Strategic Management Report: River Island's Strategies and Process

This report provides a detailed analysis of strategic management, focusing on its application to the fashion company River Island. The report begins by defining strategic management and outlining its importance and the need for strategic planning, emphasizing the analysis of both internal and external environments. It then explores the strategic management process, including environmental scanning, strategy formulation, implementation, and evaluation. Various types of strategic management, such as coordinating business activities, utilizing human resources, developing a distinctive advantage, and identifying market niches, are discussed. Furthermore, the report examines key theories of strategic management, including resource-based theory, game theory, real options, and resource dependency theory, and how these are applied within River Island. The report concludes with a discussion of the principles of successful strategic management. The report aims to provide insights into how strategic management is crucial for achieving organizational goals and maintaining a competitive advantage in the fashion industry.

STRATEGIC
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
1. STRATEGIC MANAGEMENT:.................................................................................................3
Concept.......................................................................................................................................3
2. IMPORTANCE OF STRATEGIC MANAGEMENT................................................................4
3. NEED OF STRATEGIC MANAGEMENT................................................................................4
4. PROCESS OF STRATEGIC MANAGEMENT.........................................................................5
5. TYPES OF STRATEGIC MANAGEMENT..............................................................................6
6. THEORIES OF STRATEGIC MANAGEMENT.......................................................................7
8. PRINCIPLES OF SUCCESSFUL STRATEGIC MANAGEMENT..........................................8
9. ADVANTAGES AND DISADVANTAGES..............................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Strategic management means manage the activities of the organisation so that it achieve
the desired goals and objectives. It involves every activity which is related to the environment
also either external or internal. It helps to analyse competitors in the marketplace and also
analyse the organisation which is related to internal. It also analyse the opportunities, threats,
strength and weakness (Banker and et. al., 2011). River island is an international company which
is engaged in the business of fashion. It is very famous in UK and produce goods for men,
women and kids also. River island is also made some strategies to compete their competitors in
the market and also to attain the organisational goals and objectives. Strategies are made for
every level of management for the success. The purpose of this report is to explain about the
strategies and process of the market. And also what is need and objective of the market.
1. STRATEGIC MANAGEMENT:
Concept
Strategies can be made for the company to achieve long term success and it also helps to
attain the goals and objectives. A perfect strategic management also helps to fulfil the need of
customers and provide customer satisfaction. To compete the competitors River island also made
strategies for it. It covers all the areas of the organisation such as financial, marketing, human
resource etc. It plays an important role in the success of River island (Bryson, Berry and Yang,
2010).
To achieve the desired goals and objectives, it is very necessary to set them first. It is
essential for the development and growth of the River island. It is necessary to focus all long
term and short term objectives of the company. There are certain objectives, which are described
as below:
Short – term objectives: These objectives are made for six months to one year. In this,
those objectives which can achieve within the one year are include. Short term objective of the
River island company is to increase the production by 20 percent within the next 6 months.
Employees are responsible to the achievement of these goals and objectives.
Long – term objectives: These objectives are made for more than one year. It can
include the development of new product or develop any new strategy for the marketing purpose

etc. The long term objectives or goals should be more realistic, achievable and measurable (Eden
and Ackermann, 2013). They made because some of the short term objectives and goals take
time to achieve so that they will be included in long term objectives and goals.
2. IMPORTANCE OF STRATEGIC MANAGEMENT
It is necessary to make plan for the achievement of strategic management. In this it is
necessary to assess the risk which is associate with the market. There are certain importance of
strategic management which are defined as below :
 It is related to the future objectives of goals which is River island want to achieve.
 If the Strategic management plan is successful then it will help River island to increase
their goodwill in the world and marketplace.
 It helps to reform the threats into opportunities and helps to enhance the profit (Freeman,
2010).
3. NEED OF STRATEGIC MANAGEMENT
River island need strategies to attain the organisational goals and objectives for the
business. It is very necessary to achieve the maximum profit and increasing sales. There are
some need of Strategic management which are as follows:
Increase rate of changes: Environment is dynamic, it never stay the same every time.
Environment can be related to internal and external, they change very rapidly. If River island
wants to achieve the success for the business then it is necessary to update their policies time to
time. It will help them to survive and growth in the marketplace. Also they can earn or achieve
the maximum profit.
Higher motivation of employees: A strategic management helps to motivate the
employees. Responsibilities and duties are give to the employees according to their skills,
knowledge and capabilities. It is necessary to tell them that how to do their work or task in the
given time (Gayle, Tewarie and White, 2011). If employees are loyal and sincere toward the
River island then it will also increase their motivation to do their work with more effectiveness
and efficiently. If they work with proper dedication then they will get reward then they will also
get motivation.

4. PROCESS OF STRATEGIC MANAGEMENT
It helps to define the strategies of the River island. If they made strategies for their
businesses then employees do their work hard to achieve the highest performance and help to
achieve the goals and objectives of the company. It is a continuous process and involves
strategies which is related to present and future both (Graffin, Carpenter and Boivie, 2011).
There are 4 steps which are included in the process of Strategic management which is described
as follows:
Environmental scanning: It involves both type of environment i.e. internal and external.
Environment is dynamic in nature and in this all factors are find out which can reflect or affect
the environment. It is necessary to evaluate the environment on the continuous basis so that any
problem can eliminate.
Strategy formulation: It is the second step of the strategic management. In this, it is find
out that the process which is decided by the employer or manager is correct or not. It can give
advantage to the River island or not and also enhance their profits. When scanning of the
environment is done then after River island formulate some plan or strategies to achieve the
desired goals and objectives (Hahn, 2013).
Strategy implementation: After formulation of strategy manager or employer of the
River island implement it for the attainment of goals and objectives. The strategy which is
decided by the manager or employer, they implement in the business. It can include :
 Management of Human resources.
 Development of the process which is related to the decision – making.
 Design the new structure of the organisation or alter the existing structure.
Strategy evaluation: This is last or forth stage of the strategic management process.
After the implementation of the activities it is necessary to evaluate it to see the success or

failure of the strategy. Evaluation is done by the manager or employer to evaluate that
organisation meet the desired goals and objectives successfully or not (Hill, Jones and Schilling,
2014).
5. TYPES OF STRATEGIC MANAGEMENT
Strategies of the business includes the methods by which River island operate their
business activities. Strategies are necessary for the every type of business either large or small.
Strategies provide some guidelines to the River island that owner and employees need to follow.
There are various types of strategies which is related to the business level are as follow :
Coordinating business activities: In the organisation there are various types of activities
such as functional, operational etc. it is necessary to coordinate all the activities of the business.
It is the duty or responsibility of the manager to maintain the coordination between all the
activities and provide every employee their task or duty. It is also the duty of the manager to
allocate all the resources carefully (Hitt, Ireland and Hoskisson, 2012).
Utilizing human resources: It is also necessary to utilize all the resources carefully to
achieve the goals and objectives. Employees of the River island will help the company to
increase their profits. It is also necessary to produce the goods and services effectively and
efficiently. For effective utilization of resources it is necessary to assign the duty or task to the
right people.
Developing distinctive advantage: It is also necessary to compete the competitors in the
marketplace to take the benefit from the customers. If River island wants to get successful then it
is also necessary to take the competitive advantage. If employee do their task effectively then
they can provide better output to the River island. If company want to take distinct advantage
from their customer they need to produce unique goods and services and also it is necessary to
develop new products time to time (Keupp, Palmié and Gassmann, 2012).
Identifying market niche: It is also necessary to analyse the economic and know the
wants or needs of the customers and fulfil it. It can include products that are modified.
Monitoring product strategies: It is also necessary to monitor the strategies of the
product. It is also necessary to review on the process of acquisition and also identify the cost
which is related with the administration. It is also necessary that activities of the business must
be flexible and if strategies want any change or alteration then it can be made.

6. THEORIES OF STRATEGIC MANAGEMENT
For making the Strategies for the business River island also use some theories for their
business. Some of the theory of Strategic management are mentioned as below:
Resource – based Theory: There are many resources which is used by the River island.
Resources which are available in the company can be of many types such as -
 Financial resources
 Human resources
 Physical resources
This theory also includes intangible assets of the company (Molina-Azorin, 2012). This theory
means the resources which are available for the company are limited so that it is necessary to use
them effectively and efficiently. If River island use that resources carefully then it will help them
to increase the value of the firm.
Game theory: This theory is generally used by the River island when they are in
complex situation. This theory will provide guidance to the employees and employers when they
are in problem. Normally mathematics are used in this theory to solve the problem. If employer
or manager of the River island make any decision in hurry then it will affect the company. If
river island earn profits then it is depend on the employees actions.
Real options: Technology is changed day by day and River island do not know that
which technology will provide the benefits in upcoming years. They do not know that which
project can provide them growth and development in the marketplace. To solve this problem
there is a theory of real options are available (Moutinho, 2011). This theory will help to guide the
River island that which investment can provide success to them. Future is uncertain or
unpredictable so it is very difficult to calculate that which investment could not get exercised in
the next upcoming days, months or years. It only provide an opportunity to the River island. This
idea never take any guarantee that it will provide growth or development to the River island in
the future.
Resource dependency theory: According to this theory that it is not necessary for the
River island to secure the available resources which are necessary to survive and development of
them. Environment is uncertain or dynamic in nature, it change very rapidly. It is very necessary
for River island to maintain or control over the environment and if there is need to improvement
then adapt the change so that it can provide growth or development to the River island. In this

theory it is described that there is a mixture of competition and co – operation (Noland and
Phillips, 2010).
8. PRINCIPLES OF SUCCESSFUL STRATEGIC MANAGEMENT
Every strategic plan has some values and if strategic management plan cannot achieve
success then it demotivate the people or employer or manager. If Strategies which are made by
the employer or manager is effective then it is very easy to achieve the success for River island.
There are some guiding principles of the successful strategic management are as follow :
Focus on most important: Strategies of the River island will be successful if they set the
main parts of the business on the priority basis. The most important part need to be focused on
the primary basis. Some of the activities will start when their predecessor activities are done. If
River island wants to achieve more profit then it is necessary for them to focus on the most
important task in the business.
Leverage strengths: If there is no need to any changes in the River island then do not try
to change anything because can affect the organisation adversely. It is necessary to focus on
leverages so that River island can take the competitive advantages of it (Rahm and Riha, 2012).
It is also necessary to understand the products of the business which is producing by the River
island. River island need to calculate the profits and find out those products which help them in
enhancement of profits. It is very necessary to be innovative and creative so that River island can
take the advantage or opportunities.
Communicate: It is also necessary that communicate strategies or the plan to the
employee so that they can also help them to achieve the goals and objectives of the River island.
If there is an open communication in the River island then employees if that company will feel
that they are part of the success of the company. Employees can also give some suggestions to
their employers or managers about the problems. It is the duty or responsibility of the manager or
employer that make their employees believe that the strategies which is made is also provide
them growth and benefit.
Raise the energy level: It is also the duty of the manager or employer that create peace
and healthy environment in the River island (Renz, 2016). If there is peace or perfect decorum in
the River island then it will help their employees to increase or boost up the energy level. It is
also necessary to watch that meetings are done in the company on a regular basis. It is the main
role of the manager that everyone is involve in the plan or strategy. If the employees of River

island is interested in the process or procedures of the River island then it will help them to
energized them.
Remain flexible: Strategic management is a continuous process and it is also dynamic
so it is necessary to be flexible and if they are flexible then if there is any need of changes or
alteration, it can be made. Strategies must be flexible so that if there is any need to make any
adjustments then they will change according to the conditions. It will also help River island to
take the opportunities when it is available in the marketplace and will help to increase the profit.
Invest in outside help: When River island do not do any work by their own then they
will take help from the outside so that they can complete their work. If River island grow and
develop then the expenses of that company will also grow fast so that they need to reduce the
expenses for this purpose River island will take help from outside (Simons, 2013).
9. ADVANTAGES AND DISADVANTAGES
Strategy provides a vision of the future, confirms the values and purpose of an
organisation, set objectives, clarifies threat and objectives. All these things are helpful in the
strategic management. Although it is one of the essential elements because it helps in competing
the different unnecessary factors.
Strategic management helps in setting the objectives of an organisation on which all the
whole entity should have to work. It helps in managing the activities and make plans which are
helpful for the long run purpose. So each and every firm have use this concept because it helps
them in their long run survival and make their functioning smooth and easy. So this concept is
very useful as per the firm growth (Slack, 2015). But every concept has some of the benefits and
disadvantages which made it easy to understand them properly. Hence, the advantages of
strategic management are as follow:
Helps in discharge board responsibility: The major reason behind adopting this
concept is that it helps in discharge the boards responsibility so that all the functions can work
smoothly. Because they set objectives which are for the certain period of time.
Helps in setting objectives: Strategic management is helpful in setting the future
objectives of the organisation apart from thinking about daily operations. These future objectives
aid in maintain a discipline in a firm (Souitaris and Maestro, 2010).

Enable measurement of progress: By setting of the objectives it become easy for an
organisation to measure their performance. This aid them in improve their performance by
knowing that all objectives are accomplish properly or not. If not so what are the reasons behind
that.
Provide direction: It helps in providing guidance and direction to an organisation. So
that all functions can be work properly and in a systematic manner.
These are some of the advantages which signifies that strategic management is helpful in
accomplishing the task. So that all work can be done in proper manner.
The major disadvantages of strategic management are as follow:
Based on future: Strategic management helps in making the future objectives. But future
is uncertain and can not get predict in advance. So, if any kind of change took place in near time
it affects the business most (Stead and Stead, 2013).
Expensive: All the policies are made with the help of external consultant which helps in
making their strategies which are helpful for an organisation. It enables an firm to make their
strategies according to external factor. But it become quite expensive for them to hire a person
who helps in making strategies for them. So, it is a costly function.
Do not provide immediate result: It do not provide the immediate result hence, policies
are made for future which provide long term benefits. So, if any sudden crises take place
company will not able to take decision for that.
Lack of flexibility: Policies are made with the purpose of long term benefit which can
not get changed easily. So this provide lack of flexibility in policy and decision making process.
Hence, this is one of the major drawback (Swayne, Duncan and Ginter, 2012).
CONCLUSION
As per the above mentioned report it is concluded that it is necessary to manage the
strategies of the company so that they can achieve the goals and objectives effectively and
efficiently. For success it is necessary to define the goals and objectives of the company so that
they can achieve it. Every type of organisation or company either large or small need to make
strategies to earn maximum profits. And if River island has short or long term objectives then it
is also necessary to made the strategies. Strategic management is continuous process and

necessary for the present and future need. For successful strategic management there is a process
which is explained in this report. There are also some theories and principles in the context of
strategic management. There is some advantages, disadvantages and types also explained in this
report.

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