FINAL PROJECT

Training program:
Master in Management and Team Management
MBA - Master of Business Administration
Subject:
Strategic Management
Send to: [email protected]

ENEB Business School

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 INTRODUCTION

In the dynamic realm of fashion and accessories, where creativity meets

commerce, BACHI Barcelona has embarked on a transformative journey over the
past year, guided by the passion and vision of its founders, Meritxell and Nuria.
Rooted in a commitment to delivering not just products, but unique experiences,
BACHI Barcelona has swiftly become a distinctive name in the medium-high
range handbags and accessories market.

At the heart of BACHI Barcelona's ethos lies the fusion of comfort and innovation,
encapsulated in their handcrafted designs that effortlessly blend originality with
functionality. As the brand navigates the digital landscape, their online platform
serves as a gateway to a world of exclusive accessories, meticulously curated for
astute customers.

In our collaborative effort to propel BACHI Barcelona to greater heights, this

strategic plan aims to harness the entrepreneurial spirit, fashion acumen, and
legal expertise of Meritxell and Nuria. With a solid foundation built on strong
values, BACHI Barcelona's journey is characterized by an unwavering
commitment to sustainability, unique design, and personalized customer
experiences.

As we delve into the strategic framework, our focus will revolve around key pillars
such as online presence, customer engagement, and competitive positioning. We
will explore avenues to enhance visibility through social media, innovative
communication channels, and strategic collaborations. Furthermore, we will
devise a comprehensive approach to leverage promotions effectively, driving not
only sales but also fostering a loyal customer base.

Acknowledging the significance of BACHI Barcelona's role as a global player, we

will address the complexities of international market penetration. Through a
tailored approach, we aim to unlock new opportunities while preserving the
brand's essence and authenticity.

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The strategic plan will not only encapsulate Meritxell and Nuria's aspirations but
also draw on the expertise of external consultants who form an integral part of
BACHI Barcelona's extended team. Their diverse skills in marketing, community
management, and web positioning will contribute to a holistic and synergistic
strategy.

In essence, this strategic plan is more than a roadmap; it is a dynamic guide that
aligns BACHI Barcelona's ambitions with actionable steps, ensuring a trajectory
towards sustained growth, increased market share, and an enduring connection
with a global audience. Together, we will fashion a narrative that propels BACHI
Barcelona to the forefront of the industry, celebrating the spirit of innovation,
sustainability, and unparalleled style.

Question 1

MISSION
BACHI Barcelona is committed to providing medium-high range handbags and
accessories that combine comfort with innovative and unique designs. We aim
to satisfy our customers by offering handcrafted, eco-friendly products that
reflect our passion for fashion, commitment to sustainability, support for local
commerce and satisfy the diverse needs of our customers.

VISION
To be recognized as a leading brand in the fashion and accessories sector,
celebrated for our originality, sustainability, and commitment to customer
satisfaction. We aspire to expand our presence globally while maintaining the
exclusivity of our designs and our commitment to local and eco-friendly
practices.

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VALUES

Innovation
We strive to push the boundaries of design, creating accessories that stand
out for their originality and uniqueness.

Sustainability
Prioritize eco-friendly practices and support local commerce for a positive
impact on the environment.

Customer Satisfaction
Our dedication to meeting and exceeding customer expectations is at the core
of everything we do.

Transparency/Integrity
Maintain clear and honest communication with customers, suppliers, and
stakeholders and uphold honesty and transparency in all business dealings.

Passion
Infuse enthusiasm and passion into every aspect of our work, from design to
customer service.

Community
Build lasting relationships with customers, suppliers, and the local community.

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Question 2

To ensure the success of a strategy, it is crucial to ground it in a practical

evaluation of the internal resources and capabilities of the organization.
Examining internal factors allows for the identification of strengths to
leverage and weaknesses to address during the formulation of strategies.
This evaluative process encompasses the organization's resources, its
industry involvement, objectives, policies, and the effectiveness of their
implementation. An internal analysis can be defined as “a process of
identifying and evaluating an organizations’ specific characteristics,
including its resources, capabilities, and core competencies” (p. 106,
Coulter 2005).

 Describe and explore the competitive advantages and disadvantages

of BACHI regarding its competitors.

According to Porter (1998), having a competitive advantage implies the capacity

to outperform competitors significantly—being distinctly superior in at least one
aspect of customer satisfaction within the industry, be it through product
uniqueness, supply system, or marketing approach (Porter, 1998) .

On the other hand, a competitive disadvantage denotes a scenario in which a

company or organization faces a less favorable position compared to its
competitors in the market. This may involve aspects such as subpar products or
services, elevated costs, or a deficiency in access to crucial resources or markets
(Whitman & Mattord, 2011).

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COMPETITIVE ADVANTAGES COMPETITIVE DISADVANTAGES
Sustainable practices with local Eco Higher prices due to local Eco Friendly
Friendly suppliers. suppliers.
Extensive knowledge of fashion trends Limited human capital (only Meritxell
and legal matters. and Nuria).
Strong online presence with an Reliance on external consultants for
intuitive website and high navigability. various functions.
Unique, visible patterns inside and Lack of a clear international market
outside the bags for product penetration strategy.
differentiation.
High involvement, expertise and Low bargaining power for delivery
enthusiasm of founders. costs.
Clear stock policy focusing on surplus
for star products.
Unique and handcrafted designs.
External consultants in crucial areas
such as marketing, community
management, and web positioning.

 Identify the tangible resources (physical and financial), the intangible

resources and the capacities that we have.

Resources essential for a company to meet its objectives can be categorized

into tangible and intangible assets. Tangible resources, such as fixed assets
(e.g., land, buildings, facilities) and stock (raw materials), are measurable
and have a physical presence. Conversely, intangible resources are not
measurable, quantifiable, or physical. They encompass information and
knowledge, representing the immaterial aspects of a company.

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 • Physical: Stock of unique and handcrafed
designs/accessories, website, 20 local Eco-friendly
suppliers.
• Financial: Business Expansion Account for SMEs
Tangible with advantageous conditions.
• Collaborations with external consultants.
Resources

• Brand reputation and recognition for unique and

innovative designs.
• Strong social media presence and community
engagement.
Intangible • Extensive knowledge of the fashion industry, fashion
trends and legal matters.
Resources • Customer loyalty.

• Fashion industry expertise

• Design and craftsmanship capabilities.
• Strong online sales infrastructure, marketing and
social media management.
• Efficient stock management and clear stock policy.
Capacities • Sustainable sourcing and production
• Financial management skills.

 Prepare a VRIO analysis of the resources of BACHI Barcelona

The VRIO framework helps businesses assess their internal resources and
capabilities to determine their potential for sustaining a competitive advantage
(VanZandt, 2023). The components of the VRIO framework include:

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Value (V): This criterion assesses whether a resource or capability adds value to
the business. A resource is considered valuable if it helps the company exploit
opportunities or neutralize threats more effectively than its competitors.

Rarity (R): Rarity implies that the resource is not widely possessed or accessible
by other firms. If a valuable resource is rare and not easily available to
competitors, it can contribute to a sustained competitive advantage.

Imitability (I): This factor evaluates the extent to which competitors can duplicate
or imitate the valuable and rare resource. If a resource is easily imitated, its
potential to provide a sustainable competitive advantage diminishes.

Organization (O): This criterion assesses how well the firm is organized to
exploit the resource. Even if a resource is valuable, rare, and difficult to imitate,
its potential may be undermined if the organization lacks the capabilities to
leverage it effectively. This involves looking at how the company's management,
processes, and culture support the utilization of the identified resource or
capability.

• Unique designs
Value (Yes)
• Strong social media management

• Handcrafted designs
Rare (Yes)
• Close relationship with suppliers

• Brand reputation
Inimitability(Yes)
• Fashion industry knowledge

Organisation(Ye • Efficient Stock Management,

s) • Financial management

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  Conclude the exercise with a small matrix that reflects the resulting
Strengths and Weaknesses.

Strengths Weaknesses
Unique and handcrafted designs Limited human resources
Strong social media and online Reliance on external consultants
presence
Brand reputation Higher prices due to local suppliers
Efficient stock management Limited product range
Clear stock policy Limited International Strategy
Sustainable Practices Low Bargaining Power for Deliveries
Reputation for innovation and
uniqueness
Online Sales Expertise
Customer Loyalty

Question 3
Perform an external analysis (macroenvironment and microenvironment) of the
current situation.

PEST analysis is a strategic management tool used to analyze and evaluate the
external macro-environmental factors that can impact an organization. The
acronym PEST stands for Political, Economic, Social, and Technological factors.
By conducting a PEST analysis, organizations can gain insights into the external
factors that may affect their performance and make informed strategic decisions.

 PEST analysis.
i. 4 elements of the economic structure.
Economic factors involve the examination of economic conditions, such as
inflation rates, exchange rates, interest rates, and overall economic growth.
These factors can significantly impact a company's profitability and market
dynamics.

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 1. Economic growth: According to BBVA Research, the GDP growth forecast
for Spain remains at 2.4% for 2023 but has been revised downward to
1.5% in 2024, with an anticipated acceleration to 2.5% in 2025 (BBVA
Research, 2023). This downward revision is attributed to a negative
growth bias influenced by geopolitical uncertainties and concerns about
economic policy measures within the Eurozone. Economic Growth has a
positive impact on consumer spending and positive economic trends
favours luxury goods, however, there are potential challenges with
economic downturns as this will negatively affect consumer spending.

2. Inflation rates: Affecting purchasing power. Affects pricing strategies.

3. Exchange Rates: Impact on international sales.
4. Income Distribution: Determines target market affordability.

ii. 2 elements of the technological structure.

Technological Factors:
This pertains to the influence of technology on a business or industry. It includes
aspects like research and development, automation, innovation, and the rate of
technological change. Businesses need to adapt to technological advancements
to stay competitive.

Technological Structure:
1. E-commerce trends: Opportunity for online sales. Influences online sales.
Growing reliance on e-commerce.
2. Technological advancements: Impact on production and design
processes.
3. Digital Innovation: Potential for improved designs and production.
4. Opportunities for innovative designs and online marketing.

iii. 2 elements of the political structure.

Political Factors:

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This includes the influence of government policies, regulations, stability, and
political trends on the business. It also considers factors like taxation policies,
trade tariffs, and government stability.

Political Structure:
1. Trade regulations and policies: Affecting international shipments.
2. Environmental regulations: Influencing eco-friendly practices.
3. Regulations on Sustainability: Impact on sourcing practices.
4. Stable political environment.
5. Potential impacts from trade policies affecting suppliers.

iv. 2 elements of the social structure.

Social Factors:
Social factors focus on societal and cultural aspects that can affect a business.
Demographic trends, cultural attitudes, lifestyle changes, and social values fall
under this category. Understanding these factors helps businesses align their
strategies with prevailing social trends.

Social Structure:
1. Fashion trends: Affecting consumer preferences. Influences product
demand.
2. Increasing awareness of sustainability: Aligns with BACHI's values.
3. Cultural Preferences: Affects design choices.

 Analysis of the 5 Porter Forces

Originally introduced by Michael Porter in his seminal Harvard Business Review
article from 1979, Porter's ideas sparked a transformative movement in the realm
of strategy (Harvard Business School, n.d.). His insights have not only influenced
business practices but also played a significant role in shaping academic
perspectives. The application of a Five Forces analysis enables companies to
evaluate potential industries for competition and strategically position themselves
for success.

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The Five Forces

Threat on
Income of
Substitute
Products

Power of
Bargaining Rivalry
Negotiation
Power with Among
of
Suppliers Competitors
Consumers

Threat of
New
Competitors

Porter's Five Forces Analysis:

 Bargaining Power with Suppliers: Moderate
BACHI Barcelona maintains a highly intimate association with its
suppliers, currently collaborating with 20 partners due to the intricate
nature of their accessories. These suppliers are locally based and
committed to eco-friendly practices, thereby fostering sustainability and
supporting the growth of local commerce. Despite potentially higher
costs compared to working with suppliers from regions with different
labor rights standards, the company prioritizes its commitment to ethical
sourcing and environmental responsibility.

 Power of Negotiation of Consumers: High

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 BACHI Barcelona customers wield significant negotiating power in the
online market, given the plethora of brands available. Individuals have
the freedom to opt for alternative brands within the industry. Additionally,
heightened customer awareness, facilitated by online channels,
regarding product prices and promotions plays a pivotal role in shaping
customer purchasing behavior.

 Threat on Income of Substitute Products: Moderate

The potential for substitute products poses a moderate threat, as the
market features brands offering comparable alternatives. Sales
dynamics are notably influenced by prevailing fashion trends, further
contributing to the level of susceptibility to substitute products. The
presence of similar brands underscores the importance of staying
attuned to evolving fashion preferences, as consumer choices may pivot
based on the ever-changing landscape of style and trends.

 Threat of New Competitors: Low to Moderate

The threat of new competitors is assessed as being low to moderate due
to the presence of entry barriers inherent in the realm of BACHI
Barcelona handcrafted, unique designs. These barriers extend beyond
the conventional challenges associated with market entry,
encompassing the specialized domains of design and craftsmanship.
The distinctive nature of handcrafted creations not only demands a
certain level of expertise but also requires an understanding of the
nuanced aspects of design aesthetics. This intricate combination of skills
and knowledge serves as a deterrent for potential newcomers, elevating
the barriers to entry within the industry. As a result, the market
environment is shaped by the craftsmanship and unique design
elements that contribute to the resilience of existing players in the face
of potential new entrants.

 Rivalry Among Competitors: High

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 The level of rivalry among competitors is deemed high within the
industry, primarily due to a fiercely competitive market landscape
characterized by the presence of similar brands. As a result, the
competitive nature of the industry necessitates a proactive and strategic
approach by BACHI Barcelona to thrive in the midst of rivalry and secure
a prominent position in the market.

 End the exercise with a small matrix that reflects the resulting
Opportunities and Threats.
OPPORTUNITIES THREATS
Growing E-commerce Trends Intense competition in the fashion
sector/ industry
Sustainable Fashion Movement Stringent Regulations on
Sustainability
Collaborations with national/ Changes in trade regulations and
international companies, fashion trade policies impacting suppliers
bloggers and influencers
Expansion into International Markets Change in Consumer Preferences
Strategic Partnerships Economic downturn affecting
consumer spending and sales
Technological advancements Technological Disruptions

Question 4

 In accordance with the Weaknesses, Strengths (internal analysis),

Opportunities and Threats (external analysis), propose the following:

Defensive strategy.
Strengthen online security measures to protect customer information.
Strengthen the online presence to defend against increasing competition. Focus
on customer retention through loyalty programs.
Strengthen relationships with existing suppliers.
Diversify supplier base to mitigate potential risks.

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Offensive strategy.
Expand product lines to include complementary accessories.
Explore strategic partnerships and collaborations to expand internationally.
Launch limited edition designs to create exclusivity.
Expand product range with limited edition designs.
Explore new international markets with targeted marketing.

Survival strategy.
Optimize operational costs and explore cost-effective marketing strategies.
Diversify product offerings and consider entering new markets to ensure
sustainability in changing economic conditions.
Optimize costs without compromising on quality.
Monitor and adapt to changing economic conditions.

Reorientation Strategy.
Explore new international markets with targeted marketing campaigns.
Reevaluate the international market penetration strategy, consider alternative
approaches, and enhance marketing efforts.
Explore strategic partnerships with complementary brands.
Enhance online customer experience to boost sales.

Question 5
 Develop a BSC in the form of a matrix.

Perspectives Objectives Measures Targets

Financial Increase online Sales growth rate, 20% growth

sales revenue average order annually |
value
Increase Revenue growth 20% annual
international rate increase
sales revenue

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 Increase online Monthly sales 15% growth per
sales revenue growth quarter
Customer Enhance Customer 90% satisfaction
customer feedback, repeat
satisfaction purchase rate
Enhance Customer Achieve 90%
customer satisfaction index satisfaction rate
satisfaction
Enhance Customer Achieve 90%
customer satisfaction index satisfaction
satisfaction and
loyalty
Internal Process Streamline supply Order fulfillment 20% reduction in
chain for cost time, inventory costs |
efficiency/ stock turnover
management
Streamline supply Order fulfillment Reduce delivery
chain processes time time by 20%
Optimize supply Inventory Increase by 20%
chain efficiency turnover ratio annually
Learning & Invest in Training hours, 10% increase
Growth employee training employee annually
and development satisfaction, skill
development
Develop skills for Employee training 100%
international programmes participation in
expansion training programs
Develop and Training 100% completion
expand marketing programs rate
capabilities completed

Question 6

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  Based on the contribution of Michael Porter, you must propose and justify
the following (one of each):

Strategy in Cost Leadership.

Streamline operational processes to reduce production costs and offer
competitive pricing.
Focus on optimizing operational efficiency, negotiating better delivery costs, and
streamlining processes to offer competitive prices.
Streamline internal processes for cost efficiency.
Negotiate better terms with suppliers for cost savings.
Implement cost-effective manufacturing processes to maintain competitive
pricing

Differentiation Strategy.
Emphasize unique and handcrafted designs, enhancing the brand's premium
image.
Continue to emphasize unique and handcrafted designs, invest in marketing to
highlight the exclusivity of products.
Emphasize unique and visible designs.
Invest in innovation and collaborations for exclusive products.
Emphasize the unique and visible designs, reinforcing the brand's commitment
to innovation.

Focus Strategy.
Target specific niche markets or collaborate with bloggers to create specialized
product lines for targeted consumer segments.
Concentrate on specific international markets with high potential demand for
unique, handcrafted accessories, tailoring marketing efforts accordingly.
Target niche markets with specific design preferences.
Develop personalized marketing strategies for different customer segments.
Concentrate marketing efforts on specific niches or regions, tailoring products to
meet local preferences.

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These strategies align with BACHI Barcelona's mission, vision, and values,
leveraging their unique designs, sustainability focus, and customer-centric
approach.
By integrating these strategies, BACHI Barcelona can create a well-rounded
approach to achieve its goals and overcome challenges in the dynamic fashion
industry.

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 BIBLIOGRAPHY

BBVA Research. (2023, November 30). Spain Economic Outlook. November

2023. Retrieved January 21, 2024,.
Coulter, M. K. (2005). Strategic management in action. Pearson Education.

Harvard Business School. (n.d.). The Five forces. Institute For Strategy And
Competitiveness - Harvard Business School.
https://www.isc.hbs.edu/strategy/business-strategy/Pages/the-five-forces.aspx

Porter, M. E. (1998). Competitive advantage: Creating and sustaining superior

performance. The Free Press.
VanZandt, P. (2023, October 27). VRIO framework: What it is, Breakdown,
benefits & limitations. QuestionPro. https://www.questionpro.com/blog/vrio-
framework/#:~:text=The%20VRIO%20framework%20is%20an,success%2
0indicators%20for%20your%20business.
Whitman, M. E., & Mattord, H. J. (2011). Principles of Information Security (4th
ed.). Cengage.

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