THE IMPORTANCE OF STRATEGIC CONTROLS

Strategic control can be delineated as a process of tracking the progress of the strategic implementation made in an organization. Precisely, it is associated with assessing and detecting problems that might arise in strategic implementation while making appropriate adjustments. Therefore, implementation of strategic control is conducted in four different ways which include premise control, implementation control, special alert control and strategic surveillance (Pearce & Robinson, 2013). Under the strategic surveillance, strategic control utilizes RFID technology which helps in tracking the tags on the objects in inventory recording. According to Pearce & Robinson (2013), RFID chips attached to the objects has effectuated inventory recording where the company can be able to keep a precise record of their inventory.  This technology has helped retailers such as Walmart significantly as they are able to execute strategic control on their inventory recording. Additionally, Walmart and other retailers which utilize RFID technology are able to practice strategic surveillance which promotes efficiency of the employees and inventory recording (Pearce & Robinson, 2013).

Precisely, Walmart utilizes strategic surveillance in tracking their products in shelves, warehouses and during eventual sale of these products to their customers. On the other hand, Walmart utilizes special alert control to implement changes and adjustments with regard to market changes. Lastly, Walmart uses implementation control to execute adjustments anticipated to increase the efficiency of their operations. Some of the improvements that I might suggest regarding strategic control are based on implementation control which ought to include employees motivation as one of the activities and assessment of human resource policies that promotes effective utilization of implementation control. The reason for suggesting these improvements is based on the fact that implementation is the most vital segment of strategic control (Pearce & Robinson, 2013). Therefore, enhancing its effectiveness will play a significant role for the rest of the strategic control process.     

CASE 2: ANN TAYLOR: SURVIVAL IN SPECIALTY RETAIL

 

Synopsis

This case about Ann Taylor Company offers detailed information regarding the challenges that faced both the stores corporation and the general retail department in the company back in 2008 when the economic recession was announced (Pearce & Robinson, 2013). Ann Taylor Corporation, a women’s clothing specialty retailer had been successful in producing a complete product line that fulfilled the demands of their target consumers. However, in 2008 the company endured stiffening competition and instant economic recession. In addition, it was exhibited that the success between two segments – Ann Taylor Stores (AT) and Ann Taylor LOFT which was the newer segment in the organization (Pearce & Robinson, 2013). Precisely, the difference in success was cited from the differences in roles played by the two segments where Ann Taylor Stores (AT) focused on offering sophisticated, adaptable and quality brands and Ann Taylor LOFT dealt with lower priced informal products (Pearce & Robinson, 2013).

It is factual that ANN was not the only retailer organization that was affected by the economic recession that occurred in 2008 (Pearce & Robinson, 2013). The entire retail industry was greatly affected by the unpredictable change in the economic environment. As a result, the industry was encouraged to assess the operations in order to implement strategies that would mitigate the issue. Therefore, Kay Krill the current CEO of the company was proposing implementation of several initiatives (Pearce & Robinson, 2013). Precisely, Krill had already implemented some of the initiatives that would help in reestablishing the reputation of the company. Most of these initiatives that were implemented by Krill were based on acknowledging the importance of their customers to the long-term success of the business.

In order to promote effective operation and growth of ANN, Krill had to identify areas of opportunity that the company had. She focused on revitalizing Ann Taylor AT product and dampening the development of Ann Taylor LOFT (Pearce & Robinson, 2013). Furthermore, Ann Taylor launched a new venture in beauty market by extending fashion brands and extending their target market to segments dominated by potential female customers at the age of 55 to 65 (Pearce & Robinson, 2013).

Alternative Solutions

• ANN ought to change the reputation of their organization and their brands. This can be achieved by updating the appearance of their clothes in both segments. Precisely, Ann Taylor AT ought to make more official and sophisticated brands whereas Ann Taylor LOFT should more casual products that comply with the changing market demands.
• Separation of the two business segments in the company. Precisely, ANN should separate Ann Taylor AT and Ann Taylor LOFT by taking off the name of the company in one of the stores particularly LOFT. This will help in minimizing the effect of the poor economic condition on the overall success of the organization.
• Training the employees to spend more time with the potential customers of the company. This will enhance the acknowledgement of the significance of the customers in the overall success of the company.

Selected Solution

Separation of the two business segments of Ann Taylor Corporation is the most vital solution for the challenges that faced the company during the economic recession period in 2008. It was reported that after the decline of the economy, the company was among the organizations in retail industry that had to close nearly 6,000 outlets (Pearce & Robinson, 2013). Therefore, it is noteworthy that citing from the number stores that each company had to close, ANN’s both segments was affected greatly.

Thus, in order to lower the effect of poor economic environment in future, it is recommendable that the ANN separates its two stores where each store will adhere exclusively to its products. This will also help in enhancing the reputation of each segment’s brand and making effective implementations.

Implementation   

The implementation process can be conducted through distribution of outlets and advancing sales through e-commerce. This will help separate the two business segments of the company as each takes different title and reputation. Additionally, each will operate independently and separately. This will increase the customer base served by the company thereby increasing sales.

On the other hand, advancing sales via e-commerce will be a strategy for making sure that the company adjusts to the changes in the market. In order to recover from the losses incurred in 2008, the company might extend their sales to e-commerce in order to increase their sales.

Recommendation and Conclusion  

Generally, ANN should implement initiatives that will change the reputation of the company after being affected by the economic recession. Revitalization will be the most appropriate solution for the challenges endured by the company. Therefore, one of the initiatives under revitalization includes separation of Ann Taylor AT and Ann Taylor LOFT to operate independently.

On the other hand, each of the two segments should adhere to revitalization of its brands to make sure that they comply with demand changes in the market. Precisely, Ann Taylor AT should focus on formalizing and sophisticating its brands whereas Ann Taylor LOFT should produce more casually designed products.

APPENDIX

SWOT Analysis

Strengths

• Recognized brand name
• Experienced CEO
• Two functional segments

Weaknesses

• Centralized products supply system
• Poor customer services
• Financial challenges

Opportunities

• Increasing demand in the market
• New and oversea market
• Profitability growth

Threats

• New entrants
• Substitute brands
• Effects from poor economic environment