Strategic Management Report: BACHI Barcelona's Strategies and Analysis

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Added on  2022/09/08

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This report provides a comprehensive strategic management analysis of BACHI Barcelona, a business operating in Barcelona, Spain. It begins with an overview of the company's mission, vision, and values, followed by an in-depth internal analysis, including a VRIO analysis to assess its resources and capabilities. The report then explores the external environment using PEST analysis and Porter's Five Forces to identify opportunities and threats. A SWOT analysis is conducted to formulate strategies, and the report concludes with a discussion of the balanced scorecard and strategic options like cost leadership, differentiation, and focus strategies. The analysis highlights the company's strengths in brand equity and e-commerce expertise, while also addressing weaknesses and external challenges. The report offers valuable insights into BACHI Barcelona's strategic positioning and recommendations for future growth and competitiveness.
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Running head: STRATEGIC MANAGEMENT
Strategic management
Name of student
Name of University
Author note
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Table of Contents
Introduction................................................................................................................................3
Mission, vision and values of BACHI Barcelona......................................................................3
Internal analysis.........................................................................................................................4
BACHI Barcelona VRIO analysis.............................................................................................5
External analysis........................................................................................................................8
Analysis of the 5 Porters forces.................................................................................................9
Strategies based on SWOT.......................................................................................................13
Balanced scorecard...................................................................................................................14
Cost leadership strategy...........................................................................................................16
Differentiation strategy............................................................................................................17
Focus strategy...........................................................................................................................17
References................................................................................................................................17
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Introduction
The report is prepared to discuss about the various concepts of strategic management
considering the business organisation named BACHI Barcelona in Barcelona, Spain. The
topic will highlight the important of various strengths, which will be possible with the help of
analysing the internal and external environment and also by conducting the Porter’s five
forces analysis. The SWOT analysis will enable assessment of strengths, weaknesses,
opportunities and threats, furthermore, ensure remaining competitive within the business
environment as well.
Mission, vision and values of BACHI Barcelona
The mission statement of the organisation, i.e., BACHI Barcelona is to manufacture
and produce the world class products and services that are of excellent quality and can allow
the organisation to gain competitive advantage in business. The company’s mission statement
is also aligned with the goals of delivering the best products, furthermore, promote the
empowerment of employees and also reach the highest level of efficiency, integrity and
honesty in business [1].
The vision of the organisation is to manufacture the products and services that are
comparable to the nation as well as internationals standards while remaining customer
focused through continuous innovation and remain competitive with the delivery of best
quality products and services.
The organisational values include satisfaction among the customers, superior
performance quality, remaining passionate about excellence, providing a safe workplace and
promote healthy working environment and contribute to the protection of environment and
benefiting the community as a whole [1].
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Internal analysis
The attainment of competitive advantage in business represents the organisational
capability to perform in such a manner that the competitors cannot match against the
company and it can easily generate higher revenue when compared to the other companies
within the industry. One of the most important benefits is that BACHI Barcelona has
managed to contribute to the perceived benefits, which has helped in targeting the markets
easily and made it difficult for the competitors within the industry as well to imitate or bring
similar kinds of products and services in the market [2] .
BACHI Barcelona has maintained a strong brand image and name, because of which,
there is presence of a broader customer base, due to which, products and services are sold all
over the world while the reduction of long term costs has also created significant advantage
for the business. The delivery of products and services online has further favoured the
company’s ability to influence the customers by allowing them to make purchase online,
which is quite convenient and easy while at the same time, allowed the company to set
competitive prices so as to match the competition within the industry.
Regarding the competitors in business, BACHI Barcelona has experienced some
major competitive disadvantages too such as the higher costs associated with the management
of online website while the high skills and knowledge required to manage and promote the
online business required huge amount of efforts as well. Moreover, as the company is solely
based on online business and delivery of products and services, so in case the website
experience some problem, then the buying and selling of products might be a daunting task as
well. Due to online business management, the customers might fail to place repeated orders
in case they do not have any personal contacts provided [3]. Another major competitive
disadvantage could be the online fraud activities, which might also result in losing money as
well as payment related issues experienced while buying the products online.
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The tangible resources of a business represent the various assets including the
physical property, buildings, inventories, machineries and also the office equipment along
with vehicles and other transportation related materials. As it is an ecommerce business, the
company maintains an office premise, office equipment are present along with the inventories
and computer systems that are used for managing the business functions and processes. The
financial assets include the cash equivalents, search engine platform and also an ecommerce
platform used for selling the products and services online. The social media platforms such as
the Facebook, Twitter, Instagram, etc. are also considered as major intangible assets of the
organization [4] . The intangible assets include the financial assets too as well as the purchase
price allocation exercise, anticipated synergies, economies of scale and also the logistics,
supply chains and procurement aspects that are related to the tax purposes.
BACHI Barcelona VRIO analysis
BACHI
Barcelona’s
resources and
capabilities
V R I O
Growth of brick
and mortar
presence

Increased
diversity in
online services
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Growth in
portfolio of
private label
products

Good network
of services
along with both
local and global
partnerships

Good expertise
in ecommerce
business

Positive brand
equity

Good market
capitalisation

Strategic
distribution
hubs

Good global
market outreach

Artificial
intelligence

Alignment with
social media
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platforms
Eco friendly
goods and
suppliers

Fig: VRIO analysis of BACHI Barcelona
[source: 1]
Strengths Weaknesses
Strong brand equity
Expertise in e-commerce and
extensive skills and ability to gain
both local and global outreach
Good networks and partnership
working
Innovative designs and good quality
handbags and accessories for men
and women
Newsletter services and access to
social media platforms create ease
and convenience for online selling
options too
Eco friendly suppliers contribute to
the management of sustainable
production too for creating positive
impact on the environment and
Poor management of stores, as most
of the business centres around online
selling of products
Lack of focus on sustainability
management
Lack of partnership working
High competition in the industry
poses some major threats for the
business organisation, thereby,
reduces the sales and revenue
generation capability too
Lack of visibility on the social
networks, which creates lesser
awareness among the clients
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community as a whole
Fig: Strengths and weaknesses of BACHI Barcelona based on VRIO analysis
[source: 5]
External analysis
PEST analysis
4 elements of the economic structure
The financial market structure and capital availability at reasonable price range allow
for liquidity all across the global financial markets, which can create certain risks when the
interest rates increase. The Government spending is also related to the implications for the
company to boost the sales in the short run as well as control the risks of currency
depreciation. The fluctuations in prices at both the local and global markets further could
affect the risks while the GDP trends and growth in economy are also considered as other
economic structure elements affecting the business’ functioning in Barcelona [6].
2 elements of the technological structure
The use of mobile phones has increased the usage of social media platforms, which
allowed customers to make purchases of products and services online consistently. The
transfer of technology and issues revolving around the licensing are also related to the
management of digital assets that are needed to be considered by BACHI Barcelona to
prevent intellectual property thefts and also prevent fluctuations in currency value too.
2 elements of the political structure
The Government laws, rules and regulations along with Government budget are
responsible for managing implementation of various policies and principles associated with
the business functioning at BACHI Barcelona. The regulatory practices at Spain are
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streamlined with the global norms, rules and regulations for improving the ease of doing
business while at the same time, the political Governance system further helped in
maintaining a stable political system [7]. Which could enable the business to sustain in the
competitive business environment quite comprehensively.
2 elements of the social structure
The demographic trends are needed to be assessed so as to manage demand
forecasting while at the same time, analyse the demands for the products in the marketplace.
The attitude towards health and safety has been reflected as well in the maintenance of
quality of products and services along with the cost structures associated with the processes
of manufacturing and production. To facilitate local and global networks and extend market
reach, the company needs to form social contract between the Government and society,
furthermore, ensure smooth business functioning [8].
Analysis of the 5 Porters forces
Bargaining power of suppliers
The bargaining power of suppliers is low, as there are multiple supplier options,
which the company can choose while acquiring raw materials and resources required to
facilitate the manufacturing and production processes. Due to online selling, often the
customers find it convenient to place orders online and thus BACHI Barcelona could choose
more than one suppliers while acquiring the raw materials and resources required for the
production process.
Power of negotiation of the consumers
The negotiation power or bargaining power of the customers is quite high because of
the fact that the customers’ needs and requirements are prioritised the most by the companies.
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Due to this, BACHI Barcelona has managed to ensure that the customers are offered with
something new and unique so as to meet their needs and preferences and keep them satisfied
as a whole. Therefore, the bargaining power of consumers is quite high for the company as
there are multiple products and services, of similar kinds, that are offered by other companies
in the market [9].
Threats of substitute products
The substitute products within the concerned industry ar present at the physical stores
and because of this, the threat for substitute products is quite low, because BACHI Barcelona
has delivered the products and services online, which is of more convenience for the
customers to make purchases. The use of mobile phones, internet and social media platforms
has further evolved the purchasing behaviours and also represented that future in retail has
established a good presence within the online retail industry. Due to this, the products and
services are also easily accessible, which further allowed the customers to make purchases
from the internet and ecommerce website much comprehensively [10].
Threats of new entrants in the market
The threat of new entrants is moderate, because though there have been multiple
similar kinds of handbags available online, still BACHI Barcelona has created a good
position and has gained the trust of customers, due to which, the customers have remain
inclined towards the brand and its products and services. Moreover, the management of
online business and purchasing products from the website have further favoured the company
to prevent risks that might be associated with the emergence of new entrants in the market.
Competitive rivalry
The threat of competitive rivalry is high because there are multiple companies who
have acted as rivalries for BACHI Barcelona and both of these comprise of extensive skills
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and knowledge about the recent fashion trends and the entire industry, which might make it
difficult for the company to sustain in the long term [11]. Moreover, these competitors often
bring similar kinds of products and services by imitating, which could create issues for
BACHI Barcelona to stay ahead of those competitors and thus the competitive rivalry threat
is quite high within the concerned industry.
Opportunities Threats
The management of ecommerce
technology has also created
opportunities for delivering products
and services and create convenience
for the customers to gain access to
The threats of new entrants in the
marketplace could be a major threat
The emergence of substitute
products or similar kinds of
handbags and other accessories
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those as well
The close relationships with the
suppliers could also benefit BACHI
Barcelona to acquire raw materials
and resources properly, furthermore,
ensure consistent manufacturing and
production processes effectively
To overcome the issues related to the
lack of financing and enough
funding, the company could also
acquire the opportunity of working
with the business expansion account
for SMEs too
By collaborating with the local eco-
friendly suppliers, it would also be
much easier and convenient for
BACHI Barcelona to facilitate
sustainable production along with
contributing towards the protection
of environment and benefit the
community as a whole
available in the market could also
pose serious threat for BACHI
Barcelona
The competitive rivalries could also
be a major threat like Afortunadas,
Zubi, etc.
The buying behaviours and tastes of
consumers change from time to
time, which might also be difficult
for the company to cope up with and
this might be a major threat
experienced by the organisation
Strategies based on SWOT
Based on the strengths, weaknesses, opportunities and threats faced by the company,
there are various strategies that are needed to be implemented to ensure smooth functioning
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