Strategy Report on John Smedley

STRATEGY

EXECUTIVE SUMMARY
From the report it has been summarises that entrepreneurial strategy is the planning which is
used by company in order to set goals and achieve objectives of company. It that helps to
understand needs of business enterprises and emphasis on to complete them. it involves variety
of business who understand what customer wants and it can be satisfied.
This report is about John Smedley that is a small size company of fashion, provides
different types of products. BCG matrix helps to define growth and market share of company.
Porter five forces defines competitive environment and benefits to expand business.
This report emphasis on different concept such as different types of strategy, macro and
micro environment analysis and recommendation about strategy that are feasible for company.

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
a. Evaluation of range of entrepreneurial strategies.....................................................................1
b. Organisational strategic situation analysis and development of objectives.............................6
c. Implementation of strategy......................................................................................................8
d. Recommendations and conclusion...........................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Strategy refers to the action which are taken by an individual with the aim to attain their
objectives (Baylis, Wirtz and Gray, 2018). Entrepreneurial strategy are the means by which
business entrepreneurs establishes as well as re establishes relationships with business
environment. Using such strategy, an entrepreneur develops and implements new idea or product
with the aim to attain beneficiary outcomes in competitive market. Main objectives of
implementation of entrepreneurial strategy is to attain entrepreneurial goals within short time
limit by delivering innovative products or services in dynamic market. To understand the concept
of strategy, John Smedley is selected. The chosen enterprise performs operations at small and
medium scale in fashion industry and is situated at Matlock United Kingdom.
The report includes range of entrepreneurial strategies that can be used by small medium
enterprises to develop their situations. It further includes situational analysis of strategic
situations along with set of objectives. Further, a implementation of strategy along with few
recommendations are presented in the report.
MAIN BODY
a. Evaluation of range of entrepreneurial strategies.
Entrepreneurial strategy are building blocks that helps any organisation to attain
advantages by providing distinctive products to the market. These strategies helps small along
with medium sized enterprises in identification of key business requirement and establishing
names for the brand as well as finding alternatives of various strategies and making final
decision to implement the effective strategy that will result in beneficiary advantages. In the
competitive world, various strategies are formulated by the managers of small and medium size
business to enhance effectiveness of employees efficiency in such manner that leads towards
attaining organisational goals in effective manner (Cecchin, 2018). There are various range of
entrepreneurial strategies which are implemented by the entrepreneurs to increase satisfaction of
customers by delivering innovate as well as demanded products or services. Some of the
entrepreneurial strategies that can be adopted by managers of John Smedley are as follows:
BCG Matrix: It is used to evaluate potentiality as well as competitive position of
business (BCG Matrix. 2018). With the help of such matrix, managers of John Smedley can
categorise the portfolio of business into distinct categories such as industry attractiveness and
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competitive position. The main purpose to adopt such strategy is to understand in which product
more investments are required and in which divestment are required by performing research and
development activities. The quadrants of the strategy are as follows:
Illustration 1: BCG Matrix. 2018
(Source: BCG Matrix. 2018)
Dogs: Such quadrant holds low growth rate and low market share when compared with
existing competitors. These are low market share products which performs activities to generate
small profitability amount and have limited potential growth. The products of John Smedley that
are categorised under such quadrant are Merino Wool, waistcoats and underwear for Men. By
applying Dog strategy, entrepreneurs gets ideas related to which products are not achieving
market share and have low growth rate.
Cash Cows: these have large market share and low growth market. They helps in
generating surplus cash and are considered as main sources of cash for the company. Instead of
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more investment, such products needs more support in order to maintain market share. Some of
the products of the company that have attain strong position are T shirts, Capes, Sweaters for
men and dresses & skirts for women. The managers of selected enterprise can apply cash Cow
strategy as it will help in creating strong market position and generates high demand for the
organisational products.
Stars: These are considers as cash cows of future as they have high market share as well
as high high growth rate. Organisational managers are focusing on more investment on such
products to expand product line in new geographic markets to attract potential customers. The
modern icons, jackets, shirts are stars of John Smedley. The managers of the company can adopt
star strategy as it will rapid growth of organisational products in competitive market.
Question marks: These quadrants have low market share and at the same time high
growth rate. They required much closer consideration as they consume large cash amounts as
well as incurs more losses. Viscose blends, pullovers, roll necks, short sleeved are some of the
products that falls under such quadrant. By applying Question mark strategy, entrepreneurs of
the business can decide that whatever they are investing are worth or not.
McKinsey 7s: A strategy that is used by managers to assess as well as monitor changes
pertaining with internal environment of the company. It is further classified as hard elements
along with soft elements. Such strategy can be used by management authorities of John Smedley
to examine operations and making essential improvements on performances of employees and
organisation as whole (Corbett, 2018). The McKinsey's 7s strategy for John Smedley is as
follows:
Hard elements:
Strategy: Such element helps organisational members to evaluate sudden changes and
adopt them at workplace by adopting effective strategy. Different strategies are adopted by the
business that benefits them to make image in the market. Some of the strategies that can be used
by marketers of John Smedley are penetrating pricing strategy, direct marketing strategy and
multiple distribution channel strategies that will helps in reducing risks as well as diversifying
product line of the company. By adopting all such strategies, selected organisational members
will be able to attain sustainable position in the dynamic world.
Structure: Structure defines corporate hierarchy, chain of command as well as divisional
make up that enhances interconnection along with operational functions. The top level
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management of John Smedley follows line organisational structure in which information flows
from top authorities to lower level people and vice a versa which creates over reliance on
executive decisions as well as ineffective communication among people. They should follow
divisional organisational structure in which work force will be grouped into various functional
departments according to their specialization area that will result in understanding market
demands with the help of departmental members which will result in increasing satisfaction level
of employees as well as international customers. By adopting structure strategy, managers of
chosen company can effectively communicate all necessary information without any hurdles.
Systems: Systems are the practices in which organisational operations are carried out in
such manner that they results in achieving successful outcomes. To expand the business from
small and medium size to large size, the entrepreneurs of John Smedley can adopt recruitment
systems, customer relationship management systems, transaction processing systems and hence
worth that will help the enterprise to emphasis on current issues as well as trends in fashion
industry (Dichter, 2017). If managers of respective company will adopt system strategy then they
can successfully attain beneficiary results in competitive scenario.
Soft elements:
Skills: Skills includes capabilities or talent of management along with staff members
which are useful in accomplishment of work along with achievements. Skills that are required to
successfully attain objectives of John Smedley are artistic skills, strong visualization skills,
excellent drawing abilities, interpersonal skills, sharp business sense skills, communication skills
and competitive business skills. By adopting skills strategy John Smedley managers can
understand issues pertaining with technology, scope and operations in fashion industry and can
provide numerous solutions to overcome them.
Shared values: These are the principles that determines organisational behaviour. These
values are developed through organisational leadership and further adopted by another entity
members. Adoption of such strategy by entrepreneurs of John Smedley will help in solving
critical problems that are coming in the path of success.
Style: Styles are the approaches that are adopted by entrepreneurs to lead the operations
as per the set plans. It encompasses impact of leadership style on corporate culture, environment,
performance as well as productivity (Dodgson, 2018). The leaders of John Smedley can adopt
transformational leadership style along with participative leadership ship that will help in
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improving knowledge as well as employee engagement in decision making. By adopting style
strategy, selected organisation will be benefited in improving motivation level of employees by
increasing participation in numerous activities rather than departmental activities.
Staff: These are personnels of business. The staff members of John Smedley are highly
educated, professional experts and have fashion sense. The staff members are responsible for
creating original clothing, preparing sketch designs, selecting fabrics as well as patterns and
many more. By adopting staff strategy, managers of the company can effective staff members
that takes the organisation to higher levels.
Porter's 5 Forces: Such force determines level of competition along with structure of an
industry. It helps the company to analyse and identify competitive forces that results in shaping
activities of industry and determining business weaknesses along with strength. Managers of
John Smedley can adopt such numerous elements of such strategy to attain profitability and
enhancing attractiveness of organisational products or services. The forces are as follows:
Industry rivalry: The competition rivalry within fashion industry is high as there are
numerous organisation performing same operations in the sector. Some of the competitors of
John Smedley are Le Kilt, Margaret Howell, Sophie Hulme, Roland Mouret, Self-Portrait which
provides homogeneous products or services that influences customers towards them. Hence,
competitive rivalry for John Smedley is very high as it falls under small and medium enterprises
as well as charges low prices with the aim to achieve higher profits through sales.
Power of supplier: The bargaining power of suppliers of John Smedley is very high due
to dependence on few suppliers only. The managers of the company has build partnership
contracts with small boutiques and works together with numerous suppliers. Due to contractual
agreements, if suppliers changes their prices of raw materials such as threads, sewing machines,
cotton products and many more then selected organisation have to purchase them at high rates.
Power of buyer: Bargaining power of buyers for John Smedley is high as selected firm
due to existence of numerous competitors in the industry. Buyers demand lower prices for
product with higher quality by having strong bargaining power. As the selected company
delivers fashionable products in lower prices as well as higher quality which do not affect much
to their business (Escobar, 2018).
Threat of substitute: Substitute are those products which can be used in place of others.
In the fashion industry, numerous substitute of the selected organisational products are available
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which reduces selling power of the products in the competitive market that results in low
profitability. Hence, the threat of substitute for John Smedley is very high.
Threat of entry: In the fashion industry at small as well as medium scale, the UK
government authorities have implemented various restrictions to enter in emerging market which
acts as benefits for existing companies to smoothly run their operations in continuous manner.
To launch an new product and enter into the market, huge amount of funds are required for
getting entrance licence in new market. Thus, the threat of new entrant is low for John Smedley.
Value chain model: Value chains are the diversified range of activities or procedures
that are used by an organisation in order to deliver innovative or valued products in specific
industry. Some of the activities are designing, marketing, distribution and many more. If
managers of John Smedley applies value chain strategy then they have to follow primary along
with supportive activities. The description of the activities is as follows:
Primary activity: These includes:
Inbound logistics: the marketers of the respective company will analyse market demand,
trends and conveys information to organisational members.
Operations: Under such activity, workforce of John Smedley will perform activities to
convert the raw materials into final designing of products.
Outbound logistics: At such phase, distributors of selected company will distribute
products to end consumers.
Marketing and sales: Herein, marketers of selected organisation will adopt advertising
strategies, distribution channels and will manage the supply and demand for products.
Services: After sale services will be provided to consumers by workforce of the company
(Hill, 2017).
Supporting activities: It includes:
Technology development: By adopting such strategy, managers of the company will be
able to develop trending products as per the demand of consumers and can increase sales.
Human resource management: Adopting of such strategy will help the recruiting team
of John Smedley to hire as well as retain key human resources and manage their activities in
effective manner to attain long term objectives.
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b. Organisational strategic situation analysis and development of objectives.
Organisational situation analysis includes diversified methods to analyse internal along
with external environment of business in order to understand capabilities, business environment
along with customers. Some of the strategies for situational analysis are as follows:
SWOT analysis: It describes strength, opportunities, weaknesses along with threats of
the company. The SWOT analysis of John Smedley is as follows:
Strength Weakness Opportunities Threats
 Diverse
product
portfolio.
 Affordable
products
prices.
 Excellent
quality of
fabrics as well
as designing.
 Poor
international
market
coverage.
 Small size
market
coverage
(Kono, 2016).
 Entering into
emerging
market.
 Expanding
products
availability
through online
as well as off
line stores.
 Huge
competitors
availability.
 Fluctuations in
business cycle.
 Changing
customer
preferences or
trends in
context to
fashion.
 Lack of
marketing
techniques.
 Patent cases
(Spykman,
2017).
PESTLE Analysis: Such analysis is used by managers of John Smedley to analyse along
with monitoring external environmental factors that impacts on performance of business.
PESTLE analysis of John Smedley is as follows:
Political: If there are frequent changes in political system of United Kindom then there
will be new policies implemented for trading procedures which will be mandatory to follow by
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managers of John Smedley that will impact on decision making of the members and can reduce
profitability of the respective company.
Economical: Changes on interest rate as well as business cycle results in impacting
operations of John Smedley in negative manner that will result in getting loans at hight interest
rate and company has to pay higher interest rates that will reduce profit margin of chosen
enterprise.
Social: Due to changing demands, preferences and requirements of society in fashion
industry, marketers of John Smedley have to understand the needs and then convey information
to organisational managers that will help the managers to deliver demanded products at accurate
time period which will increase sales and knowledge of fashion designers that will impact in
positive manner (Le Grand, 2018).
Technology: By adopting technological advancement tools by the managers of John
Smedley will help in analysis market trends and increasing awareness of consumers in relation to
new and innovative designs in knit wear of John Smedley that will impact in positive manner as
it will increase market size and growth of company.
Legal: The management of John Smedley follows various acts such as health and safety
act, minimum wages act through which they provide safety to employees and makes payment
according to their work which helps them to retain workforce for long time and impacts in
positive manner.
Environmental: Fashion designers of John Smedley focuses on minimum wastage of
available resources at the time of designing new products that helps in optimum utilisation of
resources and improving product quality which impacts positively.
Objectives of John Smedley
 To build powerful trade name of the company.
 To increase customer satisfaction by 35% in the coming time period.
 To enhance sales by 30% in the next 6 months.
 To increase profit by 15% in upcoming 6 months.
 To enhance market share by 30% within 6 months.
SMART techniques to attain objective of John Smedley:
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In order to build powerful brand image organisation will focus on increasing awareness
through direct marketing or social media marketing techniques. In order to increase customer
satisfaction managers of the company will focus on customer relationship management technique
in order to understand customer needs and delivering then demanded products within limited
time (Luttwak, 2016). To increase profits organisational managers will focus on supplier
relationship management technique. To attain market share organisational managers will follow
innovative techniques such as strengthening customer relationships, acquiring competitor
strategies and smart hiring practices.
c. Implementation of strategy.
From the above discussed range of entrepreneurial strategy managers will implement
their formulated strategies. They will implement BCG matrix will such strategies:
Dog strategy: In this entrepreneur of John Smedley will follow communication and
relationship building strategy in order to increase awareness of Merino Wool, waistcoats for
Men in order to increase market share and growth rate.
Cash cow strategy: Herein, managers of John Smedley will implement strategies related
with diversification strategy as to expand the demand of T shirts, Capes, Sweaters for men and
dresses & skirts for women (Scholes, 2015).
Star strategy: The managers of selected company will implement investment strategy as
to expand demand of modern icons, shirts and modern jackets.
Question mark strategy: The marketers will implement diversification and investment
strategy for short sleeved, pullovers and viscose blends to increase the sales of the products.
d. Recommendations and conclusion.
To enhance sales and profitability of the company, the recommended strategy is BCG
matrix strategy which will help in determining business growth, solving basic issues and
attaining market share to the selected company. By using such technique management of John
Smedley will be able to monitor the performance of different products and making modifications
as per the demand of the customers. Such strategy will help the company to categorise products
as per the standards as well as performance. Hence, John Smedley is recommended to such
technique that will result in attaining beneficiary results.
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CONCLUSION
From the above report it has been concluded that strategy plays important role in
attaining organisational objectives in limited time span. Some of the entrepreneurial strategies
are BCG matrix strategy, McKinsey's 7S strategy, value chain Strategy and porter's five forces
strategy. The situational analysis is done through SWOT analysis as well as PESTLE analysis.
The recommended strategy is BCG matrix strategy as it will help in differentiating products as
per different techniques.
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REFERENCES
Books and Journals:
Baylis, J., Wirtz, J. and Gray, C. eds., 2018. Strategy in the contemporary world. Oxford
University Press, USA.
Cecchin, G., 2018. Irreverence: A strategy for therapists' survival. Routledge.
Corbett, J. S., 2018. Some principles of maritime strategy. BoD–Books on Demand.
Dichter, E., 2017. The strategy of desire. Routledge.
Dodgson, M., 2018. Technological collaboration in industry: strategy, policy and
internationalization in innovation. Routledge.
Escobar, A., 2018. The making of social movements in Latin America: Identity, strategy, and
democracy. Routledge.
Hamel, G. and Prahalad, C.K., 2017. Do you really have a global strategy?. In International
Business (pp. 285-294). Routledge.
Hill, T., 2017. Manufacturing strategy: the strategic management of the manufacturing function.
Macmillan International Higher Education.
Kono, T., 2016. Strategy and structure of Japanese enterprises. Routledge.
Le Grand, J., 2018. The strategy of equality: redistribution and the social services. Routledge.
Luttwak, E., 2016. The Grand Strategy of the Roman Empire: From the First Century CE to the
Third. JHU Press.
Rugman, A. M. and Verbeke, A., 2017. Global corporate strategy and trade policy. Routledge.
Scholes, M. S., 2015. Taxes and business strategy. Prentice Hall.
Spykman, N. J., 2017. America's strategy in world politics: the United States and the balance of
power. Routledge.
Waddington, C. H., 2014. The strategy of the genes. Routledge.
Online:
BCG Matrix. 2018. [Online]. Available through:
<https://www.strategicmanagementinsight.com/tools/bcg-matrix-growth-share.html>
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