Question 1) it’s been explained as the £2.7 trillion opportunity’. According to Boston consulting group, there will be 3bn internet users globally by 2016. UK is leading revolution with 8.3% of GDP now online. Retail is experiencing Paradigm shift as a digital economy impacts on British shopping habits. New Business models are needed. In the past shops were analysed on the basis of sales per square ft. But there is no concept of sales per sq ft online. Nor is there one of sales per page - you can have infinite number of pages at almost zero cost. The metrics require to analyse ecommerce retailer are different. Not sales per sq.ft but on-site conversion rates, the lifetime value of consumer, the cost of customer acquisition, time spent on sire or average sale per visit.
Retail has also been impacted by lower disposable incomes, increased rates, more stringent parking regimes and the emergence of mega shopping centres,
You have been requested to undertake given with respect to High Street business of your choice.
Write the report in which you identify requirement for strategic change in digital competitive environment of 2014.
You may wish to focus on either click and brick or pure play strategy. Identify the requirement for change, how business enterprise might realign itself to the requirements of external environment and estimate possible outcome of strategic change programme. Support your briefing paper with reference to range of strategic management theories drawn from: paradigm shifts, macro-economic environment, PESTEL, SWOT, product life-cycle, competitive advantage, 5 forces, BCG matrix, Ansoff's McKinsey 7's experience curve, cultural web etc. in which you evaluate retail in the 21st century.
Identify and estimate how knowledge of strategic management/strategic thinking together with change management can improve the organizations competitiveness and efficiency. You are also encouraged to give critique of contemporary strategic management research and practice.
i) show the understanding of nature of strategy and how it relates to long term planning process;
ii) Analyse how changes in corporate environment create requirement of modification of corporate strategy:
iii) Demonstrate how corporate strategy influences management decisions relating to resource acquisition, market selection, size and structure.
iv) Show the significance of time horizons for planning strategy and how latter encompasses forecasting and uncertainty.
Word limit 3,000 words.