preview

Strategic Management

Better Essays

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

Get Access