Delivery in day(s): 5
Business strategy can be defined as the vehicle that can drive an organization to its desired goal – towards the successful completion of its goals and objectives, the achieving of its targets, meeting its environmental and social responsibilities and environmental responsibilities. In most cases, the managers, experts and decision makers of the company sits down and assesses market conditions, customer perceptions and draws a plan that would lead it in its path in the next few years. Companies base their strategies on its strengths, organizational competencies, market conditions and customer preferences. These strategic decisions become the most important plan that shows the business organization its targets that it needs to complete in order to succeed in its endeavour to becoming a successful company with a stable and loyal customer base.
Mulberry’s heritage is infused in the English leather craftsmanship. Today mulberry is the largest manufacturer of luxury leather goods in United Kingdom. Mulberry has established itself as a British lifestyle brand, widely known for its leather poacher bags including the binocular and dispatch bag. Mulberry Group Plc is listed in the London Stock Exchange and its shareholders with 250 or more shares are entitled to get a 20% discount in the Mulberry’s stores.
Several strategies can be adopted by a brand like Mulberry to enhance its opportunities for growth and success.
Mergers- a commonly used strategy is the coming together of two different forms who share their capabilities, competencies, resources and strengths to work towards the common goal to achieve the desired success. Mulberry can merge with another company which could add their own strengths with the strengths of the former and work towards achieving the goals set by the company with coordination, mutual trust and mutual benefits. Take for example, the M&A transaction of Shell and the Royal Dutch Petroleum. This merger has brought both the companies in the top two slots of the London FTSE 100 and almost on the equitability of the oil giant BP.
Franchising- is the process through which companies can further illustrate the image of the brand to the customers and present before them the qualities and that would appeal to the customers. Franchises are useful in setting up chains and stores and Mulberry too can benefit from the same. Mulberry can extend its capabilities and core potential to its franchisors and set up franchisee stores to cater to a wider range of customers. (Wells, 1986) For example McDonalds has almost over 75% of its restaurants around the world owned independently. In order to become a franchise, a business owner can purchase a new or even an existing food chain with a down payment in the initial stage and the leftover amount can be financed for up to a limited time period, say for seven years. The agreement terms and conditions includes of the continuing fees that includes the rent and service fees.
Strategy evaluation provides extremely important information that is needed to increase the benefits in comparison to the capital invested. Strategic evaluation is a response to societal, governmental and conceptual demands which emphasizes a shift in current evaluation thinking. The different approaches to strategy evaluation and selection are:
Market Entry Strategy- There are various ways by which Mulberry can enter into new market segments which is an integral part of global market entry strategy for them. This will further have large impact on the product and marketing mix stratergy decisions, so, they need to critically analyze the requirements in the dynamic marketing environment.
Following are the key strategies that can be adopted:
Turnaround Strategy- It is the recovery strategy to revive the financial resources of the company. They can identify their problem areas, analyze the changes in the market environment and subsequently develop and implement problem solving strategies.
Steps that can be undertaken by Mulberry are:
The factors that can support strategy selection in Mulberry are:
It is important for any company to focus on its human resources to further add value to its goal and help it along its path to business success. The human resources in Mulberry need to work towards achieving organizational efficiency.
Mulberry needs to achieve the acceptability of its employees to earn their interests and commitment, which would contribute towards achieving greater results. Mulberry needs to focus on increasing its organizational efficiency since efficient operations can translate inputs into greater and more productive outputs. Another keen addition to the potential of the firm can be brought about by adding more value by minimization of wastes. Waste minimization will influence a more efficient utilization of resources and also help reduce costs. Promoting training of employees would also help achieve efficiency by imparting better and improved skills which would translate into better productive results. Mulberry can also adopt a strategy of organizational alignment of the employees, much like Sainsbury, which conducts an alignment program for its new employees to make them aware of the organization’s goals and practices, their responsibilities and targets. (Scott & Bruce, 1987).
The company needs to make its products desirable to the customers. A decisive and attractive advertising campaign could help Mulberry grab the attention of the customers. The designs, the materials and their presentation, from its packing to its market presentation needs to be elaborate to attract the focus of the customers it intends to target.
These strategies can add more value to the organizational efficiency of Mulberry and help it achieve better results in the market. Motivation and effective leadership also adds value by encouraging employees to put in their best efforts and help create a bond of mutual trust and cooperation which could form the basis of successfully completing several tasks and objectives(Ackoff, 1974).
Mulberry can implement the market entry strategies by using the following approaches:
The crucial management people who are responsible for strategic implementation at Mulberry are the C- level managers like the CEO’s. They communicate the vision of Mulberry and help to implement strategic plans. Even other mid level mangers contribute responsively to communicate the shared vision and purpose of the plans to other employees at the vertical level for effective execution. The execution tasks, jobs and responsibilities vary across all levels but they are all co related and critical at their functional levels.
The essential elements of strategy implementation at Mulberry are:
The key roles that are needed for effective strategy implementation at Mulberry are:
Resource allocation is one of the most important aspects min the process of implementing the planned strategy. Mulberry as a company needs to have a clear strategic meeting and discuss on the issues that it needs to strategize for achieving greater success in the near future. The company requires several resources to successfully carry out its planned strategy.
Restructuring the organization according to the new plan is essential for the smooth operations of the new strategy. The company’s organization needs to be restructured to lend it greater efficiency to carry out the tasks and responsibilities. The company may choose to have newer recruits to employ skilled individuals based on the responsibilities of the new strategy, or restructure individuals posted in different responsibilities according to the need. So, based on the priorities of the task, and the technical abilities required to successfully complete an allotted task, the organization can be restructured to fulfil the new planned strategy (Grimshaw, Thomas, MacLennan, Fraser, Ramsay, Vale & Donaldson, 2004).
Commitment and willingness to change: from the old strategy to the new strategy would hold the key for the organizational response to the new strategy. It is important for the management to communicate well with the employees and the organization and emphasizes their rights, securities and benefits would not be hampered due to the change in strategy. Since a strategic change brings in organizational change as well, it is natural for the employees to be apprehensive, so the management needs to lend them the support and give them the assurance that they need to continue their tasks with the confidence that is required.
The targets and timescales that are required at Mulberry are:
The SMART objectives of Mulberry are:
SMART objectives and strategy implementation:
In Unit 7 Mulberry Business Strategy Assignment, one has come across the various aspects of business strategy, from the key aspects in its planning to the nitty-gritty’s in its implementation in an organization. These organizational strategies are achieved by the hard work put in by the management who have spent hour analysing, and evaluating the market trends, possible future trends and the potentials and competencies of the organization. These strategies are then communicated to the employees through their respective departments and the larger objective is broken down into smaller tasks which need to be successfully completed within the specified time. This paper also deals with the implementation of the strategy. Without implementation the tedious process of evaluating assessing, planning and strategizing would be rendered useless(Casadesus-Masanell & Ricart, 2010).
So, in this paper, one would come across the various processes of strategic planning, its essential features and aspects and a clear understanding of the importance of the same. This paper also touches upon the essential aspects of implementing the strategy and also highlights important aspects in implementing the same and achieving the goals and targets set in the new strategy.
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