This report will use the SAFe theories to help that analysis the suitability, acceptability, and feasibility. And also, will use the Mckinsey 7s model to identified the consistency.
5.1. Suitability and Feasibility
The two strategies that identified in the report are differentiation and expansion. From the SWOT, it is reasonable to conclude that the company addressed their strategies quite well according to they provide the exceptional customer service, they using the high-low price which access to the niche market (ADAIRS INITIAL PUBLIC OFFERING OF ORDINARY SHARES, 2015). What’s more, they also change their business model with customer’s preference. There is actual threat existing that Adairs has low market concentration and …show more content…
Adairs also try to establish a habit for the customer who wanting to stop and shop with Adairs (ADAIRS INITIAL PUBLIC OFFERING OF ORDINARY SHARES, 2015). In this situation, those above actions that fit what customer want to get the low price, good quality, be respected and good performance of the …show more content…
Using Mckinsey 7s model to analyse its strategic implementation, these issues will result in inconsistency within its implementation phase. This inconsistency might hamper the success of its strategies.
(Hubbard et al., 1996: 243 & 244)
The Mckinsey &s model comprises of 7 factors: strategy, structure, systems, shared values, skills, style and staff. A change in one particular area has to be followed by changes in the same direction of other factors. In order for a strategy to be successfully implemented, all factors must achieve consistency (HUBBARD, et al., 1966).
In the case of Adairs, they are focused on their customer’s preference and do best for the customer which link to in-housing training staff that provides good quality service. In this term (ADAIRS INITIAL PUBLIC OFFERING OF ORDINARY SHARES, 2015). Adairs successfully consistency with structure and differentiation strategy and staffs. On the other hand, Adair has appropriate located and priced store which provides their good circumstance to active the expansion strategy. In this situation, it shows the link between the strategy and structure and system which means good consistency
5.4. Shareholder