Problems and Prospects Practice and Theory

Question: Discuss about the Problems and Prospects for Practice and Theory. Answer: Introduction The term strategy can be defined in many ways and in 1991; Grant had defined the strategy as a connection between the internal sources of the organization or skills and the external threats and opportunities, which have been established by the environment. There is no single complete definition of strategy and a single strategy cannot meet the needs of the business of all organizations (Downey, 2007). Furthermore, in the wake of the above the definition of strategy can be elaborated by the discussions made in respect to the importance of the strategic plan and marketing. The analysis of the mutuality in the connection of strategic planning and marketing is carried on and the same is evaluated further with reference to the context of Myer, the Australian retailer (Franklin, 2001). Strategic Planning and Strategic Marketing A specific pattern, which provides the objectives, goals and purposes of a primary nature, is referred to as a Strategy. It also constitutes the policies, which are essential, and plans required for the achievement of the desired goals (Jain et al., 2011). The strategy has been defined under three levels including the corporate, operational and business levels, which have different impacts on the scopes of the organizations. The decisions have a pertinent effect, which include the impact on the numerous resources of the firm, the uncertainness in the advantage and control of the competition, impacts which are irreversible in nature and are large scale in nature. Even the coordination in the decision is impacted. The PESTEL analysis can evaluate the righteousness in a business by the analysis of the aspects including the political, social, technical and social aspects. The evaluation of the five competitive forces can be made at the business level, which comprises of the suppliers bargaining power, industry rivalry, substitution threats and entry threats. The ground level considers the formation of operational strategy, which is based on the analysis of the market of the organization. The analysis helps in the planning for the organization, which is done in a strategic manner. The inputs of the analysis are the basis of re organizing the different internal factors of the organization. Furthermore, the rational behavior in case of the planning at all the levels is the major requirement (BCG., 2006). The process of the strategic planning is ongoing and pertinent from the perspective of future. The vision of the long term must have a promotion in the organization through the rewards given to the concerned decision makers or the management for the accountability of the long-term vision. The planning must have a reflection of the practices and culture, which are ethical in nature. It is important as at the level of business, the strategic plans act to serve like directives at the level of operation (Berry 1984). The strategy of market takes care of the evaluation of the conditions of the market an removes the gaps present in the market. The various approaches of marketing include the systems approach, marketing concept approach, environment approach, product approach, etc. The successful strategy of marketing requires a clear definition of the market and a match, which is skilful between the needs of the market and the strengths or resources of the business. The same can result for the opting of the correct strategy of market for the business units of the organization. The system approach can have an inclusion of the present operations through a strategy, which is multi-brand or the expansion of line of products. The environment approach can be the strategy of advertising while the concept of marketing can be opted for the long-term strategy (Harrison Wicks, 2013). Interrelation The different units or SBUs of the various strategic businesses have a formation, which is based on the price, competition, experiences, substitutability, customers and the needs of the market. The inputs are provided by the analysis of the market and the marketing must aim at the removal of such gaps. The market changes leads to a better development of the resources in the corporate sector like the raw materials, technology, human resources etc. The same implies a strategy of good marketing which helps in the streamlining of the ground level i.e. the products and services of core nature in the business. The same affects the top figures of the company with the overall increase in the values (Kotler, 2012). The corporate strategy or the objectives of the company are generally guided by goals and objectives with the attainment of the specific sales. Therefore, the planning for the attainment of the goals goes down to the level of operations where the management of marketing plays an important role. The final goal of the marketing is the increase of the sales revenue or the overall valuation of the business organization. Hence, there is an interrelationship between both the marketing and strategic planning (Porter. 2008). Myer - Gaining Competitive Advantage The strategic marketing plays an integral role in the success of the business, which is based on the Australian shifts of demography. The organization chosen is Myer Limited (MYER), a company that is a multi chain retailer and has an approximate 50 stores all over the country. The industry of retail is highly competitive in terms of products and costs. The industry is mature and has high threats of entry and substitutes. The buyers have numerous options to be picked from and it results in high turnover. For the maintenance of the competitive prices, the retailers have exploitation of the chains of supply by forcing the suppliers and vendors to get a reduction in the prices. The practices of the retailer, which are unethical in nature has an impact on the external shareholders and the suppliers, which affects the interest of the investor as well. The primary units of the company are fashion, home ware and cosmetics and the BCG Matrix evaluates the units of MYER. The existing ones include food and furniture, which have margins in mixed form and competition at higher prices, which are able to generate stable revenues and form a substantial share of the sales. Hence, there should be retaining of such things and the Stars i.e. the Fashion and Cosmetics are known to help the company revive back its financials and have a high demand as well. The Electrical goods are not able to create much business and hence MYER must have a divestment in such resources (Chanthadavong, 2013). The analysis and the strategy of the MYER for the expansion of the geographic must be performed. There must be acquisition of local players and the new entrants must be restricted. The company must have a redefinition of the internal sources, which are: MYER must have a further expansion of the segments of market and must perform agglomerations with suppliers and obtain advantage from competition for procuring at low cost and selling at better margins (Choi Hartley, 1996). There must be decommissioning of the electrical goods and investing in the cosmetics and fashion for the catering of the conditions of the market (Day, 2011). The company must have an immediate reaction to the inputs which are received by the strategies of marketing. Conclusion The marketing and strategic planning are related. 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