
activities regarding the organisation. Its basically the ongoing process of continuous
planning ,monitoring the activities, analysis all the needs and requirement related to the company
to meet its objectives and targets .strategic management is a process or intent of any organisation
with a motive of achieving vision mission and objectives,in which SWOT analysis and proper
strategic plans are made by senior level management (Bindra, Parameswar and Dhir, 2019). Its
consists of strategy implementation and evaluation, organisation will make sure about there plan
to be successfully implemented all the procedure, project related work, resources to be needed,
organisation structure, and behaviour approach are also included in that management .evaluation
involves analysis and assessment of the action that an organisation put in the market. The below
report is based on a company Debenhams,its a multinational retailer having their departmental
stores in UK and other countries as well , a private limited company with a 178 number of
operating location across the countries .This company deals in product like furniture ,any type of
household products or items and clothing product line as well, Debenhams having different
segment of catering their customer as well with kids ,men and women .
MAIN BODY
Compare theory and practice
As according to the viewpoint of Ovidijus Jurevicius, 2013,Porter five forces model :
This model indicates the industry or a company threats in respect of the market external factor,
basically how the company get affected by different forces are considered under porter five
forces model ,their competitors threats , bargaining power of both the suppliers and buyers in the
market ,it also describe how well an organisation or industry will survive on the basis of the
comparison with competitors and any new entrant threat are clearly mentioned in the
model ,threat of substitute product, the motive of this model is to define the risk and threats
involves by external forces exist in the market (Teece, 2019). An industry or a company have to
change their strategies according to the different forces. Threat of new entrant: This model shows how difficult and easy for a new entrant firm
or industry to enter into the market and through that how they put an impact on existing
companies , basically this force indicates a threat of new company which will going to
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enter in to the market, risk involves in entering into the market all basic barriers are the
forces for new entrant itself .The threat of new entrant is high when low amount of
capital of funds are required to enter into the market, if there is lack of customer loyalty
in market, if there is no government regulations are followed in a particular market. Bargaining power of supplier: This model indicates the power of suppliers in respect of
selling their product is that raw materials on higher price and of low quality to their
buyers this will happen when a suppliers is in a strong position in bargaining, and this
will directly affect the buyers company in respect of its profits because they will buy on
higher price with low quality raw material as well (Okumus and et.al 2019). Bargaining
power will be strong if few substitute raw material are exist, if switching cost is even her
then that of existing suppliers. Suppliers having many choices if resources are minimum
or there is lack of substitute product are exists buyers has restrict themselves to switch on
another product this will leads to stronger the position of suppliers and yet to stay wit this
external forces . Bargaining power of buyer : In this force buyers will demand for a lower price with high
quality of product from their suppliers when there is a power of bargain with them this
will affect the supplier because higher quality products need higher cost to produce it this
will impact the production of supplier and cost of production are usually higher , buyers
are strong when only few buyers exist in the market ,when there is many substitute of
same product are exists. Suppliers are affected when switching cost is low with
comparing to existing suppliers. Buyers will having buying capacities in large this will
leads to generation of more customer tends to show strong buying power. Threat of substitute : This force occur when buyers are having power of buying the
substitute product with ease having attractive price and cost lower than that of existing
suppliers if there is a flexibility of switching from one product to another with having
lower price this will affect the suppliers profitability and not many options are exist for
them (Bell and et.al 2018). Substitute products increasing the chances of threats for
suppliers to survive in the market they have to bear losses sometime because buyers will
switch to new supplier any time , so they will have to make sure about the pricing and
quality to remain in the market .
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