Question:
You are the newly appointed strategic consultant with JD Sports PLC a UK based retailer of fashionable branded sports and casual wear. The board of directors in UK has decided to expand the business in Real Estate Market in the UK. Therefore, you are instructed to prepare a report suggesting the best strategic direction for the firm to grow into another market, and to develop strategies that will help them to create a competitive advantage and achieve their strategic objectives. You need to consider effectively scanning both the internal and external environment for JD Sports inorder to help the business to explore new opportunities in the Real Estate Market.
Company Background
Established in the year 1983 by John Wardle and David Makin, JD Sports has long been established and by 1996, JD Sports has opened a total of 56 stores. By 2011, JD Sports has dominated most of the EU, primarily in Germany, Ireland, France, Netherlands and Spain, with Denmark and Sweden to follow suit. At this moment in time, JD Sports was already regarded as the most innovative visual merchandiser of sportswear with the best and most exclusive stylish range.
Fast forward to 2016, JD Sports officially launched its first store in Asia, right here in Malaysia. In November, JD Sports opened its first flagship store in Pavilion Elite, Kuala Lumpur, and its third storein Asia in Sunway Velocity, Cheras. Nevertheless, JD Sports looks forward to diversify their business into Real Estate Market in the days to come.
However, for better understanding of the organisation you are required to research the given organisation including its challenges and strategic management approach to expand in into this new market.
- Applying the knowledge of relevant strategic management frameworks, you need to
- Carry out the external analysis
- Address the internal analysis
- Identify key issues, evaluate alternatives and make conclusions based on thorough analysis
You should make appropriate strategic management recommendations for the given organisation in today’s business environment.
All these must be completed by accessing, selecting and utilising a variety of business information sources.
Assessment Task Details
Your individual strategic management report will need to identify the internal and external opportunities and threats facing the organisation (s) given in the case study, and utilize appropriate frameworks that inform the development of strategic options and recommendations for the organisation(s) in terms of future strategic directions and methods of expansion into new market.
The report should therefore be comprised of areas for consideration that address the following questions:
- Appraise the current strategic positioning of the given organisation. (LO1, LO2, LO3 andLO5)
The following will need to be carried out to address this question:
Under take a critically evaluated strategic audit, using appropriate models and frameworks, of the firm’s existing strategy in relation to its ability to exploit new global opportunities to create a more competitive advantage In order to prepare report for the board of directors you are required to scan Micro and Macro environment of the company where it operates.
This will need to include an critical assessment of the external MACRO environment (using the PEST or PESTEL framework); external MICRO environment (using Porter’s 5 Force framework) and internal analysis of the organisation (applying Jay Barney’s VRIO or Michael Porter’s Value Chain Analysis) to identify opportunities and threats in both these external and internal environmental layers.
- What strategic recommendations can you propose for the organisation(s) given in the case study to strengthen its current position in the given Market?
The following will need to be carried out to address this question:
Your report must include an analysis and evaluation of organisation competitive strategies in a critical and informed way. Evaluating best alternatives and make possible recommendation and conclusions based on thorough analysis and consideration of their future competitive strategies, applying either Porter’s Generic Strategies of Competition framework or Bowman and Faulkner’s Strategy Clock.
Your final strategic management report should contain:
- Executive Summary
- Introduction (Company & industry background, key challenges faced by the selected company)
- External environmental analysis for identifying opportunities and threats: Macro (PEST or PESTEL) & Micro (5 Forces Framework for analysing industry structure and the nature of competition)
- Internal environmental analysis for identifying strengths and weaknesses: VRIO or
- Identification of Competitive Strategies (Bowman’s Clock or Porter’s Generic Strategies)
- Strategic directions (Markets, Products, Services) & methods of expansion
- Conclusion and Recommendations
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