Strategy Management

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1.0 Introduction
Strategic Management permits the organization to achieve competitive advantage through the matching of resources and capabilities to the needs of the external environment, analysis of the organization, formulation and implementation of the strategy. This report explains the three stages of strategic management; strategic analysis, strategy formulation and strategy implementation of French Connection, UK. The analysis of French Connection, UK in this report includes two core areas and tools of strategic analysis which include i.)General environment - Pest analysis, SWOT analysis, ii.)Competitive environment - Value-chain analysis. Strategy analysis is also referred to as situation analysis which includes the general environment, scenario planning, PEST analysis, competitive environment, Porter’s five forces, and value chain analysis. Strategy formulation includes three stages which are the corporate level strategy, business level strategy and international strategy while strategy implementation cover organizational structure, strategic control systems, strategic change, strategic leadership and management, leadership and culture and corporate governance 1.1 Company Profile

French Connection United Kingdom, which is also widely known as FCUK; is a retailer and wholesaler of fashion and accessories. Stephen Marks, the Chairman and Chief Executive of FCUK founded the company and listed it as a public company in 1969. The company is based in Bow, East London and was listed in London Stock Exchange since 1986 and operates globally. French Connection is currently at the growth stage as the sales increase rapidly in the market. Besides fashion and accessories, FCUK also has a range of licensed products including fragrances, toiletries, glasses and others products. Furthermore, French Connection UK design, produce and distribute branded fashion clothing for both man and women from their business premises in London, New York, Paris, Hong Kong and Toronto. French Connection operates retail stores and concessions in the UK, Ireland, Europe, US and Canada and operates highly successful e-commerce business in each of those territories. It wholesales the products to retailers operating in over 30 countries around the world and its licensed partners operate FCUK stores across Asia, Australia and the Middle East. Appendix 1 shows the worldwide retail and wholesale operations of French Connection. Losses at the fashion retailer grew to £3.5 million for the six months to 31 July 2008, compared to £2.5 million last year. This included a £1.9 million exceptional gain following a property disposal. Turnover improved from £109.4 million to £112.4 million as growth in ladies wear offset weaker wholesale markets. Up to year 2011, the number of people employed in French Connection was about2, 834 peoples. The annual income of French Connection in year 2011 was£213.8 million GBP. The main competitors of FCUK are Abercrombie and Fitch Company; Acradia Group plc; Benetton Group S.p.A; Diesel SpA; Esprit Holdings Limited; GUESS? Inc; H&M Hennes & Mauritz AB; Hot Topic, Inc; Marks and Spencer plc; NEXT plc and The Gap, Inc. 2.0 Strategic Analysis

Strategic Analysis for FCUK refers to the process of conducting research on the business environment within the company itself, in order to formulate strategy. Definitions of strategic analysis often differ, but certain attributes like identification and evaluation of data relevant to strategy formulation and a range of analytical methods that can be employed in the analysis are commonly associated with it. 2.1 General Environment

FCUK must continually scan and monitor their general environment for signals, often weak or barely perceptible, which might indicate a change in their competitive environment. 2.1.1 Scenario Planning

Scenario Planning allows firms to explore and prepare for several alternative futures. It examines the outcomes which it might expect under a variety of...
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