Business Strategy Report: Analysis of Primark's Strategic Plan

This report provides a comprehensive analysis of Primark's business strategy, examining its mission, vision, objectives, and core competencies. It delves into the issues involved in strategic planning, exploring various techniques such as the BCG Matrix. The report includes an organizational audit using the Five M's and McKinsey 7's Framework, alongside a SWOT analysis to assess Primark's strengths, weaknesses, opportunities, and threats. Furthermore, it conducts an environmental audit using PEST analysis. The report analyzes alternative strategies for growth and recommends an appropriate future strategy for Primark, comparing roles and responsibilities for strategy implementation. It also evaluates resource requirements, discusses targets, and timescales for achievement to monitor the chosen strategy, offering recommendations and conclusions based on the findings.

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Explaining mission, vision, objectives, goals and core competencies of selected
organisation. ...............................................................................................................................3
1.2 the issues involved in strategic planning...............................................................................4
1.3 Explaining different planning techniques.............................................................................4
TASK 2............................................................................................................................................6
2.1 Produce an organisational audit for a given organisation.....................................................6
2.2 Carry out an environmental audit for a given organisation...................................................9
2.3 Explain the significance of stakeholder analysis................................................................10
TASK 3..........................................................................................................................................10
3.1 Analyse possible alternative strategies relating to substantive growth, limited growth or
retrenchment..............................................................................................................................10
3.2 Select an appropriate future strategy for a given organisation............................................11
TASK 4..........................................................................................................................................12
4.1 Compare the roles and responsibilities for strategy implementation..................................12
4.2 Evaluate resource requirements to implement a new strategy for a given organisation.....13
4.3 Discuss targets and timescales for achievement in a given organisation to monitor a given
strategy......................................................................................................................................14
CONCLUSION..............................................................................................................................14
RECOMMENDATIONS...............................................................................................................15
REFRENCES.................................................................................................................................16

INTRODUCTION
Business strategy is a long term plan to attain established goals and objectives of the
business unit. It is also related with achieving strategic advantages over their competitors in the
market. Business strategy focuses on various significant issues such as funding, selection of
location, supply chain, marketing plan and strategies, potential customers and various
stakeholders (Baye, and Beil., 2006). It shows that a business strategy is a long term planning
which can make a business organisation successful in the near future. The present report is based
on Primark which is one of the leading retail chains in United Kingdom. It is a well known brand
in this area which provides large number of goods with good quality to its customers. The main
purpose of this report is all about the business strategies of cited company and its role in the
future growth and development in the near future (Chaffey, 2007).
TASK 1
1.1 Explaining mission, vision, objectives, goals and core competencies of selected organisation.
A mission statement is used for the communication of the organization's purpose. , The
mission statement of Primark is to provide good quality clothes that are worth their cost. In other
words, they wanted to make people dress like high class people at very low prices. And this has
become the reason for their success as they provide high quality clothes in reasonable prices. A
vision statement defines the future goals of the organisation which the founder or owner wants to
achieve (Ross.Weill, and Robertson., 2006). Their vision statement is to maintain company's
standard in the sectors they are dealing in, viz., clothing, footwear, confectioneries etc.
Primark main goals and objectives are:
 The prime objectives of the company are customer satisfaction.
 Their objective is to create a good image in the minds of public, they don't want to be
perceived as the company providing cheap products , their products are low cost but their
quality is very high.
 Other objective is to be customer friendly.
 Core Competencies is something that differentiates your company from the competitors.
it is what makes you unique.
Core competencies of Primark are:

Primark is one of the most reliable brand in United Kingdom which can provide a
competitive advantage over rival companies. Because they are unique competencies which can
provide such kind of edge. The most important thing in the Primark is that they having a wide
distribution network approx 300 (Teece., 2010). apart from that also have large number of staff
which is highly skilled can provide a quality service to its customer. In order to maintain such
competencies they provide training and development program for them which can enhance
productivity and performance.
1.2 the issues involved in strategic planning
Strategic planning for an organisation is done to give direction to the organisation to
achieve its goals. And it determines the strategic plan for the organisation to grow and lays out a
road map for the organisation to work efficiently and effectively to achieve desired results.
Issues involved in strategic planning are:
Strategic focus : it is a business imperative but it is not the thing that is understood by all
the businesses. Strategically thinking means to reach at that level of understanding which gives
the idea of desired end state, which considers all the positive and negative aspects that are going
to impact the outcome.. it contains general plan to overcome weaknesses and threats and to focus
and improve strengths and take the right step to grab the opportunity (Peng. Wang. and Jiang.,
2008).
Cultural modification : Culture is very important and it has direct effect on the
employees and their workings. it can impact their performance and productivity.
Resource limitations: This is another essential issues which is related with the resource
limitation. In a effective strategic planning maximum utilization of firm's resources can make
them successful. But sometimes, resource limitation can create a serious problem for Primark
performance and productivity.
1.3 Explaining different planning techniques.
It is essential for Primark is that to make effective business planning which can help to
achieve their targeted goals and objectives. For this, there are various tools and techniques which
can be used by business firm and implement their plan more effectively (Håkansson, and
Snehota., 2006). These strategies can be:
 BCG Matrix: It is one of the most attractive strategic planning approach which can help
to provide consistent growth and development of the business. This strategy most suitable

for Primark in order to increase market share and also enhance industry competitiveness.
In this approach manager is more focused on the those areas which can provide
maximum return for their investment and less investment on low return portfolio. It can
help to increase the revenue and profitability of the company which is the common goal
for each and every business unit. There are four important component in the BCK matrix
which can involved Dogs, question mark, Stars and Cash cows as described below:
Dogs This is a situation where firm's having law market share with slow growth
rate. These product or area can not generate large amount. These are the
cash traps which can limited potential to earn profit. Therefore, Primark can
reducing their investment in those areas and investing in to profitable areas
(Casadesus-Masanell, and Ricart 2010).
Question mark These are growing faster and consume large amount of cash. They generate
law amount with a limited growth rate. The question mark has the potential
for the growth but in a slow rate.
Stars It is another category which generate large amount of capital and quite
sound market share as compare to others. There market share also sound
good and it growing at the satisfactory level.
Cash cows This is one of the favourable conditions where a company can generate
large amount of cash with a higher growth rate. These types of market are
potentially more appropriate and provide consistent future growth.

TASK 2
2.1 Produce an organisational audit for a given organisation.
Organisational audit having a great significant in the future growth and development of a
Primark. For this details are given as given below:
Five M's of Primark as given below:
Manpower Primark having approx. 50000 trained employees which can help to increase its
productivity and efficiency in order to attain their target in a specific time period
(Bharadwaj, and et. al, 2013).
Materials They are provide a high quality product which can be outsourced from other
countries as well.
Machines In the context of Primark, machines are related with the various equipments and
overall system which can adding the value in the process.
Methods They are using various tools and techniques such as cost control, new
approaches in order to make their system more effective.
Money Primark is a multinational corporation which having large capital, these money
Illustration 1: BCG matrix

can be used in various areas such as marketing, research and development,
market research and expansion in order to provide consistent growth to the
business organisation.
McKinsey 7's Framework:
It is important for a company that to maintain consistent growth through provide high
quality products to its customer. And also focused on the changing environment which can help
to meet the future challenges. McKinsey 7s approach helps to make those changes in their
business and its strategies which can attain their long term goals and objectives.
Strategy: There are various strategies which can be used by Primark in order to take competitive
advantages over its rival companies. These strategies can be related with the marketing mix and
future growth strategies for the expansion (Tallon., 2007).
Structure: This is related with the overall organisational structure and the flow of command and
authority from top level to lower level of management.
Systems: System refers to overall process from acquiring raw materials to delivering the good to
the end customers. It helps to adding the value in the supply chain of the business organisation.
Shared Values: It is related with the organisational culture which are related with the core values
of the company. Primark having certain principles which regarding the sound business practices
and fair competition in the market. Apart from that, they also focused on the sustainable
development of their company which can help to protect environment and create a ideal image of
business unit in the society.
Style: This is related with the leadership style which is followed by the company. Primark can
use democratic leadership style which can help to attain their organisational goals and objectives
in effective manner (Berman. and Hagan., 2006).
Staff: Employees are the valuable asset for a business entity, because they shared a common
goals. Primark having more than 50000 staff which are skilled and talented to provide good
quality of services to its customers. Apart from that they also provide training and development
program to them which can enhanced its performance and output.
Skills: It includes the core competencies and unique skills which can help to provide competitive
superiority over its competitors in the market.

SWOT analysis of Primark
Strength Primark having extensive range of products which can include manswera,
women-swear, childwear, footwear, etc. with a good quality.
The firm's brand name is more popular which can provide completive edge
over rival companies.
The company distribution network includes approx 300+ stores in the UK.
Weakness Due to Brexit, economic slowdown can reducing the profit and revenue.
Outsourcing of the goods from various parts of the world can affects the
quality.
Illustration 2: McKinsey 7s Model

Due to large number of competition it can also reducing the sales and market
share of the company.
Opportunities Primark can focused on the Other countries in Europe which can provide
consistent growth.
Apart from that, there are various emerging market such as India, China
which can be a golden opportunities for their growth in the near future.
They can also focused on the other segment such as sports and gaming
which can help to increase their market share (Zottand Amit., 2010).
Threats After Brexit and economic uncertainty in the UK market.
Tough competition from large companies and local retailers which can
reducing market share and revenue.
2.2 Carry out an environmental audit for a given organisation.
PEST analysis is used in Primark company for environmental audit, here it is in
brief:
Political factor It is related with political stability and business policies in the country.
The government of UK are stable which can provide a long term and
consistent growth for the Primark and its operation.
UK government also make various favourable policies which can
promote ease of doing business in the economy (Jermias., 2008).
Economical factor This is another important factor which is related with the various
economic elements such as GDP growth rate, interest, inflation, and
employment situations in the country. If these factors are favourable it
can help to create demand for the Primark. On the other hand if these
factors can not favourable it can leads to serious problem for the
company.
Social factor Customer needs and expatiations are change over a period of time
which required to change and modify company's products and services.
Therefore, Primark conduct market research which can help to identity

these change and their their fashionable product accordingly.
Technological factor Primark can use various innovative technology in order to increase the
output and efficiency in the business.
In their promotional activities the business entity can also used Social
media platform such as Facebook, Instagram, You Tube etc. in order to
promote their product in a cost effective way (Smith. Mills. and Dion.
2011).
2.3 Explain the significance of stakeholder analysis.
Stakeholder management is one of the essential and critical to make the success in a
business organisation. Stakeholder refers to those person who affects and affected a company
directly or indirectly. It can includes customers, employees, suppliers, government and public as
a whole. Therefore, Primark can required to identify their key stakeholder so that they can attain
their targeted goals and objectives.
 Identify Stakeholders: Stakeholder can be organisation owner, shareholders, government,
team members, customers, public, interest group etc.
 Prioritize Stakeholders: Classifying the stakeholder on the basis of their power and
interest level.
 Understand Key Stakeholders: Company understands their stakeholder on the basis of
financial or emotional interest, motivates, information etc.
TASK 3
3.1 Analyse possible alternative strategies relating to substantive growth, limited growth or
retrenchment
A company can not survive in the market without a sustainable growth and development
in their business. They required that to use various approaches which can help to attaining their
targets in a effective manner. There are various strategies which can be used by Primark for their
sustainable development (Goll and et. al., 2008). These substantive, limited and retrenchment
growth strategies as given below:
Market penetration: This is one of the common strategy where a company is required to market
and selling their product in to the existing market. It is growth tactics which can be used which a

product might already be saturated. In the context of Primark, manager can applied such
strategical in order to increase market penetration. There various various approaches for market
penetration on the basis of increase in the price, promotion, reach usage etc. For example,
Primark can reduced the price of their clothing products which as compare to its competitors
which can help to increase large number of customers. The main objectives of such strategies in
order to increase market share and revenue of the company.
Market expansion: This is another growth strategy where a company can expand their market
geographically. Primark is a multinational corporation which are operate their business
operations in to European countries. But due to slowdown in the EU economy they are losing
their market share and profitability (Evans and et. al., 2008). Therefore, for the consistent growth
they are looking in to the emerging market specially in the Asian market where they can sustain
its market growth in the long term. For this they required market entry strategies such as
licensing joint venture, franchising and so on.
Product expansion: It is related with the growth where a business unit can expand their product
range. Primark required that to luanch new product range in to the market over a period of time
according to the customer needs. At the present time Primark is offer manswear, womenswear,
childwear, footweras etc. now they can focused on the sports segment which can help to increase
the market share.
Limited growth strategy: This is another strategy which can provide a limited growth to the
company. Primark can make strategic alliance with another company in order to enter a new
market. This is one of the best approach where two or more business units can shared their
resources and expertise which can help to achieve their mutual goals and objectives (Cinquini
and Tenucci., 2010).
Retrenchment strategy: By using these strategies a company can adding the value in their
growth and development and sustain in the market. Primark required that to identify those area
where investment are large as compare to return. In such situation manager of the business entity
can de-investment such area which are less profitable and invest in the profitable areas. It can
help save their loss and potential risk. For example, Primark can identify their distribution store
which are not enough to earn profit. They can close such stores and open new stores in different
region which can provide good revenue. This strategy is often used in order to cut expenses with
the goal of becoming a more financial stable business.

It is essential for a company is that to analyses their market and expand its business operation
which can be used following strategies:
Market entry strategies:
There are various market entry strategies which can be used by the cited business unit these are
given below:
Joint Venture This is one of the best strategy which can help in to enter in to
new market. Primark required that to expand their business
through using such strategy. For example, the cited business
unit can make the joint venture for that particular country.
Greenfield investment This is another strategy which is related where the cited
business unit is required that to acquire assets such as land
and building which can help to increase their market share and
profitability.
Disinvestment: This is a form of retrenchment strategy which is used by the business
organizations. Primark required that to eliminating their investment in those area which are not
profitable for them in invest in to other areas.
3.2 Select an appropriate future strategy for a given organisation
There are various strategies which can provide a sustainable growth for a business unit.
But each and every strategy are applicable according to the requirements and situation.
Therefore, Primark is required to use an appropriate strategy. There are following strategy which
can be suitable for the company:
Market expansion: After the 2008 economic crises European growth is affected which having a
adverse impact on the growth and development of such companies (Baye. and Beil., 2006). In
market expansion there are various tactics which can be used by the Primark as given below:
Greenfield investment: It is one of the suitable approach in the Asian emerging market such as
India, China and Malaysia. Primark can invest their money through buy land and open their
distribution network. These countries are favourable for all aspects such as political, economic,
technological etc.
Franchising: Franchising is a systematic process for rapid market expansion but it is gaining
traction in other parts of the world. In this business model Primark can open their stores through