Detailed Business Strategy Analysis and Planning for Primark

This report provides a comprehensive analysis of Primark's business strategy, encompassing various strategic planning techniques. It begins with an introduction to the importance of business strategy in gaining a competitive edge, followed by a detailed examination of Primark's mission, vision, and core competencies. The report outlines the steps involved in the strategic planning process, including mission and objectives, environmental scanning, strategy formulation, implementation, and evaluation. Task 1 includes a promotional brochure about the role of strategy and the issues involved in strategic planning, as well as an analysis of the Boston Consulting Group (BCG) matrix and its application to Primark. Task 2 focuses on organizational and environmental audits, utilizing SWOT and PESTEL frameworks, and stakeholder analysis using the Mendelow matrix. Task 3 explores growth strategies, differentiating between vertical and horizontal integration, and selecting a future strategy for the client company. Finally, Task 4 discusses the implementation of the chosen strategy, including necessary roles, responsibilities, resources, and the use of a Gantt chart for timeline management.

Business Strategy
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TABLE OF CONTENTS
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
a) Steps of strategic planning process..........................................................................................4
b) Produce a 2-page informational promotional brochure about the role of strategy and issues
involved in Strategic Planning.....................................................................................................6
c) The utility and application of BCG (Boston Consultancy Group) as a strategy planning
technique for managers................................................................................................................9
TASK 2..........................................................................................................................................11
a) How SWOT analysis help in carry out the organizational audit...........................................11
 Primark is also a part of ethical trading initiatives (ETI) that mainly focuses on the
rights of their staff and workers.................................................................................................12
b) Carry out environmental audit for Primark using PESTEL framework................................12
c) Significance of stakeholder analysis by using MENDELOW matrix...................................14
TASK 3..........................................................................................................................................16
a) Difference between vertical and horizontal integration when used by managers as a
substantive growth strategies.....................................................................................................16
b) Selecting an appropriate future strategy for the client company...........................................17
TASK 4..........................................................................................................................................18
a) Three roles and responsibilities and three business activities that are necessary for
implementation of strategy and highlight which human, financial and material resources are
indispensable during strategy implementation..........................................................................18
b) Gantt chart as proposed time line for agreed strategy targets...............................................19
REFERENCES..............................................................................................................................21
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Illustration Index
Illustration 1: Strategic planning process.........................................................................................5
Illustration 2: Mintzberg 5 P's strategy............................................................................................7
Illustration 3: SWOT analysis........................................................................................................12
Illustration 4: PESTLE Analysis....................................................................................................14
Illustration 5: MENDLOW Matrix................................................................................................16
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INTRODUCTION
In the contemporary scenario, it is effective for the business organization to devise proper
business strategy that would help them in gaining competitive edge in the external environment
and within the industry (Antony, 2006). However, it is also required to seek the position within
the competitive environment which assists the enterprise in generating sustainable competencies
to survive with the competitors. For the present scenario the chosen organization is Primark
which is one of the renowned fashion retailers in the UK market. The company focuses on
devising effective business strategy by measuring their internal as well as external environment
so that they can succeed in the competitive market. The present will also focuses on analyzing
company vision, core competencies etc. so that they can focus on strategic planning process.
However, the report also emphasizes on formulating the strategy and even understanding various
approaches for selecting and implementing an appropriate strategy.
TASK 1
a) Steps of strategic planning process
In the present competitive scenario it is not beneficial for the large organization to engage
in the methods like budget orientated planning and forecast based planning (Azar, 2011). The
enterprise must focus on strategic planning process that mainly focuses on defining the mission
or objectives, assessing internal as well as external environment so that they can easily devise the
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strategy and implement it. Working as a strategy consultant in the business consultancy firms,
they are responsible for measuring their client's vision, mission as well as core competencies that
would assist them in enabling strategic planning process (Burke and Schreiber, 2004). The
different steps of strategic planning process include:
Mission & Objectives- The first step in the strategic planning process include describing the core
mission and vision of the company (Burlton, 2010). Mission as well as vision is defined as
unchanging values of the firm. They are also termed as visionary goals and objective of firm that
direct the company in grabbing future opportunities. For instance, the Vision of Primark
Company is to supply superior quality fashionable and affordable prices products to their
customers by focusing on new promotional techniques. However, the Mission of Primark
clothing is to provide products at the low costs as compared to their rival companies which will
further help in staying at the competitive position.
Environmental scanning- Another step in strategic planning process includes scanning the
internal and external environment under which Primark company operates their operations. For
this, consultant focuses on analyzing SWOT of the company (Butler, 2012). However, they can
also measure the external environment by using PESTLE framework that will assist them in
measuring different factors that directly or indirectly affect the business in formulating the
strategy.
Strategy Formulation- After analyzing both the environment, environment strategy consultant of
consultancy firm will focus on devising the strategy. Consultant must focus on matching Primark
strength with the opportunities which have been identified (Cinquini and Tenucci, 2010).
Strategy implementation- After formulating the strategy, consultant would focus on
implementing the framed strategy within Primark firm so that they can easily accomplish the
goals and objectives. While, implementing the strategy consultant must focus on proper budgets
and procedure to implement the strategy within the organization (Edwards and Ellison, 2009).
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Evaluation and control- The last step of planning process enables that, consultant while
implementing strategy for the client company must review and monitor the successful
implementation of the strategy.
b) Produce a 2-page informational promotional brochure about the role of strategy and issues
involved in Strategic Planning
The role of strategy includes:
The main role of strategy is to enable proper framework of the operational plan of Primark so
that they may attain competitive edge over their rival companies (Figge and et. al., 2002).
Strategy also plays an essential role in enhancing the effectiveness of organization by
accomplishing their objectives and goals.
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Mintzberg five P's strategies are:
Plan- This focuses on Primark strategy as plan is to deliver quality and superior quality product
to their customers.
Ploy- Strategy may also act as the plotting against their competitors so that Primark can attain
competitive edge over their rival companies like Zara, H&M etc (Hahn, Kolk and Winn, 2010).
Pattern- It may be termed as the pattern and ploy to enhance the firm’s position by delivering
product that act as value for money.
Position- Manager may also focus on strategy as position assists the Primark to explore their
activities to attain higher position in the market.
Perspective- Last type of strategy include perspective under which strategy rely heavily upon
their culture and behavior of their customers (Ward and Lewandowska, 2008).
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Issues Involved in strategic planning:
Lack of leadership: When a plan is made in Primark Corporation and if the leader will not
support that plan then it will fail. Proper guidance from the senior authority helps employee to
work effectively and efficiently (Liu and Wang, 2010).
Cultural context: Primark has to generate a familiar culture for employees. A good culture will
help the employee to work properly.
Two problems in strategic planning include:
Needs of the customers: When formulating the strategic plans for Primark, the most crucial
component is to consider the needs and the prospect of market customers that is what type of
clothing apparels they require (Rajala and et. al., 2012).
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The customers are the one who purchases fashionable and stylish apparels of Primark.
Portfolio analysis: When formulating the strategic plans for Primark, another problem arises is
of analyzing the portfolio of Primark. They must measure the business portfolio on the ground of
their market portion and the financial investment.
Two different planning technique used by Primark:
Strategic Plan: Strategic plans should be created at Primark. These plans should include
organizational goals and opportunities which they must achieve to succeed in the market (Allen
and Raynor, 2004).
Program evaluation and review technique (PERT): It can be considered as a route map for a
specific task at Primark. It determines the critical activities on which different activities depends.
c) The utility and application of BCG (Boston Consultancy Group) as a strategy planning
technique for managers
There are several types of strategy planning techniques for the manager of Primark group,
these techniques help in processing strategic business plan. All the techniques like BCG; SPACE
matrix etc. would support the company in analysing their market share with the market growth
(Chaiprasit and Swierczek, 2011). However, it also assists the manager in determining place of
Primark among their rivalries in the fashion industry. BCG (Boston Consultancy Group) growth
matrix helps the reputed brand in distributing and allocating diverse resources effectively so that,
brand can concentrates on generating their market share. With the help of growth share matrix,
Primark can also determine total cash generated and consumed by the company (Kennerley and
neely, 2003).
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Cash cows: Cash cows category emphasis on making more cash than the total amount used by
the company. However, Primark would spend less in market as low investment in the fashionable
industry would get wasted as the fashion industry keeps on changing which results in changing
taste and preferences of market customers. Therefore, by attaining low growth in the market
Primark will not able to invest huge amount in the market (Arnold, 2004).
For instance; Primark must focus on introducing the low price range of their fashionable
products to target the audience.
Dogs: In this matrix, Primark hardly generates cash to grasp or hold its market share in the UK
market. At this stage or matrix, Primark possess low market share and low development rate
which results in neither generating nor consuming any cash (Moon, 2010).
For instance; under this stage it must eliminate some part of their assets and inflow the cash by
enabling divestment and liquidation retrenchment strategy. This will result in holding the market
share within the UK market.
Question marks: In question phase, Primark would broadly grow by investing high amount of
cash but as the company has low market share this would not result in generating any cash. Thus,
Primark should increase their market share by divesting quickly. For example, under this stage
Primark company may expand their activities by entering into the new marketplace. However,
through investing the amount in increasing the market share it will outcome in generating cash.
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Stars: In stars category, company generally have high market share with high market growth. In
the contemporary scenario, Primark has managed themselves under star category of BCG matrix
by increasing their market share by opening their stores in US and ensuring continuous growth
with recording profit of £298 million in the year 2014 (How can the BCG Matrix be applied to a
high street retail business, 2015).
For example, Primark has managed themselves under star category of BCG matrix by increasing
their market share by opening their stores in US and ensuring continuous growth with recording
profit of £298 million in the year 2014.
TASK 2
a) How SWOT analysis help in carry out the organizational audit
As an experienced strategy consultant of the consultancy firm, it is required to carry out
an organizational audit by analyzing their strength, weakness, threats and opportunities of the
client that will assist them in formulating the new strategy (Antony, 2006). SWOT technique
help in determining the distinctive competencies and assets of the firm that act as strength for
Primark Company. However, it also determines weaknesses as well threats of the company so
that manager can overcome them while formulating the strategy.
Strength
 Primark has 161 stores around the world with 125 stores located only in the UK.
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 Company also offers superior quality stylish products in the affordable prices. Company
provides diverse range of apparels to all age people (Azar, 2011).
Primark is also a part of ethical trading initiatives (ETI) that mainly focuses on the rights of their
staff and workers.
Weaknesses
 Low advertising expenditure as compare to their rival companies.
 Inadequate working condition.
 Being a part of ETI, it has been witnessed that the company is engaged in child labor
practices for producing the goods.
Opportunities
 Expansion in the international market.
 People are focusing on using high quality products.
 Producing low price products for target niche segment customers (Burke and Schreiber,
2004).
Threats
 High competition with the international brands like Zara and H&M
 Increasing level of promotion also act as major threat for Primark.
 Many competitors offer similar products at low costs also act as threat for Primark.
b) Carry out environmental audit for Primark using PESTEL framework
With the help of using PESTEL framework, consultancy firm can easily measure the
external factors that exist within the retail industry so that they can carry out environmental audit
for their client company so that they can easily formulate the strategy (Burlton, 2010). The
PESTEL framework includes:
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