INTRODUCTION

            Business strategy can be defined as a working plan which leads management to accomplish their vision, objectives, goals with in an appropriate manner. The main motive for formulating an effective strategy is to develop an effective plan that leads management to complete their action in decided time period. This report is written from the perspective of Debenhams which is an British multinational retial organisation. They operates large number of departmental stores in which they offer large variety of products. Moreover, this report highlights on the analysis of external environment of an organisation (Amran and et. al., 2016). Along with this organisational audit will also be conducted in the report. VRIO framework and the Porter's five forces are also included and focused in the upcoming report. In the last, to understand growth strategies Bowman's strategy and Porter generic strategy will also consider in this report for making an effective strategic planning.

TASK 1

1.1 Applying of the appropriate frameworks to analyse the impact and influence of macro environment on organisation strategy

PESTLE is one of the most effective tool that leads organisation to understand the external environment in which the company is operating their business. In order to identify actual aspects management focused on political,  environmental, social,  technological, legal and environmental factors. So better results will be achieved by the organisation in the UK market. The main motive to implement PESTLE analysis is to generate long term benefits by monitoring overall aspects of macro environment.

Political factor- The government or parliament of UK is one of the most powerful and stable country because all cities of United Kingdom are developed. Due to which it is easy for management to follow modern democracy which is organised and controlled by Head of the State. Moreover, in the context of Debenhams, business strategy are not impacted because of better stable political conditions in UK. Further, its strategy are influenced by political decisions such as change in the tax policy helps the management to formulate better results for organisation. Its results this is easy for the management of Debenhams to generate long term policies according to the government rules and regulations. Due to which better results will be achieved by the management in the future (Ghezzi, 2013).

Economical factor- In the present economic is an essential aspects for the organisation as well as country. This determines that economic is one of the most important factor for the country. As it leads management of Debenhams to perform their work as per the economical aspects. Like in the context of UK, Brexit impacted on the strategy of all business as the economic slow down impacts on business operations. This results it essential for management to perform their work by formulating new strategy by considering all aspects of economic. In order to influence economic as a positive manner (Hoejmose, Brammer and Millington, 2013). Management must generates strategy which leads organisation to enhance the sale of products.

Social factor- In the present scenario, there are large number of multinational organisation are performing their operations in UK.  As the density of UK population its individuals belongs to several backgrounds. So the strategy of business is impacted i.e. as people not accept those products which affect on the social value of society. Along with this majority of the UK population is highly educated so the strategy of Debenhams is not impacted. Further, to influence business strategy management focuses on the market needs and society value for all of its operations.

Technological factor- Technology is one of the most important factor for organisation because it is impacting on all types of business. In the context of retail industry large number of business operations are impacted as well as influenced by technological aspect. UK is a developed country due to which majority of the companies implement innovation feature in their operations. So better results will be gained from the organisation. In order to influence policies and strategy of business it is mandatory for management to enhance their work performance in appropriate manner (Köseoglu and et. al., 2013).

Environmental factor- Environment is one of the most important aspect for management like they are performing their work at global level.  This is mandatory for Debenhams to perform their work in essential manner so it is easy for management to gain competitive advantage in market. In order to achieve better position as compare to rival organisation management is more focused towards influencing their strategy towards environment perspective. CSR practices is one of the best example of environment factor.

Legal factor- Rules, regulations, laws and legislation are some of the most important aspects that came under the aspect of legal factor. The major motive to formulate legal aspect is to perform the work as per management considerations that is used to protect the rights of local individuals. Anti-trust law, trade barrier act, monetary policy are some of the part that majorly impact on business strategy. On the other side, to influence business strategy management is more concerned towards influencing their work for long term benefits.

            By all above aspects it is concerned that there are large number of task are performed by management to gain top position in the market. It determines that it is mandatory for business to monitor all aspects of management as it increases the performance of organisation in effective manner. Therefore, Debenhams must enhance their number of operations due to which better results will be outcome for the organisation (Köseoglu and et. al., 2013). Along with this them major benefit which is gained by management is that they are able to perform their work in effective manner because it not impact and influence on its strategy.

M1 Analyse of macro environment for determining and inform strategic management decisions

            PESTLE is a tool or method that consider all aspects which are related with the surroundings of organisation. In the present scenario, it is easy for management to gain competitive advantage by performing their work according to the strategies. Like with the concept of political factor it is easy for management to manage the work as per political regulations. Economical decisions are another aspect which impact on organisational strategy such as inflation and interest rate. Social aspect leads management to perform their work as per interest of society  individuals. So management decisions of business are not impacted and enhance work policy for organisation (Langabeer and Champagne, 2016). Further, to make organisational decisions in appropriate manner it is mandatory to make all strategies as per conditions of market.   

P2 Analyse of the internal environment and capabilities by utilising appropriate frameworks

            In order to understand, the internal strength and weakness of organisation it is mandatory for management of Debenhems to implement SWOT analysis which is mention as follow:

VRIO framework for the organisation

            In the present scenario, there are large number of challenges are faced by management due to which it is mandatory for the to analyse the organisational strength. So better results will be gained by management. On the other side, by analysing the weaknesses of organisation it is easy for Debenhams to consider all those aspects which is impacting on organisational operations. VRIO framework in context of organisation is mention as follow (Maté, Trujillo and Mylopoulos, 2012):

VRIO framework 

Valuable

• The major valuable item for the Debenhams is their financial resources because it helps management to enter into external opportunities by investing high finance into new areas.
• Another major valuable products for the organisation relates with their local food products. As they are developed with motive of providing high value in its products.

Rare

• Financial resources of the organisation also works as the rare resource for management. This determines that strongly financial resources is only possessed by some small number of companies (Moseley, 2017).
• Employee's of the Debenhams is the another part by which organisational performance is improved. This determines that better performance is gained by management with the help of effective employee's.

Imitable

• On the other side, it is easy for organisation to perform their work as per management results to determine their work in effective manner. With the local food products it is also analysed by management to consider the work in order to identify better profits for organisation.
• The employee's of Debenhams plc is also used by management to perform the work in getting long term benefits. It is also required to gain better results by significantly entering into the experience field.

Organisation

• Financial resources of the Debenhams plc is to increase and getting better value for the management results. So with the strategically for investing better places in the organisation.
• Patents are the major part for organisation due to which it is easy for manages by enhancing long term benefits that it is used to make patent about the products through developing in innovative way.

Strategic capabilities and their key components

            The term strategic-capabilities can be defined as the process that is used to make effective strategies in order to shape them in effective manner. This is also used by management for generating major benefits against the competitors. The strategic-capabilities consists of six different components that are value, vision, analytical tools, key goals,  action planning and purpose (Oldman and Tomkins, 2018). It results long term goals will also be achieved by organisation for getting long term results.

Stakeholder matrix and mapping

            Stakeholder mapping refers to the visual process that is used for laying out all stakeholders related with product, project and idea. The benefit of stakeholder map for the point view of Debenhams relates with visual representation. In context of relation of organisation with matrix it is used to work as the part of an own organisation. This results Debenhams and stakeholders both are benefited through communicating with each other in an appropriate manner.  

Resource based view strategy

            Resource based strategy can be defined as the framework that is utilised by the organisation for getting better results and to utilise strategic resources in an effectively manner. This results it is easy for organisation to gain better sustainability in the market which leads Debenhams to gain top position in market. It results that management is able to gain competitive advantage in market. Along with this there are two kinds of resources are present in market which are tangible and intangible.  With the proper organised resources it is easy to enhance the market size and profits for organisation.

M2 Evaluation of internal environment for assess of strength and weakness towards organisational capabilities, structure and skill set

            By analysing all organisational goals it is identified that Debenhams is performing their work at global level. The main motive within an organisation is to get long term benefits by conducting financial factors as it work as major strength for management. So in the context of organisation structure is will be more better. Whereas, with the analysis of VRIO framework it is analysed employee's of organisation are imitable and rare. This results that the capabilities and skills of management will be improved in effective manner (Oldman and Tomkins, 2018). So with the major strength and overcome from weaknesses it is easy for organisation to gain better results by formulating effective strategy to perform their operations.

TASK 3

3.1 Porter's five force model and its evaluation

            Porter's five forces works an effective tool that provides various benefits to organisation such as identifying and analysing all the competitive forces that are beneficial to gain competitive edge in industry. This also helps the management to analyse all the strength and weakness that is related with the industry competitiveness. Therefore, by determining all the loopholes of industry it is easy for management to gain long term benefits in the organisation. In the present scenario, this is also used by management to perform their work is to perform their work for generating long term benefits by considering the aspects of industry. To analysing all  aspects management is more focused towards getting the desired results for organisation by making appropriate strategy for its operations. In the context of Debenhams Porter's five forces to match organisational strength and weakness is mention as follow: 

• The major benefit for organisational success is to gain better results and to formulate better policies and strategies as per the existing situation of industry.
• Along with this the another benefit which is gained by management to make better results is to perform their work in better way.

Threat of new entrants

            Their are large number of organisation are performing their work in the retail industry at small as well as large level. It determines that the competition among the companies is too intense. This also governs that wide area of market is totally covered by organisation which are large in size. It also determines that with the proper management of organisation resources better results will be gained by Debenhams such as high investment provides better advantage to organisation (Scholes, 2015). It also governs that the power relates with threats of new entrants is low. So by developing better needs and conditions  it is easy for organisation to approach the consumers through their innovative products. Therefore, the new companies face difficulties to perform their operations as it is complex for them to manage the work in appropriate manner.

Bargaining power of suppliers

Majority of the retail companies such as Debenhams and other buy their raw-materials from different businessperson. It also governs that all retail organisation whether small or large purchase raw-materials to complete their operations as well as to convert semi-finished goods into products. But there are very few organisation that are performing their work at a large level. So the bargaining power of the suppliers is low. This determines it is essential for management to perform their work in effective manner. Like to complete the work in exact manner management must focus on the bargain power of supplier.   

Bargaining power of buyer

            Consumers as well as buyers are the essential stakeholder for organisation that demands a lot from the company to get long term benefits. The main aim to understand the bargaining power of buyers is to get the whole knowledge about customer's. This results it is easy for organisation to sustain for longer period if the management deal with customer's in appropriate manner. Moreover, the whole industry and companies are facing challenges related with the customers (Scholes, 2015). As if they ignore customer's needs then it is complex for organisation to gain better results and factors because the bargaining power of the buyer is high in market. So in order to deal with this aspect Debenhams formulates products that satisfies needs of customer's effectively.

Threats of substitute products and services

Substitute products refers to those things that are offered by other organisation in the market. This impacts on the Debenhams as it is difficult for management to reduce market share. Like due to insufficient supply of products on constant basis, substitute products enhances its sales by satisfying the needs of customer's. It also determines that the approach of substitute products is high in market. So the power of substitute products is high. Further, the retail industry is product oriented. Hence, by approaching customer's with their services it is also easy for management to gain better results in the market in shorter periods (Tansey,  Spillane and Meng, 2014).

Rivalry among the existing competitors

            Competitive and industry challenges developing too many complexity for Debenhams as they impact on organisational operations. As in the context of Debenhams, they are operating their business in retail industry and there are large number of organisation are already performing its operations in retail industry. So rivalry approach is high in market Therefore, to ensure long term benefits it is essential for management to consider better strategy and approach for management to gain high results. Further, to capture high market management must differentiate products in order to gain market area.

M3 Appropriate strategies to improve competitive edge and market position

            Business strategy is one of the major tool for organisation that enhances the business profitability by managing all resources in effective manner. Along with by monitoring all the needs and wants it is easy for customer's  to enhance their work performance as well as to complete the work as per needs of organisation by analysing the industry and its power. The  bargaining power of suppliers and buyers is high so to manage better results it is essential for management to complete their work in effective manner (Tassabehji and Isherwood, 2014). On the context of low approach for industry it is essential for management to complete their work as per management needs.

TASK 4

P4 Range of theories, concepts and model to interpret and make strategic planning

            The main motive of organisation is to perform their work at global level with proper efficiency and effectiveness. With the implement of Porter Generic strategy it is easy for management to analyse the firm profitability as well as to gain better results in easy manner. The aspects of Porter Generic strategy are cost leadership, cost focus, differentiation and differentiation focus. All the essential aspects are mention as follow:

• Cost leadership- Debenhams is one of major organisation in retail industry, it governs that there are various task are performed by management. This is also used to gain better results and to increase the size of business by determining the cost of products in effective manner. Along with this there are various task are also managed to enhance their work performance. In the context of Debenhams cost it is an essential factor for organisation due to which long term benefits will be achieved by management. Marketing strategy as well as the elements related with business factor must be used to make effective decisions by utilising cost in appropriate manner (Tsolakis, 2015).
• Differentiation- According to the differentiation strategy the organisation undertakes various aspects that leads organisation to perform their work as per management industry. In the differentiation strategy the firm must seek those value in their products due to which it is easy for management to gain long term benefits and attributes by demonstrating its products in effective manner. This is also used by management of Debenhams to perform their work as per management strategy to meet them in proper manner. The major benefit which is gained by management with the differentiation strategy is to earn more profits. Like it leads management to sale products with premium price.
• Focus- Porter's generic strategy consider the focus aspect in the organisation due to which long term benefits will be gained by management. Their are various task also completed for managing the work possibilities and to increase business size by segmenting the industry and the market on geographical and demographical basis. Target market must be included in the projects and operations of Debenhams. Therefore, with the cost focus strategy it is easy for management to perform their work according to the market strategy.
• Differentiation focus strategy- The major motive of the differentiation focus strategy is to complete the work as per managing their needs that is used to pursue long term benefits as well as to focus on market segment that simply perform the work as per considering to manage their brands with unique methods. With the motive of managing their work as per management focus it is easy to enhance their sale.

Bowman's strategic clock

            The Bowman strategic clock work as an effective model that helps business organisation to explore and make appropriate positioning for strategies. Example- Debenhams provide large number of products in the market that leads organisation to gain better results as it lead management to increase their size and to gain competitive advantage effectively (Utami and Lantu, 2014). All aspects related with the framework of Bowman's are mention as follow:

• Low price and value- This position is not effective for Debenhams as it is related with low market area. It governs that the value for consumers products is less due to which the quality of products is also less.
• Low price- Debenhams are performing their work at global level so with reducing the prices of products it is easy for management to increase their sale. It results overall profits of the organisation will be improved in appropriate manner.
• Hybrid- With this strategy, elements related with low price and product differentiation will also be included in this report. So it works as an effective strategy that enhances work performance in effective manner among all situations.
• Differentiation- As per this strategy, Debenhams focused to make clients for increasing sale of products with different methods.
• Focused differentiation- In this products are placed at high level in order to contain better value in products. Like it is used by management to increase brand image at global level (Yoffie and Cusumano, 2015).
• Risky high margins- All the margins that are decided by management undertakes high risk. It refers that with previewing all aspects more value will be added in report. 
• Monopoly pricing- In a monopoly business the price of products are high as it is used to manage high prices for their products.

Price leadership strategy- The situation of price leadership strategy refers to a situation in which an organisation dominant its industry by deciding price of products. In the context of Debenhams price leadership strategy is not effective because it is performing their work in retail industry. Within UK there are various large organisation exists that also reduce price for not reducing its market area. For instance- if management reduce price than other organisation provide reward and offer to customers and also reduction in price for not switching customers towards competitors.

Focus strategy- This refers to a marketing strategy in which an organisation concentrate about resources for expanding its market to achieve specific goals. In context of Debenhams management utilise focus strategy that is usually employed and formulate products for an exact segment for satisfying need of customers in an appropriate manner.     

M4 Strategic management plan including tangible and tactical strategies

            Strategic planning leads an organisation for identifying and formulating proper set of activities,  resources, operations etc. This ensures that people of organisation are performing their work as per decided plan. Debenhams plan is mention as follow:

Vision- To attain the top position in market by providing better quality products to its customer's.

Mission-  Mission of the organisation is to develop long term benefits through enhancing their work performance at global level.

Strategies- This strategy is used by management for developing better capabilities that is used to make core competencies for their products. With this approach it is easy for management to provide better support as per management strategies (Zalengera and et. al 2014).

Tactics- Tactics refers to those efforts which are developed by organisation to achieve their objectives in short period. Marketing mix is one of the major tactics that is followed by Debenhams it is mention as follow:   

CONCLUSION

          According to the above strategy it is analysed that with adopting and implementing business strategy. It is easy for management to achieve their desired goals and objectives in effective manner. Along with this SWOT, VRIO, PESTLE are some of the tools that are used by management to understand the micro and macro business environment of organisation. This results it is easy for management to complete their work by implementing deep knowledge in the organisational operations and functions.  Along with this by implementing Porter's five forces better strategies will be  developed in organisation.

REFERENCES

Books and Journals

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Ghezzi, A., 2013. Revisiting business strategy under discontinuity. Management Decision. 51(7). pp.1326-1358.

Hoejmose, S., Brammer, S. and Millington, A., 2013. An empirical examination of the relationship between business strategy and socially responsible supply chain management. International Journal of Operations & Production Management. 33(5). pp.589-621

Köseoglu, M. A. and et. al., 2013. Linkages among business strategy, uncertainty and performance in the hospitality industry: Evidence from an emerging economy. International Journal of Hospitality Management. 34. pp.81-91.

Köseoglu, M. A. and et. al., 2013. Linkages among business strategy, uncertainty and performance in the hospitality industry: Evidence from an emerging economy. International Journal of Hospitality Management. 34. pp.81-91.

Langabeer, J. R. and Champagne, T., 2016. Exploring business strategy in health information exchange organizations. Journal of Healthcare Management. 61(1). pp.15-26.

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Maté, A., Trujillo, J. and Mylopoulos, J., 2012, November. Conceptualizing and specifying key performance indicators in business strategy models. In Proceedings of the 2012 conference of the center for advanced studies on collaborative research (pp. 102-115). IBM Corp..

Moseley III, G. B., 2017. Managing health care business strategy. Jones & Bartlett Learning.

Oldman, A. and Tomkins, C., 2018. Cost management and its interplay with business strategy and context. Routledge.

Oldman, A. and Tomkins, C., 2018. Cost management and its interplay with business strategy and context. Routledge.

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Scholes, M. S., 2015. Taxes and business strategy. Prentice Hall.Wang, J. and Verma, A., 2012. Explaining organizational responsiveness to work‐life balance issues: The role of business strategy and high‐performance work systems. Human Resource Management. 51(3). pp.407-432.

Tansey, P., Spillane, J.P. and Meng, X., 2014. Linking response strategies adopted by construction firms during the 2007 economic recession to Porter’s generic strategies. Construction management and economics 32(7-8). pp.705-724.

Tassabehji, R. and Isherwood, A., 2014. Management use of strategic tools for innovating during turbulent times. Strategic Change 23(1‐2). pp.63-80.

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Online

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