Strategic Management Report: An Analysis of Bauhaus HK's Strategy

This report provides a strategic management analysis of the Bauhaus HK company, a multinational fashion brand. The report begins with an introduction to strategic management and a company background, followed by an internal analysis using SWOT analysis to identify strengths, weaknesses, opportunities, and threats. The report then proceeds to an external analysis utilizing PESTEL analysis to assess political, economic, social, technological, environmental, and legal factors influencing the company. Furthermore, it incorporates Porter's Five Forces to evaluate the competitive environment and Bowman's Strategy Clock to analyze strategic positioning. The report concludes with recommendations based on the analyses, aiming to guide Bauhaus HK in achieving its goals and maintaining a competitive edge in the fashion retail industry. The report highlights the importance of adapting to the dynamic business environment and making informed decisions to ensure sustainable growth and success.

Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................1
Company Background.....................................................................................................................1
TASK 1............................................................................................................................................1
An internal analysis of the Bauhaus HK company (SWOT analysis)........................................1
TASK 2............................................................................................................................................4
An External analysis of Bauhaus HK company (PESTEL analysis)..........................................4
TASK 3............................................................................................................................................6
Porters Five Forces......................................................................................................................6
TASK 4............................................................................................................................................8
Bowman's Strategy clock............................................................................................................8
CONCLUSION................................................................................................................................9
RECOMMENDATION...................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Strategic management is an effective process of planning, monitoring analysis of all the
factors which is performing in the business organization to meet the goals and objectives in
appropriate time period. It al about the strategies which h is used by the manager of the company
to get better performance in the marketplace. It is an important process in which the top level
management of the company implement the plan for achieving its end target as well as goals. In
today's modern era doing management of all the strategies is more important because with the
help of this process business easily achieve its objectives in appropriate manner (Strategic
Management - Meaning and Important Concepts, 2017). Basically it is the continuous process to
identification as well as implementation of organization long term goals. Present report is based
on Bauhaus HK company, which provide multinational fashion products in Hong Kong. It is an
retail store which sell their fashion brand in around the world. In this reports it define that how to
influence the strategic action with in the cited firm. Internal and external analysis is also
mentioned in this project which aid in taking competitive advantage in market place. Along with
this PESTEL analysis and Porters Five forces are also discussed in their project. This report
define internal outlines of the Bauhaus HK company so that they make effective and effective
plan to get higher success at market with the help of evaluating their products and services.
Company Background
Bauhaus HK company is a multinational fashion brand which was established in1991 and
the initial start at Nathan road in Tsim Sha Tusi for sale their products to its larger customers.
They opened their first store with the name of Bauhaus flagship, this outlets selling their classic
jeans brands. After some year they launch their own brand in the market also provide variety of
gods and services. In recent time it is an multinational fashion brand in around the world (Aula,
2010). They have more than 60 brand in the Hong Kong and China. Now they take strong place
in the fashion retail industry.
TASK 1
An internal analysis of the Bauhaus HK company (SWOT analysis)
In this part of the report it look at the internal analysis of the company in order to
evaluate the overall performance of the firm in the marketplace. It helps in explore the effective
factors which is related to the competitive strategies which can be aid in achieving long term
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goals and objectives in appropriate manner. In this process there are three main and important
tools which is used by the company to analysis their actual performance these tools are The
Balanced Scorecard, Porter's Value Chain and Swot analysis (Bettis and et.al., 2014). All these
aid in assessing the overall productivity of the cited company at market place.
Swot analysis of Bauhaus HK company:
Strength: This is an effective concept of the company to develop their profile and image of the
company at the market place. Strong operational network: It is an positive aspect of the company because it aid in
inviting the large number of customers towards its products. Bauhaus HK company
having their strong operation network so that they offer their fashion products in various
countries to generate more revenues. Diversified Geographical Presence: This is more important for the company to based on
geographical which aid in generating the maximum revenue by inviting large number of
customers towards its products and brand image. With the help of diversification of
geographical base company achieve effective opportunities to expand their business at
intentional market. All the process of this prospect impact on positive brand image and
also enhance the overall productivity of the company at the marketplace.
 Strong leadership: Bauhaus HK company spend more time for their employee to
effectively monitor all the process as well as its workers. They also analysis that how to
individuals stores are perform their work. For this they directly communicate with their
staff members which aid ion improving the overall performance of the company and also
enhance morale of the employees (Cinquini and Tenucci, 2010). They also motivating
their employees so that they perform their work effectively and contribute in overall
success at marketplace.
Weakness: This factors are define the negative aspect of the cited company in which it analysis
the weak point like ineffective services which reduce the customers loyalty toward its products
and services. Operational Inefficiency: It define the improper planning of the resources which
increase the chances of arising the conflicts among all the activities as well as process. It
define the gap between out put and input of the business. In absence of proper planning
cited company face the higher employee turnover.
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 Limited Liquidity: It is one of the biggest weakness of the company because they have
their trading market for their common stock which affect the overall price of the products
(Foss and Knudsen, 2013). This lead in defining the negative affect of the company so
that they reduce their profitability in the market.
 Wide network of customers to target: It is also define the negative impact on company
because Bauhaus HK company target various customers which is more difficult to attin
the success at marketplace.
Opportunities: In this process the cited company can explore their business at larger
marketplace in which they provide quality products to its customers in order to attain the higher
success. According to this they want to enhance their size of the business and also increase the
potential growth of the company. Growth Potential in Emerging Markets: Bauhaus HK company wants to expand their
business by emerging the market so that they capture larger market share. Emerging the
market is one of the important opportunities to attain potential growth in effective way.
 Growth in online retailing: They also use online marketing so that more customers buy
its products with the help of online market. Bauhaus HK company use various
promotional tools like Twitter, Facebook which aid in increasing the number of
customers toward its company and its products in appropriate manner.
Threats: In this the company define their competitors which reduce the overall productivity of
the company in marketplace and also compete in the growth (Godet, 2011). Highly competitive market: Number of competitive market is a big threat of the Bauhaus
HK company. So that they lose their target customers and also reduce their brand image
at competitive market.
 Global Economic Scenario: It increase the chances of risk in the business activities
which reduce the productivity of the company. It include GDP, inflation rate which affect
the overall activity of the business. By this some time they reduce the profitability at
market place.
Summary:
By analysing the SWOT of Bauhaus HK company, it define the clear and effective
process in which various strength, weaknesses, opportunities and threats. With the help strength
cited organization take competitive advantage in market place and also achieve potential
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opportunities to expand their business (Gold, Seuring and Beske, 2010). By monitoring and
implementing the effective plan company ignore the weaknesses so that they succeed their
growth continuously.
TASK 2
An External analysis of Bauhaus HK company (PESTEL analysis)
PESTEL analysis is an effective tool to analysis the external environment in this
company operate their business. It influence the six type of elements which are political,
economic, social, technological, environmental and legal factors. All these are more powerful
tool which aid in measure the effectiveness of the external environment. With the help of this
Bauhaus HK company easily enhance their awareness about all the weak aspects that impact on
its process negatively. There are some key elements of external environment which are as
follows:
(Source: PESTEL analysis, 2016) Political: It is one of the important factor which affect the business activities as well as
performance because if political factors are not stable than it reduce the growth of the
Bauhaus HK company (Gregorini, 2012). Organization have to understand about all the
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Illustration 1: PESTEL analysis

political factors so that they maintain ethical work environment. In this the UK
government set various laws like minimum wage and many more regulation which have
to be follow by the company to maintain their strong brand image at marketplace. Economic: Inflation rate, GDP rate and many more affect the overall process of the
Bauhaus HK company so that it is important to manage their activities accordingly
(Hénard, Diamond and Roseveare, 2012). Low inflation rate aid to the company to
maintain their profitability because the customers income is high so that they buy its
products for fulfil their needs. Social: This factors involve various segments like life style of the customers, income,
needs and demand which influence the company performance. It is more important for
the Bauhaus HK company to understand customers taste and preferences regarding the
fashion so that they easily satisfy their needs by providing quality products to them. Technological: Effective technology is more important for the Bauhaus HK company to
enhance overall productivity of the firm. By using innovative methods and technology
firm define quality products and use effective advertisement activities to sale their
products in appropriate manner. With the help of this they take competitive advantage
from their competitors. Environmental: It is also important for the Bauhaus HK company to maintain the
friendly environment. In this business ensure that how to make environment friendly and
also use effective resources which does not define the harm.
 Legal: It is more important for the Bauhaus HK company to aware about all the legal
activities because it directly impact on overall business performance. In legal factors
various changes are affect the business so that all the rules and regulation are effectively
follow by the company to maintain positive work environment (J. Harrington and C.
Ottenbacher, 2011). Legal factors include employees law, minimum wages, working hour
regulation and many more laws which have to be follow by the company so that they
influence their growth in marketplace.
Summary:
PESTEL analysis is an strong tool which is used to analysis the Bauhaus HK company
external environment in effective manner. It define that company should be update the laws and
regulation in their business activities so that it aid in improving the efficiency the business in
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appropriate manner. In this technology development is also important because it helps in
promoting its products in effective manner (Langston and Lauge-Kristensen, 2013). Effective
technologies aid in improving the overall productivity the company at market place. With the
help of this Bauhaus HK company easily capture large market share from its rivals.
TASK 3
Porters Five Forces
It is an effective tools which is used by the manager of the Bauhaus HK company to
evaluate the competitive nature in the market of the company. It aid in developing the overall
growth of the firm in appropriate manner and get competitive place at complex market. This
forces include effective elements like threat of substitute, the bargaining power of buyers, the
bargaining power of suppliers, the intensity of rivalry in the industry and the threat from new
entrants (Porter's Five Forces, 2017). All are the effective for understanding strength with the
business so that they easily manage their process in effective way and also enhance overall
performance.
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(Source: Kim Moore, 2014) Threat of substitution: It define the alternative products at market which compete the
Bauhaus HK company products. Substitute products are available in the market at
cheapest rate with better quality. So that it is more important for the company measure as
well as monitor buyer taste regarding the substitute products. For reduce this elements
company use effective technologies to produce creative products for the customers which
aid in cutting down the cheaper products of the competitors (Lucas, 2010). With the help
of this company maintain their brand image at market place as also customers mind. It is
more important for the company to analysis the competitors price of substitute products
so that they easily maintain their sustainability in the market. Cited company use
competitive strategy to enhance customers loyalty and also stop the customers to switch
the substitute products.
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Illustration 2: Porter five forces

 The bargaining power of buyers: In this the buyer having the ability to drive products
price down which in increase the various factors of the products which are as follows:
Volume: In this factors it define those buyer who buy the products in bulk so that they attain
higher discount on the services (Luo, Sun and Wang, 2011). On the other hand if various
customers are depend on each other than they buy smaller quantities of the products.
Alternative choice:In this if buyer choice is limited than they able to cut-down the products
price. Bauhaus HK company consider the customers choice in effective way because I market
various competitors are there.
Premium service: In this elements the if the products and services are special and unique than
the company add premium price for the customers. Bauhaus HK company include high level of
staff training so that they understand about customers preferences and also provide high quality
products at affordable price.
So that it is more important fro the Company to understand the bargaining power of
buyer so that they easily provide quality services at premium rate. The bargaining power of suppliers: It is low threat for Bauhaus HK company. In this it
define the relationship between suppliers and company. If suppliers bargaining power is
high so that in this case some of them influence the activities of organization. In this case
Bauhaus HK company use their skills to supply their products which reduce the
bargaining power of suppliers in the market. In this the company supply high volume
products which can not affordable by the suppliers. So that business should include
skilled staff ad activities so that they eliminate the suppliers power in the market. The intensity of rivalry in the industry: In this the rivalry of the company is very high at
market place. Because in today's modern era every organisation set their fashion outlets
and offer at cheapest rate which reduce image of the cited company. It is more important
for the company to maintain their strong brand image at market place by providing
quality products at affordable price so that they maintain their target customers in their
activities (Makri, Hitt and Lane, 2010). To reduce the competitors growth they have to
understand as well as aware of market balance.
 The threat from new entrants: New entries in market is very high and it is a big threat
for the Bauhaus HK company. For effectively measure the new business in the industry
it is necessary for the firm to recognize the new business in the market. So that they set
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their activities accordingly which aid in attracting existing customers and also new
customers towards its products (Nixon and Burns, 2012). For improving the string brand
image they use new and innovative technologies to maintain their quality products and
also define innovative and attractive services which help to invite large customers.
Summary:
This Five forces is an effective analysis which define the positive image of the Bauhaus
HK company. In this the substitute include the cheap products and the buyer also having
alternative products choice. Along with the rivalry is very acute and the new entries having
effective ability to use same process as well as advantage of the cited organization. So hat it
define the company should focus on their premium services which is provide to the customers in
order to getting their satisfaction. With the help of this Porter five forces company easily take
competitive advantage in the market and also grow their business in ethical manner.
TASK 4
Bowman's Strategy clock
Bowman's strategy cloak is an effective tool which is used by the Bauhaus HK company
to analysis their competitive position in the market place. It also define the best comparison of
the competitors products and service which aid to the company to take competitive advantage in
the market. It define that this strategies helps in reviewing the various ways of thinking about the
effective competitive strategies that help in achieving it effectively. It include various elements
which are as The low price strategy, A hybrid strategy, A broad differentiation strategy, A
focused differentiation strategy and A failure strategy (Sakas, Vlachos and Nasiopoulos, 2014).
All are the effective for the business to asses the competitive place in the market. It also evaluate
that how to define products positioning in the market. This strategy is based on two dimensions
like price and perceived value.
CONCLUSION
From the above mentioned report, it can be concluded that strategic management is more
important for the business to enhance their productivity at market pace and also attain higher
growth in effective manner. Bauhaus HK company have various process to influence their
performance. Cited company charge premium price for their customers as compare to the
competitors with help company to maintain the sustainability. They also monitor all the outlets
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for ensure about how they perform and also motivate their staff member to achieve its targets and
goals in appropriate manner. Porter five forces also effective for the cited firm to show their
positive brand image and also aid in improving the productivity in appropriate manner.
RECOMMENDATION
It is recommended that Bauhaus HK company should carry out the effective competitive
strategy to evaluate the overall performance and also monitor the external environment so that
they aware about their competitors effectively. For cited firm it is more important to aware about
the opportunities which aid in developing the business in supermarket. It also important to
knowing about their competitors and their strategies which used to take competitive position in
the market. It is recommended to firm to eliminate the internal loopholes and for this firm can do
efforts to remove its weakness so firm can better exploit the opportunities exist in business
environment. Various concepts are there which can be use by firm for formulate effective
strategies. For example with the use of PESTLE firm can identify the factors exist in business
environment and about the activities of its rivals.
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REFERENCES
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Lucas, M. T., 2010. Understanding environmental management practices: integrating views from
strategic management and ecological economics. Business Strategy and the
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Luo, Y., Sun, J. and Wang, S. L., 2011. Comparative strategic management: An emergent field in
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