1. Formal strategic planning process is said to have advantages as well as disadvantages. Martin (2014) is quite sceptical of the formal process, stating: “This is a truly terrible way to make strategy”. Critically discuss Martin’s (2014) view, bringing out your perspective on whether companies would be better served by keeping the process quite simple, or by having a more elaborate, comprehensive process that involves external and internal analysis and the preparation of detailed plans and budgets for different organisational units. You may use relevant companies and industries as examples to illustrate and support your arguments.
2. Consider H&M, a Swedish clothing-retail company. (i) Explain which industry type (viz., monopolisitic competition, oligopoly, or perfect competition) best describes H&M’s industry. (ii) Indicate whether you regard the strength of each of Porter’s five forces affecting H&M as low, medium, or high. Provide the rationale for your assessment. You may refer to industry and company information from online sources. (iii) Identify either a resource or a capability that H&M has in relation to each of the primary value-chain activities. You may base your answer on information available about H&M online (e.g., in H&M annual reports) and/or the H&M case discussed in the module textbook (pp. 573-582). (iv) Critically appraise the argument that the resource-based view (RBV) “breaks down in high-velocity markets” (Eisenhardt & Martin, 2000). (v) In the light of your appraisal and the ongoing transformation of fashion retail, what resources and capabilities would you advice H&M to strengthen and/or acquire if the company’s goal is to keep increasing its market share.