STRATEGIC PLANNING AND FINANCE FOR MANAGERS ASSIGNMENT SAMPLE
1. Introduction
In this research, super dry plc is the chosen organization and provides details about its organizational and financial development by analysis. This research develops knowledge about its financial position in the global market, its business planning, strategic information, and management strategy. The main objectives of the research are to build development of understanding of the organization’s positions and its strategic planning. This research provides details about the financial analysis, sustainable analisis, sustainable development, and strategic analysis of the chosen organization. This research briefly maintains the important aspects of the chosen organization by developing the details about the chosen organization and building knowledge about the chosen organization.
2. Background of the company
Super dry plc is a UK based clothing organization that is used in this research to build a well-known brand in the global market. This organization is a clothing company but also deals with the Superdry label. Superdry products and combine vintage American styling with Japanese-inspired graphics. This organization is a UK-based brand and this organization is taking the chosen dry market by increasing the potential of the cushion products. This organization was established in 2003 and listed in the London stock exchanges (superdry.com, (2022). . This organization provided the design, clothes, and products in the global markets and this organization also issued date online methods that supported its growth and development in the global markets.
3. Financial analysis
In this research, super dry plc is the chosen organization and provides details about its organizational and financial development by analysis. Various informations has been provided in this research and this sre4sch provides the details about the chosen organization by increasing the development by providing critical observation on the financial information that is provided in this research. Various information has been provided to find out financial sustainability in the global markets. In this financial analysis, the five years data are provided in this research, and all the data from 2017 to 2021. According to its five years, the revenue per share has decreased from 2018 and now it is the lowest in five years of records. The revenue per share in 2021 was 679.80p, and the highest revenue per share was 1072.73p (superdry.com, 2022). This rescued shadows that the organization is facing trouble getting profits from the revenue per share.
The dividend cover of this chosen organization is also decreased in this research and it shows that the dividend cover in 2018 is 1.8 and it is the highest dividend cover in the five years of records (Baker et al. 2018). The operating margin of the chosen organization also decreased in 2017 and in 2020 it shows the organization is facing trouble in the development of the global markets. The operating margin shows that the highest operating margin of the chosen organization is in 2017 11.60%.and the operating margin in 2020 was -22.63%. However, the organization’s performance has increased in 2021, and the merging of the operating profit was 5.30% (superdry.com, 2022). The Net Asset Value per Share shows the organizational potential and shows the efficiency of the organization and its strength in the global markets (Džidić, and Orsag, 2019). The operating profit is also low in this research and indicates that the organization has to build the development by the operating margin shows the organizational potential to develop the profitability from its operating profits. The operating profits provide the details about the organizational stability to beat the development of the chosen organization to develop the details about the efficiency of the organization to get profits from the operating assets (Mahdi, and Khaddafi, 2020). This research also shows that the dividend share per growth and the dividend yield arelow in 2020. The records show that the dividend yield and the dividend per share both have decreased in the global markets and it indicates that the organization is facing trouble handling the dividend share activity.
4. Strategic options
In accordance with the research, it is opined that the strategic option is referred to as a strategy of the corporate sector or a plan that is implemented in the business to achieve short and long-term business goals (Teixeira, and Junior 2019). Based on the case study it is established that Superdry PLC is suffering from financial loss due to several markets and climatic factors of the nation. Therefore, it is articulated that with the help of strategic options, the firm could manage its internal and external issues. There are four strategic options such as markets, financial lens, operating model and competitive advantage. Detailed information in the context of different strategic options is provided below.
Financial lens: With the help of a financial lens Superdry PLC can easily come across its financial issues (Kulic et al. 2020). It is recognized as the strategy process through which the financial performance of the company can be improved. It further helps the firm to create values and create the baseline of its profitability goals.
The lens of the market: The strategic options of the market lens are implemented in the organisation to mitigate the issue of slow growth. It further obliges the firm to recognize the growth pockets in the existing segments and additionally helps to assess them against the strategic options (Vives, 2019).
The lens of competitive advantage: According to the ordained details it is advocated that the strategic option of competitive advantage lens is initiated in the business operations to make the critical business strategies (Lanzolla, and Markides, 2021). It further helps the business executive to recognize whether the firm has sufficient resources to win in the current business market and to capture the developing values of the market or not.
The lens of an operating model: It is advocated that while making strategic decisions most of the time organization neglects the impact of operating models on their strategic decisions. It is perceived that the operating model lens is crucial to evaluating whether the company is financially fit to attain its future goals and objectives or not (Bradford et al. 2019).
5. Strategic analysis
It is open to as the method through which the working environment of the company is analyzed. The strategic analysis further involves different strategic tools that are utilized to look at the overall structure of the company. It further emphasizes the impact of changing business environments on the performance of the company (Ganushchak-Efimenkoet al. 2018). Strategic analysis is done on an external and internal basis so that the firm can easily overcome internal and external issues.
SWOT analysis
This is identified as the analytical method through which the strengths, weaknesses, opportunities, and threats of Superdry PLC can be evaluated easily (Benzaghta et al 2021).
| Strength | Weakness |
| According to the provided description of the company, it is ordained that it has a wide network in the business that acts as its strength to manage the markets’ ups and down.
Its employees are further identified as another strength that further helps the firm to increase its efficiency and enhance its profit margin. |
The major weakness of the firm that is identified is increased local monopoly due to which the performance of the company is declined.
The financial analysis of the company indicates that the profitability margin of the firm has declined which would further weaken its revenue margin. |
| opportunities | Threats |
| As the economy of developed countries like the US and the UK is growing significantly, it is a huge opportunity for the company for business expansion.
The developing technological sector would further increase an opportunity for the firm to increase its efficiency. |
The entrance of new business acts as a threat for the company.
Decreasing human resources is identified as another threat to the organization. |
Table 1: SWOT analysis
(Source: Self-developed)
Ansoff Matrix
It is determined as the business framework and the strategy of growth that is implemented to plan and compute the initiatives through which growth can be attained easily (corporate finance institute. com, 2022).
Figure 1: Ansoff Matrix
(Source: corporate finance institute. com, 2022)
Market penetration: It is identified as the strategy through which Superdry can easily enhance the sale of its existing product. Its further includes very low risk so that the organization can easily attain success.
Market development: It is further opined that to improve its financial position organization would further have to focus on the selling of its products in the new business market. The risk in the development of the market is low.
Development of the product: The Company would further have to introduce new clothes in the existing market to reduce the financial risk. In product development, the risk is quite less.
Diversification: The firm can further improve its position by introducing new products in new markets. The risk evolved in this process is relatively high.
6. Sources of funds
Three are various sources used in the global market to get the fund in from the global market and helps the organization to build the development in the action of continuing the growth. As argued by Pattiruhu, and Paais, (2020), there are various sources that are used to generate funds from the global markets to build organizational stability in the global market. This research shows the importance of the funds in the organizational growth and how the organization can get the funds to use it on national developments. Here are some examples of the funds of the organization, debt finance, equity finance, Retained earnings. All this research is providing the details about the chosen organization and the details about the funds that can usd in this organization to development the financial stability.
Debt finance
In this financial option, the management of the organization can borrow money from different financial organizations to expand the business. As argued by HO, and DAO,(2020), the funds of the business can be enhanced from taking different term loans from the banks. However, the organization needs to pay a specific interest cost for the borrowings.
Equity finance
The equity finance option can affect the capital structure of the firm. The management has to provide ownership to the individual who can provide funds to expand the business. As per the viewpoint of Bayzid and Nobanee, (2020), thus, there are some legal issues associated with this process. Though there is a risk of losing control over the business, the financial management can choose the option as there is no necessity of repaying the money.
Retained earnings
This is the most preferable option for the organization as there are no legal obligations associated with this option. As per the view point of Khan et al. 2020), the company can use the profit made from the previous year’s business operation to enhance financial sustainability. There will be no risk of losing control over the business in this financing option. The organizational management can also use this funding option to mitigate the problems faced by Superdry Plc due to a shortage of funds.
7. Sustainable development
According to the provided illustration and the provided case study it is advocated that the implementation of the development strategy is very essential to achieve the organizational goals and objectives. By the analysis of the company’s risk factors, the firm would further be able to drive out the essential reasons behind the decreasing financial performance of the company. Based on the findings and the illustration it is further advocated that in the business sustainable development is very crucial to make the firm and its operations progressive and profitable (Glontiet al. 2020). Moreover, the development strategies would further oblige the firm to manage the negative factors and to evaluate its client-based and market opportunities.
8. Conclusion
Based on the provided illustration and discussion it is evaluated that to make the company profitable and to reduce the rising financial issues different sorts of strategic options and plans are utilized by Superdry PLC. Moreover, it is concluded that with the help of such strategy the firm can easily develop its new commodities and also take necessary decisions in context to the business expansion. Apart from that from the illustration of the strategic analysis the strength and weaknesses of the firm are also identified. Furthermore, the financial analysis states that the profitability margin of the company is decreasing in the context in which the essential information has been provided.
Reference list
Bayzid, M. and Nobanee, H., 2020. Sustainable Islamic Finance: A Min-Review. Available at SSRN 3538853.
Benzaghta, M.A., Elwalda, A., Mousa, M.M., Erkan, I. and Rahman, M., 2021. SWOT analysis applications: An integrative literature review. Journal of Global Business Insights, 6(1), pp.55-73.
Bradford, D.K., Pearson, J., Gorse, D., Metke, A., Leroux, H., Dallest, K., Bunker, D. and Hansen, D., 2019. Understanding the barriers to genomic healthcare in Queensland through an information management lens. In Digital Health: Changing the Way Healthcare is Conceptualised and Delivered (pp. 37-43). IOS Press.
Džidić, A. and Orsag, S., 2019. Dividend smoothing and investor protection. Zagreb International Review of Economics & Business, 22(2), pp.55-70.
Ganushchak-Efimenko, L., Shcherbak, V. and Nifatova, О., 2018. Assessing the effects of socially responsible strategic partnerships on building brand equity of integrated business structures in Ukraine. OeconomiaCopernicana, 9(4), pp.715-730.
Glonti, V., Trynchuk, V., Khovrak, I., Mokhonko, G., Shkrobot, M. and Manvelidze, L., 2020. Socialization of organization sustainable development based on the principles of corporate social responsibility. Montenegrin Journal of Economics, 16(1), pp.169-182.
HO, H.L. and DAO, M.H., 2020. Debt finance among Vietnamese enterprises: The influence of managers’ gender. The Journal of Asian Finance, Economics and Business, 7(9), pp.229-239.
Khan, K.I., Nasir, A. and Arslan, A., 2020. Impact of Loan Accessibility on Working Capital Management and Profitability: Comparative Study of Family Versus Non-Family Firms. Glob. Soc. Sci. Rev, pp.220-230.
Kulic, N., Minello, A. and Zella, S., 2020. Manage your money, be satisfied? Money management practices and financial satisfaction of couples through the lens of gender. Journal of Family Issues, 41(9), pp.1420-1446.
Lanzolla, G. and Markides, C., 2021. A business model view of strategy. Journal of Management Studies, 58(2), pp.540-553.
Mahdi, M. and Khaddafi, M., 2020. The Influence of Gross Profit Margin, Operating Profit Margin and Net Profit Margin on the Stock Price of Consumer Good Industry in the Indonesia Stock Exchange on 2012-2014. International Journal of Business, Economics, and Social Development, 1(3), pp.153-163.
Pattiruhu, J.R. and Paais, M., 2020. Effect of liquidity, profitability, leverage, and firm size on dividend policy. The Journal of Asian Finance, Economics and Business, 7(10), pp.35-42.
Teixeira, G.F.G. and Junior, O.C., 2019. How to make strategic planning for corporate sustainability?. Journal of Cleaner Production, 230, pp.1421-1431.
Vives, X., 2019. Digital disruption in banking. Annual Review of Financial Economics, 11, pp.243-272.
Websites
corporatefinanceinstitute.com, 2022 What is the Ansoff Matrix? Available at: https://corporatefinanceinstitute.com/resources/knowledge/strategy/ansoff-matrix/ [Accessed on: 11-08-22]
superdry.com, (2022), “organizational structure and annual reports of super dry”, Available at: https://corporate.superdry.com/investors/annual-reports/. [Accessed on: 11-08-22]
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