MGT302A – Strategic Audit of Inditex

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MGT302A – Strategic Audit of Inditex

1.0 Summary SWOT Analysis

From the above Analysis, Inditex faces a number of challenges, but it can use its
strengths to overcome the challenges. The organisation has a $11.3 billion worth brand name,
reputation and a good financial strength. These are important resources for the company. With
vertically integrated operations in more than 93 countries and 2,200 stores, the company takes
advantage of economies of scale. It has capability to exploits resources at its disposal to continue
growing in the target markets. In addition, the textile industry in the world is poised for future
growth with continued population growth and consumption culture. This presents growth
opportunity. However, the organisation is faced by a number of challenges.

Category:

Description

AssessmentBrief
Program Bachelor ofBusiness
Subject code MGT302A
Subject name StrategicManagement
Assessmenttitle Assessment 1 – Strategic Audit ‘Project’
Group orindividual assessment Individual
Length 2500 words (not including tables) (-/+ 10%)

Learningoutcomes addressed

a) Describe various key strategic management
processes (strategic inputs, strategic actions
and strategic outcomes)
b) Discuss, assess and analyse the internal and
external environments of an organisation to
determine resources, capabilities and core
competencies
c) Develop and critique the implementation of
strategic responses to current and future
issues facing the global business environment
d) Evaluate business and corporate level strategy
and identify the key risks associated with these
strategies
e) Evaluate an organisations ability to effectively
implement business/corporate strategies
f) Demonstrate an ability to think strategically
about an organisation, its position in the
marketplace and how it can gain a sustainable
competitive advantage. MGT302A – Strategic Audit of Inditex.

Total marks 100 Marks
Weighting 50%

MGT302A Strategic Audit Brief

© Laureate International Universities 2016
The format of the report should be as follows:
Part A (1000 words approximately)
Weight: 20% Due: Week 6
Introduction: Background of the company and focus of your report.
External analysis: In this section you should outline what you think are the main
opportunities and threats facing the organisation. You should analyse the general, industry
and competitor environments of the company. Analyse all elements of the external
environment. However, in writing up this section, it is important that you concentrate on a
few main elements and explain why they are significant (keep in mind the word count). You
have to support the most significant elements of the external environment by references
from the business media, industry publications and other relevant websites. MGT302A – Strategic Audit of Inditex.
Internal analysis: In this section you should outline what you think are the main strengths
and weaknesses of the organisation. As with the external analysis, you need to try to identify
and explain the main issues rather than list a wide variety of factors. You should explain
what resources and capabilities contribute into a competitive advantage of the company.
Your analysis should be supported by relevant information from the company’s web site,
annual report (if available) and the media. MGT302A – Strategic Audit of Inditex.

Part B: (1500 words approximately)
Weight: 30% Due: Week 9
Summary SWOT: This will be based on the strength, weaknesses, opportunities and threats
you identified as part of your internal and external analysis in Part A.
Strategyevaluation
Evaluate four current strategies. Consider all relevant strategies and select four. This could
include all or many of the following: business level strategy, diversification,
acquisitions/mergers, international strategy and/or co-operative strategies.
Problems/Challengesandrecommendation
Identify three main strategic issues.
In this section you should outline a range of strategic actions for the company: where to from
now to resolve the three significant strategic issues/challenges identified. You should
consider the threats, weaknesses and risks of strategies in identifying strategic
issues/challenges. You should recommend some alternative actions and justify your choice
in terms of the company’s SWOT analysis. To link together the results of the external and
internal environmental analysis, you could use the TOWS matrix. MGT302A – Strategic Audit of Inditex.
Conclusion (major results of your analysis and recommendations with regards to the main
strategic issuesidentified)
The report (Part A and B) should be prepared in a professional manner. This means that the

MGT302A Strategic Audit Brief

© Laureate International Universities 2016
report should be concise, incisive, and literate and include appropriate supporting tables,
charts, and exhibits. MGT302A – Strategic Audit of Inditex.
There must be clear evidence of consultation of academic literature – at least 5
academic journals articles, recommended text and several web sites must be used,
and appropriately referenced in accordance with the THINK referencing guide
PLEASE NOTE:
This is a very important assessment and is being done individually. You have to
select ONE of the following companies for your audit:
Natura (a Brazilian cosmetic company)
OR
Novo Nordisk (A Danish pharmaceutical)
OR
Inditex (Spanish retailer)

Due dates: Week 6 (Part A) and week 9 (Part B). However please ensure that you work
consistently over the 9 weeks.
The following is a schedule to help you stay on track:
Week 2: Select your organisation. Introduction.
Weeks 3-4: Data collection. You need to collect information on the EXTERNAL
ENVIRONMENT, which includes the general environment, industry environment,
competitors (2-3 will suffice). MGT302A – Strategic Audit of Inditex.
Complete the analysis (identify opportunities and threats) and writing of this section.
Weeks 5: Collect information on the INTERNAL ENVIRONMENT, which should include
resources, capabilities and core competencies
Week 6: Complete the analysis (identify strengths and weaknesses) and writing this section.
SUBMIT PART A
Week 7: Review Part A and do a summary SWOT. Select four strategies.
Week 8: Complete the analysis of the four strategies and identify three significant strategic
issues. MGT302A – Strategic Audit of Inditex.
Week 9: Recommendations and Conclusion. SUBMIT PART B

MGT302A Strategic Audit Brief

© Laureate International Universities 2016
Marking guide
PART A Possible Marks
Introduction: Background of the organisation and briefly
explain how you are going to approach this study 10
Externalenvironmentalanalysis:
Analyse the general environment
Analyse the industry environment (suppliers, buyers, threat of
new entrants,substitutes)
Analyse the competitive environment in a separate section
Identify opportunities and threats.

40

Internalenvironmentalanalysis:
Analyse the organisation’s tangible and intangible resources
Identify capabilities. Evaluate capabilities to prove core
competencies. MGT302A – Strategic Audit of Inditex.
Value chainanalysis
Identify strengths and weaknesses

40

Presentation and references 10
Total 100 (weight20%)
PART B Possible Marks
Summary SWOT 10
Identify and evaluate four corporate/business level strategies 40
Identify at least three significant strategic issues the
organisation faces 30
Makerecommendations 10

Presentation and references 10
Total 100 (weight30%)

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MGT302A – Strategic Audit of Inditex

1.0 Summary SWOT Analysis

From the above Analysis, Inditex faces a number of challenges, but it can use its
strengths to overcome the challenges. The organisation has a $11.3 billion worth brand name,
reputation and a good financial strength. These are important resources for the company. With
vertically integrated operations in more than 93 countries and 2,200 stores, the company takes
advantage of economies of scale. It has capability to exploits resources at its disposal to continue
growing in the target markets. In addition, the textile industry in the world is poised for future
growth with continued population growth and consumption culture. This presents growth
opportunity. However, the organisation is faced by a number of challenges. MGT302A – Strategic Audit of Inditex…..

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