Strategic Analysis of Arcadia Group: A Management Report

This report provides a strategic management analysis of the Arcadia Group, a British multinational retailing company. It begins with an introduction to strategic management, highlighting its importance in planning, analyzing, and monitoring organizational goals. The report then delves into an evaluation of the external and internal environments using PESTLE and SWOT analyses, identifying key factors such as political, economic, social, technological, environmental, and legal aspects. The internal analysis covers strengths and weaknesses, while also discussing the impact of the global recession and the use of Porter's Five Forces model. The report further explores the purpose of strategic planning and distinguishes between intended, emergent, and realized strategies, along with organizational changes. The report provides a comprehensive overview of the strategic decisions and challenges faced by the Arcadia Group, offering insights into its competitive position and future prospects. The report is contributed by a student to be published on the website Desklib, a platform which provides all the necessary AI based study tools for students.

STRATEGIC
MANAGEMENT

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
TASK 2............................................................................................................................................5
TASK 3............................................................................................................................................8
CONCLUSION................................................................................................................................9
REFERRENCES............................................................................................................................10

INTRODUCTION
Strategic management is the process for planning, analysing and monitoring of the organization
goals and objectives. Due to change in the market Condition Company have to make the strategy
for the achievement of the goals. This helps in providing direction by develop plans and policies
and also allocate resources which is necessary for implementation of plans and procedures (Al
Shobaki,., Abu Amuna and Abu-Naser, , 2016). Through this entity gain competitive advantage over
the competitor. This report based on the company name Arcadia group. It is a British
multinational retailing company headquartered in London, United Kingdom. It owns high street
clothing retailers Burton, Evans, Topman, Topshop which sells lines from the other group
chains. The group has more than 2500 outlets in UK, concessions in UK department stores such
as Selfridges as well as seven hundreds franchise in other countries. In this report, there is the
evaluation of internal and external environments using appropriate tools and techniques and
identify the strategies. There is the discussion of emergent strategies which is recommend. Apart
from these there is the purpose of strategic planning and decision making with the company.
There is also distinguish between Intended, emergent and realized strategies. There is also
change in the organizational which is difficult to implement.
TASK 1
Critically evaluate the external and internal environment by identify the strategies in global crisis
In the business, there is the requirement of the growth and expansion which is done by
making strategy in the internal and external environment. There is change in the certainty, for
this they have to identify the change and gain best advantage from that. This process is known as
strategic planning process in which both PESTLE analysis and SWOT analysis is used (Ateba and
Prinsloo, , 2019).
In the business both internal and external factor is associated with the mission of the
company, internal factor is change through planning and management process and in external
factor is not controllable, they have to no control over the changes of law and economic
condition.
External factors
Political Features
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This is about the government intervenes and extent of the economy. These could include
- government policy, political stability or instability in overseas markets, foreign trade policy, tax
policy, labour law, environmental law, trade restrictions and more. It is clear from the above list
that political factors often influence organizations for doing business. Company need to be able
to respond to current and expected future legislation, and adjust their marketing policy
accordingly. Arcadia group have stable government factor in the UK, and also there is no trade
restriction in their business. Their environment law is also stable in the country. (Berisha Qehaja, .
Kutllovci,. and Shiroka Pula, 2017).
Economical Features
Economic factors have a profound effect on the organization for doing business and earn profit.
There are Factors include - economic growth, interest rates, exchange rates, inflation, consumer
and business revenues and more. In the Arcadia group, their interest rate is changing which
effect their financial department. Foreign exchange rate also influence the economic factors.
These factors can be subdivided into major and economic factors. The elements of the
macroeconomics deal with the management of demand in any given economy. Governments use
interest rates, tax policy, and government spending as their primary sources of revenue. Small
economic factors is about the people spend their money. This also creates a huge impact on B2C
entity in particular ( Dobrovič, Kmeco, Gallo,. and Gallo, 2019).
Social Features
This is known as social factors as these are areas that include shared belief and attitudes. These
include - population growth, age distribution, health information, work attitudes and more. These
things are especially interesting as they have a direct impact on the marketers understand
customers. In Arcadia group, there are various social media sites that effect the social factors,
they depend on the population growth and also on the age distribution depend on the product
need and requirement.
Technonological Features
The fast the technology environment is changing and this affects the selling of our products. The
technical aspects affect your marketing and management in three different ways. First, way of
producing goods and services. Second is the way of distributing goods and services and third is
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way to communicate with targeted markets. In the Arcadia group, their products are also
influence by the technology because as the technology grows it give positive effect for the
company. They can increase their revenue and profit also.
Environmental Features
These things became apparent fifteen years ago or more. They are important because of the
growing shortage of raw materials, pollution policies, doing business as a fair and sustainable
company, carbon policies imposed by the government. These are some of the problems
advertisers face within this feature. More and more consumers want the products they take care
of the environment, and also protect from a sustainable source. In Arcadia group, they have to
take care of the features that they affect the environment or not. The products include in this are
eco friendly and no cause any pollution to the country (Akpinar and Sahin, 2019).
Legal Features
Legal features include health and safety, equity opportunities, advertising standards, consumer
rights and laws, product label and product safety. It is clear that companies need to know about
the legal issue and illegal in order to trade successfully. When an organization trades around the
world this becomes a very deceptive place to get it right as each country has its own rules and
regulations. In Arcadia group, they have to follow the legal factor according to the UK policies
and regulations. They have to focus on the health and safety instruments for the customers and
also specify the laws which are following in the county. It is important to follow legal factors
(Ertek, , Tokdemir, , Sevinç, . and Tunç, , 2017)
Internal factor
Internal factor used for the analysis of Arcadia group
Strengths Weaknesses
All the sizes are available in the clothing- they
provide all size in all clothes which increase
their revenue.
Lack of distribution channel- there is lack of
distribution channel so it harmful for them in
increases the sales.
Brand loyalty- they maintain their brand
loyalty by making aware to all customers.
High cost structure- in this company cost of
each product is high.
After sales service- they provide after sales
service for the satisfaction of customer.
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Opportunities Threats
Celebrity endorsements- they can increase their
sales through promotion by celebrity.
Increasing number of retailer- there is so many
competitors is rising in the UK.
Online website- they can develop their sales on
online website.
Global economy- different economy affects the
business of the company because every country
has different policies and procedures.
Global recession occur in next year for making the strategies
Global recession means economic decline in the world, it also states that decrease in the per-
capita gross domestic product. The International Monetary fund (IMF) use such set to know the
global recession of various countries. In Arcadia group, they make different strategy to remain in
the global recession so they remain sustain in the market for long period of time ( Heath, , 2018)
 Impose Tariffs- In the United states trade war with the china begun, the Trump
administration impose tariffs at midnight, they impose 34 billion on 800 different
product. From these political and economical condition of the company effect in the
recession times. In Arcadia group, they have to pay tax on the products which maintain
growth in the economies of the world.
Financial crisis- Through global recession there is the crisis in the financial structure, to
protect organization from crisis they have to regulate the working capital and maintain the
employees position in the market. In Arcadia group, they have to increase the purchasing power
by giving the product at low cost, so low level people raise to middle level and middle level raise
to top level. They protect this from global recession in the future by maintain the financial
statement of the entity (Kools, and George, 2020).
 Working condition- By change in the working condition help the company to protect
company by global recession, they can implement to the working pattern of the
employees. Manager has to maintain the working condition in the structure of the
company according to market. In Arcadia group, they change their working pattern
according to the situation, form this strategy they maintain the policies and procedure
according to the working condition.
4

Porters five forces model- It is the model used for identified the five competitive forces
which help in shape the industry for their strength and weakness. In this there is the understand
of the economy for understand the competition for long term profitability. In the Arcadia group,
there is the use of the this force for determine the competitors.
 Competition in industry- It refers to the number of competitors that are available
in the market for seeking the position in the market and built their brand name for
the customers. Buyers see the price of all company product, then decide which is
the best product and cheap product. By the lowering competition there is the
greater power for charge high price for the achievement of the sales. In, Arcadia
group there is the great competition in the market.
 Potential of new entrants into industry- It refers to the coming of the new supplier
into market which affect the competition in the market for make the significant
position. So they is able to charge high price and negotiate the better terms for
that. In Arcadia group , there are lot of supplier which enter into market when
there is low cost product is available (Fadli, 2019).
 Powers of suppliers- it is the next factor refer to the suppliers can easily use the
cost of inputs for the use of the goods and services in which there is more power
and drive up input costs for the suppliers. In, Arcadia group they have the power
of the suppliers in the use of the product and services.
 Power of customers- it refers to the market in which the king is only the customer
every firm generate their profit through customers, which is very beneficial for
the firm for making output . They negotiate at lower price which is the job of the
customers. In Arcadia group they do only that thing which is useful in satification
of customers (HASAN and Gafforova, 2019).
 Threats of substitutes- it means use of the same goods by the another firm which
effect the sales of the company in the long period of the time. In this they have
more power to attract the customer by using low quality product. In, Arcadia
group there is the close substitutes available for the company product.
In the evaluation of both the internal and external environment, there is both positive and
negative effect is incurred through this through which they are able to make changes according
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to the changes occur in the legal, political, environmental, social and cultural factors. In the
internal factor they have to make improvement on their weakness and convert them into strength
which is very helpful future opportunities and protect the Company Arcadia group from the
destruction of the threats. By the use of the porters five model they can determine the competitor
and buyer and supplier for the industry which is based on the five factors. There are negative
effect is also there to overcome the internal and external factors which help in increase their
growth and expansion of their business for the future (Ivanov, 2019).
TASK 2
Purpose of the strategic planning and difference between the intended, emergent and realized
strategies
According to(Anyika, Ehie and Oghojafor, 2019) strategic planning refers to the process of
making document and accessing the the strategic plan which is made according to the direction
for the small and large business and maintain the long term goals for the action plans.
According to (Arıcıoğlu and Yiğitol, 2020) Strategic planning is the process for making the
strategy and defining the direction for allocation the resources for the successful completion of
the strategy in the company. They also provide the platform for record of the mission, vision and
values of the long term goals and also make action plans for making strategy. In the Arcadia
group, they also make the strategic decision to fulfil the mission and vision of the entity. They
had written the strategic plan for the expansion and growth of the business for taking the
opportunities and challenges. Through this they can achieve the goals and objective for
successful running of the path increase the productivity for the success of the business. Form this
planning they are also identify the strength and weakness of the performance of the business firm
( Kunz, Siebert. and Mütterlein, 2016).
Decision making means making the decision made by the manager in the organization
according to the information, it is the process of making choices by gathering the information in
the suitable manner and also defining the alternative options. They make decision is based on the
positive or negative factors. Their decision effects the organisation also and benefits the
organization also. In the Arcadia group, they make this for the problem solving they make this
based on the reasoned process. Manager make the decision by planning, organising, directing
6

and controlling the function of the manager which is very important for the achievement of the
goals in the short period of the time.
Purposes of strategic planning
In Arcadia group, they make strategic planning for many purposes which are explained in
the points:
 Financial benefits – It means company make strategy planning for the getting benefits in
the finance for better sales, to get higher earnings per share and increase their share in the
market. In arcadia group, they make planning for increase their profit, and increase their
sales by making the low cost of the finished product.
 Competitive advantage- It means gaining the advantage from the competitor by capture
the market and makes foresee the future performance through strategic planning. It
enables manager to anticipate the solution. In the Arcadia group, they gain the
competitive advantage from other competitor by making the cost of the product low and
also offer some vouchers and discount offer (Beiker and Burgelman, 2020).
Promotes motivation and innovation- In the strategic planning, manager have to
promote the motivation to the worker and also innovate new product and service in the
organization. In the Arcadia group, they also motivate and innovate new product according to the
requirement of the customer, (Martinsons, Davison. and Huang, 2017).
Purposes of decision making
Planning purpose- decision making play more important role in the decision making,
because for planning manager have to discuss with all members then take important rules. In the
Arcadia group, they also make strategy for the planning of the important activities in every
department.
 Coordination- coordination is very essential for the unity of action, in the entity they
have to coordinate the activity by making the decision among the workers. In the Arcadia
group, manager makes coordination with their entire worker for the same objective and
same vision and mission to follow.
 Rules and regulation- rules and regulation is play vital role in the organization, because
for making these manager have to make decision with the consent of all workers. In the
Arcadia group, they prepare the policies and procedure by taking all factors in the
company (Belás, 2020).
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Difference between intended, emergent and realised strategies
basis Intended Emergent Realised
Meaning It is the strategy
that company
wants to execute.
In these strategies
are described in
detail in the
strategic plan.
It is the strategy
which is
unplanned strategy
that arises in
unexpected
opportunities and
challenges.
It is the strategy
that company
follows. They are
the product of a
firm’s intended
strategy.
Description Gain efficiency
by routine
package through
central hub.
Emergent
strategies result in
disasters.
It is used for the
firm’s deliberate
strategy.
Example Federal express is
the company
which is closely
followed the plan
laid out the class
project
(Spina and Spina,
2020)
The firm
developed the
service called
ZapMail because it
reduces the time
from overnight in
just couple of
hours. In this
strategies there is
the unplanned
strategy is made
for this mail box
which is secured
with the password
but it is used by all
peoples because
password is
written over the
The company name
is Southern
Bloomers
Manufacturing
company; it has
been shaped greatly
by both strategies.
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mail box if they
are smart they able
to open this which
help in reducing
the time in easy
manner and less
time for chats on
the same chat.
There are different approaches for the strategy that is viewed and undertaken by
the organization because firm uses high or low level process to make strategic
decisions, second one the amount of input from the point of employee that the
leader consider for making strategic decisions.
Unilateral firms- these are the firms which include both low process and low input,
individual had difficulty in decision making process, the benefit is the leaders can make fast
decision without the problems. In Arcadia group they can apply this for making decisions. There
is no process to make timely action (Wang, Wang, Liu, Cheng, and Chen,., 2020).
Ad Hoc firms- these mean low process and high input, manager make the
strategic every time, but change need to make. Leader pulls team for making action, the
main risk that firm get better at making strategic decisions. In Arcadia group, they use the
process of flexibility for the leader position.
Administration firm- Management firms are a high process includes low input.
These firms follow strict procedures and well-defined procedures for making strategic
decisions without stirring controversy among other employees. Another advantage is the
collection of detailed data and documentation. In Arcadia group, they follow the well
defined procedures for making strategic very well they also collect the data from the
market also (Carter and Stickney, 2019).
Collaborative firms- Cooperative firms both high process and high installation.
These firms have a strict management system for the Management Company, but
employees are also affiliated with the Ad Hoc company. During the interview, these
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leaders demonstrated strong consistency in the various types of decisions. In Arcadia
group, this industry includes proper installation process in the decision making.
TASK 3
Organization changes is very necessary for the implementation of the SMT in the company
Organizational change
It refers to process in which there is some changes occur in the organization like
changes occur in the culture, technology and structure in its internal process. Changes
occur for the growth of the company, for their expansion and it is occurring in three
phase’s preparation, implementation and follow- through. In Arcadia group, there is also
need of the changes in the infrastructure, in policies and procedure and in promotional
activities to attract the customers for long run. They also use new technology for quickly
work (Chen, Zuo and Ni, 2020).
There are some organization change occur in the organization-
Workplace demographics- Organizational change is very necessary at the workplace,
because there are changes in flexible hours and job sharing work to increase the productivity of
the employee, apart from these they also fill the gap between workers. Manager also motivates
the employee if they are unhappy. In Arcadia group, they make changes according to the
environment; they also remove the barrier in the retention of the employer (Wang, Wang, Liu,
Cheng, and Chen,., 2020)
 Technology- Change in the technology is very necessary for the organization
structure, because companies were easily double the prices and it is also help the
corporation to adapt the new software and social technology. In Arcadia group,
they use of the new technology in the retail stores and in wholesale store(Coccia,
2020)
 Globalization- It is also the threat and opportunity for the company, because if
company wants to expand their business it can effect by national economies and
standard of living. Manager also has to deal with the employee stress and also
help retaining the workforce and they also learn to compete with global workforce
on a global Scale. In Arcadia group, they have to follow the standard and
economies of other country in which they operate their business.
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 Change in the market condition- due to change in the market condition
organization have to change their structure and cost of the product. Manager also
has duty to tell the right information about the market condition to the employees
and also make them strategy according to the cost structure. In Arcadia group,
they fix the price of the product according to the purchasing power of the
customers in the UK (Petrović, 2020).
 Growth- In the small company, growth is very necessary to make successful.
Because without growth they will not remain sustain in the market for the long
time for this expansion is required in the entity. In Arcadia group, their main aim
is to expand their business in different country. They can do only by increase their
growth in present so it is expand in future (Woodside, Nagy, and Megehee, . 2018).
Kurt lewin,s model- Kurt lewin model is popular known as the German American socio
physiologist in the early 21se century. There is the research group dynamics for the develop the
three stages in the model of change. In Arcadia group, there is the used of this model for making
change in organizational structure. (Rahmanseresht, Tayebi Abolhasani and Rouhani Rad, 2019).
 Unfreeze- in this stage there is the mindset, physical capacity is maintained for the
equilibrium state but this situation is depend on the population and initial resources. It
helps in improving the readiness and willingness of the person for the purpose of
improving their motivation and increase their communication. In, Arcadia group they use
this stage for play a vital role in the involvement of the people. (Roe, 2019).
 Change- in this stage there is the use if the actual implementation for the acceptance of
the new ways for doing things. This is useful in careful planning for the effective
communication and involvement of the individuals in the activities. In Arcadia, they use
this stage for measure the correct and expected deviation by the used of the consequences
for adopting the changes (Rok, 2019).
 Freeze- During the stage there is the stage of the transition which is very necessary for
the remain in the equilibrium. In this stage there is the accepting of the people in the new
way of working for establish the relationship. In Arcadia group, there is the use of the
11

refreezing for making rewarded and provide positive reinforcements in the working style
(Slamet and Ramdhani, 2019).
CONCLUSION
From the above report, it has been concluded that strategy management means making
strategy and decisions for the organization, it also involves objectives and help in analyse of the
competitive environment. It also helps in evaluating the strategy and internal factors. In the
company, they make plan of action to achieve the specific goals and objectives. In this report
there is the description of the internal and external factors that affect the entity structure, tools
and techniques made for the strategy used in the global recession. In the organization, there is the
purpose of the strategic planning and decision making. This is important to make organization
changes according to the condition, there are different implications that are used to make strategy
for the changes occur in the industry.
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