An organisations process

An g e very(prenominal)wherenances process foundation garmentStrategic planning is an plaques process of defining its corporate outline, making decisions on allocating its resources to succeed its schema, including its capital and homophile resources. In this modern and competitory era growing blood line, means taking timely, quick and accurate decisions somewhat the way we want to grow our business. As an organisation grows, it becomes more and more complex for management to control. In this case, strategic planning is the key comp unitarynt for all type of organisations, which help them to victuals on track. all told organisations depend on strategic plan to keep the long-term focus synced up with day-to-day decision-making. From plank level to front line staff, e realone is aligned with the organisations strategy and vision. Because it is a road map to lead organisation from where it is now to where it would like to be in future. It is very important for management th at they make sure, that all those who involve in any activity be clear about what that organisation is looking to strike and how they are planning to do it.The main source of information is included from official websites and reports published by companies. Moreover, references from variant books, published journals articles, research reports and internet have been apply to support the arguments.Critical synopsis of Strategic planning of PrimarkCompany profilePrimark is an Irish wear retailer. It opened its first store in Dublin in 1969 under the name of Penneys. The company head office is based In Dublin, and give outs 193 stores in Ireland, UK and other European countries. Primark is a subsidiary of Associated British Foods Plc (ABF) and positions itself as marting (selling) vogueable clothing at cheap outlays, targeting women, men, children and tot home decoration hots. Primark aim is to focus on latest fashions and sell to its customers with the categorization of d e signal at affordable prices. Primark mission statement is to provide customers with high prime(a), fashion basis at value for bills prices (Primark cc9).Critical Analysis of Primark tally to clothing market review 2008, the United Kingdom retail clothing market was worth 42.45 billions in 2007. It account for almost 6% of total consumer spending which is lowest comparison in the recital of UK. The reasons for decline in market were the declining prices and raging competition in the industry. Survey in any case shows that the cheap clothing market consumers will summation in the future and in that respect is no sign of result in market value over the next five years ( foodstuff Report 2008).Primark governance intense competition due to number of competitors (Appendix 1). correspond to Bowmans Strategic Clock (1996), Primark is position itself in militant environment at low price in his strategic clock (Appendix 2). This strategy helps Primark to analytic thinking it wa r-ridden position in other competitors. Primark is fashion conscious targeting under 35s with the slogan Look intimately concede slight at Primark. It offers good quality fashion clothes at very warlike prices. According to Porter generic Strategies (1980) Primark is following constitute leadership Strategy in retail clothing market. The advantage of this strategy is based on access to cheap resources and buying in bulk.Michael Porters Five Forces (1979) Model of combative position helps Primark to analyse its emulous position in the industry. Cost leadership strategy helps Primark to create barrier for new entrant to sell same outputs at lower price. Primark imports from Asian countries where cost of production is very low and buying in bulks help Primark to improve its Bargaining military force. On the other hands, bargaining power of the customers is non very strong because no other retailer is selling trendy and fashionable products at such a low price. So all this help and provide a platform to Primark for refinement both gaining market share and entering into new markets.PEST analysis fundament be used to examine the factors motivateing on Primarks international Environment. solely tetrad factors have a considerable impingement on Primarks environment. Political factors such as labour law, environmental, trade restrictions, tariffs, tax policy restrict Primark to operate within the limits. Economic factors such as interest rate, inflation rate, ex swop rate, economic growth and garbage disposal income affect Primark business operation and day-to-day decision-making. Social and cultural factors help Primark to take into account trends, fashion, growth rate in population, age, gender etc. Finally, technological factors helped Primark to reduce cost, improve quality and lead to innovation.In UK, clothing market is very competitive and credit crunch made it worse. Primark is the only clothing retailer who gets benefit from credit crunch. According to Igor Ansoff (1957), Primark is penetrating the clothing market to targeting competitors customers and retaining existing customers. Sean Poulter (2008) report says, Primark sales ruddiness over 25% in 2008 and gave Primark overall 10% market share of UK clothing industry. It made flash tremendousgest seller after MS (12% trade Share). Primark has a very clear market positioning at the cheap end of the market.For Primark internal environmental analysis, SWOT analysis is used to assess Primarks internal capabilities, center of attention competences while threats and opportunities assess external environmental factors. Primark SWOT analysis is sh make in appendix 3.Critical Analysis of Strategic cooking of Woolworths Group PlcCompany ProfileF.W. Woolworths Company founded Woolworths in UK in 1909. In 1982 it was acquired by Paternoster Stores ltd, the subsidiary of Kingfisher Plc. Woolworths Group Plc was formed by the demerger of Kingfisher and began craft as list ed company in August 2001. It familial a mountain of 200 million debts, and costly lease agreements. Right from the beginning, it sold a variety of goods such as childrens clothes, toys, stationery, electronic goods and confectionery. Pic n mix sweets and Woolworths have always gone unneurotic until went into administration. In first tetrad years company really took off but after 2005 it approach constant decline in business and finally it went into administration on 27 January 2009 (Times Online 2008). This company was one of the biggest dupes of recession.Mission and VisionWoolworths mission was to be at the heart of the community and the outmatch loved retailer for kids, home and family leisure. Vision was to provide quality products and services to customer all the time through price strategies Elrico (2002).Critical Analysis of Woolworths Group PlcMy aim is to analyse strategic planning process of Woolworths to analyse retiring(a) seven years performance by using various s trategic tools. Woolworths performance has been variable over the past hardly a(prenominal) years and in 2005 private equity host Apax made a putsch bid, which was rejected by the board, and four weeks later they received a nonher offer and it made Woolies future chatoyant in retail sector.Strategic planning is usually begins with external environmental analysis of the organisation. contests are the original external consideration for strategic planning. For Woolworths Porter Five Forces (1979) can be used to analyse external environment. Woolworths failed to respond the threats of it competitors. They never made any strategy to build barrier for competitors such as ASDA, Tesco, Argos, entailment Stores etc. Its management always depend upon advertisement and customers loyalty. Perfect competition brought more choices for customers and due to intense competition (Rivalry) in the industry, profit squeezed and market demand saturated. Woolworths customers switched to its competi tors. Woolworths faced huge problems with suppliers in last correspond of year of trading and they forced to pay cash at the time of purchases because of lack of security.According to Michael porters (1980) Generic Strategies to obtain competitive advantages, organisation must have one of the following strategiesCost Leadership strategyDifferentiation strategyFocus strategyWoolworth get stuck in the middle without having any competitive strategy as a result competitors (ASDA, Argos etc) took advantages of that and stole all customers form it. They never released the importance of competitive strategy and had growth strategy to compete with competitors by opening new stores in different parts of the country. According to Igor Ansoff (1957), Woolworths had Market development strategy to target new customers.Woolworths internal environmental analysis, SWOT analysis is the vanquish tool, which can be use measure internal and external factors that affected on its strategic planning. i nseparable analysis examines Woolworths capabilities and external analysis examines factors that bring opportunities and threats (Appendix 4). Comparison of Strategic Planning of both organisationsIn the exceedingly competitive environment in which all UK retailers are in war to sustain their position against competitors in this recession, Primark is doing remarkably puff up. The key of success in based on its well-planned strategies that evaluate internal and external factors that affect on it environment. On the other hands, Woolworths group Plc failed because, they were never thought about any strategy that gave them competitive advantages over any of its competitor. People and media said that Woolworths was the victim of recession but I would say it was the victim of bad management. My aim is to oppose and contrast the strategic planning of both organisations. For this purpose, I have discussed few strategic planning models in critical analysis and now I am going to compare t hem and find out the reasons of success and failure.Pricing (Competitive) StrategyAccording to Michael Porter (1980) to get competitive advantages organisation must follow one of its generic strategies. Primark slogan is look good pay less, means cost leadership strategy. Cost leadership strategy does not mean low prices but it lead to evince on efficiency by reducing cost in all departments. This strategy gave competitive shore to Primark over it competitors. According to Jonathan Prynn (2009), Primark has boomed in the recession with the British biggest discount clothes chain unveiled big attach in revenue and profits. Primark revenues increased from 1.17bn in 2007 to 1.6bn in 2008 and it jumped to 2.31bn in 2009. On the other hand, Woolworths was trading without having any competitive strategy, which help its management to focus on the ways in which it can achieve the competitive position in the retail industry. Its revenue declined since 2004 and in final year of trading, Woo lworths announced pre-tax liberation of 99.7m for the first cardinal months. This is just because of Woolworths was stuck in the middle of competitive strategies for long time and management was not sure what price they charge to customers for particular products. Woolworths products were comparatively expensive than its competitors and customers realised their products are not good quality compare to the prices Woolworths charged.Affects of competitionCompetitors are the real enemies for all organisations. Successful organisation always makes plans onward to avoid the consequence of any threat from its competitors. Both organisations operate in highly competitive environment. Competitor analysis is very important for both organisations strategic planning. Sometimes organisations think that they are doing well and it is shell to carry on with their plans and other become obsessed with monitoring every action of competitors. Woolworths Group Plc was well aware about competition. In Woolworths financial reports 2008, directors mentioned competition is a big risk for Woolworths but they did not come up with any strategy (carry on their own plans) that help Woolworths to maintain and improve it competitive position in the market. They lost most of there business to competitors. In clothing retail industry, Primark is too facing intense competition. Most of Primarks competitors hold same percentage of market share as Primark have. at once fashion has become disposable and to avoid competition Primark has led fast fashion revolution at lowest prices taking the fast fashion retail industry into new era. I would say Primark has emerged as the McDonalds of the fast fashion retail industry.Customers AnalysisCustomers analysis is an operative tool, which helps organisations to understand the specific customers demand, preferences and loyalty to the organisation. To keep competitive in todays environment, organisations need to take an in depth look at customers to explore and commit opportunities and threats. I would say Primark is the market leader to understand customers demand and response quickly to the fast fashion requirements of customers. Primarks time-to-market has been very fast, both in terms of copying designs rapidly after they come out in terms of getting the new stock into their stores while items are still hot (R. M Grant, Blackwell 2009). New style, quality and low prices keep customers coming in and encourage them to come back again. all told these help Primark to increase its market share and revenue. On the other side of the picture, Woolworths failed to focus on what they were good at, to sell to there customers and failed to identify their core products and customers. From customers point of view, Woolworths was a complete mish mash with hundreds different types of products, but low product ranges. As a result, Woolworths did not have enough selection of any product to attract customers (John McMillan 2008). All thes e factors forced customers to switch to Woolworths competitors.Marketing issuesOrganisations used marketing tools to create, keep and satisfy customers needs and demands. To get competitive advantages in the target market organisations use segmentation, targeting and positioning tools. These tools help organisations to differentiate there goods and services from their competitors.Market Segmentation and targetingMarket segmentation help organisation to split customers or potential customers into different groups. Primark segments it customers on socio-economic (disposable income) and demographic (age, gender, lifestyle) bases. Robert Stockdill (2007) says in his report, Primarks target customer is young, fashion conscious and under 35 years old. So like umteen other retailers chasing that demographic or the broader value end of the market, Primark is now targeting a four to six week turnaround from design to shelf, sourcing primarily from Asia. Primark also target low-income group who have less disposable income to spend on latest fashion. Woolworths was also segmented its customers on demographic bases but there aim was to target all customer in the market. They never identified their target customer, market and which income group they were targeting.Market PositioningIn market positioning, my aim is to create an image in the target market for both organisations, their products, and brands. Primark is cognize as cost leadership retailer in the market, which has over fifteen own brands (Appendix 5). Customers think that Primarks products are good value for money. Woolworths also had very rich and successful long history with the number of brands such as Chad Valley, Ladybird, Winfield and Worthit etc. Form customers point of view both organisations market-positioning image can be mapped in the following Bowmans Strategic Clock (1996)Business SeasonalityMost organisations are affected by the fluctuation in business activity at different part of the year. Acco rding to directors 2008 report, Woolworths was highly seasonal browseer business. Most of its revenue, profit, and cash flow have been come from Christmas season. Lower than expected performance in the Christmas boundary may have adverse impact on overall Woolworths results. It happened continuously after 2004 with Woolworths and it performance was very unstable un-till it went into administration. Woolworths never made any strategy to avoid adverse affects of Christmas sales. Primark business is all four seasons. Although most of its sales come from Christmas season but other three seasons of the year its make good profit. According to (James Hall 2009) report, Primark total revenue reaches it highest level of 1 billion in first six months of trading, which is 18 % more than last year. Primark is the only largest fashion retailers around the world, who produce solid performance in credit crisis due to strong strategic planning.ConclusionStrategic planning is directional map, key operator for strategic management for deciding where their company is headed and how they are planning to get there. Strategic planning is known as a process of defining strategy and making decisions on allocation of organisation resources to pursue strategy. It is a dynamic tool of continuously looking at organisational current position, examine and plotting future move. All this need in-depth knowledge and understanding about organisation and its internal and external environment in that operates in. the best organisations like Primark always engaged in some form of strategic planning to keep themselves modify about internal and external environmental factors.Based on my detailed strategic planning analysis of Primark, i would say that Primark has comprehensive strategy planning, which considers all-important factors that affects on its business environment. From my to a higher place research, I finish that, there are number of reasons behind Primark success. Firstly, they und erstand customers specific requirements and always come up with the solving of latest fashion at low price. Secondly, Primark has a very clear market position at the cheap end of the market and target customers who have low disposal income and fashion conscious. All this gave Primark competitive advantage over its competitors. Third, Primark has access to cheap resources and has very tight control over costs, which help them to increase profitability.Many people say Woolworths was the victim of credit crises. Other says Woolworths faced financial pressures (received over 200 million debts in inherent and seasonal business crises) and severe competition from day one, so that is wherefore it failed to survive. From my above discussion and analysis, I conclude that Woolworths was the victim of bad management and poor strategy planning. From my above discussion, I have mentioned several reasons of Woolworths failure. Woolworths completely failed to respond the threats of competitors, new technologies, customers buying patterns and target market. The world change very fast in twenty-first century and strategy worked in 1990s does not work today. Woolworths was keeping the old fashion strategy and planning to run business successfully in 21st century, where yesterdays strategy could be out date today. World has become global village and customers have many choices to buy products from any were in the world through internet. Ignorance of all these external factors have leads Woolies to lose their business to competitors.Finally I would say the key of success is to do few things right like Primark, not 100s things badly like Woolworths, keep ears and eyes open, monitor your internal and external environment, and response best to the threats and exchange into opportunities.Financial analysisReferencesASX Announcement (2009), Primark, 3Q Holdings Limited 2009, Online, http//www.threeq.com.au/announce/AnnouncementPrimark.pdfBowmans Strategic Clock (1996), Strategic Bu siness Planning, Strategies for leaders, followers, contention and nichers, foreign Financial Publishing 2006, Surrey UKElrico (2002), Woolworths Group Plc, Advfn III (2002), online, http//www.advfn.com/stocks/buy-woolworths-as-they-are-a-good-shop-with-many-varieties_2527942.htmlIgor Ansoff (1957), Strategic Business Planning and Development, Strategy Development, International Financial publishing Ltd 2006.James Hall (2009), Primark Overtakes ASDA as Biggest Low Price Clothing Retailers, Telegraph twentieth Jan 2009, Online, http//www.telegraph.co.uk/finance/newsbysector/retailandconsumer/4299950/Primark-overtakes-Asda-as-biggest-low-price-clothing-retailer.htmlJohn McMillan (2008), Learn From Woolworths, Academy, online http//www.ecademy.com/node.php?id=118215Jonathan Prynn (2009), London Evening Standard, Primarks recession fashion boom, online, http//www.thisislondon.co.uk/standard/article-23763781-primarks-recession-fashion-boom.doPrimark 2009, Primarks History, Primark Stor es limited 2009, Online, http//www.primark.co.uk/page.aspx?pointerid=eb44df4565934edca627dac6ec12145a Market Report 2008, Clothing Industry Report, Key Note publication Ltd Feb. 2008, Online, http//www.researchandmarkets.com/reports/594454Michael Porter (1979), Strategic Business Planning and Development, The Competitive Environment, international Financial publishing Ltd 2006.Michael Porter (1980), Generic Strategies, Marketing Teaches Ltd (2000 2009), Online, Cited 14th November 2009, R. M Grant, Blackwell (2009), cast The Frills Making A success, open2.net, online, http//www.open2.net/moneyandmanagement/management_organisation/briefs_20051206_primark.htmlRobert Stockdill (2007), Primarks fast fashion revolution, Inside Retailing Magazine Oct 2007. online, http//www.insideretailing.com. au/Latest/tabid/53/ID/1552/Primarks-fast-fashion-revolution.aspxSean Poulter (2008), Primark now Britains 2nd Biggest Clothing Retailer, Mail Online (2008), http//www.dailymail.co.uk/news/articl e-561270/Primark-Britains-second-biggest-clothes-store-thanks-rise-disposable-fashion.htmlTimes Online (2008), History of Woolies, By Rosie Lavan, Online, Witchalls, C (2007) flexibility and speed key to new revenue streamshttp//www.computingbusiness.co.uk/computing business/analysis/2183247/case-study-bt