Strategic Management Assignment Report: Sultan Center Analysis

This report provides a comprehensive analysis of The Sultan Center Shop (TSC), a major Kuwait-based retailer. It begins with an executive summary, followed by an introduction that highlights the company's significance in the retail industry. The report then delves into TSC's vision, mission, objectives, and strategies, examining its brand image, profit diversification, management, and shareholder value. It presents a detailed PESTLE analysis, evaluating political, economic, social, technological, legal, and environmental factors influencing the business. The report also includes a SWOT analysis, Competitive Profile Matrix (CPM), External Factor Evaluation (EFE) matrix, and Internal Factor Evaluation (IFE) matrix to assess the company's strengths, weaknesses, opportunities, and threats. Furthermore, it explores long-term objectives, strategic positioning, and provides recommendations for strategy implementation and review, ultimately concluding with an evaluation of the company's performance and future prospects.

Running head: STRATEGIC MANAGEMENT ASSIGNMENT
STRATEGIC MANAGEMENT ASSIGNMENT
Name of the student
Name of the university
Author note

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Executive Summary
The report summarizes the strategic management operation of The Sultan Center Shop, one
of the Kuwait based independent retailer. The organization has incorporated visions of higher
quality and integrated services which are further consolidates by the mission it sets in terms
of broader strategy and planning. The paper presents the SWOT and PESTLE analysis of
business proceedings of the organization. The evaluation of strategy management has been
done based on the studies of CPM, EFE, IFE and SPACE matrices further making
recommendations for strategy implementation and review of the expected outcome in
meeting the long term targets.
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TABLE OF CONTENTS
INTRODUCTION......................................................................................................................3
VISION, MISSION, OBJECTIVES & STRATEGIES.............................................................3
VISION AND MISSION STATEMENTS................................................................................6
EXTERNAL OPPORTUNITIES AND THREATS..................................................................7
PESTLE ANALYSIS.................................................................................................................7
COMPETITIVE PROFIT MATRIX..........................................................................................8
EXTERNAL FACTOR EVALUATION MATRIX..................................................................9
INTERNAL STRENGTH AND WEAKNESSES...................................................................10
INTERNAL FACTOR EVALUATION MATRIX.................................................................11
LONG-TERM OBJECTIVES & STRATEGIES.....................................................................12
SWOT MATRIX......................................................................................................................12
STRATEGIC POSITION AND ACTION EVALUATION MATRIX...................................13
RECOMMENDATION & IMPLEMENTATION..................................................................14
STRATEGY REVIEW AND EVALUATION........................................................................15
CONCLUSION........................................................................................................................15
REFERENCE...........................................................................................................................16
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INTRODUCTION
The Sultan Center Shop is largest retail business established in Kuwait, also known as
TSC. This company initially began as Petroleum Service Company that overtime became a
larger supplier to the oil industry (Andersen and Andersson 2017). With the help of its hard
work and dedication coupled with strategic success and managerial compactness, today it has
been able to emerge as largest retailer that evolved and expanded into various other line of
production and services including telecommunication an d security services.
The importance of this report lies in the importance of TSC in the retail industry
having strong impact on the economic indicators of the nation. The report sheds light on the
overall strategic management that the organization has been incorporating in its business
planning as well as the operation. It strongly focuses on the business performance that TSC
exerts and subsequent deficiencies it has been suffering from.
The discussion flows with interpreting and analyzing the vision and mission of the
organization followed by SWOT, PESTLE, EFE, IFE & SPACE matrices analysis in order to
conclude how close or far the company is from its aim.
VISION, MISSION, OBJECTIVES & STRATEGIES
The Sultan Centre (TSC) is the Kuwait based organization growing its business since
the inception of its existence from the year 1976. Coming into market as major suppliers in
the oil and petroleum industry, overtime it expanded its service to retail, telecommunication,
restaurant chains and security services based on the enriched vision the company had at its
core. Planning according to objectives and adopting strategies to quench the targeted mission
of the company propelled the growth of the company remarkably.
VISION: Broadly categorized vision of the organizations have been
Building strong brand image:
The organization has high targets set regarding creation of strong marketplace through
consolidated brand image among consumers.
Profitable & diversified business:
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Provision of increment in profit within the business operations and diversification
keeping parity with the local as well as international demand, competition has also been one
of the major vision of TSC.
Greater portfolio and management:
Maintaining a strongly integrated management is pivotal for smooth operation f the
business amidst the presence of multiple threats and competitive atmosphere. TSC
incorporated stronger management major vision of the company in order to add to the
sustenance f the organization.
Increasing share value:
As largest retail leader of the country, TSC mandatorily marks the importance of
higher share holding as well as increase in the share value that consolidates the health and
image of the company listed in public exchange. Increment in shares benefits the
shareholders as whole which further reflects the higher asses value of the company.
MISSION:
Excellent performance:
Performance is one of the key elements of the mission the company has in order to
make sure the targets are met. To meet the set objectives and materialize the visions,
performance is the only factor that can play leading role.
Strong customer loyalty:
Good performance strengthens the services provided and that further takes care of the
customer preference for the products of the company. Consumers loyalty to the brand adds to
the higher market share enjoyed by the company that reflects the profitability and capability
growth of it.
Collaborative team work:
In order to provide quality in service the company focuses on collaborative team work
and unchallenged effort within the hierarchy irrespective of designation and responsibilities
of the employees and staffs.
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OBJECTIVES:
Learning and Growth-
The company is aware of the role of learning to ascertain growth in the business. The
employees and their families are under the beneficiary incentives as provided by the company
(Bugaian 2017). Training campaigns and programs are conducted by TSC in order to
infiltrate and enlighten the company ethics, details of the responsibilities and tasks to the
staffs so that they can utilize it in their service and make contribution to the growth of the
company (Chang 2016).
Diversity and localization
Sultan Center moves forward with the objective of establishing a multicultural and
multilingual business setup. It employs people from different diversified cultures (Escrig‐
Olmedo et al. 2017). This company has also inculcated the habit of sufficiently investing in
the local communities as they have entered into crucial partnerships with them and it moves
forward with the objective of encouraging the local schools and universities to enter into new
ventures, thus encouraging the members of the local communities to join the company
(Durand, Grant and Madsen 2017).
Recognize the people
Recognizing the effort of the employees and building good relation with customers as
well as stake holders add to the higher transaction of the company leading to business growth
(Grant 2016).. This is effective way to create bridge between buyer and seller in order to
satisfy their demands while maintaining good quality of services.
STRATEGIES
The five major business strategies include:
Revenue growth
Their main objective is to set up more numbers of consumer centric and consumer
oriented markets. They also aim towards upgrading and developing their products and
services across all departments (Karlik et al. 2017).
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Improve margins
Sultan Center always tries its level best to increase its margins so that it can always
come up with the demands of their customers and provide better value for them.
Expense Efficiency
Once again, customer satisfaction is of highest priority over here, because of which
Sultan Center aims to simplify their internal operations so that more attention paid to the
areas of customer satisfaction (Krush et al. 2016).
Asset efficiency
Renovating of outlets, refurbishing the stores and efficient utilization of assets
includes customer satisfaction.
Constant improvement
Constant improvement is the only best possible way to increase customer satisfaction
and improving the core operations.
VISION AND MISSION STATEMENTS
Vision-
Talking about the vision of Sultan Center, it will be that financial growth and
corporate development will be the main building blocks for its immense success. Just like any
other company, it is not possible for Sultan Center to move forward without a proper vision
and a useful and working strategy (Lee et al. 2016). The vision statement of the company,
“To build and manage a profitable diversified portfolio of business aimed at increasing
shareholder value (Micheli et al. 2017).
Mission-
As far as the mission statement of Sultan Center is concerned, it says, "To be the
customer's preferred choice through teamwork, collaboration, and excellent performance"
(Prajogo, Oke and Olhager 2016).
This company is dedicated to provide their customers with the best products in order
to satisfy their needs through well-organized and efficient customer service facility exerted
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bytheir excellent team of employees and managers who are always ready to listen and solve
each and issues of their customers.
They have also built excellent teams and have inculcated the spirit of trust,
communication, and cooperation among themselves, as they believe in the essentials of
teamwork, a collaboration that ultimately results in a brilliant performance (Sukholthaman,
Chanvarasuth and Sharp 2017).
The vision of the organization must build and manage a good, well-developed
relation with all their stakeholders for increasing the shareholder value and expanding their
business.(Shin and Konrad 2017).
EXTERNAL OPPORTUNITIES AND THREATS
TSC shop provides all kinds of consumer based products; it creates different external
threats and opportunities for the business. Threat of customers can occur if there is poor
quality of product materials. As it is consumer, based shop there can be more competitors and
rival shops nearby. There can be product substitution effect (Shen, Chen and Wang 2016).
These are various external threats of the Sultan Center Shop. Referring to external
opportunities, better quality products will encourage more customers for the purchase of the
product. This will also create more competition among the buyers for the product, supply will
be high and there will be global opportunities for the line of production.
PESTLE ANALYSIS
PESTLE Model includes six major factors that have implication in the business
operation and growth.
POLITICAL: Imposition of tax by local government have serious implication in the
business as it impacts the business cost and local market condition as well. Implementation of
excise duties and policies regarding trading affects the business that has wider cross-border
transaction in terms of export and import (Deresky 2017).
ECONOMIC: It mostly deals with purchasing power capacity, individual daily
income, living standard and changes in the tax rates and consequent impact on consumer
demand and producer decision of production. Decrease in the custom duty will lead to more
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demand, thereby creates more income to the shop. When living standard is high, consumer
will buy more, there will be more supply. Therefore, purchasing power increases with the
increase in the individual income of the consumer that further adds up to the profit of TSC.
SOCIAL: This factor deals with social impact TSC has among people and the impact
the business process exerts on the society as whole. The company has been able to maintain
good position in terms of corporate social responsibilities. Not only the consumers but also
the staffs and their families are taken care of under the brad streamlining strategy and
operation that the organization undertakes (Tadeu de Oliveira Lacerda et al. 2016).
TECHNOLOGY: Application of technology is evident in the trendy products designs
of the footwear, clothes and other consumer accessories provided by the Sultan Center Shop.
Technologically efficient way of producing and handling the products leads to greater
customer service and satisfaction on their end. In store management and supply chain
improvised technological apparatus play important role.
LEGAL: As component of business operating internationally the company is entitled
to various law implemented on it subjected to be abided by. Law regarding the social impacts
they offer in terms of the quality of the service and products, relations maintained with
international agents and also production and management related restrictions that fall under
jurisdiction of legal implication.
ENVIRONMENTAL: An environmental factor analyses whether and how the
production and supply services are impacting the environmental standards. The effective
utilization of the resources without any wastage by using sustainable business system take
care of the environmental standards to be maintained in the country. TSC have been able to
abide by that so far.
COMPETITIVE PROFIT MATRIX
Competitive profit matrix provides a structured strategic system to measure the
business performance and profits with other companies or business industries. There are
various factors of measurement in competitive profit matrix and that are rating of the
business, weight, and critical factors. Critical factors means brand, range of products, product
quality, market share, sales, less cost, channels of distribution, superior IT capacities, online
facilities, promotions.
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The Sultan Center compares the business profits with other industries through this
measurement tool in order to analyze the performance of the business.
Critical success factors The Sultan Center
Shop
Food lion Trader Joe’s
Product quality
Advertisement
Price
Financial sector
Market position
Customer satisfaction
Competitive factor
Management quality
W R WS
20 4 80
15 4 60
10 2 20
10 3 30
15 5 75
10 2 20
5 2 20
5 3 15
R WS
2 40
3 45
2 20
2 20
3 45
4 40
2 10
2 10
R WS
2 40
1 15
3 30
2 20
2 30
3 30
2 10
4 20
Figure 1: CPM MATRIX
EXTERNAL FACTOR EVALUATION MATRIX
External factor evaluation matrix includes the tabular representation of external
factors of the Sultan Center Shop. This matrix is use for strategic management that includes
analysis of various external factors. It measures social, technological, government and
political issues, and macro economic variables for the analysis of competitive statement
(Tatoglu et al. 2016). The rating system that varies from one to four includes the responses in
relation to the threats, opportunities of the company. It indicates the more the rating the better
is the response in terms of exploitation of opportunities and greater rise of threat factor.
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External factors Weight Rating Weight score
Opportunities
 Fresh trade
agreements
 New contract
with supplier
 Market growth
by 15 percent
 Decrease in tax
rate
11
9
24
10
3
1
2
1
33
9
48
10
Threats
 Threat of
customers
 Natural
calamities
 Decrease in food
production due
to high rates
 Threat of rivalry
17
3
14
12
4
2
3
2
68
6
42
24
Figure 2: EFE MATRIX
INTERNAL STRENGTH AND WEAKNESSES
The internal strength includes the strong bargaining power and proper knowledge for
the products. The Sultan Center Shop can make its strength by creating strong bargaining
power and high customer oriented market. It will influence the buyer and the production unit
in a positive way.
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Threat of substitute is the major weakness for Sultan Center Shop. Substitution of
product can deteriorate the customers for Sultan Center Shop. This results in the growth
decline in income of the shop. To maintain the customer growth, Sultan Center Shop should
enhance the creativity in product diversity with respect to the demands of different range of
customers.
INTERNAL FACTOR EVALUATION MATRIX
The strong financial system of the Sultan Center Shop will create a strong internal
impact on the business environment. Along with these good sales, product diversity and latest
arrivals in various products will give more customers for the Sultan Center Shop. This in turn
creates positive and stability in the business performances.
Key Internal Factors Weight Rating Weighted Score
Internal Strength
Strong position in
local retail market
0.06 3 0.16
Quality of product 0.10 3 0.15
Large Varieties 0.12 4 0.30
Customer Brand
Loyalty
0.15 3 0.28
Social Responsible
Actions
0.16 4 0.29
Longer shelf life 0.09 4 0.20
Brand Awareness 0.05 3 0.10
Technologically
sound services
0.10 4 0.15
Internal Weakness
Narrow market
segment
concentration
0.02 1 0.3
Past strategic failure 0.04 2 0.4
Poor advertising and
promotion
0.03 1 0.5
Little brand presence 0.02 2 0.3
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Fewer strategic
alliance
0.03 1 0.05
Figure 3: IFE MATRIX
LONG-TERM OBJECTIVES & STRATEGIES
To capture long-term benefits by meeting the objectives, TSC must focus on standard
material while production of new clothes and materials. Since the products are used by
consumers on daily basis, the quality needs to be enhanced in order to attract more consumer
base. Performance and integrated service delivered by compact management system is the
major factor for the company to meet long term objectives of higher growth of business and
profits. Good quality brings more consumers that reflects further the growth and development
of the organization.
SWOT MATRIX
Referring to the strength part, there are few factors that creates success of the Sultan
Center Shop. Being different from other shops, the Sultan Center Shop possesses some
unique features like innovative and latest collection products. A good marketing strategy
means innovation and modernization. Innovation comes from creative minds and research.
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STRENGTH WEAKNESS
INTERNAL
FACTORS
OPPORTUNITY THREAT
EXTERNAL
FACTROTS
Innovation
Wider range of
latest Collection
Good marketing
Strong research and
development
Poor advertising
Poor quality of consumer
durable
Inadequate Information
Price discrimination
Expansion of outlets
More employment scopes
More profit and revenue
growth
Huge competition
More rivals
Customer dissatisfaction
Decline in demand
STRATEGIC MANAGEMENT ASSIGNMENT
Figure 4: SWOT MATRIX
The successful existence of TSC creates tough competition in the market that is
inflicted with many other retail brands and stores. Expansion of the business results into
growth in demand, production and output of the Sultan Center Shop. The company already
has established reputation as supplier of oil industry which makes it gain recognition and trust
among consumers.
Low level in advertising of new products and goods, bad quality consumer durables,
inadequate information and prices discrimination are major weaknesses TSC is suffering
from (Wheelen and Hunger 2017).
The weakness brngs forth the threat that the company is exposed to in terms of of low
sales and productivity in their retail business due to less knowledge creates threats in terms of
decline in demand, customers, low output and more rivals.
With respect to the opportunities for the Sultan Center Shop, it includes quality
environment friendly resources, modern technology and creative ways to expand business. It
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creates more encouragement in the marketing of the goods that can create more job
opportunities leading to more growth, tough competition and profit.
STRATEGIC POSITION AND ACTION EVALUATION MATRIX
Strategic position and action evaluation matrix includes assessment and evaluation of
wisdom and logic in a particular strategic project. In case of the Sultan Center Shop, it will
help to chart an evident business preview. This matrix gives the systematic structure of the
business issues that equals the internal and external factors.
Internal Strategic Position External Strategic Position
Financial Strength
 Stability in Profit
 Strong capital accumulation
 Inflation immune functions
Industry Strength
 Growth and expansion
 Proper resource allocation
 Attractive in the existent local
businesses
Competitive Advantage
 Vertically integrated
 Customer loyalty
 Moderate market share
 Medium to high product quality
Environmental Stability
 Huge rivals and subsequent
competition
 Lower price of competing goods
 Consumers switch and fall in
demand
 Huge risk embedded
Figure 5: SPACE MATRIX
The ratings and review is 1 to 6 in a competitive matrix (Chuang and Lin 2017). The
other aspect is financial growth part that includes Leverage ratio, return on investment, cash
flow transactions, risk factors of business, capital requirement and economies of scale. In
case of ratings and reviews this also ranges from 1to 6 in a matrix. Therefore, various factors
are consider while using SPACE matrix method for the evaluation of the business
performances.
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RECOMMENDATION & IMPLEMENTATION
Maintenance of economic stability and market strength amidst rival existence of other
firms are the major recommendation that TSC can receive. Being largest retailer the company
has major economic impact on the retail industry of the country. For this it should focus on
the threats existing to the business stemming from the weaknesses and accentuated by the
strategic failure. The pricing discrimination negatively impacts consumer behavior affecting
brand image. Poor information also hinders and misleads the strategy design. All of these
should be given utmost importance and management should be bestowed with responsibilities
of effective outcome. Implementations cannot take place without social and political factors
favorable to the business operation hence government should take note of this.
The only recommendation provided to TSC is to maintain economic stability the
economic variables should behave positively and the four factors of production must work
efficiently in order to achieve long-term goals. There will be tough competition in future with
long scale of production if the economic variable works normally and efficiently.
STRATEGY REVIEW AND EVALUATION
Recommendation and implementation are not end notions of any business as
evaluation plays significant role to bring out the net outcome of the adopted strategies. How
well the companies build strategy and how far they are contributive to the success of the
desires aim, depends on the review and evaluation process conducted by the business
organization. TSC can encounter these by collecting feedback from the consumers it serves.
It can also organize some events focused on activities that reveal the facts about consumer
satisfaction, happiness which further makes the assessment easier and impactful.
CONCLUSION
The report aimed to highlight the strategic management design that the retail leader
TSC incorporated with analyzing the efficacy of it. It can be concluded from the discussion
that the TSC shop is enjoying huge market share due to its reputation earned from the
inception. It has been able to meet many of its vision and huge business growth overtime
through diversification and customer attraction tapping the growing market. There is no
issues as of with the brand image and services of the supply chain . However there have been
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severe issues in the quality of the products, price discrimination and poor managerial
execution which hinders the growth.
Understanding the problems and nullifying them with adoption of effective strategies and
management structure can help TSC shop create a multicultural and highly profitable
business as it aspired to become.
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