Strategic Management

Essay by veryfrustratedUniversity, Bachelor'sB+, March 2013

download word file, 7 pages 0.0


1. Introduction

In this time of great uncertainty, many organizations are wondering which changes will have the greatest impact on their businesses in the years ahead. What is certain is that the threats and opportunities facing any company as a result of change and uncertainty in the environment can have an impact on its profitability and even the very survival of the organization. A strategy is the direction and scope of an organization over the long term. It matches its resources to its changing environment and particular its markets, consumers so as to meet stakeholder's expectations (Johnson G et al. 2011).

In this essay, the strategic management process will be looked at for Sacha's cosmetics including an analysis of the macro environment, using the PESTLE framework, a SWOT analysis and Porter's five forces.

2. Background

Sacha Cosmetics was founded in 1979 by Kama Maharaj. Its core activities comprise of the development, manufacturing and marketing of cosmetics.

It is the number one selling brand ons throughout the Caribbean market, and after three years in Wal-Mart Puerto Rico, Sacha is Wal-Mart's fastest growing brand of cosmetics. From inception the vision was to build the Caribbean's first ever truly global brand. The vision is of a brand that would compete worldwide, head to head, with the American mega brands.

3. The macro environment

A company cannot develop an effective strategy without first analysing the environment in which the company operates (Bartol K. 2006). It is suggested that environmental scanning of both the internal and external environment is a necessary pre requisite stage to strategic formulation. The PESTLE framework below evaluates the dynamic and unpredictable environment in which Sacha cosmetics operates by identifying the forces that have the most impact on the company's performance.


3.1 Political/Legal factors

In keeping with the...