Final Strategic Plan
MSTINA
NewYorkandCompanystrategies.edited2.docx
Running head: NEW YORK AND COMPANY STRATEGIES 1
NEW YORK AND COMPANY STRATEGIES 5
New York and Company Strategies
Name
Institution
New York and Company Strategies
Implementation of strategies is a process through which an organization puts strategies and plans into actions that will help achieve desired goals. A strategic plan is a written document that outlines the processes and steps that the company needs to take to attain planned goals. It includes customer feedback and progress reports that show whether the plan is being implemented as planned. Organizational strategies can be classified into business-level strategies, corporate-level strategies, and global strategies.
The core competencies of every business should be focused on satisfying the needs of customers to achieve above-average returns. This is achieved by applying business-level strategies. These are strategies that an organization should take to ensure that they give value to customers through exploiting their core competencies in specific products, services, or market segments (Anwar, Shah & Hasnu, 2016). Business level strategies are concerned with the position of the company in the industry compared to that of competitors. This level of strategy also addresses the five forces of competition. The essence of business-level strategies is customers. These strategies address questions such as who the business intends to serve, the needs of the customers, and how to meet the needs.
There are two business-level strategies New York and Company can use to help gain a competitive edge over rivals. The first strategy is cost leadership. In the apparel industry, organizations compete for wider customer bases using price. New York and Company should capitalize on its internal efficiency to ensure that they have a margin that sustains above-average returns and offers affordable prices to customers. This will ensure that customers keep buying their products (Anwar, Shah & Hasnu, 2016). This strategy will work well for the company since most of the products are standardized and are acceptable to many customers at affordable prices.
The second business-level strategy is differentiation. The company offers products that have unique characteristics and features (Hacklin, Björkdahl & Wallin, 2018). The apparel offered by the company is of high quality, and the company's customer service is impressive. Further, the company has an excellent team charged with the responsibility of brand image management. Implementing a differentiation strategy has several risks. These risks are; uniqueness, imitation, and loss of value.
Corporate-level strategies are found at the top of the planning pyramid. They are concerned with the main purpose of the company. They state the direction towards which a company desires to move in. The destination selected at the corporate strategy level impacts all the decisions and strategies implemented in all other parts of the business (Adler, 2018). One of the potential corporate-level strategies for NY&C is growth and diversification. The organization appears to have reached market saturation, and they need to grow for them to survive. Their leading corporate-level strategy should be spreading into new markets. This should become the guiding force for every activity that the company engages in.
The other strategy that New York and Company should consider implementing is a merger strategy. The company should scout for opportunities for either merging with another firm or acquiring a competing firm. Mergers can either be vertical, horizontal, or conglomerate. For vertical merging, the organization should scout for firms that deal with products that are complementary to their apparel business. If the business decides to adopt a horizontal merging strategy, they should look for firms that are involved in the same business, merge, and form a new company (Hacklin, Björkdahl & Wallin, 2018). For conglomerate merging, the organization should explore opportunities for merging with unrelated firms whose core business is different from theirs. This would enable the company to explore new industries.
Global strategies are those that an organization adopts when it desires to expand to global markets. They are the type of strategies implemented when an organization wants to have global operations (Yousaf & Majid, 2018). Global strategies are formulated to grow beyond one's borders. They are focused on increasing the sales of a product or service abroad. Global strategies encompass international, multinational, and global strategies. If NY&C wished to expand internationally, they should pursue strategies in these areas.
One global level strategy for NY&C is a multi-domestic strategy. This strategy enables companies to tailor their products according to the specific consumer needs of each country. By so doing, the company will meet the desires of local customers, as opposed to what currently happens with the standardization strategy that the company currently uses (Adler, 2018). Through a multi-domestic strategy, NY&C will tailor the product selection, methods of payments, and marketing strategies to meet the demands and regulations of each country where the company operates. To successfully implement this strategy, the overall management of New York and Company will be located in the home country, though country managers will be given the freedom to make adaptations (Anwar, Shah & Hasnu, 2016). A multi-domestic approach is beneficial to a company since country managers have a full understanding of the local culture, customs, laws, and consumer tastes. Thus, they will understand how to best meet them.
Another potential strategy that NY&C can use is a transnational strategy. This strategy combines both multi-domestic and standardization. A transnational strategy is best applicable when the company faces immense pressure from international competitors, just like New York and Company is currently facing (Yousaf & Majid, 2018). However, the company should realize that this strategy is hard to implement and maintain because of the need to achieve economies of scale through standardization and respond to local conditions simultaneously.
Globalization continues to affect business operations as enhanced communication, reduced tariffs, and increased mobility of capital has made it possible for companies to penetrate international markets (Adler, 2018). However, the successful entry into foreign markets requires companies to adopt international strategies that are most compatible with their capabilities and needs. In global business, companies deal with foreign employees, stakeholders, governments, and consumers. Thus, managers should consider several factors when conducting business globally. These factors include pricing strategies and supply chain management.
The best strategy that New York and Company should adopt is an international strategy. This strategy would allow the company to focus on exporting its products to foreign markets and import raw materials from other countries for domestic use. To apply this strategy successfully, New York and Company do not need to shift its headquarters. The headquarters should remain in their country of origin. This would allow the company to circumvent the need to invest in facilities and staff in foreign countries (Hacklin, Björkdahl & Wallin, 2018). However, the company should realize that implementing this strategy comes with its challenges, such as the legal establishment of local administrative and sales offices in international cities, managing global logistics, and complying with foreign trade and manufacturing regulations (Anwar, Shah & Hasnu, 2016). Despite these challenges, an international strategy is the most suitable for the company since it requires the least amount of overhead.
References
Adler, R. W. (2018). Strategic performance management: Accounting for organizational control. Routledge.
Anwar, J., Shah, S., & Hasnu, S. (2016). BUSINESS STRATEGY AND ORGANIZATIONAL PERFORMANCE. Pakistan Economic and Social Review, 54(1), 97-122.
Yousaf, Z., & Majid, A. (2018). Organizational network and strategic business performance. Journal of Organizational Change Management.
