Overview of target Organization: TJ Maxx is an American department store chain which is located with more than 1000 stores. This is one of the biggest retailers in the United States. The store offers wide array of products from men and women’s apparel, accessories, toys and home products as well. The biggest advantage of this company is that it sells designer brands at very affordable prices.
Analysis of Strategy formulation analytical Framework: A strategy formulation method emerges as a cause to accomplish the goals set for the organization. TJ Maxx is a growing retail store in USA. To understand a business’s overall strategy it is very important to analyze the core competencies of the firm. TJ Maxx has a good network of supply chain management and wide distributive channel of network. Therefore they can minimize their inventory as well. Also they run with a competitive cost advantage over other retail businesses in USA (Mazzarol, 2009).
Findings from Stage I: Input Stage: The Input stage depicts and analyzes the internal assessment of the firm. This basically throws light into the present market scenario where the internal and external strengths and weaknesses are matched with the overall performance using IFE matrix and CPM matrix. It can be depicted that the brand had a strong reputation over other brands with a share of about 40%. There were wide range of products and various successful integration were been implemented.
Using IFE matrix it can be founded out that TJ Maxx had increasing level of cash flow. The stores were located in close vicinity of geographic location. The company had a large number of suppliers as well.
Introduction to Strategic Planning:
Strategic planning is a method that is used to ensure that employees and other stakeholders are efficiently working with some common objectives to achieve organizational goals and come out with intended results that can help the organization to adjust in the changing environment. An effective strategic plan control all the actions that are going on and checks if any progressive results are to be implemented or not (Jeffs, 2008).
The process of strategic planning and management starts with assessment of current internal and external factors affecting organization. Then a strategic plan is developed with organizational strategies as well and then the plan is finally implemented into action and operational planning as well.
SWOT Analysis of TJ Maxx:
Strengths: The most important focus of the company that it holds a dominant position in the market. The company is very stable in terms of maximizing its revenue in the market. TJ Max offers a wide range of products to its customers thus bringing more profit. The company has a structured and professional hierarchy maintained with a strong management team as well. This is a retail chain with more than 1000 stores in 5 countries. The stores also have strong presence over customer minds as well.
Weaknesses: A slight change in the economy of US would bring a huge loss in terms of revenue because TJX mainly concentrates in the US market. There are a few department stores that have very few categories of clothes particularly.
Opportunities: TJX has vast opportunities to emerge with developing countries like China and India. These countries can provide a wide array of growth prospects for the company. TJX can also go for the option of online delivery of products as that would create a differentiation in minds of consumers.
Threats: There are businesses that offer similar products at a cheaper rate. This may prove as a threat to the company. (Witteveen and Irschik, 2008)
BCG Matrix for TJ Maxx:
The Boston Consultancy group has four main components: Stars, Question mark, Dogs and Cash cow. In US the retail sales for clothing and accessories showed an increase of 5.9% in the first month of 2013. The growth rate of retail industry globally was 2.8%. TJX was the global leader with a market share of 1.8%. In recent years Gap Inc who was considered to be a sleeping dog was slightly increasing towards cash cow. However the closest competition to Gap was TJX and they continued to have a market share of 12%.
From the above discussion it can be concluded that with growing Competitive edge in the retail sector, TJ Maxx has been able to distinguish itself from others in terms of global brand name, availability of its products in different stores and most strong point is that the company was based with economy pricing that helped customers to buy the products at an affordable price range.
David, F. (2005). Strategic management. Upper Saddle River, N.J.: Pearson Prentice Hall.
Jeffs, C. (2008). Strategic management. Los Angeles: SAGE.
Mazzarol, T. (2009). Strategic planning in growth oriented small firms. Strategic Direction, 25(11).
Witteveen, W. and Irschik, H. (2008). An effective strategy for the multibody simulation of jointed FE models in the framework of the floating frame of reference formulation. PAMM, 8(1), pp.10157-10160.