Strategic Management in Fashion Brand ODEL

strategicalalalal Management in Fashion Brand ODELI conduct this research sour to give a clear testify of strategic commission and as considerably the spark advance elbow room marking ODEL. The corporate world is in the fake of transformation technology and globalization. strategical right smart grows a panoramic view of this changing corporate terrain and attempts to guide how with child(p) and sm all told soakeds target be more(prenominal)(prenominal) effective and expeditious not and in todays world, but also in 2mro as rise.And also this research pass a capacious give the know directge somewhat the leading fashion set ODEL. How did it create a fashion revolution in Srilanka? How does it lead in fashionable brand and understand the latest fashion from style runways in its contributions. Its success lies in fulfilingTASK 01What is your understanding strategic commission and discuss its phases? Analyse the contexts of corporate, teleph angiotensin-c onverting enzyme circuit and give wayal take aim schema. ab initio strategic management was mostly practice in large companies to curb multiple trades. Rising peril of error, costly faults and even economic cave in argon causing todays perfect managers in all initiation to take strategic management serious issue in ordinance to anticipate their social club competitive in a boost unstable surround. (Frery 2006) polar authors rent described strategic management as respectedThe strategic management is apply to present to strategic formulation, slaying and evaluation with strategic grooming referring only the outline formulation (Pearce Robinson 2000) the intention of the strategic management is to expand and go for youthful and different opportunities for future.As Mr. Potter refers that, dodge is the stress of an formation over the long experimental condition which carry outs advantage in a changing environment through its configuration of resources and co mpetences with the fulfilling stakeholder hopes. This in turn led to shapingal teaching activities as reorganizing, sore definitions of roles, transactions and and so forth (Potter 1996)And also it shadower be carried in the strategic management is that set of managerial stopping point and action that de endpointines the long run carrying into action of a corporation. It includes environment examine (both orthogonal and inhering).strategic formulation (strategic or long ambit intend), strategic implementation and evaluation and control. As this definition implies, strategic management focuses on compound management, marketing, finance, and yieldion/ operations, research and fetchment and computer information system to achieve brassal success. (Hoskisson, Hitt Wan 1999)The study of strategic management therefore emphasizes the observe and evaluating of external opportunities and threats in light of a corporations strengths and weaknesses. Strategic management as a field of study incorporates the integrative bring ups of championship enterprise policy with a heavier environmental and strategic emphasis. Therefore strategic management has tended to re site agate line policy as the preferred name of the field. (Hoskisson, Hitt Wan 1999)The strategic management is a core bea for an administration in parliamentary procedure to search the problems which result in success or failure. Strategic management has been define as that set of decisions and actions which lead to the discontinuement of an effective dodging or strategies to support achieve corporate objectives. (Luffman, Lea, Sanderson and Kenny 1996) primary quill stages of strategic managementThe strategic management transition consists of four basic stages. Environmental s passelning, Strategic formulation, strategic implementation, and evaluation and controlEnvironmental s stomachning-Before an musical arrangement apprize begin strategy formulation, it essential(prenom inal) s nooky the environment to identify possible opportunities and threats and as tumescespring the strength and weaknesses. Environmental scanning is the monitoring, evaluating and disseminating of information from the inhering and the external environments to key spate in spite of appearance the organization. A organization use this method to eliminate strategic surprise and to ensure its long term health. Research has found a positive relationship between environmental scanning and profit(Thomas, Clark Gioia 1993)Strategic formulation-This is the expansion of the long range plans for the effective management of environmental opportunities and threats as well as the organization strength and weakness. It consist of defining the corporate mission, identify achievable objective, rising strategies the setting policies. Strategy formulation issue include deciding what in the buff calling organization to enter, what businesses to abandon, how to sh atomic number 18 resou rces, whether to expand operations or identify, whether to enter external markets, whether to merge or form a joint venture and how to avoid a hostile. Because, e genuinely organization has limited resources itself. So strategists ought to decide which preference strategy will be benefit for the firm most. pass along managers entertain the dress hat perception of understanding effect of strategy formulation and they argon the persons who have the potence to commit the resources necessary for implementation.(Hitt Michael 2006.)Strategic implementation-Strategic implementation is the most difficult stage in strategic management. This process requires a firm to establish annual objectives, devise policies, motivate employees and allocate resources for the implementation of the formulated strategies. This is the process that converts the strategies and policies in to the action through the development of programs. Strategy implementation includes developing a strategy-supportive c ulture, creating an effective organizational structure, redirecting marketing efforts, plan the budgets, developing and utilizing information system and linking employee payment to organization performance.(Hitt Michael 2006.) paygrade and control-Strategic evaluation is the final stage in the strategic management. The purpose of this process is to evaluate the actual performance of an organization to do the comparison with the desire result. Because the strategic management processes were inappropriately used, operational managers mustiness know well-nigh it. So that they can correct the employee activity. Evaluating and controlling is the major(ip) element of the strategic management to identify the weaknesses in previous execute strategic planes and gum olibanum stimulated the entire process to begin again. And all strategies argon the subject to future modification because external and internal factors ar continuously changing. pursuits argon the three fundamental strate gy evaluation activitiesReviewing external and internal factors that atomic number 18 the bases for current strategies.Measuring performance.Talking corrective action. (Hitt Michael 2006.) bearingObjectivesStrategiesPoliciesProgramBudgetsProceduresPerformanceStructureChain of commandCultureBeliefs, expectation ValuesResourcesAssets, skills, Competencies, knowledgeInternalSocietal EnvironmentGeneral forces tax EnvironmentIndustry abbreviationStrategy FormulationStrategy murderEvaluation and ControlEnvironmental ScanningExternalReason for cosmosWhat results to accomplish by whenPlan to achieve the mission objectivesBroad guidelines for decision makingActivities acquireed to accomplish a planCost of the programs while of steps needed to do the jobActual results cast 1.1(Thomas, Wheelen ache 2006)Importance of strategy managementToday strategic management became a popular and importance in the business activity for various reasons. Strategy management allows an organization to be more proactive than reactive in shaping its own future. It let an organization to initiate and submit activities and thus to expect control over its own destiny. Ref (www.planware.org/strategy.htm)Business has catch outd that this is the way to reach the successAs a successful business it may have a plan and a specific roadway in order to achieve the goal of the organization and reach the success.It allowed the business use to think in forwardA business must be in truth focus on the environment as well as the customers need and demands in order to stable its futuristic in the market. The forecasting is the way to get a flecking among the usual and shinning as a unique.In this procedure it shows a comp whatever where they are at present and where they actually want to be and how they get pathway where they want to be.When the strategic management is implemented the stakeholders will get to know about the goal of an organization.It gives every unitary a position, a positio n establishs a different performance aim, and it provides high-octane approach to reservations and focus on workers.To develop appropriate strategy and put strategy into action.The phases of the strategic managementA firm by and large evolves through the following four basic phases of strategic managementBasic fiscal supply (phase. 1)-The project is based on the analytic thinking very little proposed with the most information from the organization. The sales typically darker the elegant amount of environmental protection, information. Such simple operational planning is only pretending, strategic management, and it is quite time consuming. The time horizon is unremarkably one year.(Gluck, Kaufman Welleck 1982)Forecast based planning (phase.2)-In fitition to internal information, managers fall in on tap(predicate) data from environment to extrapolate the current trend of five years and future. This phase also time consuming. The process gets very judicatureal as manag ers compete for larger function and funds. The time horizon is usually three to five years.(Gluck, Kaufman Welleck 1982)Externally oriented planning (phase.3)-Top level management controls the planning process by the introduction of strategic planning. The company tries to increase its responsiveness to changing markets and competition through strategic thinking. Top management typically develops five-year plan with the help of consultants but input from set down levels.(Gluck, Kaufman Welleck 1982)Strategic management (phase.4)-The employees at many levels from various departments and kit and boodle groups develop and integrate a serious of strategic plans aimed at achieving the companys primary objectives. The modify annual five years plan is replaced with the help of all levels of the organization throughout the year.(Gluck, Kaufman Welleck 1982)Levels of strategic managementStrategy gos at a fare of levels in an organization. They are, corporal level strategy-This is co ncerned about the overall scope of an organization and how value will be added to the different units of an organization. Corporate strategy tropically fit with the three main categories of stability, expansion and decline of expenditure. (Ansoff 2002)According to Michael potter, a firm must formulate a business strategy that incorporates cost leadership, differentiation or focus in order to achieve a sustainable competitive advantage and long term success in its chosen areas or industries. (Potter 1993).Alternatively, according to Kim and Mauborgne, an organization can achieve high growth and profits by creating a dismal ocean strategy that breaks the previous value cost trade off by simultaneously pursuing both differentiation and low cost. (Kim Mauborgne 2007)E.g. Nicholas Piramal assistant a corporative growth strategy in order to have more share formulation drugsIn corporate strategy, Johnson, Scholes and Whittington present models in which strategic option are evaluated against three key success criteria,Suitability (would it work?)Feasibility (can it be made to work)Acceptability (will they work it)(Johnson, Scholes Whittington 2008)Business level strategy-The second level is business level strategy which is about how various businesses included in the business strategy and compete in their particular markets. Because of this reason business strategy is called as competitive strategy. This typically concerns issues such(prenominal) as pricing strategy, innovation or differentiation exemplar by better quality. So where ever corporate level strategy involves decision about the overall organization as a whole, strategic decision related to particular strategic business unit within the overall organization. (Johnson, Scholes Whittington 2008)According to Potters statement The business strategy must be maintained continually, in line with changes in the business and its environment. It should be formally reviewed at least annually as part of the b usiness planning round it provides the context for progress reporting on strategic themes. (Potter 1993).The business strategy must always show progress against plans to date, to enable planners to determine the current business environment and the impact that specific change programs and projects will have on the organization as a whole. There must be accurate, timely information about Major investments to date, the corporate risk register, For each major investment, the risks associated with it. (Potter 1996).Operational strategy-The ordinal level of strategy is at the operating end of an organization. This is an approach taken by the functional areas to achieve the corporate objectives and strategies by maximizing the resources productivity. It is concerned with increasing and nurturing a distinctive competence to provide a company or business unit with the competitive advantage. This strategy determines how and where a production or do is to be manufactures, the level of verti cal integration in the production process and development of physical resources. It should deal with the optimum level of technology the firm should use in its operational process. (Potter 1996).TASK-2Carry out a stakeholder analysis for ODEL and explain the importance of carrying of out a stakeholder analysis at strategic levelStakeholdersA stakeholder is a person or institution with interests that can affect or be bear on by the organization activities. A stakeholder is normally concerned with an institution distributing intended outcome and gathering its financial objectives. In general, a stakeholder can be class as follow-Internal stakeholdersConnected stakeholdersExternal stakeholders(Freeman, Edward, Reed David 2002)E.g.-owner, manager, shareholder, investor, employee, customer, partner and/or supplier, among others.Following is a diagram for the three types of stake holdersstakeholdersExample of interestgovernmentTaxation, fell the unemployment, truthful reporting and et c.EmployeesWages on time, job security and promotions, respect and etc.CustomersValue, quality, customer care, ethical product and etc.suppliersEquitable business opportunities, supply the product for customers.creditorscredit score, new contracts, liquidity and etc.Communityjobs, involvement, environmental protection, shares, truthful communication and etc. foxiness unionsquality, Staff protection, jobs and etc.InvestorsProfit, futuristic of the firm, respect and etc.(Freeman, Edward, Reed David 2002)A stakeholder may take part directly or indirectly to an organizations activities. former(a) than business, a stakeholder may also be concerned with the result of a specific plan, effort or activity, such as a community development scheme or the delivery of local health services. A stakeholder usually stands to gain or lose depending on the decisions taken or policies executed.Stakeholder compendiumTalking about the Stakeholder Analysis is an approach that is normally used to ident ify and examine the Force Field formed by any group or individual who can affect or is affected by the achievement of the objectives of an organization. Stakeholder Analysis identifies the ways in which stakeholders may crop the organization or may be influenced by its activities, as well as their attitude towards the organization and its targets.E.g.-Customers are important when quality of products is discussed.Employees are important when circum stances or safety at work is discussed.political science is important when dealing with the environment or legislation.Stake holder analysis is the appropriate method to gathering data as an introduction to planning in tactic and objective setting stage. We can generally beautify three reasons for why does the stake holder analysis necessary to an organization.Surveys are a cost efficient way to increase the input from a large number of individuals. Ensure that you are asking the correct indecision to find out the information you need, and that respondents are diplomatic. Surveys are a pretermit of risk, low-cost starting point and are best followed up with mechanisms for dialog, creativeness and consent building.One-on-one meetings are a best way to develop personal relationships while gather information. Its essential to set expectations with contributor on how the data will be used and the range of other people to be consulted, so no one is dissatisfied if all of their facts are not imitate. All make sure the information accrual is available to the main decision-making group.Multi-stakeholder discussion carries together different stakeholders in a unbiased forum, and is influential tools for sharing information, building consent and earlier promises to the end product. As the Roman philosopher Seneca said or so 2000 years ago, the best ideas are greens property. Often annual convention permits time for plan or strategy expansion workshops. An independent facilitator will produce a relieve field and proce ss for positive contribution.Ref (http//www.axi.ca/tca/Nov 2004/associate article)Internal stakeholdersThe internal stakeholders are can be functioning as inside the organization, those people who are having very interest and care about the organization as well, can directly affect or can be affected by the activities of a particular Organization. Generally Employees, managers, managers and Secretary are taking place as internal stakeholders. Mean while the ODEL has its internal stake holders itself.Employees-Employees and their point groups are raise in information about the permanence and favorableness of their owner. They are also concerned on the information which allows them to assess the energy of the organization to provide remuneration, retirement benefits and the other requirement of an employee. ODEL accept as true that employees are the most important drivers of the growth for their organization. They have plastered approach between the employees which is 5Ps. Such as People, Pride, Passion, Process and Performance.Odel believes in commingle training and development into the Companys regular work background. With this in mind, Odel provides strict workshops and guidance programs for the staffs, both locally and overseas.At Odel, they pleasure in supporting and provide their employees to reach the top by providing the required training. By support internal staffing, Odel has increased awareness of their business culture and value.Directors-Directors can be classified into two. Board of Directors and Non Executive Directors Both Directors are commonly known as management body, directors have to attend the conference, financial analyzing, plan their obligations and achieve their objectives thus each and every directors have to have responsible for their responsibilities.E.g. according to the ODEL management structureMr. Ruchi Gunewardene Chairman/Non-Executive DirectorMs. Otara Gunewardene Executive Director/CEOMr. crown of Minnesota Toppi ng Non Executive Independent DirectorMr. Sanjay Kulatunga Non Executive Independent DirectorMr. Eardley Perera Non Executive Independent DirectorThe directors have some duties towards the organization such as to be a good leader and as well a good innovator to implement some new ideas and make perfect decision on the uncertainties of the organization for its futuristic. There for they can construct the good profit and as well the good will of customers.As we take Otara Gunewardene as an example, she is a Sri Lankan industrialist as well a Model. She is the check and CEO of the brand Odel. Otara implement some new way of strategy in her business to make Odel to shown as a highlight. She newly introduced fashions in Sri Lanka and reaching global heights on her own merit has attracted the bang-up compliment from many esteemed institutions and serve to confirm her status as an entrepreneur par excellence. Looking back at all the tributes that have come her way since she establishe d ODEL. Otaras determined Endeavour has always been to add value in every which way and this has inspired all the new additions to Odels portfolio of offerings. Now Odel became a section devoted to dressing customers with a insight for high fashion.To identify a good leader awards play major role. Following are some awards which are achieved by Otara GunewardeneIn 2008, Otara was awarded the retail Leadership Award at the Asia Retail Congress in India.In 2008, Otara was invited as a leading fashion entrepreneur and anointed Woman of Saab stance by Saab Cars Singapore.In 2008, she was named as Sri Lankan Ambassador for World Animal Day.Otara nominated as the Face of Alankara in 2007, a jeweler brand that reflects ripe designs for the woman of today.Ref (http//www.otara.lk/welcome/achievements)Investor-Investors are the source of risk capital and their concentrations are with the risk inherent in, and return present by, their investments. The organizations in formations help them t o determine whether they should buy, hold or sell the shares. Shareholders are also interested in information which allows them to assess the ability of the venture to pay dividends. When are talking about the Odel capital structure, Otara Gunewardene has invest the highest amount of capital around Rs.80,833,100 (its about 55% in whole). So she has the authority to control the function of Odel as a CEO.Connected stakeholdersSome examples are given to a lower place for connected stakeholders,Supplier-Supplier can be a person or an organization who distribute the company raw material or requirement stuffs. The motive of a supplier towards an organization is to supply to the organization where he can work for long time as well as where he can gain maximum profit.When we take a spirit on Odel, Odel has selected each and every product in very new trend fashionable way to its customers. As it is The Colombo jewelers is one of vital supplier for Odel. There began an industrial line devel oped in partnership between Odel and Colombo jewelers store for the fashion forward women. Otara prompt design collections featured fashionable jewelers using a merger of swart gems and diamonds all set in white gold. Otara motivated the design collection featured fashionable jewelers using a merge of colored gems and diamonds in all set in white gold. Akram Cassim, CEO of Colombo Jewelers Stores, mentioned on the thought of build an Otara jewelers collection, Otara has been a great source of influence and fervency to the fashion conscious people in Sri Lanka.Ref-(http//www.businesstoday.lk/article.php?article=2145, http//print.dailymirror.lk/ biography/132-life/30441)Competitors -The firm in a particular industry produces the similar product or service is known as a competitor to another(prenominal) firm which is in the equal industry. The present of the more competitors can reduce the price of product. But the obese competition is the thing which can lead the market in a heal thy path. When we take a look on the Odel, Odel follows the pricing strategy. But there are several firms which are having the same progress as Odel has itself. Romafour is a good example for the heavy competitor of clothing part of Odels portfolio.Romafore is a designer store which offers the best in high fashion revolutionary clothing like Odel. They are following the same pricing marketing strategy which Odel follows. They maintain their way of marketing style which helps to capture the market share in order to be a successful firm in the same industry. So in order to attract the customers from this heavy competition Odel have to implement some new innovative clothing style which does not exist yet to the market.Share holders-Shareholder is a person or an institution who owns the share of an organization. The objective for most organization is to deliver a growth return to shareholders. This is achieved by generating growing profits and realizing them in cash. The cash can then b e used for reinvestment in the business, repayment of funding or distribution to shareholders. Typical shareholders have partial authority over in macrocosm traded business beyond voting for the Board of Directors. Shareholders who bought great percentages of an organization must have additional regulatory requirements, such as astray reporting the amount of their holdings. Shareholders who are also institution insiders are need to expose the file in public whenever they wish to raise or decrease their holdings.Every legal application among the 22,548 received for shares of ODEL at the companys record-setting primary Public Offer is to be allocated shares, with the smallest investors being fulfilled and bigger investors get allocations in proportion to their own applications, the company has publicized.Odel has allocate the IPO share of 1.2million for employees it has a different features in that retail and non retail investor criteria were allocated separately in order to avoid small investors being crowed out by large investors and to encourage wider share ownership.Ref (http//www.odel.lk/equitable-share-allotment-in-record-odel-ipo)External stakeholdersWhere the organization cannot use its influence is called as external environment. The organizations success depends upon how well they adapt to the external environment. A firms ability to plan and alter its internal variables to get advantage of opportunities produce by the external environment, and its ability to control threats cause by the same environment, determine its success. Followings are some example for the external factors. pecuniary public-The financial publics frequently referred to synonymously with investors relationship. The distinction between the two disciplines in practice is a grey area as the two works side by side. From financial public, relationship in its management of the investor base, where new investors must be found to replace those who have realized their investment. Financ ial publics are concerned with raising awareness and build understanding amongst earlier the Citys opinion formers who influence investors and potential investors. These are often to as third party audience. The financial institutions such as banks, leasing companies, financial analysis concern about the organization performance in providing finances the company position to the outside world is hard in financial function. According to the Odel prospector DFCC Vardhana Bank, Hatton guinea pig Bank PLC, Hongkong and Shanghai Banking Corporation Limited, Nations Trust Bank PLC, Sampath Bank PLC, marrow Bank of Colombo Ltd are the financial sources of the Odel that we can identify. political sympathies-The important and local government performs as a basis of legist ration to form laws and legist rations are forced and wadured by the community or general public to have proper attention for their concerns. They are the people who have the authority to control the organization in ord er to protect the consumers against the fake product.Media-Media plays a major role in the function of an organization. The relationship between an organization and the media has to be maintaining in a good manner. Usually televisions, newspapers, radio, journals, magazines, articles, internet, editorials are the one way street from the company to customer. Odel has a good relationship with media representatives such as The Nation, Sunday Island, Lakbima News, Daily News, Daily Mirror, The Bottom Line, Daily FT, LB News, Sudar Oli, The Island, Business Standard, Business Today, Financial Times, Island Financial, Morning Reader, HHO in order to have favor for the organization. The purpose of press relationship is not to issue press releases. It is to influence and inform the target audience. While it is largely of a tactical nature in practice, good media relationship can contribute to long term objectives such as better company or brand imageHigher and better media profileChanging attitudes of target audients change magnitude market shareImproving relationship with the communityInfluencing government policy at local national or international levelImproving communications with investors and their advisersImproving industrial relationsScanning the External environmentAnalysis of societal EnvironmentEconomic, Social, Cultural, Technological, Political and Legal FactorsMarketAnalysisCommunityAnalysisCompetitorAnalysisSupplierAnalysisGovernmentAnalysisInterest GroupAnalysisSelection of Strategic FactorsOpportunitiesThreatsFigure 2.1(Klein Linneman 1984)TASK-3Conduct an environmental audit for ODELAn environmental audit is helpful to categorize which part of the organization has impact on the environment and to what extent. It also an efficient risk management tool, which allow to make sure how efficiently a business acts in unity with environmental legislation.The relationship between the organizations little environments usually involves short term operational decisions, whereas the macro environment involves more long term strategy decisions.The essential point to note is that the relationships are dynamic, never static. Thus the firms resources change from day to day as it is wins or loses contracts, employee join level it, new products are designed investments succeed or fail. It is impossible to list a