Strategic Assignment

ARGOS| STRTEGIC PLANNING AND IMPLEMENTATION AND STRATEGIC MARKETING MANAGEMENT | Assignment| KEHUL KAVAIYA 7/22/2010 | Edexcel Level 7 BTEC Postgraduate Advanced Diploma Management Studies ASSESSMENT ACTIVITY: UNIT No: 04 & 17 UNIT NAME: Strategic Planning and Implementation & Strategic Marketing Management By: KEHULKUMAR NAROTTAMDAS KAVAIYA Student ID: STUD-7266 Company: Argos Limited Type| Public| Industry| Retailer| Founded| 1973| Head Office| Milton Keynes, England, UK| Key People| Oliver Stocken (Chairman)| Type of Product| Consumer Goods| Owner| Home Retail Group Plc. | Web site| www. argos. co. uk| Revenue| ? 4. 3bn (2009)|

Index * Task 1 (a) * INTRODUCTION Argos is one of the largest general merchandise non-food retail chains, with yearly revenue of over ? 4. 3bn (2009) and biggest catalogue chains in Europe and third in the world. Argos has more than 730 stores across the UK and Republic of Ireland. Argos sells general goods and home products via 730 stores, online and over the telephone. Customer can select superior range through 18000 great value products from the Argos. About Argos Richard Tompkins was launched the company in 1973 as a Green Shield Stamps in the U K. The Green Shield Stamps catalogue shops rebranded as Argos starting in July 1973.

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The first 17 stores started straightway on July 21, 1973. “Customer could buy products from Green Shield Stamps with cash rather than savings stamps” Argos came up with this idea. Argos established with bringing ? 1million and 1000 staff member in running a week of November, 1973. Argos was launched first catalogue with 4700 products across 250 pages. BAT Industries bought Argos worth ? 32 million in 1979. In June 1980 the company started 1st Elizabeth Duke jewellery boutique in Bristol and company was Britain’s 4th largest jewellery retailer in 1981. The company was listed in the stoke exchange with 203. p opening share price. The company was accumulated by GUS plc (Great Universal Stores Plc) in April 1990 and after that Home Retail Group which was demerged from GUS Plc in October 2006. Now Argos owned by Home Retail Group Plc. From January, 2010 opening new Argos Stores and stores also going to take new identify. * Argos made 130 million customers dealing in last year and 26% dealing made from online internet. * Argos has biggest catalogue marketing strategy in non-food consumer merchandises. * 18million people have Argos catalogue at home at any time. * Argos is first group position in house wares market.

Argos owner HRG Plc has nearly ? 9. 2bn market size in house wares market. One of the prime reason for chosen this company is, “Argos has different type of marketing like marketing via catalogue, online and over telephone and way of they provide to customer best value for money”. I like that they provide convenient way for customer to shop. Argos stores style is different in high street. This is a good opportunity for me to learn about this company. (b) * Strategic planning “Strategic planning is process of identify mission, vision and goals and create best steps for achieving goals and objective. In any successful business it’s very important to plan for future in all sorts of way, and organisation mission, vision and objective should be set for the future. Planning is very important tools for getting success in the future of a business. Main purpose of strategic planning to create the goals for an organisation and flow the steps for achieve this goals. Which goals should priorities for an organisation and flow steps day to day for achieving its goals. Develop Strategic plan: An organisation needs to find out and collect information on many aspects of the business.

This process will concern internal and external audit of the organisation. The internal audit defines an organisation strength and weaknesses. The external audit defines the PEST analysis of and an organisation. (Andy, Alex and Judith n. d. , p. 299) Internal Audit: Organisation needs to analyse people (turnover of labour, Motivation, absenteeism, productivity), operation management (Stock control, delivery, productivity, delivery), marketing (Sales, Advertising, sales staff performance), financial department (variance and budget, profitability, Cash flow, Investment appraisal in an internal audit.

A business needs identify its strengths and weaknesses in their competitor’s relation across the entire of the business. The aim of audit provide the perfect information about every particular department and if possible very good to use the accounting or statistical data for the information. External Auditing: A business needs to analyse external areas such as Political, Economic issue, Social issue, Technological change, Competition, Culture, Ethics, Environment and Pressure group. External auditing is very important for all business. All business needs to PEST analyse for getting success in future.

Government authorization polices in health and safety, taxation and competition, and employment are all affect to employers and businesses. The influence of government is ascending into new location of the business environment like environmental and ethical issue. Currency value, rate of interest, unemployment, and economical changes is playing their role on getting success in the business. The business needs to be aware of changing environment. Argos mission statement is identifying customers and meeting their needs. This statement clearly state that Argos needs to deeply PEST analyse for reach to the goal. c) * Strategy by Framework Strategy is the way of the achieving goals. Argos developing strategy framework: The strategic process helps a firms to understand more about its status of strategic position and organisation can know about business environment, customers needs and requirement, organisation can find new option which is consider for success, and the way of develop competences meet to organisational goals and objective. By this strategic Argos looks to match its own objective for development and growth with reality of the business environment because every organisation needs to be realistic.

Main for part of organisation is most important to develop its strategic such as, awareness, planning, development, and management result. Awareness: Organisation needs to examine market and competitive realities and also examine internal and external business environment. Organisation must identify the major opportunities. Organisation must have to do SWOT analysis for examine the market and competitive realities. Planning: Planning is very important to get success in the business. Organisations should make the planning behind every objective such as Short term and long term planning, strategic planning, organisational and optional planning, epartmental goals, and communicate strategy. Development: Argos developing strategic depends on marketing process because Argos is not Manufacture Company. To increase Operating performance and growth, Argos using workforce development, increasing productive and sales, sating of goals, plans and action and management development. Results of Management: For Organisation is getting the expected results from the market, management of Argos taking meeting for review of performance. (d) * Strategic Models

The five force of models behind the success of organisation which is Potential, bargaining power of suppliers, bargaining power of buyers, the threat of substitutes of services, and the threat of new entrants. Potential Entrants: The threat of new entrants is the defined the Organisation brand loyalty, absolute coast advantages, and the switching costs and also government regulation. Argos this force is qualitatively and ideally factors of Argos but its make very expensive to enter in the industry. Main key step for developing strategy it’s concerned with the company mission, vision, and others objective.

The step is the developing realistic vision for the organisation. Organisation mission indicates it’s the goals and activities. Strategic planning Models: Strategic planning is the process to establish major objective on what organisation will accomplish in the future. Organisation to make selection of forces of models on what organisation will do and what organisation will not do. The main reason to do strategic planning, improving the performance, solving major issues at a macro level, and communicate to each other’s what is the major factor.

A good strategic planning helps to find critical performance issue, organisation capability, to cover sufficient time period to reduce the gap of performance. Models are: Internal assessment depends on assets resources, culture, people, system and partnership and suppliers. And external assessment depends on marketplace, trends, technology, and economic cycles. And the internal and external assessment depends on SWOT analysis. SWOT Analysis of ARGOS * Task 2 (a) * Marketing Strategies Argos marketing strategy particularly plan of marketing which designed to meet customer’s needs and requirements with based on clear goals.

Strategy and tactics of Argos will enable to achieve those goals and others objective. Current, developing strategy is concerned with the match between the external environment and internal capability of the organisation. Organisations are often embossed with externally or internally to examine their position of strategy within business industry or place of market. The first stage market research enables to identify the most important marketing mix. And the marketing mix should consist of the four ‘p’, which is the right product, sold with right price, in the right place and using the most suitable promotion technique.

Customers can find product from over 18000 products in Argos catalogue. Current markets have an improving concentration by an organisation on the needs and wants of consumers. The culture changing at Argos, its management decided they need to change the extended marketing mix to increasing the consumer’s experience. Argos products price is always low and more selection of products with less hassle. Argos management team wanted to create on these values and develop the marketing mix to improving organisation sales and profits. Argos changed its logo in 1998 and after that its sales and profits increased.

Argos market research was seen as a boring and stuffy. The firm has used advertising to appeal to its different market segment and Argos segmentation its market not only in terms of age and gender (demographic) but also in terms in people’s brand awareness. (b) * Stakeholders of Argos Stakeholder mines “an individual or group with an interest in the success of an organization in delivering intended results and maintaining the viability of the organization’s products and services. Stakeholders influence programs, products, and services”. Argos responsible and accountable to a high range of stake holders: * Share holders Customers * Suppliers * NGO’s * Community groups * Opinion formers Share Holders: Argos one of the main stake holders is its shareholders. Shareholders is legally own share of stoke (one or more) in an organisation. Argos owner Home Retail group’s investment is very high behind the people and technology. Number of individuals shareholders percentage is very high (86. 58%) and the corporate shareholders percentage is very low (13. 42%), that is main reason is the share holders is the very important stake holders for Argos. A more trusted brand leading to stronger stake holders especially share holders and customers.

Shareholders manage to risk effectively. Employees: Argos highly skilled workforce is also one of the most important stake holders. Currently, Argos has more than 33000 members of staff. Argos high street style is not like a show room. The stores are mainly focused to directly employee for an example customer service. Customers: A customer is very important stakeholders for all organisations. As per last year Argos made 130million transactions. Argos serving more than 2. 5 million customers a week, so that is the biggest stakeholders for Argos. (c) * How stake holders have contribute the development

Big firm have many kind of stake holder group such as internal stakeholders (Employee) and external stakeholders (government) as outside of the business it is necessary to identifying and balance the need and expectations of group of stakeholders. Balancing needs of all stakeholders is important for big retail chain, like Argos. Share holders: Shareholders choose the board of director and board of director create the business strategy. In Argos, share holders are the main part because Home Retail Group is owner of Argos and also owner of the Homebas. Share holders are main part of its investment.

Argos main development strategy is the investment behind the people and technology. Capital requirement, reward from share of the profit this different according to share per person. Employee: Employee is one of the main internal stakeholders for every big organisation. Argos is catalogue based company in UK market. Argos has consistently stated that, its workforce is very important. Argos manager and supervisor have high level training and development is the core requirement and needs to long range success in retail industry. Employees are very important to making changes in the work. Customers:

Argos main aim is to provide better service and the increasing the customer’s satisfaction. ‘Customers is the God‘this sentences is not wrong. Without the customers any company can’t develop its business. For batter business organisation needs to create good relationship. * Increasing the sales and profitability through the better timing by fulfil needs based historic trends. * Increasing Cross selling of the others products. * Easy to identify that, which customers are profitable and which customers are not profitable. All stake holder in very important for development of organisation and meet goal in the future. d) * Senior management of an organisation gain commitment to its strategies and the implementation of these from its employees Organisation requires a direction for its development. The employees who manage the business providing the direction and taking responsibility for making decision and good business are a high skill. Argos main key objective are customers satisfaction, increase profitability, growth of fleet, and employment development. Gaining employee commitment: There many different senior management style for gain commitment from their employee.

This depend how leader communicate with the employee for example, Argos operating “open door policy’. This helps to everybody within the company to have direct contact with senior manager. Senior managers have implementation very good management and practices. Get promises from employee. Managers have to maintain positive employee relation. Manager can get commitment by making a planner meeting, special occasions, and the place of work more fun place (but make sure that is time for joy, celebration or play) and Making outdoor activities by organisation.

Making rewards by each individual performance. Manages should helping dealing with stress of painful period. Manager should show to employee that manager believe in the benefits of consultation. As manager demonstrate organisation commitment to employee’s involvement in the health and safety. Organisation need train manager, supervisor and health and safety employee together. * Task 3 (a) * Layman’s language define the term: Vision, mission statement, objectives and value Mission definition: The declaration of the organisation core aim or purpose and focus which is remains unchanged.

Different business practises and strategies may frequently be altered to take to changes circumstances. What a firm is way is exists its reason for being define mission statement of a firm. Firm’s possible mission statement is written declaration of the purpose concerned with highest priorities of a company or individual. Vision Definition: The picture of your company in the future or more that means vision and firms inspiration the framework for all your strategic planning. Vision statement means one of the terms, which are using widely.

Vision should have realistic, credible, attractive and in future achievable. Objectives Definition: Goals that a firm create for itself for future sales, profitability, or return on investment define the organisation objective. An organisation or individual desire or dream or needed result to be achieved by particularly in time. Values: The corporate mission, strategy, governance, culture, communication, corporation, decision process, decision system, performance management process and reward processes, this are all values for an organisation.

The greatest potential of any organisation are created by a commitment to high corporate values. (b) * Vision and Mission statement of Argos and Its Strategy Develop Mission statement and others Objective: Argos mission statement is: “Argos Provide their customers with the best value for money through the most convenient shopping experience”. Argos main purpose is identifying the customers and meeting their needs. Marketing department of Argos providing the goods and services that customers want. In future Argos wants to improve their services and best way to find out customer’s needs.

Argos offers to consumers, via multi channel approaching to shopping: * Customers can reserve products from home either online or by phone to get their products from stores. * Customers can look over the catalogues and stock availability in stores. Collect goods and pay for that in stores. * Customers can select products from the online catalogue via web site and either order for home delivery or take goods from stores. * Customers can order any products from the catalogue for home delivery by the telephone. Argos vision:

Argos vision is to build around its commitment to giving good choice, high value and convenience, with their passion for its customers at the core. Argos giving its customers lots of selection within such easy reach such as customers shopping in stores, online, via phone and via text, by check and reserve. Argos aim to have stores and buying points within easy reach all of its customers and expand its reneges of products to provide its customers with lots of selection as customers wants in all of products ranges. Argos always believes in “organisation is control its own destiny”.

Argos main vision is the embodiment of this belief. (c) * Cultural and ethical value of Argos Argos culture is the beliefs and values that are shared over the firm. Currently it is very difficult to define to ensure the firm’s culture reflect its strategy and focus on the consumers. One of the key factors of the new approach has been to changing the culture of corporate at the company (Argos) and make and environment within the organisation that values. Argos provide its employees, job training, career development opportunities and satisfaction reward for better performance to achieve cultural change.

Argos management team created its culture: * Believes in winning * Believes that change is important and necessary * Seek new opportunities * Encourages co operation This all values very important part of to increasing the organisation’s competitiveness via innovation and via working effectively in team. Argos’ new management created its new cultural values: The company talked its staff to create good workforce, who were able to improve. Argos customer service provides an experience that is very friendly, efficient and hassle free to its customers.

Team work of organisation’s employee leads to good co-operation and sharing of best practice because Argos giving ownership opportunity for decision so that solve problem themselves. Employee respecting to each others because of that employee feel they are contributing. Culture of competitive will to win because of that everyone is aiming to increase and succeed. The company employee commitment is very high, which was company found in 2003. (d) * Critical success factor of Argos Argos and many more retail company facing the problem of serious challenge due to rapidly change in condition of market, improving global competition hrough fuelled, expectation of high performance via consumers and market, and also including technology. The retail industry growth is significantly due to technology innovation, through adopting management techniques of supplier’s chain, modular layouts, re-engineering processes, and involvement of employees. Critical success factor: Critical success factor indicate highly accountable non profit firms. There some critical success factors are as under, balanced approach is requirement to ensure all of critical success factors contribute to firm’s culture. Technology Support:

If organisation don’t have perfect technology, for an example geographical IT so that critical success factors for that organisation. The effective technology is most important for future successes and to meet the organisational goals. Some Argos technology is not proper, like ticket machine. Stakeholders: To create unnecessary dialogue with critical stakeholders that affect to negative to the organisation. For an example, Argos some stakeholders is engaged. Strategic leadership: Organisation is going to right direction and also organisation has clear and realistic goal.

For an example, Argos some objective is not for development, like two time catalogue creating for customers. IT Governance: The committee of promotion chaired via PM (Prime Minister) guides and mediates the admin branches, which is directly, affect to the market. Program management based on performance: Organisation can regularly evaluate the perfect measure of performance? Right measure of performance is very difficult. Shared ownership with the employee: Company’s members of staffs have clearly and perfectly promised to achieve organisational goals. * Task 4 (a) * Strategy of Argos

A strategy is a way to a firm puts into practice to get particular and objective. There are all sorts of general strategies that a firm might employ, like expanding into new market of countries. Currently, Argos’ one of the strategy is growth. From different kind of way company can be achieve growth, like opening new branches of stores, improving the ranges of products, website improvement, and increasing profitability and revenue. The strategy of Argos involving maintaining the loyalty of existing consumers: There is high number of customers, who wants to buy products directly from the Argos.

Advertising through the media and on the television is very effective way to attracting people. Argos provides its customers ‘value for money’. The Argos management and administrative will be concerned with managing its system and security. Argos is the part of HRG (Home Retail Group). HRG won the Retail week Retail technology of the year award in 2008 for its project of supply chain (RACO). Argos growth record is very strong. Economic Climate: Argos has five stores in Mumbai (India) and a telephoning and online ordering service that are doing in conjunction with hyper city, with its Indian retail partner.

The company said that it had completed a reward into its Indian stores combined venture and had decided not to proceed. This decision to discontinue the trial following the just for two years period of development has been kept mutually by the company and its partner. (b) * Changing in Organisation Environment Argos is highest public services trade union in UK, Such as: * 33000 Employees * 730 branches * 130million customers * Headquarters in England Argos performs many different roles for its customers. Argos changes its environment from these main public services. External environment is ncluding in changes in organisation’s environment. External environment * Social factor: Argos changing its demography, like changing patterns of population, lifestyle and behaviour and customers shopping patterns. * Legal factor: Any new laws and application of the laws that might affect a firm. * Economic factors: variable in economy that affect the demand for services and goods, which is may change environment, for an example changing in the interest rates. * Political factors: Changes arising from government initiatives or policy, which also effect to changing environment. Technological factor: The influence of changing technologies on business processes and products. The changing work company work environment An employee in latest technology would clock in and out of work. A device of mechanical recorded the start and end time for every each employee. The old type of work based on morning 9. 00 to 5. 00 evening working day and they were paid weekly based (hourly rate given). Currently situations are more women working, in general and live longer. (c) * Major functional area of Argos Main four functional are in the firm such as Marketing, HRM (human resource management), finance, and operation management.

This are all functional areas are very important for an organisation. Every functional area is need strategic thinking for future. A form need to create strategy decision and keep the strategy in action. The long term direction is concerned with the strategic management of a whole firm, the different functional areas relationships and strategy implementation in a firm. Every firms working perfectly with necessary departments, such as Marketing: Marketing is very important department for Argos and all organisations. Marketing department of Argos involves a range of process affecting with finding what the customers wants, and then providing it.

The marketing mix 4ps is key elements of Argos marketing strategy and Market research to find out consumers requirement. Market research via quality and quantity research involves meeting customers’ needs. Finance: Main function of finance department are providing financial support for business and operational planning to get success in future, providing the day to day financial services to its staff and department. The financial department responsible for creating a balance sheet and profit and loss account provides management information, book keeping procedures, management of wages and others. Human Resource management:

HR department is very important department for all organisations. Main purpose of the HR department to attract and retain employees by all activities and ensure performance of the employees at the highest level possible to meet’s organisational goals. Human resource management responsibilities are establishing develop methods, and evaluate practices. HRM decision directly affect to the employ people, who working for the firm. (d) * Major functional areas can development the organisation The main aim of functional areas of to ensure that every important activities of business are carried out efficiently.

Marketing: The marketing department is most important functional area because sales and marketing will be concerned with business objective and, achieving targets, new market developing and increasing sales. Organisation can improve its sales, brand image, finance condition by marketing. Marketing playing most important part in company’s development because marketing is designed to achieve profitable sales. Marketing is involving the use of stronger tool to manipulate the decision of individuals and of other organisation. Argos cannot development without its marketing department because firm based on catalogue.

Finance: Finance is very necessary for running the organisation regularly. Finance has very close relation with marketing and operational management. Argos can increase capital via finance, generating high revenue. This are all parts of developing the organisation. Finance is very important for day to day activities within the organisation. Argos finance capacities is very high so we can say Argos’ finance department and finance is very important for developing its. Human resource management: Human resource is also one of the important functional areas within the business.

HR are the workforce that work for a firm. Argos has more than 33000 employees. in the case of Argos, employee is very important for increase the sales, customers services, to achieve the goals and objective within the organisation. This all functional areas are very important for development of Argos. * Task 5 (a) * Strategy Implementation Implementation means consist of securing resources, a firm these resources and directing the using of these resources within and outside the firms. Strategy implementation define, which strategy chosen by organisation so that strategy put in to action.

Strategy implementation timetable can develop certain way such as: Strategic focus: Argos business has changed substantially in the last four years. At time of the recession, as this changing result, the company was getting nearly double percentage increasing in the earning but the dividend was reduced by 21%. Argos also offers venture advisory services. Argos focus the on public sector and big corporate in the London. Assessment: Organisation evidence of competence is based on place of work activity and aim to reflect attainment within the firm.

Organisation assessment assesses the achievement of standard occupational. Organisation needs to assess skilled of its workforce. Change planning and implementation: Make the business readiness planning and take into consideration such as development capability, migration data, development of technology, training and activities and activates of business require to integrate new possesses and jobs into the business environment. Organisation need to ensure that perspective on business on how the new one technically capacity will be delivered to the business. (b) * Implementation Time table 2005| 2006| 2007| 2008| 2009| Benchmark screening | 7. 9| 6. 0| 6. 1| 6. 7| 5. 1| Satellite system | -| —| | | | Process of employee atThe time of Christmas nearly Double. In each years| 18000| 23000| 26000| 29000| 33000| Profit of bench mark OperatingIn million| 320| 297| 325| 376| 304| Trends of revenue sales declinedOf 4. 8% in last years| 8. 8%| 7. 7%| 7,8%| 8. 7%| 7. 1%| Number of line in the Argos catalogue In each years Product in total| 13500| 17100| 16700| 18500| 18900| | | | | | | Market size of Argos (? bn)For products of home environment| 9. | 8. 1| 9. 1| 11. 2| 13. 5| General merchandise (? bn)| 6. 2| 5. 5| 6. 6| 10. 1| 16. 4| (c) * Implementation Argos implementation define inter communication and buy in, aligning structure and people, developing new resources. Organisation people have to understand what the strategy implemented and how affect them and using their skill and quality to help getting implementation strategy. The company internal people understand and know the implementation strategy, organisation also necessary to align structures and people make sure the happening strategy.

For examples products A and product B implementation, organisation needs to evacuate the both products and the go through step by step. Model of strategy Implementation: every organisation to adapt to change by model of developing of particular structure, objective, control, integration, and incentives for strategy implementing. Strategic changes: understanding of strategy implementation changes again forces and way to overcome necessary changes and implement change. Strategy implementation and HR: HR polices and strategy both together needs to implement.

Controls and incentives: the way to motivate and control of performance involve methods of get effective coordination. (d) * Important of Implementation The implementation is easy and also implementation is more important than ideas because all start-up different makeup. Evaluation, monitoring and implementation process is very important for the organisation. Organisation need to access the problem, predict impact, implement, evaluate the performance and monitor. Every new scheme provides opportunity for learning from experience, and increase their understanding of performance and policy tool.

The strategy implementation part of the business planning deals with important part of the business. The Argos set up working group to oversee the setting up of the new people benefit. Market research show the consumers wants one thing more than anything. Argos refocused and adapted its old help point services to provide all others help services. * Conclusion: Staff planning is vital if firm is to meet its future demands for employee. Argos needs to have people with the right trained and experienced to support its development and growth.

By trends examining in the macro environment it is possible to identify market opportunities and perfect products. BIBLIOGRAPHY Book 1. ANDY MOTTERSHEAD, ALEX GRANT, and JUDITH KELT (2009) OCR Business studies for a2 2009. UK: Hodder Education. WWW 2. ARGOS (01/04/2005) Student Pack [WWW] Argos Limited. Available from: http://www. argos. co. uk/wcsstore/argos/en_US/images/StudentPack. pdf 3. ARGOS (n. d. ) Graduate careers [WWW] Argos Careers. Available from: https://secure. argoscareers. com/r2/graduate/index. html 4. CATALOGUE DEALS (n. d. ) Argos brief History [WWW] Catalogue Deals.

Available from: http://www. catalogue-deals. co. uk/argos. aspx [Accessed 16/07/2010] 5. HOME RETAIL GROUP FINANCIAL DEPARTMENT (01/04/2009) Annual report 2009 [WWW] Home Retail Group. Available from: http://www. homeretailgroup. com/ar/2009/_downloads/HRG_Annual_Report_2009. pdf 6. THE TIMES 100(n. d. ) Marketing Mix of Argos [WWW] Thetimes100. Available from: http://www. thetimes100. co. uk/downloads/argos/argos_9_full. pdf 7. THE TIMES 100 (n. d. ) Argos mission statement [WWW] Thetimes100. Available from: http://www. thetimes100. co. uk/downloads/argos/argos_10_2. doc



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