Critically assess who the key stakeholders are and their involvement with the future strategies to be implemented
Assignment Brief
This paper emphasises Strategic Management in which you have to write a report incorporating the critical evaluation of key stakeholders and their involvement with future strategies. Moreover, you also have to include a situational analysis along with determining the current strategic direction and the direction in which the chain should be heading towards with focus on corporate strategies.
Instructions
Subject: Strategic Management
Report on the following and organize accordingly:
- Critically assess who the key stakeholders are and their involvement with the future strategies to be implemented
- Compose a situational analysis
- Determine the current strategic direction and the direction in which the chain should be heading towards with focus on corporate strategies
Sample Answer
Strategic Management Report: A Corporate Strategy Assessment of Urban Threads
Introduction
Urban Threads is a UK-based mid-sized retail fashion chain catering to youth and young adults with fast fashion at affordable prices. With increasing market competition and changing consumer behaviour, the company needs a clear and informed strategic direction. This report aims to critically assess key stakeholders, conduct a situational analysis, and propose strategic directions with a focus on corporate-level strategies to ensure long-term success.
Key Stakeholders and Their Involvement in Future Strategies
2.1 Internal Stakeholders
a. Employees:
Employees are core to delivering customer service, handling operations, and maintaining brand image. Involving them in decision-making, especially on store layout, product ranges, and digital transformation, increases morale and effectiveness.
b. Management and Board:
The senior leadership is responsible for shaping strategy, resource allocation, and performance evaluation. Their role is vital in planning expansion, responding to competition, and integrating sustainability goals.
c. Shareholders/Owners:
They expect growth, dividends, and return on investment. Their interests align with profitability, so they influence cost-saving strategies, brand development, and long-term planning.
2.2 External Stakeholders
a. Customers:
Urban Threads’ customers are trend-conscious and digitally savvy. Future strategies must include digital engagement, quality, sustainability, and fast delivery to meet their changing expectations.
b. Suppliers:
Suppliers impact the supply chain, costs, and product availability. Strategic partnerships with ethical suppliers will be crucial to support green and socially responsible strategies.
c. Local Communities:
As the company operates stores in several UK towns, community engagement and social responsibility will help in improving public image and customer loyalty.
d. Government and Regulators:
Regulations regarding employment, taxation, and sustainability impact operations. The company must ensure compliance and respond to changing policies, especially on climate change and digital data protection.
Situational Analysis
A situational analysis helps assess Urban Threads` current position in the market. This includes both internal and external environment evaluations.
3.1 SWOT Analysis
| Strengths | Weaknesses |
|---|---|
| Strong brand recognition among youth | Overdependence on physical retail stores |
| Trend-responsive product lines | Limited international presence |
| Loyal customer base | Low investment in sustainability |
| Opportunities | Threats |
|---|---|
| Growth in e-commerce | Rising costs of materials and labour |
| Sustainability-driven branding | Fast-changing fashion trends |
| Expansion to European markets | Competition from online-only retailers |
3.2 PESTLE Analysis
| Factor | Influence |
|---|---|
| Political | Trade policies post-Brexit may affect import costs |
| Economic | Inflation and recession fears can reduce spending |
| Social | Increasing demand for ethical fashion |
| Technological | Rise of AI and e-commerce platforms |
| Legal | Data protection laws and employment standards |
| Environmental | Pressure to reduce carbon footprint and textile waste |
Current Strategic Direction
Urban Threads has traditionally followed a cost leadership strategy with a focus on fast fashion. Stores are located in busy city centres, and prices are competitive. The brand heavily relies on in-store sales, occasional promotions, and basic social media engagement. However, this approach faces limitations due to the rise of online competitors and shifting customer expectations.
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