Download Case Study: Strategy Development for

GHK Management Consulting GmbH
Case Study: Strategy
Development for international
acting PLC
November 2016
November 2016
Page 1 von 2
1 Problem Definition/Initial Situation
An international acting holding company in the fashion-sector is facing the challenge and
necessity, to evaluate the current business-model and to verify, whether the current strategy
makes sense and is “state-of-the-art” regarding the present organizational situation and market
requirements.
At the moment, no well-founded data is available, resulting in a lack of possibility to evaluate
the current market position and performance of the company. Hence, the outreach of past and
upcoming decisions cannot be assessed appropriately. Furthermore, the lack of data resulted
in poor decisions in the past, a consequence was the negative impact on the company’s
financials.
2 Assignment
GHK Management Consulting was instructed to conduct a vulnerability-analysis as well as
identification of current challenges in the market. Also, the company’s financials were subject
of investigation, so that the management of the company can comprehensibly understand the
current financial position and make decisions based upon those findings. The present
business-model is being evaluated, in order to identify strengths and weaknesses. On basis of
those findings, a strategy with insights about the future positioning shall be developed. The
current positioning is not clear, creating a „stuck-in-the-middle“ effect.
Finally, GHK is required to collaborate a team, which will be responsible for future projects,
which shall increase the market share and strengthen the market position.
3 Proceedings
In an initial step, the available data is gathered and analyzed, making it possible to establish
which data is still needed in order to receive a broad understanding of the current financial
situation and development of the company. The current business-model is analyzed resulting
in the identification of strengths and weaknesses.
Subsequently, a market-analysis is performed by matching current and targeted values and
objectives with the appropriate target audiences. Here, the actual product-portfolio is analyzed
regarding the target audiences, while assessing whether an adequate market-size and need
for existing products is the case. Additionally, it is surveyed, which decisions and subsequently
repercussions have been happened in the past, developing a “lessons learned” chart for future
decisions.
After the analysis of the brand, a market analysis is being conducted, in order to identify current
market segments as well as approaches to target these approaches. Also, a competitoranalysis has been done, to see which competitors can be described as “main competitors”.
© GHK Management Consulting GmbH
November 2016
Page 2 von 2
The aim of this analysis was first and foremost to see, which USP the company has in
comparison to their competitors. To identify, how strong the company is targeted by
environmental factors, the negotiation power of suppliers was observed. It can be concluded,
that at the moment no focus is placed on core products and that there is a strong competition
in the fashion sector.
On basis of the acquired insights, a strategy is being developed, allowing the company to
further compete in the fashion market. The current product-portfolio is adjusted by removing
profit-margin weak products from the portfolio and penetrating the market with profit-margin
strong products. The long-term strategy is to enlarge the product-portfolio with strong products
and lowering the degree of diversification. Finally, a management team is being prepared to
execute the developed strategy and projects.
4 Result
The company is provided with all the necessary data of the past years, as well as financial
projections for the future. Also, a clearly formulated short- and long-term strategy has been
developed, which inherit clear measures and timeframes. The company is fully aware of its
strengths and weaknesses and the chances which are possible through the new developed
strategy. The management team is briefed in all developed measures and can efficiently target
the company future success.
GHK has been present during the project in all phases and is even present during the
operational phase which follows hereafter.
© GHK Management Consulting GmbH
November 2016