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Question: Discuss About The Summarizes Strategic Management Operation? Answer: Introduction The Sultan Center Shop is largest retail business established in Kuwait, also known as TSC. This company initially began as Petroleum Service Company that overtime became a larger supplier to the oil industry (Andersen and Andersson 2017). With the help of its hard work and dedication coupled with strategic success and managerial compactness, today it has been able to emerge as largest retailer that evolved and expanded into various other line of production and services including telecommunication an d security services. The importance of this report lies in the importance of TSC in the retail industry having strong impact on the economic indicators of the nation. The report sheds light on the overall strategic management that the organization has been incorporating in its business planning as well as the operation. It strongly focuses on the business performance that TSC exerts and subsequent deficiencies it has been suffering from. The discussion flows with interpreting and analyzing the vision and mission of the organization followed by SWOT, PESTLE, EFE, IFE SPACE matrices analysis in order to conclude how close or far the company is from its aim. Vision, Mission, Objectives Strategies The Sultan Centre (TSC) is the Kuwait based organization growing its business since the inception of its existence from the year 1976. Coming into market as major suppliers in the oil and petroleum industry, overtime it expanded its service to retail, telecommunication, restaurant chains and security services based on the enriched vision the company had at its core. Planning according to objectives and adopting strategies to quench the targeted mission of the company propelled the growth of the company remarkably. VISION: Broadly categorized vision of the organizations have been Building strong brand image: The organization has high targets set regarding creation of strong marketplace through consolidated brand image among consumers. Profitable diversified business: Provision of increment in profit within the business operations and diversification keeping parity with the local as well as international demand, competition has also been one of the major vision of TSC. Greater portfolio and management: Maintaining a strongly integrated management is pivotal for smooth operation f the business amidst the presence of multiple threats and competitive atmosphere. TSC incorporated stronger management major vision of the company in order to add to the sustenance f the organization. Increasing share value: As largest retail leader of the country, TSC mandatorily marks the importance of higher share holding as well as increase in the share value that consolidates the health and image of the company listed in public exchange. Increment in shares benefits the shareholders as whole which further reflects the higher asses value of the company. Excellent performance: Performance is one of the key elements of the mission the company has in order to make sure the targets are met. To meet the set objectives and materialize the visions, performance is the only factor that can play leading role. Strong customer loyalty: Good performance strengthens the services provided and that further takes care of the customer preference for the products of the company. Consumers loyalty to the brand adds to the higher market share enjoyed by the company that reflects the profitability and capability growth of it. Collaborative team work: In order to provide quality in service the company focuses on collaborative team work and unchallenged effort within the hierarchy irrespective of designation and responsibilities of the employees and staffs Learning and Growth- The company is aware of the role of learning to ascertain growth in the business. The employees and their families are under the beneficiary incentives as provided by the company (Bugaian 2017). Training campaigns and programs are conducted by TSC in order to infiltrate and enlighten the company ethics, details of the responsibilities and tasks to the staffs so that they can utilize it in their service and make contribution to the growth of the company (Chang 2016). Diversity and localization Sultan Center moves forward with the objective of establishing a multicultural and multilingual business setup. It employs people from different diversified cultures (Escrig?Olmedo et al. 2017). This company has also inculcated the habit of sufficiently investing in the local communities as they have entered into crucial partnerships with them and it moves forward with the objective of encouraging the local schools and universities to enter into new ventures, thus encouraging the members of the local communities to join the company (Durand, Grant and Madsen 2017). Recognize the people Recognizing the effort of the employees and building good relation with customers as well as stake holders add to the higher transaction of the company leading to business growth (Grant 2016).. This is effective way to create bridge between buyer and seller in order to satisfy their demands while maintaining good quality of services. The five major business strategies include: Revenue growth Their main objective is to set up more numbers of consumer centric and consumer oriented markets. They also aim towards upgrading and developing their products and services across all departments (Karlik et al. 2017). Improve margins Sultan Center always tries its level best to increase its margins so that it can always come up with the demands of their customers and provide better value for them. Expense Efficiency Once again, customer satisfaction is of highest priority over here, because of which Sultan Center aims to simplify their internal operations so that more attention paid to the areas of customer satisfaction (Krush et al. 2016). Constant improvement is the only best possible way to increase customer satisfaction and improving the core operations. Vision And Mission Statements Talking about the vision of Sultan Center, it will be that financial growth and corporate development will be the main building blocks for its immense success. Just like any other company, it is not possible for Sultan Center to move forward without a proper vision and a useful and working strategy (Lee et al. 2016). The vision statement of the company, To build and manage a profitable diversified portfolio of business aimed at increasing shareholder value (Micheli et al. 2017). As far as the mission statement of Sultan Center is concerned, it says, "To be the customer's preferred choice through teamwork, collaboration, and excellent performance" (Prajogo, Oke and Olhager 2016). This company is dedicated to provide their customers with the best products in order to satisfy their needs through well-organized and efficient customer service facility exerted bytheir excellent team of employees and managers who are always ready to listen and solve each and issues of their customers. They have also built excellent teams and have inculcated the spirit of trust, communication, and cooperation among themselves, as they believe in the essentials of teamwork, a collaboration that ultimately results in a brilliant performance (Sukholthaman, Chanvarasuth and Sharp 2017). The vision of the organization must build and manage a good, well-developed relation with all their stakeholders for increasing the shareholder value and expanding their business.(Shin and Konrad 2017). External Opportunities And Threats TSC shop provides all kinds of consumer based products; it creates different external threats and opportunities for the business. Threat of customers can occur if there is poor quality of product materials. As it is consumer, based shop there can be more competitors and rival shops nearby. There can be product substitution effect (Shen, Chen and Wang 2016). These are various external threats of the Sultan Center Shop. Referring to external opportunities, better quality products will encourage more customers for the purchase of the product. This will also create more competition among the buyers for the product, supply will be high and there will be global opportunities for the line of production. Pestle Analysis PESTLE Model includes six major factors that have implication in the business operation and growth. POLITICAL: Imposition of tax by local government have serious implication in the business as it impacts the business cost and local market condition as well. Implementation of excise duties and policies regarding trading affects the business that has wider cross-border transaction in terms of export and import (Deresky 2017). ECONOMIC: It mostly deals with purchasing power capacity, individual daily income, living standard and changes in the tax rates and consequent impact on consumer demand and producer decision of production. Decrease in the custom duty will lead to more demand, thereby creates more income to the shop. When living standard is high, consumer will buy more, there will be more supply. Therefore, purchasing power increases with the increase in the individual income of the consumer that further adds up to the profit of TSC. SOCIAL: This factor deals with social impact TSC has among people and the impact the business process exerts on the society as whole. The company has been able to maintain good position in terms of corporate social responsibilities. Not only the consumers but also the staffs and their families are taken care of under the brad streamlining strategy and operation that the organization undertakes (Tadeu de Oliveira Lacerda et al. 2016). TECHNOLOGY: Application of technology is evident in the trendy products designs of the footwear, clothes and other consumer accessories provided by the Sultan Center Shop. Technologically efficient way of producing and handling the products leads to greater customer service and satisfaction on their end. In store management and supply chain improvised technological apparatus play important role. LEGAL: As component of business operating internationally the company is entitled to various law implemented on it subjected to be abided by. Law regarding the social impacts they offer in terms of the quality of the service and products, relations maintained with international agents and also production and management related restrictions that fall under jurisdiction of legal implication. ENVIRONMENTAL: An environmental factor analyses whether and how the production and supply services are impacting the environmental standards. The effective utilization of the resources without any wastage by using sustainable business system take care of the environmental standards to be maintained in the country. TSC have been able to abide by that so far. Competitive Profit Matrix Competitive profit matrix provides a structured strategic system to measure the business performance and profits with other companies or business industries. There are various factors of measurement in competitive profit matrix and that are rating of the business, weight, and critical factors. Critical factors means brand, range of products, product quality, market share, sales, less cost, channels of distribution, superior IT capacities, online facilities, promotions. The Sultan Center compares the business profits with other industries through this measurement tool in order to analyze the performance of the business. Critical success factors The Sultan Center Shop Food lion Trader Joes Product quality Advertisement Price Financial sector Market position Customer satisfaction Competitive factor Management quality W R WS 20 4 80 15 4 60 10 2 20 10 3 30 15 5 75 10 2 20 5 2 20 5 3 15 R WS 2 40 3 45 2 20 2 20 3 45 4 40 2 10 2 10 R WS 2 40 1 15 3 30 2 20 2 30 3 30 2 10 4 20 External Factor Evaluation Matrix External factor evaluation matrix includes the tabular representation of external factors of the Sultan Center Shop. This matrix is use for strategic management that includes analysis of various external factors. It measures social, technological, government and political issues, and macro economic variables for the analysis of competitive statement (Tatoglu et al. 2016). The rating system that varies from one to four includes the responses in relation to the threats, opportunities of the company. It indicates the more the rating the better is the response in terms of exploitation of opportunities and greater rise of threat factor. External factors Weight Rating Weight score Opportunities Fresh trade agreements New contract with supplier Market growth by 15 percent Decrease in tax rate 11 9 24 10 3 1 2 1 33 9 48 10 Threats Threat of customers Natural calamities Decrease in food production due to high rates Threat of rivalry 17 3 14 12 4 2 32 68 6 42 24 The internal strength includes the strong bargaining power and proper knowledge for the products. The Sultan Center Shop can make its strength by creating strong bargaining power and high customer oriented market. It will influence the buyer and the production unit in a positive way. Threat of substitute is the major weakness for Sultan Center Shop. Substitution of product can deteriorate the customers for Sultan Center Shop. This results in the growth decline in income of the shop. To maintain the customer growth, Sultan Center Shop should enhance the creativity in product diversity with respect to the demands of different range of customers. Internal Factor Evaluation Matrix The strong financial system of the Sultan Center Shop will create a strong internal impact on the business environment. Along with these good sales, product diversity and latest arrivals in various products will give more customers for the Sultan Center Shop. This in turn creates positive and stability in the business performances. Key Internal Factors Weight Rating Weighted Score Internal Strength Strong position in local retail market 0.06 3 0.16 Quality of product 0.10 3 0.15 Large Varieties 0.12 4 0.30 Customer Brand Loyalty 0.15 3 0.28 Social Responsible Actions 0.16 4 0.29 Longer shelf life 0.09 4 0.20 Brand Awareness 0.05 3 0.10 Technologically sound services 0.10 4 0.15 Internal Weakness Narrow market segment concentration 0.02 1 0.3 Past strategic failure 0.04 2 0.4 Poor advertising and promotion 0.03 1 0.5 Little brand presence 0.02 2 0.3 Fewer strategic alliance 0.03 1 0.05 Long-Term Objectives Strategies To capture long-term benefits by meeting the objectives, TSC must focus on standard material while production of new clothes and materials. Since the products are used by consumers on daily basis, the quality needs to be enhanced in order to attract more consumer base. Performance and integrated service delivered by compact management system is the major factor for the company to meet long term objectives of higher growth of business and profits. Good quality brings more consumers that reflects further the growth and development of the organization. Swot Matrix Referring to the strength part, there are few factors that creates success of the Sultan Center Shop. Being different from other shops, the Sultan Center Shop possesses some unique features like innovative and latest collection products. A good marketing strategy means innovation and modernization. Innovation comes from creative minds and research. The successful existence of TSC creates tough competition in the market that is inflicted with many other retail brands and stores. Expansion of the business results into growth in demand, production and output of the Sultan Center Shop. The company already has established reputation as supplier of oil industry which makes it gain recognition and trust among consumers. Low level in advertising of new products and goods, bad quality consumer durables, inadequate information and prices discrimination are major weaknesses TSC is suffering from (Wheelen and Hunger 2017). The weakness brngs forth the threat that the company is exposed to in terms of of low sales and productivity in their retail business due to less knowledge creates threats in terms of decline in demand, customers, low output and more rivals. With respect to the opportunities for the Sultan Center Shop, it includes quality environment friendly resources, modern technology and creative ways to expand business. It creates more encouragement in the marketing of the goods that can create more job opportunities leading to more growth, tough competition and profit. Strategic Position And Action Evaluation Matrix Strategic position and action evaluation matrix includes assessment and evaluation of wisdom and logic in a particular strategic project. In case of the Sultan Center Shop, it will help to chart an evident business preview. This matrix gives the systematic structure of the business issues that equals the internal and external factors. Internal Strategic Position External Strategic Position Financial Strength Stability in Profit Strong capital accumulation Inflation immune functions Industry Strength Growth and expansion Proper resource allocation Attractive in the existent local businesses Competitive Advantage Vertically integrated Customer loyalty Moderate market share Medium to high product quality Environmental Stability Huge rivals and subsequent competition Lower price of competing goods Consumers switch and fall in demand Huge risk embedded The ratings and review is 1 to 6 in a competitive matrix (Chuang and Lin 2017). The other aspect is financial growth part that includes Leverage ratio, return on investment, cash flow transactions, risk factors of business, capital requirement and economies of scale. In case of ratings and reviews this also ranges from 1to 6 in a matrix. Therefore, various factors are consider while using SPACE matrix method for the evaluation of the business performances. Recommendation Implementation Maintenance of economic stability and market strength amidst rival existence of other firms are the major recommendation that TSC can receive. Being largest retailer the company has major economic impact on the retail industry of the country. For this it should focus on the threats existing to the business stemming from the weaknesses and accentuated by the strategic failure. The pricing discrimination negatively impacts consumer behavior affecting brand image. Poor information also hinders and misleads the strategy design. All of these should be given utmost importance and management should be bestowed with responsibilities of effective outcome. Implementations cannot take place without social and political factors favorable to the business operation hence government should take note of this. The only recommendation provided to TSC is to maintain economic stability the economic variables should behave positively and the four factors of production must work efficiently in order to achieve long-term goals. There will be tough competition in future with long scale of production if the economic variable works normally and efficiently. Strategy Review And Evaluation Recommendation and implementation are not end notions of any business as evaluation plays significant role to bring out the net outcome of the adopted strategies. How well the companies build strategy and how far they are contributive to the success of the desires aim, depends on the review and evaluation process conducted by the business organization. TSC can encounter these by collecting feedback from the consumers it serves. It can also organize some events focused on activities that reveal the facts about consumer satisfaction, happiness which further makes the assessment easier and impactful. Conclusion The report aimed to highlight the strategic management design that the retail leader TSC incorporated with analyzing the efficacy of it. It can be concluded from the discussion that the TSC shop is enjoying huge market share due to its reputation earned from the inception. It has been able to meet many of its vision and huge business growth overtime through diversification and customer attraction tapping the growing market. There is no issues as of with the brand image and services of the supply chain . 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