University of

Evaluation of the
Companys
Strategic
Management
Decisions
Critical Evaluation and Analysis of the Organizations Strategic
Positions

Submitted By:
12/6/2013

Evaluation of the Companys Strategic Management Decisions

Evaluation of the Companys Strategy

Executive Summary
Strategic management is very important for the achievement of organizational goals and
different organizations are setup with different vision and mission statements. Organizations
largely depend on the strategic decisions they make and how they plan their activities
considering managerial, environmental and competitive factors they can face in different
markets and then rethink about their strategic management policies for successful growth and
satisfaction of their companys growth in highly competitive environments.
The study carefully examines the core business management strategies of Burberry Plc., and
after carefully examining their strategic management as suggested by Ansoffs strategic
management, McKinsey strategies and SAFS Framework, it is evaluated how they have
successfully developed their strategic policies on offering best quality products and services in
women international fashion marketing in women dressing according to the latest fashion trends
at lower costs after evaluating their competitors. In order to evaluate their strategic
competitiveness, the study further evaluates the sustainability, consistency, feasibility and
adaptive nature of their strategies. The study further elaborates that organizations should
consider adopting strategic management strategies originated and implemented by Ansoffs
strategic management systems, McKinsey seven strategic factors including his suggested
model based on seven variables highlighting shared values, strategy, structure, systems, staff,
style and skills. Critical Evaluation of the Organizations Strategy SAFS Framework Showing
Suitability, Acceptability, Feasibility and Sustainability is also very significant and determines
how organizations should be adaptive, feasible and sustainable in their strategic management
strategies to get competitive edge over their competitors.

Evaluation of the Companys Strategic Management Decisions

Table of Content
Descriptions

Page Number

1. Introduction--------------------------------------------------------------------------------------- 4
1.1.

Strategic Focus of the Company----------------------------------------------------4

2. Critical Evaluation and Analysis of the Organizations Strategic Positions----------6

3.

Analysis of the Organizations Strategic Direction----------------------------------------8

3.1.

Ansoffs Strategic Management Systems-----------------------------------------8

3.2.

Analysis of McKinseys Strategic Management Directions---------------------9

4. Critical Evaluations of Organizations Strategy SAFS Framework--------------------10

4.1.

Suitability--------------------------------------------------------------------------------10

4.2.

Feasibility--------------------------------------------------------------------------------11

4.3.

Acceptability-----------------------------------------------------------------------------11

5. Conclusions and Recommendations---------------------------------------------------------12

6. References----------------------------------------------------------------------------------------13

Evaluation of the Companys Strategic Management Decisions

1. Introduction (Evaluation Strategy)

In this study, Burberry Plc. is selected as the company of study was founded by dressmaker
Thomas Burberry in 1856 and they setup first London store in 1891 in 30 Haymarket. Burberry
Group Plc. Since its inception has developed and manufactured market luxury apparels and
highly gorgeous accessories for men, women and children throughout Europe, United States
and Asia Pacific. Company has successively achieved milestones in its strategic management
policies to offer best quality fashionable products at lower costs to their loyal and new
customers in outwear fragrance and beauty products such as eyewear, watches, highly
gorgeous and appealing dresses, trench coats, handbags, leather products, scarves, shoes,
jewelry and belts. The company has also licensed as the third party in manufacturing and
distributing products using Burberry trademarks. Burberry Inc. has successfully setup retail
stores and wholesale channels such as mainline stores, outlets, and digital commerce along
with Burberry franchises and prestigious departmental stores. Currently, Barberry Inc. has 206
mainland stores, 214 accessories, 49 outlets, 65 franchises and achieved considerable growth
in its 156 years successful history.

1.1.

Strategic Focus of the Company

The strategy of the company was highly focused two areas in order to influence its marketing
plan include mission/ vision of the company and goals of Burberry Plc. According their mission
statement, their mission was to serve as the lifestyle apparel for men, women and children
wearing ranging from small to plus sizes with highly organized and developed services,
adaptation of fashion trends in the market, value and fitting and becoming the company to be
enjoyed as celebrating the lives and fashion images of their loyal and new customers. Company
was setup with main objectives of achieving customer satisfaction and trust through secured
personal information in their advertising and communication skills. Increasing competition in the

Evaluation of the Companys Strategic Management Decisions

fashion industry with lower prices and making sure the availability of highly elegant women
fashion products to increase the satisfaction of their customers. They have acted according to
the values and standards of the European culture and followed the laws of United Kingdom with
devotions and according to the demanding needs of their customers. Burberry Plc. shifted sales
and mixed their profits to higher operating channels and used their newly launched catalogue at
e-commerce and business platforms for better services and growth in their customer base. They
operated their business with a focus on the cash flows generation to maintain their financial
stability with appropriate liquidity arrangements (Annual Review, 2013). Moreover, analytical
tools are very helpful in determining the consistency in the strategic management of an
organization such as the tools used to answer the questions an organization can ask. The tools
will also define the necessary and actionable tasks along with benefiting from inputs and
collaborations with other people, external functions and even the organizations. Proper
utilization of tools can be time consuming but it is important to make sure key stakeholders are
on board and senior management and directors of the company departments are well aware of
these tools necessary to complete the analysis (Downey, 2007).
In their companys strategy, Burberry Plc. focused on improving their marketing intentions and
created excitements within markets with amazingly developed and fashionable women products
to get new heights. They developed strong customer relationships with new customers who
have never shopped before with their retail and wholesale stores in UK but enjoyed their
shopping with them this time. Burberry Plc. is focused on targeted marketing with deeper insight
of their consumers due their changing spending patterns at the market level. Highly competent
and strategic policies has motivated their teams to increase their brand presence in high profile
outdoor and travel oriented locations along with experimentation of their latest digital venues
contracted on real-time venues. The Group has also strategically focused to increase their
efficiency through controlled inventory managed at all stages of their sales process. They have

Evaluation of the Companys Strategic Management Decisions

also expanded by separating their physical and digital channels with the ultimate vision to serve
their clients at any platform in any geography. In this regard, Burberry Plc. has opened London
flagship at 121 Regent Street in their most prestigious efforts and they restored partnership with
traditional British craftsmen and completed their product assortment, RFID technology in
triggering multimedia content and projected brand imagery through digital screens. In their
additional integrated activities, they expanded their strategic marketing policies to iPads to
enhance inventory availability and continuously upgraded their retail theatre throughout the
store base to make sure their synchronized delivery of brand awareness to their consumers and
experimented with new payment systems for streamlining their buying experience with Burberry
Plc. retail and wholesale stores (Burberry Annual Review, 2013).

2. Critical Evaluation and Analysis of the Organizations Strategic Positions

Burberry brand has successfully promoted their vast range of products through key strategic
activities and adopting innovative products in opening price points in the leather goods and
heritage rainwear categories. Cost in terms of sales, it is consistent with brand positioning and
Burberry Plc. has always responded to their consumer demands and continued investing in the
upper tiers of product pyramid with their gorgeous Prorsum and London labels. These brands
have increased their share in retail sales and got considerable reputation among potential
buyers of this unique brand of fashionable clothing. Burberry Plc. has also emphasized to create
innovation and excellently designed products for their men, women and children categories.
They tailored with broader assortments and expanded their distribution network throughout UK
and given key importance to in-store timings of seasonal merchandise to increase the relevance
of their offered products. Burberry Plc. setup first fully dedicated mens store in London in
October 2012 and successfully achieved 13% revenue growth and also got the reputation of
fastest growing product division in the year. In outside Asia, Burberry Plc. continued to develop
in other markets and they have successfully operated in India, Middle East, Latin America, and

Evaluation of the Companys Strategic Management Decisions

they have also opened six mainline stores with excellent response from their buyers. They have
also operated through their franchise partners such as Russia, Turkey and Eastern Europe by
opening eight stores with expansion to five new markets including Georgia and Jordan. They
have also signed new franchise agreements in Colombia and Chile. Burberry Plc. has also
expanded their flapship stores in Chicago, Milan and Hong Kong and in total group has opened
14 new mainline stores, five outlets and six concessions and their average sale increased to
13% in the recent years growth (Burberry Annual Review, 2013).
In critically evaluated and analyzing the strategic position of an organization, the general
principles of strategy should be evaluated to find out whether or not the organization is growing
in the right direction. It is very impossible to determine and demonstrate that the particular
strategy of a business is very essential for an organization but it can be tested for critical flaws.
Out of many tests in order to determine the critical and analytical strategy of an organization,
most of them will fall within these criteria including consistency, consonance, adaptability and
the feasibility of the strategy to maintain competitive advantage in the selected areas of their
activity (Richard, 1993).
In evaluating the strategic position of an organization, it is relative to determine its positioning
strategy with the image of its rivals in a correct way. Business must determine its position for its
products launched at the markets at that point, and it must look forward for the combination of
advantages the company has offered to its customers that are still lacking by competitors but
they are highly desired to target the market. Customers will only be affected by the emphasis of
buying the company products due to their effective positioning strategies, not by their
competitors. But if the company does not do the product positioning strategies on time, it can
never get the customer attention and always be counted as followers with lower sales volume
and lower productivity. Ries and Trouts in their positioning approach, has pointed that without
taking into considerations the position of competitors the war of marketing warfare can never be

Evaluation of the Companys Strategic Management Decisions

won. Another assumption of the positioning approach is that some products are even evaluated
and perceived by other competitors. The concept of positioning has emerged in the recent
markets and communication applications and academic circles are considering it very important
in achieving their marketing objectives (Mustafa, 2009)

3. Analysis of the Organizations Strategic Direction, Methods of Organization

Strategies with Ansoff, BCG and GE/ McKinsey
3.1.

Methods of Organization Strategies with Ansoffs Management Systems

Ansoffs strategic management systems are also determined by Brews and Hunt (1999) and
they further validated the study by establishing the fact that planning is the main driving force
in the strategic process that an organization adopts. In strategic formulation, formal set of
processes are adopted which derives a situational analysis for formulating the appropriate
strategy. But critics of this approach say that after adopting Ansoffs strategic management
systems, firms become too static and there is always a risk associated with managerial
groupthink. Additionally, organizations can never predict the concerns of environmental factors
that should be considered in strategic decision making. Strategic planning in the organizations
should be long-term planning when environmental conditions are highly changing and
discontinuous in nature. Organization may face these conditions due to issues of market
saturation, new technologies develop, regulations posed by governments and sudden entrance
of new market players into the market. In the first step of strategic planning, method needs the
analysis of the senior management of the firm which is considered as the key players in
determining firms trends, opportunities, threats and breakthrough events. In the second step of
strategic planning initiated by Alsoff is the management responsibility to perform a competitive
analysis after defining its improved performance position and determining if it is successful in
enhancing the competitive strategies. Management must be focused on operational control of

Evaluation of the Companys Strategic Management Decisions

the organization in its long term planning with proper budgeting, goals and programs
implemented by units and profitable plans. (Dan & Alfred, 2009)

3.2.

Analysis of McKinseys Organization Strategic Directions

Strategic planning is very crucial for the success of any organization. McKinseys strategic
direction for organizations is based on 7-S management model that the organizations should
comply to get success and continuous growth in the operations. The model of seven variables is
based on shared values, strategy, structure, systems, staff, style and skill. These seven factors
are interrelated to each other and organizations much give them proper attention to all these
factors and if one of them is not given proper attention other factors can be badly affected.
Strategic implementation is an integral part of every successful organization and it can be
examined through the formulated strategy in the series of actions to make sure the vision,
mission and strategic objectives an organization can adopt to successfully achieve its plans
(Fourie & Jooste, 2009).Survey conducted on evaluating the McKinsey techniques determines
companys board of directors should be highly focused on few roles in the planning strategy.
Boards should be very active in the development process of an organization and in the process
of approving final strategy. In the survey, most of the respondents showed satisfaction of their
board of directors performance by improving their companys strategic planning (McKinsey
Quarterly Survey, 2006).

Figure: Showing Interrelation of Organization Strategic directions originated by McKinsey.

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Evaluation of the Companys Strategic Management Decisions

Shared values within organizations are determined by organization stands for and its beliefs and
in its long term vision it setup the destiny of the organization and the core attitude develops
within that organization. In strategy, every firm has scheduled a strategic action in response to
the upcoming events or by anticipation. In structure, it shows the way by which the units of an
organization are well connected to each other and shows how people, activities or tasks are
organized within that organization. Systems are also very important within an organization and
they determine procedures, and routines that connect the company together and characterizes
how all the set tasks should be organized. Staff indicates the human resources of the
organization developed with number and type of the personnel holding key positions in different
departments and playing their role in making the organizations productive and successful at the
market level. In Style, the behavior of the leader of the organization is identified how the
company achieves its already set goals. In skills, distinctive skills and attributes are needed
within an organization as a whole (Luxinnovation, 2008)

4. Critical Evaluation of the Organizations Strategy SAFS Framework Showing

Suitability, Acceptability, Feasibility and Sustainability
4.1.

Suitability

According to Johnson and Scholes, suitability determine if the strategic choices made within an
organization are suitable and compatible within the organizations current and expected external
environment. For example, if the industry is exploiting high pollution due to excessive use of
coal fire in their main source of energy in operating the plant, it might be contrary to what is
perceived as suitable within the social, political, legal and the environmental aspects of the
organization. In the best way to approach the suitability of an organization, it is best to evaluate
if the strategic alternatives can help the firm to exploit opportunities and to overcome the threats
in the environment. In suitability analysis, there are different internal models for analysis are

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Evaluation of the Companys Strategic Management Decisions

available including money, machinery, manpower, markets, materials and the makeup. In
money, it is determined if the financial resources available to the organization for each strategic
choice. They are in the form of finance available to the organization, the cost of the financing,
and the repayment capacity of the strategic choice. Manpower determines the existing
employees and management working for the organization have the required knowledge and
skills set. In materials, the supply of vital inputs is determined for an organization to make sure
its strategic choice. Makeup aspect considers two main areas including organizational structure
and the culture of the company (Thomas, 2010)

4.2.

Feasibility

Feasibility is focused whether or not the organization has the resources to pursue its strategic
choices to make sure it is on the path to achieve its strategic goals. Feasibility is the evolution of
the internal capabilities of the organization and management should determine if the
organization has the availability of the resources to pursue some of the strategic choices within
an organization.

4.3.

Acceptability

Acceptability is highly focused on two main areas made in strategic choices including financial
aspects and the stakeholder aspect. The financial aspect within an organization is highly
focused on achieving the successful financial status with return to risk profile of each alternative.
The stakeholder aspect is focused on the enhanced interaction in between the stakeholder
reaction and the strategic choices made within that organization. The financial aspect in the
strategic decision making of an organization determines the expected return and the risks which
are associated in each strategic choice. In stakeholder aspect, the acceptability analysis
evaluates how the strategic choices are being made within an organization and how they are
associated in affecting the stakeholder choices and their reactions. It is quite qualitative and

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Evaluation of the Companys Strategic Management Decisions

holds its importance because new strategy adopted can only be successful if the stakeholders
are offering complete support (Thomas, 2010)

5. Conclusion and Recommendations

This study examined the critical evaluation of the organizations strategy adopted to get the
achievement of its set goals. To examine the case, Burberry Plc. was selected as the
organization to evaluate how this small organization achieved considerable growth and success
after adopting successful strategies in two main areas to achieve its missions with highly
organized and developed services by offering best quality fashionable brands at lower costs. In
their marketing strategy, Burberry Plc. was highly focused on improving their marketing
intentions after penetrating into new markets and offering their best products and services at
affordable prices after identifying the potential markets throughout the world and opened their
mainline stores and franchises in participation with other local brands.
In order to examine the critical evaluation of the organization, it is important to determine in
which direction the organization is progressing. In testing the critical and analytical strategy
consistency, consonance, adaptive and feasibility of the organization is determined. In order to
determine the Ansoffs strategic management systems the theory is focused on planning which
is considered as the main driving force in the strategic process and it is evaluated by the top
level management of the organization. Strategic planning should be long terms and
management of the organization should determine whether it is getting competitive edge over
others or not. In McKinseys analysis of the organization strategic directions, seven factors are
determined including shared values, strategy, structure, systems, staff, style and skills. In critical
evaluation of the organizational strategic measurement, an organization should be highly
focused on suitability, feasibility and acceptability. In suitability different models are examined
including money, machinery, manpower, markets, materials and makeup. Feasibility determines

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Evaluation of the Companys Strategic Management Decisions

whether or not the strategic choices feasible for an organization on the basis of its internal
capabilities. Acceptability is highly focused on the financial aspects of the organization and the
stakeholder aspects. If the organizations want to be highly successful in achieving their set
goals and targets, they should develop their strategic management plans according to their
organizational structure and the market in which they are going to penetrate. Organizations can
be successful in their mission and vision fulfillment if they adopt all the discussed strategic
management strategies including Ansoffs strategic management systems, McKinsey seven
strategic directions, and suitability, feasibility and acceptability aspects.

References
1. Annual Review. (2013). Burberry Established in 1856.
2. Richard, P. R. (1993). Evaluating Business Strategy. Germany: Spring.
3. Mustafa, K. (2009): Product Positioning Strategy in Marketing Management. Journal of
Naval Science and Engineering, Vol. 5, No. 2.
4. Dan, K. Alfred, L. (2009) The Scalability of H. Igor Ansoffs Strategic Management
Principles for Small and Medium Sized Firms Journal of Management Research. Vol. 1,
No. 1: E6.
5. LUXINNOVATION. (2008). G.I.E, 7-S McKinsey = Management Model with an
Organizational Diagnosis. Luxembourg: The National Agency for Innovation and
Research in Luxembourg.
6. Thomas, W. (2010) Strategic Choice Johnson and Scholes Suitability, Feasibility and
Acceptability Model. NY: Spring.

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Evaluation of the Companys Strategic Management Decisions

7. Downey, J., (2006). Strategic Analysis Tools: Topic Gateway Series No. 34. Technical
Information Service.
8. Copyleft, (2008).Manual 2: How to Evaluate Your Organization. The School in a Box
Guide Series.
9. Fourie, B., & Jooste, C., (2009). The Role of Strategic Leadership in Effective Strategy
Implementation: Perceptions of South African Strategic Leaders. South African Business
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