PEP STORES: AN EVALUATION OF THE STRATEGIC DEVELOPMENT OF THE ORGANISATION INTRODUCTION AND OVERVIEW Like most organisations, Pep stores was concerned with the long-term sustainability of the organisation, profits/financial performance, market performance and the satisfying its stakeholders, including the shareholders. With these factors often contradicting each other it is clear Pep stores struggled through the 1990’s balance these competing forces in other to achieve their organisational objectives. The case study of Pep Stores therefore presents a number of paradoxes. As a company seeking competitive advantage, it is evident that the organisation is constantly battling to expand certain factors that are apparently in conflict with one …show more content…
In the early years, Pep’s approach was as a result of formal planning, whereby strategy was formulated as a result of deliberate positioning of the organisation. In the later years, having lost and regained its focus, the organisation embraced an experience-lens view of strategy, whereby it continuously modified its strategy to fit a continually evolving environment, each modification forming the basis for the next one. This approach is unlikely to be innovative, and may sometimes produce more of the same responses and inadequate answers to larger external change factors. This is consistent with the analysis of the way the organisation embraces strategic paradoxes in the early 1990s. Pep Store’s approach is unlikely to be completely deliberate, but rather it seems to have the characteristics of emergence alongside deliberateness. Pep Stores move to follow shoppers into urban areas, open new stores in shopping malls and close unprofitable stores, was a deliberate action on it part to increase operating profits. Setting new goals for the organisation also meant that Pep Stores was again returning to its more formal approach to planning but the organisation kept some degree of its experience-lens view. Other deliberate actions followed as the company pursued its cost leadership goals while balancing its offerings with some form of differentiation by providing additional services, a varied product range
The industry we have chosen is the department store-retail industry. Within this industry, we have chosen the department stores of JCPenney and Macy’s. We find this industry, as well as these two companies, interesting from a strategic perspective. JCPenney has recently undergone a massive strategic restructuring in regards to its pricing, brand offerings, and store layout, pushing it away from the typical department store strategy of discounts and coupons. Its new strategy has become much closer to Wal-Mart’s strategy of every day low prices. Macy’s, on the other hand, has restructured with a push from the economic
In 2009 and forward, Loblaw Companies were up against aggressive competitive markets while still dealing with the backlash from the 2008 world economic crisis. Same store sales were on the decline and Loblaw’s was in desperate need to change their store strategies. By 2011, Loblaw’s had come up with the idea to diversify and expand their operations with new upgrades to in store departments as well as expanding upon their leading brands, President’s Choice and No Name. This case study underlines the premise of national and global strategies, which is a key subject matter and general broad topic when studying International Business. The main concerns of this case study would be to identify if Loblaw’s new strategies gave them a leading edge in the ever-expanding market, as well as seeing if these new strategies will hold up to market standards in the near future.
In this assignment I will identify what competitive factors and changes Tesco faces in the retail sector and how it might respond to these under the following headings; retail environment using PESTEL, and competitive environment based on overcoming barriers to entry, pricing, new markets and mobile population. In this assignment I will be talking about how Porter’s five forces are being used by Tesco.
JC Penney in the early 2000s represented a “brick & mortar” retail powerhouse known for its large diverse selection and competed well with similar retailers such as Kmart and Sears. In 2011 JC Penney was exposed by The New York Times in an internet search scandal involving the tampering with rankings on search engine results. Yet, this was not the only shortcoming in the marketing of their stores. JC Penney had also been caught dishonestly pricing their merchandise so that their sales would appear more appealing. Since then JC Penney has undergone many important shifts in focus on how they would attempt to market their products. Now, in 2016 with their new CEO Marvin Ellison they have managed to rebound their sales closer to what they were and have bolstered their stock price for the time being. To understand what had been done to kindle this new fire four key areas should be looked at. These four components are: price, product, place, and promotion. The four P’s allow a segmented view of what changes have been made and how they have been affecting the consumer market.
1971 to over 800 stores located in 46 states and Puerto Rico. This industry is
During this paper we will analyze how the department store industry has evolved and more important how companies are managing new strategies to remain competitive. Moreover we will use the case of JCPenney as a main focus to see how successful their strategies are. To provide a good analysis, we first need to understand how the industry has evolving and what the major companies like JCPenney are doing to continue in the industry.
We aim to return the UK High Street Retail business to its role as Britain's most popular stationer, bookseller and newsagent Our plans encompass improved efficiency through cost savings and margin enhancement, while rebuilding the competitiveness and depth of our product ranges.' (Ms Swann BBC, July 2005)
This report demonstrates the evaluation of current performance of JD Sports Company. Method of Analysis includes Ansoff’s matrix and Porter’s generic growth strategies to discuss the nature of the market which JD Sports invest in. The financial methods are including the flexibility and stability of JD sports which judged by the liquidity, current ratio, operation capital, gearing and profit margin of this company. These figures could be collected from the annual report or balance sheet. This report analyzed the JD sport’s position in the market, and used generic and external growth method to expand market size. Such as acquired a lot stores to improve business profitability. Obviously, JD has expanded to the European
The reason why I have chosen to analyse Tesco’s competitive strategy and organisational structure is because both area’s concentrate on the company’s goals. Without these areas being acknowledged properly and successfully analysed they cannot achieve competitive advantage
The company had ambitious objectives with their own retail units, having as an objective to open three hundred stores, but the company realized that retail stores were a distraction to management making harder to focus in their core business and damaging the relationship with their main retailers, making clear that the company was struggling on creating profits in products that were not part of their core business, the strategies and objectives needed to be adjusted in order to turnaround the decrease in sales and profits of the
Pep Stores experienced several critical moments that brought their competitive position changed. According to De Wit and Meyer (2010) “competitive advantage is rooted in a unique business system, whereby the resource base, activity system and product-market position are all aligned to provide goods and/or services with a superior fit to customer needs”. Although Pep had great competitive advantage base, Pep’s leader was required to change their business strategy to sustain due to some factors. Mostly are affected by competitive defendability and environmental consonance factors. (De Wit and Meyer, 2010)
Globalization changes have impacted Burger King in the following ways; since the company began in 1953 with its first restaurant in Jacksonville, Florida and opened several locations across the United States, the company began its international expansion in 1969 with its first international franchise location in Canada, followed by Australia in 1971, and Europe in 1975. The setting up of franchises outside the United States was as a result of fast food opportunities arising outside the United States. So as to fully integrate in the international market, Burger King had to adopt and embrace
Strategy literature offers many techniques and models suited for systematic strategic analysis. The SWOT analysis, the PESTEL analysis, the Five Forces analysis framework are the prime examples of techniques that can be adopted for strategic analysis. This assignment will use PESTEL and Five forces model to analysis the environment of CRH plc.
Strategic planning is central to management study. It defines the long term direction for the company and all other business functions orbit around their established strategies. This article studies how a company formulates business-level strategies, optimize their competitive positioning and obtain a competitive advantage over their rivals.