The Strategic Path: A Critical Review of Business Strategy Literature

The provided content comprises a collection of articles, books, and online resources that discuss various aspects of business strategy, including corporate sustainability, strategic management, digital business strategy, operations strategy, and public relations. The sources cover topics such as the importance of effective decision-making, integrating sustainability into business strategy, configurational approaches to studying digital business, and strategic planning for senior leaders.

Business Strategy

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1 ORGANIZATIONAL PURPOSES OF BUSINESSES....................................................1
1.1 Mission, vision, goals, objectives and core competencies of Mulberry's.........................1
1.2 Factors considered for formulating strategic plans..........................................................2
1.3 The effectiveness of techniques used when developing strategic business plans............3
TASK 2 THE NATURE OF NATIOANL ENVIRONMENT IN WHICH BUSINESS
OPERATE........................................................................................................................................4
2.1 The strategic positioning of Mulberry through carrying out an organizational audit......4
2.2 Carrying out environmental audit for Mulberry's.............................................................5
2.3 The significance of stakeholder analysis when formulating new strategy.......................6
2.4 Presenting a new strategy for business.............................................................................7
TASK 3 BEHAVIOUR OF ORGANISATIONS IN THEIR MARKET ENVIRONMENT..........7
3.1 Appropriateness of alternative strategies..........................................................................7
3.2 Justifying the selection of strategy...................................................................................9
TASK 4 UNDERSTAND HOW TO IMPLEMENT A CHOSEN STRATEGY............................9
4.1 Assessing roles and responsibilities of personnel who are charged with strategy
implementation at Mulberry...................................................................................................9
4.2 Analyzing the estimated resource requirements for implementing a new strategy for
Mulberry...............................................................................................................................10
4.3 Evaluating the contribution of SMART targets to the achievement of strategy
implementation in Mulberry.................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

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INTRODUCTION
Strategic management in business refers to the formulation and implementation of the
major goals and initiatives undertaken by the top management of firm. Further, it helps in
developing effective environment in which the company competes. However, it also helps in
providing overall direction to the firm and prepares policies and plans in order to attain long term
goals. Further, business strategy is the process of specifying mission, vision, goals and objectives
of firm. It is made in order to allocate the resources and implement policies with the aim to gain
the best outcomes (Camps, 2011). Here, it is crucial for business to formulate different tactics
with the aim to fulfill the fast changing needs of clients and also planning different changes with
the help of continuous innovation to attain satisfaction. Moreover, operational management
helps firm to develop primary goals with enhancing skillfulness and controlling costs within the
set boundaries to attain goals.
In the current report, case study of Mulberry Group Plc has been assessed which is the
English luxury brand within UK. Business is famous for its design and manufacture or sourcing
of luxury accessories, clothing and footwear within wholesale channels or its own stores. The
management of Mulberry Group focuses on continuous long term strategic progress and attains
desired objectives (Fernando, 2012). Business also assists in identifying different strategic
factors which affects the firm and evaluates current and future tactics with the aim to analyze
execution of possible new and alternative strategic options.
TASK 1 ORGANIZATIONAL PURPOSES OF BUSINESSES
1.1 Mission, vision, goals, objectives and core competencies of Mulberry's
Strategic planning is the best tool that assists management to implement and execute
tactics within organization. It is majorly implemented to attain long term goals of the enterprise.
Also, it is significant for firm to develop effectual plans and policies in order to allocate the
resources efficiently. Further, strategic planning also helps business to formulate mission, vision
and goals of Mulberry (Fulford, 2013). Here, organization focuses on delivering the best quality
products and services to clients with the aim to attain customer loyalty and satisfaction. Strong
brand image is the main strength of its working as it owns a large customer base that includes
Hollywood celebrities. However, business operates both in retail and wholesale market in order

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to improve its market share. Following are the mission, vision, goals, objectives and core
competencies of Mulberry that are as follows- Mission- It is the statement that identifies the scope of firm's operations in regard to its
product and services. It also helps in describing values and priorities of firm. However,
the main key factor of any business is to attain organizational goals within stipulated time
frame. The mission statement of Mulberry is to continuously expand its business within
international marketplace (Galpin and Whittington, 2012). However, the business of firm
is also growing within Asian market rapidly and earning high expected revenue around
100% during the current financial year. Vision- It defines that the expected or desired future state of business for attaining long
term goals. The top management of business is required to formulate decisions regarding
launching of English lifestyle brand globally. Moreover, its vision is to become the best
luxury brand within leather goods segment (Hill, Jones and Schilling, 2014). Goals- Mulberry aims to reach the international market through expanding its operations
and attaining huge success within UK market. Firm delivers the best quality luxury
products such as accessories, footwear and leather bags with the purpose of satisfying
customers. Objectives- Mulberry's objective is to develop and expand the business globally. Another
objective is that the top management of firm is required to make individual employee
aware regarding the best leather goods available not only domestically but also for
attracting international clients (Demir and Gocer, 2011).
 Core competencies- Core competencies refer to as the capabilities and abilities of firm to
make it unique and powerful as compared to its competitors. Producing high quality and
unique leather bags for women is the core competency of Mulberry Company. Thus, it
helps in enhancing the target market of the firm (Grosse, 2000).
1.2 Factors considered for formulating strategic plans
Following are the different factors that are needed to be considered while preparing
strategic plans. These are as follows-
 Environment scanning issues- Here firm is required to scan the environment in which
the business operates currently. Thus, sometimes Mulberry is inefficient in scanning the

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environment and also in identifying different changes which took place within external
environment (Kourdi, 2010).
 Lack of effective culture and management- Business operates within international
market. Hence, it lacks maintenance of proper culture and management. Thus, such types
of problems are faced within business which involves lack of effective management and
culture in business in order to attain desired goals and objectives (Shavarini and et. al.,
2013).
 Developing future direction to overcome competitors- Further, it is essential for
Mulberry to focus on the competitive forces available in market. It is required in order to
develop effectual strategic plans. Hence, it is crucial for enterprise to prepare effective
future plans and policies otherwise it may affect profitability of business in the future.
Through developing effective plans and policies, Company is assisted in maintaining and
edging over other rivals (Murthy, 2012).
 Financial barriers- Mulberry requires huge financial resources as they are planning to
enlarge its market base globally. Thus, while formulating strategic plans, growth of
business got affected. Also, business is focusing on producing cost effective products and
services. Through this business aims to retain clients for long term and minimizes its
profit margins (Omar and Sawy, 2013).
1.3 The effectiveness of techniques used when developing strategic business plans
In order to build strategic business plans Mulberry Group is required to develop effective
planning techniques. It is as follows-
 Profit impact of market share (PIMS)- Furthermore, it is another planning technique
that depicts the separation among the key strategic decisions of firm and its end results.
With the help of such technique it assists in gaining better understanding of business
environment. Moreover, it also helps firm to improve its performance and bring results.
Hence, such planning tool assists business to develop effectual strategic plans for the
future (Pehrsson, 2007).
 Strategic position and action evaluation (SPACE)- Moreover, it is another crucial
planning technique that helps firm to determine the internal and external strategic action
plan. Thus, with the assistance of such technique business is required to determine the
strategic position i.e. financial strength and competitive edge within market. Further, in

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order to gain external dimensions, business is required to evaluate environmental stability
and industry growth. SPACE technique assists firm to build its future strategic plans and
gain desired results. On the other hand, such technique is the best as it helps firm to
obtain better insight of the environment and strengths (Smith, 2013). Also, it is crucial for
firm at the time of formulating the business tactics and attains desired goals.
 BCG matrix- Such technique helps Mulberry to obtain the best insight to its position.
Moreover, it assists business to provide effectual information regarding the business
situations in regard to gain relative growth and market share. With the aim to determine
the current position of business in market, Mulberry also develops effective future
strategic plans to attain goals (Wells, 2013).
TASK 2 THE NATURE OF NATIOANL ENVIRONMENT IN WHICH
BUSINESS OPERATE
2.1 The strategic positioning of Mulberry through carrying out an organizational audit
Through carrying out organizational audit it helps firm to develop strategic positioning.
Thus, in regard to this there are different techniques that can be adopted in order to gain best
results. These are the following techniques which are discussed underneath-
 Market leadership- It can be assessed that Mulberry is the market leader within luxury
accessories and fashion segment. Thus, it provides tough competition to rivals and
improves the market share. Mulberry produces good quality leather products that help
them to expand the business internationally. Hence, it depicts that firm owns the ability to
lead the market by defeating the competition (Drejer, 2002).
 Swot analysis- The main strength of Mulberry is that company is a well known brand
within leather segment and produces the best quality leather handbags from women.
While, the opportunity with firm is that business is trying to expand its operations
internationally. Thus, in order to gain strategic position management of Mulberry is
required to evaluate its strengths, weaknesses, opportunities and threats. Moreover, it can
be stated that business possess more number of strengths as compared to weaknesses that
depicts unique brand image of firm within UK market (Enz, 2009).
 Ansoff matrix- It can be stated that business is required to develop unique features
within its goods with the aim to deliver the best quality products and services to clients.

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Moreover, in order to earn high profit margins Mulberry also aims to undertake market
development and product development strategy (Freeman, 2010). Thus, all such crucial
techniques helps firm to develop the best strategic positioning in market. Also, it assists
business to bring uniqueness within its product range and thus differentiate them from
other rivals such as Prada, Gucci etc.
2.2 Carrying out environmental audit for Mulberry's
In order to conduct environmental audit business is required to undertake PESTLE
analysis technique which is as follows-
 Political factors- Mulberry operates within global market and thus it gets affected by
different political factors of that country. For instance, tax rates, legislation rules and
regulations etc. need to be considered by management of firm before starting the
operations within particular market. Thus, it affects the performance of enterprise and
influences the stability of organization within country (French, 2009).
 Economic factors- Following are the different economic factors i.e. improving cost,
demand, profits and prices that influence the business with the aim to keep the change in
the place of taxation and other factors that impact the availability of finance. Moreover,
Mulberry is also planning to expand its operations outside UK market in order to
generate high revenues (Harrison and John, 2013). Thus, firm focuses to reduce its
advertising campaign because of recession and decrease in disposable income of
household people. It helps firm to deliver cost effective product to clients and improve
the brand image within marketplace.
 Social factors- It states that there are diverse changes in the trends and preferences of
customers. Hence, with the aim to increase awareness among clients in regard to fashion
it is essential for Mulberry to introduce unique goods that attract clients and gain
satisfaction (Varbanova, 2013).
 Technological factors- Due to advancement in technological factors, it is essential for
Mulberry to introduce unique and innovative features such as mobile application so that
ti can deal wide range of consumers around the globe. However, it influences the
performance of business and thus enhances the sales and profitability of firm in
marketplace.

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 Environmental factors- Because of advancement of business operations it is essential
for firm to determine the environmental factors so that it does not affect the environment
in any form. Business is planning to provide benefits to society by minimizing the
carbon emission up to 50% till 2020. In order to build effective work culture business is
focusing on planting numerous trees as possible (Vinzant and Vinzant, 2000).
 Legal factors- There are varied government policies and legislation that affects the
performance of Mulberry. Thus, it is crucial for firm to follow varied laws and
regulations as per the UK government so that it does not affect the functions of
organization (Whipp, 2000).
2.3 The significance of stakeholder analysis when formulating new strategy
Here, business is required to consider the impact that stakeholders possess upon their
organization. Thus, Mulberry aims to determine the interest of varied stakeholders so that best
results can be attained. Following are the different stakeholder groups which are as follows-
 Employees- Workers are the main and integral part of enterprise and thus it helps
business to carry out the planned operations effectively such as increasing the market
share and satisfying the requirements of clients (Nickols, 2012).
 Customers- Further, customers are the king of every business and thus business is
required to determine the needs and preferences of their clients so that good quality
product's can be delivered to them and achieve results.
 Top management- Here, the top management of firm is required to undertake different
roles and responsibilities so that they can build effective practices with the aim to gain
the best outcomes. They also perform the duty in regard to direct and control the
operations of firm (Serafeim and Eccles, 2014).
Further, significance of stakeholder analysis within the formation of new strategy are
discussed underneath-
 Improving partnership- After conducting stakeholder analysis it is needed for business
entity to make partnership with their business suppliers as by doing this they can provide
high quality products to their customers in a better way. In the same way, it is also
needed for company to monitor its needs in terms of suppliers so that the quality of their
products can be enhanced to a greater extent (Kader, 2012).

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 Encouraging employees- With the help of stakeholder analysis, company will be able to
identify the needs of human resources, after identifying their needs better plan can be
developed by organization in order to motivate and encourage employees to perform their
work effectively. Proper fulfillment of employees needs leads business to achieve its
objectives in an effective manner (Wells, 2011).
 Marketing tactics- By considering marketing tactics it is necessary for the management
of Mulberry to focus on the stakeholder analysis in order to maintain better relationship
with all of them. With the help of stakeholder analysis organization will be able to
understand the needs and requirements of stakeholders and after that corrective actions
can be taken to fulfill their needs (Camps, 2011).
2.4 Presenting a new strategy for business
Through executing the above analysis, it can be assessed that Mulberry is required to
expand its business in international market and develop new strategy. For fulling this objective
of expansion Mulberry can use market development strategy. In which firm can target or enter
into new market by using several distribution channels, etc. For developing the market it can use
market segmentation strategy and can target different group of people who have much interest in
the products of Mulberry.
Further, it helps firm to plan the operations within different diversified segment. Thus,
business aims to develop new range of products such as related and unrelated segments with the
purpose to expand the operations of firm in global marketplace (Fernando, 2012). With the
assistance of new strategy it helps firm to enhance the sales and profitability within market and
gain customer satisfaction. Implementing new strategy also helps firm to attract wide range of
customers from international market and satisfy their needs effectively. It raises the brand image
of firm in market and increase customer base. Thus, undertaking market expansion tactic helps
Mulberry organization to enhance the brand awareness so that requirements of clients can be
fulfilled in an effective manner.

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TASK 3 BEHAVIOUR OF ORGANISATIONS IN THEIR MARKET
ENVIRONMENT
3.1 Appropriateness of alternative strategies
There are different alternative strategies available for Mulberry so that top management
of firm can evaluate them in order to undertake the best strategy which helps them to enhance the
sales and profits (Fulford, 2013). Following are different alternative strategy such as market
entry, substantive growth and limited growth strategy. These are as follows-
 Market entry strategy- In such type of tactic it helps firm to expand the business
operations within new market. As business is planning to enlarge its operations within
international market it is essential for them to adopt such tactic. However, such strategy is
proved to be beneficial for Mulberry in order to enhance the market share and
profitability. In regard to this, business owns numerous tactics for entering into new
market and attains results (Galpin and Whittington, 2012). Strategic alliance, mergers and
acquisition etc. are the different techniques that firm can adopt in order to enter into new
market. However, among these techniques' merger and acquisition would be considered
as most beneficial for Mulberry to enter into particular market and expand the business
operations.
 Substantive growth strategy- It is another strategy that can be used by Mulberry
management to gain best results. Substantive growth strategy undertakes both related and
unrelated diversification. Related diversification helps Mulberry to diversify its
operations within the current market in which the firm is operating. For instance,
Mulberry is currently operating its functions in retail segment then in order to expand the
range of products firm is required to enhance within the particular sector (Hill, Jones and
Schilling, 2014). On the other hand, unrelated diversification is another form in which
organization involves new and unrelated product categories within the current market.
 Limited growth strategy- Moreover, in order to gain limited growth strategy it is
essential for top management of Mulberry to adopt market penetration. Thus, business
penetrates the market by charging low prices for its products and services as compared to
its competitors. Through this business helps in attracting large number of buyers and
increase the customer base. It also helps firm to enhance the sales and profitability of firm
in marketplace (Demir and Gocer, 2011).

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 Divestment strategy- Retrenchment and turnaround strategies are involved within
divestment tactic. Business undertakes such strategy at the time when firm is finding its
operations as ineffective and expects huge losses. Thus, in order to overcome such
situation business sales its non profitable or non productive business unit. The money
earned from such sales can be invested in other profitable business (Kourdi, 2010).
3.2 Justifying the selection of strategy
However, among all the identified alternative strategies, it can be evaluated that
substantive growth strategy such as related diversification is the best option for Mulberry. Here,
business can diversify its businesses within the cosmetic sector and enlarge the operations of
firm. Thus, business aims to sale different cosmetic products along with other related products
such as clothing and fashion accessories to grab attention of new clients. It also helps firm to
increase the sales and profitability of firm in marketplace (Stonehouse and Houston, 2013). With
the help of such strategy business is required to attain benefits in the form of enhanced market
base. However, such technique is suitable because it minimizes the cost of firm to open new
branch for selling cosmetic product, as such products can be sold within the existing branches
selling leather bags.
By using diversification strategy Mulberry will be able to gain competitive advantage. By
this way market share of the firm will get increased. Thus, it will be beneficial to accomplish its
objective of expansion in international market. It will help to reduce the risks of failure in
specific market so that it will be able to sustain in the corporate market for longer period.
TASK 4 UNDERSTAND HOW TO IMPLEMENT A CHOSEN STRATEGY
4.1 Assessing roles and responsibilities of personnel who are charged with strategy
implementation at Mulberry
It can be evaluated that strategy implementation is the best step for Mulberry. It is
because of the reason that business has greater impact on the roles and responsibilities of human
resources who implements it. However, it states that each and every employee possesses huge
responsibility in order to transform the strategic plan into effective operations. Thus, top
management of Mulberry plays the important role in order to communicate the plan at different
level and obtain outcomes. Also, the role played by manager in order to communicate the
strategic plan to subordinates (Murthy, 2012). While, the managers are accountable to review the

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progress of every employee working within business in order to expand the business
internationally. Thus, all such operations go into proper hierarchy of levels in order to effective
implementation of strategy. Furthermore, manager also plays the role to offer proper guidance to
the employees regarding the plans and policies undertaken so that it can be effectively
implemented within firm.
While, at the time of failure of implemented strategy, different management executives
are assigned who are answerable before the top management of Mulberry. Thus, it assists them
to work effectively in order to gain the best outcomes. Additionally, manager also plays the
responsibility to convey the strategic plan to different departmental heads in order to best plan
the activities. It involves all the people who are involved in order to execute the strategy. Thus,
with the help of this every departmental managers are required to set proper standards so that
performance can be reviewed from time to time. However, if there is need of any changes then
proper corrective actions can be taken in order to improve the implementation of strategies
within firm (Omar and Sawy, 2013).
Further, the role of personnel at the operational level is critical in order to attain success
at the time of strategic plan. It is essential for individual to gain insight of the strategies so that
best actions can be attained. On the other hand, the lower level employees are accountable at the
time when they are not able to meet the desired standards. Such employees are the crucial part in
order to implement the strategy (Wells, 2013). Thus, it is crucial for each and every employee at
different levels to carry out their best roles and responsibilities for the implementation of
strategic plan.
4.2 Analyzing the estimated resource requirements for implementing a new strategy for
Mulberry
Following are the different resource requirements which are needed by Mulberry in order
to execute the strategy effectively. The below provided is the list of resources that are required to
implement related diversification growth strategy within business are as follows-
 Human resource (Workers)- It can be stated that human resources are the most crucial
part within business in order to implement the strategy. However, it is essential for firm
to employ the best skilled employees within firm to gain positive outcomes. For instance,
Mulberry aims to organize effective training programs for workers so that their skills and
capabilities can be improved to obtain desired targets (Enz, 2009).

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 Financial resources- It is another crucial resources that are required in order to
implement the new strategy. However, in order to introduce new product in the market
Mulberry requires huge investment in order to attract worldwide customers.
 Technological resources- Here, business is also required to undertake new and
innovative technology at the time of implementing new tactic. Thus, effective
technology helps in attracting new customers and enhances sales of firm (French, 2009).
 Time- For implementing the strategy Mulberry needs timing resources. For instance,
Mulberry will have to adjust its operations according to priorities of the tasks. By this
way it will be able to finish its work in the given time period.
 Material- For implementing the strategy in the workplace, it will resource material for
example raw material of cloths etc. Apart from this it will require some machinery and
technical equipment so that it can produce quality products. For instance, business uses
different raw materials in regard to utilize the same within firm for manufacturing
products of best quality.
4.3 Evaluating the contribution of SMART targets to the achievement of strategy implementation
in Mulberry
SMART goals stands for specific, measurable, achievable, realistic and timely. It
supports to accomplish the objective of the firm. Once company st its goal it can make plan for
achieving these targets. Further, it can be evaluated that SMART objectives are developed in
regard to help business to improve the business performance and thus attain and implement
effective strategies within firm so that desired results can be attained. Also, it is helpful for firm
to utilize SMART objectives so that they can enhance their performance and achieve
organizational targets. Here, Mulberry is required to develop SMART objectives in order to
attain effective strategy implementation. In regard to this, related diversification tactic helps
business to set the direction of firm and attain desired goals. Thus, it helps firm to obtain desired
goals within stipulated time frame (Varbanova, 2013). Following are the SMART objectives set
in order to implement related diversification strategy. It is as follows-
 S- To enhance the market share of Mulberry by 30% within UK market. It can achieve it
by entering into international market.

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 M- It will be able to expand its business significantly. Company can use online medium
or can merge with international organization for expansion of the business in the global
area.
 A- Mulberry will be able to attain the target of 20% increment in market share easily with
the help of effective implementation of strategy.
 R- As its present situation is quite well so it will be able to achieve its target easily. It can
be done by giving timely training to staff so that they can handle business significantly.
 T- Till the year 2017, business aims to attract large number of women segment by
introducing new product line i.e. cosmetic.
CONCLUSION
It can be concluded from the above study that strategic management is the best action that
helps firm to determine mission, vision and core competences of business in order to attain long
term goals. However, planning strategic options for Mulberry assists in expanding the business
in international market. Through, effective planning of tactics and policies, firm is assisted to
build best band position within accessories and luxury leather goods market. Also, organization
focuses on expanding the business in global market and give tough competition to rivals.
Moreover, with the aim to assess the position of Mulberry in competitive market, effective
environmental audit has been executed to attain desired goals. Further, substantive growth
strategy has been implemented within business as it is beneficial for Mulberry to diversify its
business within cosmetic segment. Hence, it helps firm to attain long term goals.

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