Introductions - Strategic Planning And Finance For Managers
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Primark is a retailer company, that is a multinational fast fashion retailer company. Its headquarters is in Dublin, Ireland. in the year in 1973, Primark was established in the United Kingdom. Now a day the United Kingdom has a total of 191 stores. They are included in women’s fashion, kid’s fashions, men’s fashion, etc.
Strategic Analysis for Current Situations
with the help of strategic management analysis, the company of Primark controls its activities, it means based on the different types of strategies Primark mentions in its current situation in the market.
Key Performance Indicator
With the help of key performance indicators, the companies easily indicated their key performances, basically, the company of Primark depends on the KPIs to indicate their performances (Voss et al., 2019). KPIs one of the most important points is the growth of revenue, company’s performance management, relation with the client, and customer satisfaction.
The company of Primark’s total revenue growth is 36% of increased their revenue, with the help of increased revenue the company year to year continuedly 2007 to 2019 they have generated their revenue around 7.79 billi0n pounds. That is impacted in the company for good sides. But in the year in after 2019, the company faced many issues reason to the COVID-19 pandemic (Xydia, 2019). That is why the year from 2020 to 2021 end of the year company’s performances are not well and they are not exactly balancing their performances.
The next important part of the key performance, indicator is performance management, based on this the company identifies the actual issues. Which are involved in the company for performance management. Basically, performance management enables to set the target, side by side measure the performances, and define the goals, after that giving clear identification based on this particular goal and performance management.
Relation with the client is another important part of the company that is the reason Primark always focused on their clin and always balances the performance.
The final part of the company for always focused on the customers’ satisfaction. In this ca the company of Primark is a clothing company which is the reason they always maintain their customer satisfaction area and on that basis the company carries always a well-organized structure (Wu et al., 2020).
STRATEGICS GOALS
EXAMPLE ONE
EXAMPLE TWO
Strategic objective
Generate the customer satisfaction
Generate the profits
The key audience for the objective
Marketing team and also the board of director
Finance employees and also involved the board of director
Performance answer
Many of the customers were satisfied with the company’s performance.
That is the impact of the company on generating good performances.
With the help of key performance indicators understanding the current situation of the company is overcome the issue that is deeply impacted by the COVID-19 pandemic.
Core Competitors:
Primark company is a multinational company that is the reason it has different types of competitors that indicated the company counties increased their value day by day (Eisenberg, 2019). Its core competitors are Peacock’s stores, Matalan retailer, new look, Rainbow, etc. those are the core competitors of Primark.
SWOT
With the help of SWOT analysis, the company understands its current situation, which means strength and weakness is the internal factor that helps analyze the current internal situation the other one is opportunities and threat which help to analyze external factors.
Strengths:
Primark has more strengths which is the b point of the company, like, there are around 50000 employees all over the world. It has also the rage which is extensive rang apparel including menswear, kids wear, women’s wear, etc (Bhuiyan, 2021).
It is established in more than 10 countries. It has only another plus point which is they have no cost of advertising because they have more positive about the company and with the help of this positivity the company never using the mouth marketing.
That have more premium qualities products that make a positivity in the company and also take satisfaction in the customers.
That also assists the company in generating revenue and which is around $7 billion.
Weakness:
It has a number of weaknesses which are,
It has a huge number of premium quality products and those are changes quickly that is the reason it has a limited share growth market (Mulder,2020).
Unpredictability in quality that is outsourcing of the manufacturing of apparels lead.
Opportunities:
It has the maximum number of opportunities because it is a multinational top brand company because day-by-day, they are continually improving their strategy that is why they are earning huge opportunities which are,
They are always focused on how they are grabbing the public for their fashion style with e help of public demand. This strategy always helps the company to achieve opportunities.
On the other hand, the company of Primark was established in the United Kingdom, that I reason thy are achieve more opportunities because the country of UK is a fashionable country that is why they are provided more fashionable products (Chang, Iakovou and Shi,2020). in this case, Primark also provides a fashionable product.
Threats
Additionally, that is also faced some threats like,
It has a limited amount of global presence that is different from the players of international.
Verity types of economic crises also in point like a threat of the company. The COVID-19 situation is also involved in the threats of the company.
PESTEL
That is also the help of the company for understanding the current situation of the company. Like:
Political Factors:
Political factors are one of the major factors in the company. Because only with the help of political factors the company understands the current situation of the political factor in the country of the UK. Basically, the UK has updated political factors which are truly apricating to the company of continuously run their business and that is why the company of Primark easily established their business in the country of UK (Niederleytner Enciso, 2018). On the other hand, in the COVID-19 pandemic situation, many of the companies lost their performance and at that time UK political factors gave some of the facilities that help consume the companies and recover their situations. As well as company of Primark also consumes overall opportunities based on these facilities recovered their situations.
Economic Factors:
That is also an important part of the company because with the help of well economic conditions the companies find the actual places that really will help make opportunities for the company. In the case of the year, 2020 to 2021 overall world faced the COVID-19 pandemic, at that time the country of the UK also faced a huge amount of losses (Rapo, 2019). As well as company of Primark also faced the same situation, side by side the country’s economic conditions went down. But in the end, the UK government balancing the economic conditions create some of the factors based on this factoring company of Primark maintains their issues and continually growing their own business.
Social Factors:
This on also includes in the PSTEL analysis. Based on this factor the company clearly understands the social factor in this particular area (Yang, Sliusarenk and Ferraro-Doucette, 2020). Case of Primark established its business after research which is why it always achieves the opportunities that help the company to run the business.
Technological Factors:
The country of UK is a fashionable country and they have always used updated technologies that are the reason each and every company also used the different types of updated technologies which help the company for increased opportunities (de Oliveira, 2018). As well as the company of Primark based on these facilities established the business in the country and achieve more facilities that are reason impacted by the pandemic, they easily overcome their losses.
Environmental Factors:
Always depends on the well environmental factor affected in the business environment. That is the reason the company of Primark depends on the well environmental factor established their business in the country of United Kingdom.
Legal Factors:
That is identifying the legal factor of the country, like what type of policies make opportunities for the company, based on these factors companies decide their upcoming situations, In the case of the company of Primark they are also established their store in the UK. Based on the legal factor the company easily achieves more opportunities that also assist the company for continuously expanding their performances.
Strategic Plan for Future
Affected by the COVID 19 pandemic the company faces many issues which are deeply impacted the company. But at the end of the year 2021, they are continuously trying to overcome this situation finally they easily overcome their issue. Based on the future the company of Primark makes some of strategic plans for updating there features like more updating products like will update fashion related to exclusive variants. Based on these activities they are making some of the strategies which are help of the company for growing future performance. With the help of the Ansoff matrix, SAFe Centrica, and its finance strategy measure the future performances.
Ansoff Matrix
Ansoff matrix basically indicates the future performance of the company based on the market penetration, market development, product development, and diversifications. All are included in the Ansoff matrix.
Fig: Ansoff Matrix
Market Penetration
The firm aims to expand by utilizing its current offerings in current markets as part of a market penetration strategy. In other words, they constantly work to gain market share because doing so will also assist the business meet rising demand (Kurniawan, Iswahyudin and Suciati, 2020). Increasing market share within current market segments is required for this. Based on their initial fashion development and product sales, they can also gain more customers in the market. The company’s goal in this case is to improve sales of its current items in its current markets by stepping up its promotion and distribution efforts (Khajezadeh et al., 2019).
Market Development
Always focused on the market changes that are important to the company for day-to-day changes. With the help of market development, the companies easily find out the actual need of the market demand based on this demand company will develop its skills (Khajezadeh et al., 2019). Like the various types of customers fragment, the business can take advantage of its distinctive product technology in the new market, if it improves output, economies of scale benefit and Market consumers are profit-generating just by being there.
Product Development
Product development is another important part of the company. Future development product development is another of the developing future (Sukma, Lubis and Utami, 2019).It means day by day customers will change their tests and preferences those are the activities involved in the product development strategy which is the reason the company of Primark continuously changing its products.
Diversification
That is the help of the company for risk management and that is one also if the company involved their performances easily overcome the issues.
Fig: Primark’s Ansoff matrix
After this discussion, the company only used the existing market with the help of new products. It means if the company based on the new products in the existing Market company of Primark easily overcome their issues.
SAF criteria
Depending on these criteria the company will understand some of the basic points because with the help of SAF criteria identifying the company’s suitability, acceptability, and feasibility.
Suitability
Based on this area the company will understand how they are with the help of strengths easily overcome their weakness and threats (Kurniawan, Iswahyudin and Suciati, 2020). Like company already has around 50000 employees all over the world and each and every employee are skills full person those are helping the company with their outstanding performance, and that is the help of the company for overcoming their issues.
Acceptability
First of all, the stakeholder of the company like internal stakeholder and external stakeholders will easily be accepting their plan and it is such a low-risk activity because now a day each and everyone needs fashionable products, and the company also produce a new fashionable product that is easily accepting the stakeholders also it is the low-risk strategy of the company.
Feasibility
This is the final part of the SAF criteria depending on the skill’s full employees and workers. Because they are most skill full persons and based on their different types of mind functions easily designed excellent structure of the products which are will help of the company for attracting of the customers.
Source of Finance
Based on the future strategic plan company of Primark will help with retaining earnings and another option is trade credit facilities.
References
Bhuiyan, S.A., 2021. A PRACTICAL LEARNING FROM CENTRO TEX LIMITED.
Chang, Y., Iakovou, E. and Shi, W., 2020. Blockchain in global supply chains and cross border trade: a critical synthesis of the state-of-the-art, challenges and opportunities. International Journal of Production Research, 58(7), pp.2082-2099.
de Oliveira, A.I.K., 2018. Monitoring the nutritional quality of tomatoes during shelf life after a post-harvest treatment with calcium chloride.
Eisenberg, P., 2019. Financial Analysis of Primark Stores Ltd. with regard to a Stock Exchange Floatation (IPO). International Journal of Management, 7(1), pp.91-112.
Khajezadeh, M., Niasar, M.S.F., Asli, S.A., Davari, D.D., Godarzi, M. and Asgari, Y., 2019. Application of neural network in portfolio product companies: Integration of Boston Consulting Group matrix and Ansoff matrix. International Journal of Economics and Management Engineering, 13(6), pp.821-825.
Kurniawan, D., Iswahyudin, M.D. and Suciati, T.R., 2020. SWOT Analysis and Ansoff Matrix in Creative Food Industry Business Development: A Study on Creative Food Business “Komala”. Open Access Indonesia Journal of Social Sciences, 3(2), pp.128-136.
Mulder, A., 2020. Human Rights in the Void-The UN Guiding Principles on Business and Human Rights in the Context of Instability, Conflict and Repression (Doctoral dissertation, Leiden University).
Niederleytner Enciso, N., 2018. Valuation of Inditex group.
Rapo, N., 2019. Marketing the high street: a solution to the British retail crisis?.
Sukma, D., Lubis, P.H. and Utami, S., 2019. Analysis of Marketing Strategy of Minyeuk Pret Using STP, Ansoff Matrix, and Marketing Mix.
Voss, H., Davis, M., Sumner, M., Waite, L., Ras, I.A., Singhal, D.I.V.Y.A. and Jog, D., 2019. International supply chains: compliance and engagement with the Modern Slavery Act. Journal of the British Academy, 7(s1), pp.61-76.
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Xydia, N., 2019. Sustainably-conscious consumers’ perceptions, attitudes and behaviours towards the fast fashion industry: A Case of Primark.
Yang, R., Sliusarenko, A. and Ferraro-Doucette, E., 2020. Everlane: a ‘radically transparent’fashion company disrupting the industry. International expansion strategy.
