Strategic Management Plan for Argos Ltd

Strategic Management Plan

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Part A: An internal and external analysis that provides a platform for strategic decision-making. 3
1. PESTLE and SWOT of the organisation and an evaluation of the organisation’s resources
and capabilities.............................................................................................................................3
2. Competitive environment analysis using Porter’s Five Forces model.....................................6
3. Identification and justification of the organisation’s existing and/or potential competitive
advantage.....................................................................................................................................7
4. Valid strategies and tactical objectives to achieve overall strategic objectives ......................8
Part B: On the basis of this analysis critically evaluate and justify strategic options for the
organisation: .................................................................................................................................9
1. Critical evaluation of the different types of strategic directions available to the organisation9
2. Justification and recommendation of the most appropriate growth platform/s and strategie 11
3. Evaluate ways and means by which the chosen strategy/ies can be monitored in order to
ensure success............................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES................................................................................................................................1

INTRODUCTION
Strategic management is the process of planning and analysing all the necessities
of an organization so to meet the aims, goals and objectives (Sullivan, Thomas and Rosano,
2018). The leader sets the vision what the company is need to achieve in the future. The report
will elaborate the strategic management plan of the Argos Ltd which was founded in 1972 by
Richard Tompkins and is named after Greek city of Argos which is a catalogue retailer. This
project will analyse the strength & weakness by conducting SWOT analysis and capabilities &
resources which will be evaluated by the PESTLE analysis. There are various internal and
external factors which affect the strategic decision-making of the organization. Further, the case
study will describe the competitiveness of the given organization by applying the Porter's five
forces model which will assist in identifying the existing and potential competitive advantage of
the Argos Ltd. It will discuss the tactical strategies to achieve the overall objectives. The report
will critically justify the different kind of strategic direction which are being available to the
quoted company. Further, the case study will recommend the most appropriate growth platform
and monitor the ways by which the given company's strategies will aid to ensure success in the
long run of the business.
MAIN BODY
Part A: An internal and external analysis that provides a platform for
strategic decision-making:
1. PESTLE and SWOT of the organisation and an evaluation of the organisation’s resources and
capabilities
PESTLE analysis framework assist to understand the macro-environmental factors which
would assist the organization to improve the strategic management. There are several factors
which affect the company which are:
 Political: This factor plays a significant role in UK as the rules &
regulations, directives, norms, taxation strategies are more flexible for
businesses. To expand a corporate business this place is the most

promising one. The quoted company must be aware of political issue
which could impact the performance of the organization like backing out
of EU (Bentham, 2018). This would have a great emphasis and company
should mould strategies according to the change in the policies of the
government. Corruption within the departments had increased burden on
many organization.
 Economic: The another important factor which affect the strategies of the
Argos Ltd is the fiscal policy or condition of the country in which they are
operating. Despite the breakdown in 2009, UK has recovered from it and
was an economic powerhouse in Europe. Even the Covid-19 pandemic
didn't affect the businesses for longer (Ghadge and et.al., 2020). Despite
loosing jobs, country's per capita income didn't go down and people in the
country are willing to purchase resulting in the growth of the businesses.
 Social: This factor would cover the people living in the society at large.
UK's cost of living index of an individual's has dropped down significantly
which resulted in spending more on other items. While, immigration also
plays an important role increasing the use of different goods. The leader of
Argos Ltd penetrate new products which would result them in high
revenues (Rajendra and et.al., 2020). Habits and spending power of
customers are primarily considered to be the social elements.
 Technological: It is the most affecting factor for every business. UK has
adopted technology a long time ago which resulted in the benefit of
industries. The more the company's incorporate innovative technique, the
more they would witness growth. Argos Ltd has successfully embedded
all its operations via sustainable technology (Wu and Chang, 2020). As the
company is being acquired by Sainsbury's Group, Argos Ltd now get all
the technological advances because of the acquisition.
 Legal: It is one of the significant factor which could create a trouble for
the company by having a legal battle. The quoted company must be
complied with all the regulations which are related to the better
functioning of an organization. The business laws and federal laws with a