Strategic Management Report: Gucci's Strategic Management Analysis

This report provides a comprehensive analysis of Gucci's strategic management practices. It begins with an introduction to strategic management and then delves into Gucci's specific approach, including its mission, vision, and objectives. The report then assesses the processes used by organizations...Read More

Strategic Management
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Table of Contents
Introduction......................................................................................................................................3
Main Body.......................................................................................................................................3
A critical assessment of the process used by organisations to determine their strategy.............3
An evaluation of the critical models and tools used by organisations to determine their
strategy........................................................................................................................................5
An application of these tools to a real organisation....................................................................9
Critically appraise the importance of change management based on the complexity of the
transformation process, its costs, risks and sustainability.........................................................10
Importance of the change management................................................................................10
Transformational process and cost:......................................................................................10
Sustainability and risk factors: ............................................................................................11
Conclusion.....................................................................................................................................11
References .....................................................................................................................................13
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Introduction
Strategic managemnt is the process of planning, monitiring, executing and analysis of all
the necessities which are being performed in the organisation in order to meet organisation
objectives and goals. There are ceratin challenges which are to be faced by managers of the
company. Its model and processes helps the organisation in thinking about plan which and for
future. It sets direction for employees and organisation both (Andreeva and Kianto, 2016). The
organisation which is choosen in this report is Gucci. Gucci is one of the luxurious fashion brand
which is based in Florence, Italy. It was founded in the year 1921 and now it is locating in more
than 490 locations. The company deals in variety of products and services like handbags,
footwears, makeup and fragrances and home decoration. There are about 17,157 employees are
currently working in a company. This report covers defination of strategic managemnt and the
process which is used by Gucci to detremine their strategy. The it covers certain models and
tools whcih are used by organisation. Futhure. It includes importance of change managemnt in a
company.
Main Body
A critical assessment of the process used by organisations to determine their strategy
The strategic planning is the process used by the organisation that will help them in
improving performance. The organisation is having the employees that will have the strategies to
make the decisions. They will help the organisation in reducing the costs. The organisation is
having the factors that are helping them in making the strategies and they should on the
customers (Strategic Planning Process: 9 Steps of Setting Proper Strategic Plan, 2021). Gucci is
having nine steps that are helping them in the strategic planning of the organisation. Which are
summarised in mainly six steps:
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 Identifying the strategic position: The organisation will have mission, vision and
objective and they are helping the employees. Gucci will analyse the performance of the
employees and they should focus on the strategic planning of the organisation. They are
focusing on the factors that will help the organisation in achieving success (Aula and
Mantere, 2020).
Strategic factors of the organisation Information
Definition of the organisation Expensive brand for fashion
Purpose of Gucci Luxurious products to the rich customers
Customers The customers who want fashion products and
willing to pay for the expensive products of the
organisation.
Competition Burberry, Hermes
Future definition Expensive brand where the market expansion
in for existing customers on e commerce.
Purpose Increase the performance of the organisation
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Illustration 1: Strategic Planning Process, 2021

Market Young customers
Competition The brand s on e commerce
Values  The brand will connect with the
customers.
 Premium products of the organisation
Objectives The employees will help the organisation in
improving the performance.
 Gathering employees and information: The organisation will connect with the
employees and they will help them in making the products of the customers. Gucci is
having the employees who are helping them in giving the information of the customers
and it is helping them in improving performance. The organisation is having the research
and development and the customers services are helping them in making the strategy for
the employees.
 SWOT analysis: The organisation will have to analyse the factors that will impact the
performance. The SWOT analysis will help the Gucci in having the strengths,
weaknesses, opportunity and threats and they are helping them in making the strategy of
the organisation (Bailey and et.al., 2018).
 The strategic planning: The employees will analyse the performance of the
organisation. It is important because the strategic planning will help in analysing the
factors that are impacting and making the decision that will help the employees. Gucci
will have the strategic planning because they are including the cost. The organisation will
have the factors that will help the employees.
 Execute the plan: The organisation will have to increase the performance of the
employees. Gucci will have to make the strategy that will help them in planning for the
organisation.
 Monitoring the performance: The employees will have to monitor the performance of
the organisation. Gucci is will have to connect on e commerce and they will help the
employees in analysing the factors that are important (Billings and Buslepp, 2016). They
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should have the performance analysis and it will help the in analysing the factors that will
impact the organisation.
An evaluation of the critical models and tools used by organisations to determine their strategy
Strategic management is the ongoing process which are related to planning, monitoring
and analysis the assessment for getting an access for the company. There are various tool and
models which are used by the chosen organisation in order to determine the strategies. In Gucci,
the organisation is related to the fashion brand so they needed effective and trendy models and
tools for making different market strategies.
SWOT Analysis: In order to determine the concept which are relevant for the strength,
weakness, opportunities and threats. This is the analysis which are related to designing and
facilitate the behaviour of the realistic approach which are associated with the data driven
factors. For completing this model companies has to use and make their conclusion on the basis
of some practical approaches (Brunetta, Capo and Vicentini, 2017). With the help of this model
company can easily identify and analysis the major strength weakness of the company. Further it
can be said that the company has to achieve and analysis threat and weakness. This will be
beneficial for the company to analysis and diverse the organisation will provide realistic data.
Which will help the company to promote financial position or strength (What is SWOT
Analysis?, 2020).
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Pros and Cons for swot analysis: This is the very effective and analysis cost structure
that help the company to reduce the cost. With the help of identifying SWOT analysis company
give more focus on the maximising strength and minimising threats. Disadvantage of the swot is
related to over magnifying strength and weakness that affect the growth of company.
PESTEL analysis: There are different external factors which affect the growth of any
company directly or indirectly. Political factors include the tax policy, political condition and
many more government policies which affect the sale and operation cost of the companies.
Whereas the economic factors affect the interest rate charges, inflation rate and expansion of the
company which affect the profit rate (Pestel Analysis, 2021). In recessionary economy
companies make less profit but in expansionary economy, companies earn above the expected
profit. Environmental factors affect the growth of company due to environmental laws and
regulation. Further social factors affect age, culture and social status of the company.
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Illustration 2: What is SWOT Analysis?, 2020

Technology advancement used by the companies to improve efficiencies and employment
legislation are get affected through legal costs.
Pros and Cons of PESTEL analysis: Pestle is very easy to analysis and use in the
companies. With the help of pestle company easily understand the nature and culture of
opportunities tool and analysed the different tools. But the disadvantage is that they are not even
remain static so it become difficult for the company to change the frequency.
Porter's five forces: This is the model which is used as per analysing the need of
competitiveness analysis. This is the company which are related to the industry attractiveness
which actually used and manage as per the main analysis of threat of new entrants, as it can be
determined by the company which are effective and useful for making cost structure and use
different experiences. Companies who have pre existing approach are less as compare to the new
entrants. Bargaining power of the supplier and customer affect the sale and price volume of the
company (Porter's five forces, 2021). So it is important for the company to analysis with the high
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Illustration 3: Pestel Analysis, 2021

growth and practicability nature. Threat of the substitute work as per the major threat to the
company as it will affect to products demand arises by the company and their customer. In last
competitive analysis is related to developed competitive advantages, which can't even sustain the
market of the any type of industry (Cherepovitsyn and Ilinova, 2018).
Pros and cons for porter's five forces: with the help of this model company can easily
get the access of their competitors, and plan as per the threat and substitutes of the company. But
as they are not include different and important factor to analysis the market situation.
An application of these tools to a real organisation
After analysing the behaviour of different organisation, company can use these model
and theory which are related and helpful for the company to understand the behaviour of
company. They are using SWOT and Porter's five forces in order to make strategic approaches
for the growth of company.
SWOT Analysis: Gucci is the one of the important and expansive fashion brand which
are very useful for operation and completing the demand. The company is become very famous
while it comes to many fashion hacks and tricks which are used by the companies. To determine
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Illustration 4: Porter's five forces, 2021

the competitive analysis of the company which determine the internal factors of the company.
The main strength of the company is related to the brand equity with high premium prices. All of
these are relevant for having strong brand equity (Chernev, 2018). They supply the high quality
products and make a strong Impression on international market. Whereas they are facing
weakness different and continuous up-gradation is required as per the need and development of
customer taste. The main opportunities for the youth process, and main emerging markets that
affect the sales volume of the company. Threat is only related to high competition like Burberry,
which are related to sufficient financial position and strength.
PESTLE Analysis: There are six main environmental factors which affect the sales and
profit of the business condition. The political level of the company affect the profitability nature
of company like taxation, political instability and government legislation. Further the economic
affect the market structure, interest rate, inflation and different exchange rate. All of these factor
affect the growth of company (Hiriyappa, 2018). Social factor related to social, environmental,
class and people attitude which actually influence the decision of company. Gucci sale varieties
of expensive products online, so the need and change of technological factor affect the growth of
company directly. Different environmental laws which are assigned by the UK government
affect directly to the company. In last the legal environment is very strict for complete the
environment and operational activities. This will make an impact on the growth of company
which affect the majority and find standard to make expanding nature of company.
Porter's five forces: This will be used by the company to examine the threat of new
competitors, which are determined the several factors related to economy of scale. Bargaining
power of the company is related to supplier and customer, so it become very high for the use of
company in the market analysis of company. Threat of the substitutes are related to product's
demand in the market which highly affect the decision making of company. In last competitive
rivalry related to high to distinctive capabilities (Moharramnejad, Rahnamai and Dorbeiki,
2017). This model is very useful and effective for the company in order to analysis the
competitiveness within their market and analysis the behaviour of company for getting more
right and appropriate decisions.
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Critically appraise the importance of change management based on the complexity of the
transformation process, its costs, risks and sustainability
Importance of the change management
Change management is one of the important technique within the company as it will help
the company to improve productivity. This technique is very helpful for the company to analysis
and downsize the behaviour of the company which actually improve the productivity of the
company's performance. This is the process which is related to the organisational process which
main aim is to assists and analysis the staff to understand the behaviour and work for
organisational changes. Managing the staff efficiency is very helpful for Gucci to improve and
understand the behaviour of organisational efficiency (Oviatt and McDougall, 2018). Gucci has
been set up different activities and natural objectives, due to the cyclic nature of business
environment. This is become very difficult for the companies to maintain the initial positions.
The change which are done by the management organisation is related to resistance nature of
their employees. That's why the change management policies are adopted and use for analysing
the skilled nature resources. This is one of the difficult task which are assigned by the company
for addressing the change management policies and effectively manage the resistance nature of
the company and their employees in the right time.
Transformational process and cost:
This is the process which is adopted as per the new policies which are needed by the
organisation. To work in the smooth nature, changes are taken places in the organisational
structure to complete the desired need and specified business goals. Transformational process is
related to the internal and external process of the company. For example, if the employees show
resistance management of the company are used different strategies to resolve the case study. If
any kind of policies and project are not accomplished on time than the policies are used to stop
additional costs (Raj, Beck and Soliman, 2019). All of these process are come under the
transformational and cost process of the company. As these two sector are mainly affected
through the change management policies. To make adoptive changes within their organisation is
related to different additional charges that affect the company financial position for making
sufficient decision making.
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Sustainability and risk factors:
Different companies are facing different sustainability and risk management situation in
their company's internal decision. These factors affect from the change management which are
taken place as per the need of the company. In order to sustain in market most of the companies
are understand the market and make competitive advantages. Using sustainability and risk
management factors are become one of the important factors. Sustainability is used highly
ensured stage if the organisation become successful in minimizing the risk factors. The different
type of risk which are included shortage of resources, inability of the employees in order to
perform task, and degrade the employees ethics which they are followed as per the given ethics
of the company (Van Rijmenam, Schweitzer and Williams, 2017). To work with the
management and make degradation with the employee's ethics are related to the modern skills
and regular practices. With the help of change management programme company include
different training and risky decision which affect the growth of company in the use of
sustainability approaches. Organisational performance will be switched and share the market
area as soon as possible in order to analysis and play the crucial role for reducing the risk
behaviour and work as per the need of sustainability nature.
Conclusion
From the above report it is concluded that Gucci is one the biggest brand which is
performing its all business activities in effective manner. Company is using strategic
management process to execute a plan and following its activities. Gucci is using strategic
management models and tools to make effective decisions and develop new goals. It is important
to change management of company because it helps the company in looking forward and making
changes according to the changing behaviour of customers and employees needs and demands.
However, company should have to follow all models and works according to the changing
environment so that they can earn more profits and revenues and satiofy customers and
employees needs.
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References
Books and Journals
Andreeva, T. and Kianto, A., 2016. Does strategic management of knowledge matter for
organizational performance? An empirical test. In Academy of Management
Proceedings (Vol. 2016, No. 1, p. 17898). Briarcliff Manor, NY 10510: Academy of
Management.
Aula, P. and Mantere, S., 2020. Strategic reputation management: Towards a company of good.
Routledge.
Bailey, C. and et.al., 2018. Strategic human resource management. Oxford University Press.
Billings, B.K. and Buslepp, W.L., 2016. Strategic management guidance and insider trading
activities. Journal of Accounting and Public Policy, 35(1), pp.84-104.
Brunetta, F., Capo, F. and Vicentini, F., 2017. Institutional approach to strategic management.
In Global business strategies in crisis (pp. 3-14). Springer, Cham.
Cherepovitsyn, A.E. and Ilinova, A.A., 2018. Methods and tools of scenario planning in areas of
natural resources management.
Chernev, A., 2018. Strategic marketing management. Cerebellum Press.
Hiriyappa, B., 2018. Strategic Management and Business Policy: For Managers and Consultant.
PublishDrive.
Moharramnejad, N., Rahnamai, M.T. and Dorbeiki, M., 2017. Application of a'wot method in
strategic management of sustainable tourism in a national park. Environmental
Engineering & Management Journal (EEMJ), 16(2).
Oviatt, B.M. and McDougall, P.P., 2018. Toward a theory of international new ventures.
In International Entrepreneurship (pp. 31-57). Palgrave Macmillan, Cham.
Raj, R., Beck, V. and Soliman, A., 2019. Utilization of Value-based Management in the
Strategic Management of German Automotive Industry. Global Business Review, 20(4),
pp.871-886.
Van Rijmenam, M., Schweitzer, J. and Williams, M.A., 2017. A distributed future: how
blockchain affects strategic management, organisation design & governance.
In Academy of Management Proceedings (Vol. 2017, No. 1, p. 14807). Briarcliff
Manor, NY 10510: Academy of Management.
Online
Pestel Analysis, 2021. [Online]. Available through: <https://assignmentstudio.net/pestel-
analysis-assignment/>.
Porter's five forces, 2021. [Online]. Available through:
<https://www.theenterpriseworld.com/porters-five-forces-of-competitive-analysis/>.
Strategic Planning Process: 9 Steps of Setting Proper Strategic Plan, 2021. [Online]. Available
through: <https://www.iedunote.com/strategic-planning-process>.
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