Comprehensive Strategic Management Analysis of BestLady Business

This report provides a comprehensive strategic management analysis of BestLady, a fashion company. It begins with an executive summary and introduction, followed by an examination of BestLady's mission, vision, objectives, and strategies. The analysis delves into the company's intern...Read More

Strategic Management
STRATEGIC MANAGEMET ANALYSIS
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Strategic Management Analysis
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Table of contents
BestLady Executive summary.....................................................................................................................4
Introduction.................................................................................................................................................4
Mission, Vision, Objectives and Strategies.................................................................................................6
Developed mission, the vision statement for Best lady............................................................................6
The new BestLady mission statement......................................................................................................6
Internal Opportunities and Strengths...........................................................................................................6
BestLady Current Opportunities..............................................................................................................6
Bestlady’s Current Threats......................................................................................................................7
PESTLE Analysis of BestLady...................................................................................................................8
Strategic Management Tools.....................................................................................................................12
The CPM Matrix.......................................................................................................................................12
BestLady Internal Factor Evaluation Matrix...........................................................................................14
BestLady External Factor Evaluation (EFE) Matrix..............................................................................15
SWOT Analysis of BestLady...................................................................................................................17
Strengths................................................................................................................................................17
Weakness...............................................................................................................................................18
Opportunities.........................................................................................................................................18
Threats...................................................................................................................................................18
Recommendations and strategies for BestLady firm.................................................................................18
SWOT and IE implementation and recommendations...........................................................................19
Recommendations on the procedure for strategy review and evaluation...............................................20
Conclusions...............................................................................................................................................20
Bibliography..............................................................................................................................................22
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BestLady Executive summary
BestLady has developed swiftly from being an outlet store into the ranks of the vogue greats in
the region. This proves that there exists a determined and strategic management at the helm of the
organization. The firm has won the competitive edge in the field of fashion in the region.
However, BestLady has been faced with fierce competitors in the recent seasons that produce
similar products and quality but at a lower price. This has resulted in reduction of the
organization’s profit margin. The management has sincse been forced to rethink some its
strategies in their environment to remain competitive. These strategies mostly concern the
external business environment factors although even the internal environmental factors have been
considered.
Introduction
BestLady is a local firm specialized in classic female apparel .dating back to 1996, the firm
operated as an outlet branch of the then-booming Lee Garments Fashion design that has since
rebranded and a new name and ownership. After strategically carrying out its operations in the
region for six years, the Best lady became profitable enough and it was then that the firm
commenced its own fully functioning but specializing in own range of female wear Amran et al,
(2016)
Having known the rules of the game, the company rose quickly and by 2005, it was enjoying
slightly over 50% local market in the women wear. Despite the company’s ignorance of social
media for at least two years, the firm was doing very well but later on had to venture into online
advertising to keep up with the market trend.
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Strategy, as explained by Johnson and Scholes, refers to the scope and path taken by an
establishment over a long-term Carpenter et al (2014). The plans and the objectives enable a
achieve advantage for the company via its resources’ configuration in an unsupportive business
environment, to the aim of winning the stakeholders trust and meeting market demands.
Concisely, the business asks itself concerning where it is headed and how to get to their
destination, the way to exploit the internal factors that are in favor to an organization to suppress
the destructive external factors. This research aims at examining the BestLady’s both internal
and external factors using the business strategy models of SWOT analysis, External Factor
Evaluation (EFE) Matrix PESTLE analysis, Boston Product Matrix, Internal Factor Evaluation
(IFE) Matrix and provide appropriate recommendations thereafter Aithal, (2016).
Bestlady's mission is to be our customer’s best fashion choice. The vision is to help our
customers prosper in an enabling environment. The goals and objective of the firm include being
profitable, remain competitive and benefit its clients, the community as well as itself.
Bestlady's vision statement requires some enhancements to address what the firm stands for and
the strategies put in place to attain the goal in the coming years of its operation. The
organization’s mission statement is effective for the firm's activities approaches surely make the
firm its clients’ vogue center choice Janys (2016).
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Mission, Vision, Objectives and Strategies
Developed mission, the vision statement for Best lady
The business needs a vision statement that exhibits its growth and sustaining its women wear
market. The mission statement should reflect Bestlady’s products and the way its clients benefit
from them.
New Bestlady’s vision statement could be like; to make viable fashion ordinary. We trust this as
our long-term growth path for our organization.
The new BestLady mission statement
To attach vitality to fashion. We satisfy every season’s glamour, design, and trends that enable
women to feel perfect and get more out of their cash.
Internal Opportunities and Strengths
BestLady Current Opportunities
BestLady and its rivals have the same opportunities. The fashion field dictates that to win, a
business needs to act fast in exploiting the opportunities.
Sustainability is one opportunity that BestLady has. In the fashion field, endurance concentrates
on season, trends and quality for determinant factors. BestLady can produce new fabrics that
match its design. The business can do the mass production like for big institutions or events.
Engaging in such events and exploitation can build the company’s brand image and hence go on
in winning the customer loyalty Lindgardt et al, (2009).
Diversification is another opportunity for exploitation for BestLady business. In order to reduce
the risk of getting defeated, the firm can diversify its operation by venturing into production of
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men’s wear. Investing more in the opportunity of producing wedding dresses is another strategy
Yan et al (2015).
Trendy innovation is another opportunity that the firm can engage by investing in research and
development. To boost Bestlady’s competitive advantage can be achieved through investment in
R&D.
Bestlady’s Current Threats
The existing threats in the vogue industry have the capacity to lower Bestlady’s ranking as the
top fashion firm in the region. The threats against the company are economy related although the
rivals' institutional activities also exist.
Rising raw materials prices overtime means the organization to set high prices for its
commodities, which means expensive clothing on the shelves. The customers however apart
from looking for quality, they also go economical meaning buying cheaper wears. BestLady
needs to continue producing quality and trendy designs and invest more in customers’
satisfaction and retention strategies Evans et al (2017).
Another threat of new entrants is what the firm has to deal with. Although it has won the loyalty
of any of its customers, BestLady needs to do more regarding customer services and employee
satisfaction to avoid being knocked out of the business. Aggressive competition from the peer
organizations should not be brushed away.
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PESTLE Analysis of BestLady
The external environment holds a very important place critical role in deciding the future
of individual businesses and the entire industry. Executives must suit techniques matching
demands continually in order to keep the business prepared to compete and survive hard times.
Carrying out an external analysis at the beginning of the technique reconsideration process is a
very critical practice Dickson (2017). First, you need to converge as a team for a PEST analysis
process. The team’s gathering will result in getting your business’ environment synopsis; the
environment is threatening and supporting factors, and the problems that will need attention in
the set techniques. As the discussion rolls on, all the factors brought forward by the team relating
to the political, economic, social, and technological conditions Bîrsan et al (2016).
Critical evaluation of the political, economic, social, technological, legal and environmental
factors surrounding BestLady will enable business strategy option taken by the firm to be clear.
From the political perspective, BestLady needs to be satisfied with Supply chains efficiencies.
The firm’s ability to take care of the customer’s needs is an instance of the supply chain. Any
political unrest is it affecting the business either directly or indirectly will surely affect the firm’s
operations.
The fashion enthusiasts, the Bestlady, face considerable issues economically. Market penetration
is considerably high in some regions, which call for BestLady to consider entering into the new
markets
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In the Social aspect, BestLady a very strong market status with the brand consciousness of high
levels. The fashion design market seems to increase youth wise and the firm has observed this
keenly with appropriate actions taken
Furthermore, a social analysis, which entails demographic issues, culture, education,
environmental consciousness, class structure, health and entrepreneurial spirit as the primary
considerations in a business environment, also plays a big role. Putting in mind that those values
and attitudes of the employees are drawn religion, family, and social institutions ought to be
considered also Khachatryan et al , (2015). Such values go a long way in determining workforce
views regarding the change, risk-taking, success, achievement motivation, work, use of time and
competition, the other thing is technological analysis, where discussion involving the recent
technological advancements, their impact on cost and value chain structure together with the rate
of technological diffusion will be of great importance
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Bestlady CPM
Bestlady lee Garments fashion and
design
Ken knit
Apparels
Critical Success Factor Weight Rating Scor
e
Rating Score Rating Score
Market share 0.16 4 0.64 2 0.32 2 0.32
Number of outlet
branches
0.12 4 0.48 3 0.36 2 0.24
Frequency of
purchases
0.05 3 0.15 4 0.20 2 0.10
Design 0.06 3 0.18 2 0.12 3 0.18
Reputation of Product
brand
0.05 3 0.15 3 0.15 2 0.10
Distribution channels 0.12 4 0.48 2 0.24 2 0.24

BestLady has over time-improved technology wise enabling it to lead in the fashion and design
technology fronts. The company’s ability to be proactive in innovation has secured the admirable
Bestlady’s market position, in spite of the unsupportive environment.
As far as Bestlady’s legal aspect is concerned, the firm has gone through dark moments
especially between its staff and the executives. The gender laws have seen the company find
itself in battling grounds due to the variance in males to female employees in the organization.
Meeting the ISO standards for its procedures and personnel has proved difficult and so the firm
needs to be critical when it comes to legal matters Rossmann and Brockes (2015).
Environmentally, issues relating to sustainability and climate have had fundamental
considerations in the strategy of the firm. The stress put on corporate responsibility by BestLady
is enough proof of environment conservation Delgado and Pedauga (2017).
Strategic Management Tools
The CPM Matrix
The CPM is model used to check the capability of the set strategies for an organization to
achieve its goal Akhlaghpour and Lapointe (2018).
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BestLady EFE Matrix
Chief External Factors Weigh
t
Rating Weighted
Score
The Opportunities
1. New entrant fashion and design arises 0.03 1 0.03
2. A technology further enhances e-.commerce 0.14 3 0.42
3. New and untapped market on wedding dress
specialization.
0.06 4 0.24
The Threats
1. Fierce competitive rivals rising with much force 0.05 2 0.1
2. putting too much on single product specialization 0.06 3 0.18
Total 0.34 - 0.97
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BestLady Internal Factor Evaluation Matrix
BestLady IFE Matrix
Chief Internal Factors Weight Rating Weighted Score
Strengths
1. Brand reputation valued at $3 billion 0.09 4 0.36
2. Extensive distribution channels 0.05 3 0.15
3. Proficient employee management 0.03 2 0.06
Weaknesses
Over-dependence on single product 0.13 2 0.26
Too low net profit margin 0.06 2 0.12
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BestLady IFE Matrix
Chief Internal Factors Weight Rating Weighted Score
Total 0.19 - 0.95
BestLady External Factor Evaluation (EFE) Matrix
BestLady IFE Matrix
Chief Internal Factors Weight Rating Weighted Score
Strengths
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BestLady IFE Matrix
Chief Internal Factors Weight Rating Weighted Score
1. Brand reputation valued at $3 billion 0.09 4 0.36
2. Extensive distribution channels 0.05 3 0.15
3. Proficient employee management 0.03 2 0.06
Weaknesses
Over-dependence on single product 0.13 2 0.26
Too low net profit margin 0.06 2 0.12
Total 0.19 - 0.95
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SWOT Analysis of BestLady
Strengths
The overall combined strategy choice by BestLady will be based on its internal factors in relation
to its external factors. Concerning the firm’s strengths, BestLady’s only and celebrity brand is its
best advantage. The business even stresses on using its own brand when an opportunity for
subsidiary comes through Ketikidis et al, (2015). BestLady also enjoys a wide and innovative
product and service ranges. The Company’s brand is undoubted, its prime internal strength,
which has been efficiently used in getting BestLady an additional market share. It also enjoys an
excellent employee management together with extensive distribution channels Bull et al, (2016)
Weakness
However, BestLady weaknesses are directly connected to its strengths. The whole of the
company’s achievements are drawn from its famous brand hence destructive event touching on
the brand will bring the company to its knees. Unsatisfactory net profit margin due to the high
production costs Comino and Ferretti (2016).
Opportunities
In regards to opportunities, BestLady is capable of exploiting the ever-changing technology via
e-commerce platforms Lambini et al (2016). New entrant fashion designs especially the highly
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innovative ones have hinted on shooting the organization’s ranks even higher hence are
considered the possible opportunity for the women’s wear specialists. The untapped markets of
mass production and specializing in weddings dresses offer an additional opportunity for
BestLady Rauch et al, (2016).
Threats
Threats can never be missed in the fashion market. Strategic rivals are ever entering the fashion
and design markets then chopping off the limited market shares. BestLady risks losing a lot by
trusting its single product investment. Any slight blunder by the management or even the
workforce would mean its peril Linder and Williander (2017).
Recommendations and strategies for BestLady firm
The first counsel for the firm is elucidating the products, services controlled externally, and those
managed locally. The external merchandising usually set the plans and regulations for the
internal marketing operations means that the internal market dictates its success this can be done
through strategic marketing, effective planning and budgeting, research techniques, and massive
marketing campaigns on social media Bryson ( 2018).
Secondly, apprehension of needs of the immediate market then establishing a collaborative
bearing is very important. The far located or international markets operation should not
overshadow the local markets’ needs. Creation of both markets is however advisable Smink et al,
(2017).
Product-focused management is another strong recommendation for BestLady. The executive
should concentrate more on producing quality wear as that is the organization’s stronghold. A
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leadership that is oriented in developing products will always make sure it does anything in its
power to have all best ideas and resources directed to the product Nelson et al (2018).
In addition, there is a need to establish and make friends with the external marketing schemes in
good time. Seek the immediate feedback making sure there are no legal barriers that can turn
problematic Hashemi et al (2017).
The next council is managing the firm’s campaigns ruthlessly based on an effective project
planning. Hiring personnel to deal with campaigns at all fronts to oversee communication and
coordination and ensuring everyone understands his/her responsibility to avoid missing
deliverables and related misunderstandings. Other considerations include planning ruthlessly,
considering the business seasons, proper communication and remembering to keep records and
being flexible Utami and Lantu (2014).
SWOT and IE implementation and recommendations
Concerning the opportunities, the BestLady firm will need to exploit its internal strengths to take
advantage of available opportunities. The threats will be dealt with via maximizing on the
business to minimize them. Weakness will be improved on by taking advantage of the
opportunities and working by the firm will eliminate weakness hence avoiding threats Jiangdong
et al (2018). The marketing issue forecasted is bitter competition due to the ever emergence of
similar business. To address the influx of similar firms, which will create more competition,
quality products, improved customer service and incentives together with the frequent
advertisement will give the BestLady the competitive edge against its rivals. The results expected
is positive and as a successful on Fierro and Haddud (2018).
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Recommendations on the procedure for strategy review and evaluation
The procedures can be through examining an organization’s underlying base by developing
revised EFE and IFE matrices, comparing the companies expected to the actual outcome or
results and lastly strategy devaluation can be performed via identifying restorative activities that
will keep the performance in check as per the original plans Mastler et al (2013).
Conclusions
The BestLady approach focused on premium branding and quality women’s wear is a strong
business strategy. Top and fashionable design ability together with its high-quality garments has
been the backbone for BestLady’s achievements. The firm’s rapid development through
calculated strategies is the root cause of Bestlady’s market penetration, winning clients and
sustaining their loyalty to the firm. The emergent issue for the organization has been to keep its
reign in the fashion. This, as well as high prices for the raw materials required in production and
aggressive competition, has been considered high-risk threats for the organization. BestLady
still ranks top brand in women’s apparel due to its informed business strategies. The strategic
executives and determined approaches have shaped Bestlady’s fierce and continued success in
the women’s wear, something failed by its competitors.
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