The final work will be evaluated based on the following criteria: · Acquired knowledge (25%): the knowledge acquired throughout the course of the subject will be evaluated through the analysis of the...

Running Head: STRATEGIC MANAGEMENT                        1
STRATEGIC MANAGEMENT                                24
STRATEGIC MANAGEMENT
Table of Contents
Introduction    5
1. Mission, Vision and Values of BACHI Barcelona    5
Mission    5
Vision    5
Values    5
Elegance:    5
Quality:    6
Originality:    6
Passion:    6
Commitment:    6
2. Internal Analysis    6
Internal Analysis Based on Evaluation of Website and Any Internal Elements    6
Competitive Advantages and Disadvantages    6
Competitive Advantages    7
Differentiation:    7
Pricing:    7
Sustainability:    7
Production:    7
Suppliers:    8
Competition:    8
Competitive Disadvantages    8
Tangible Resources (Physical and Financial), Intangible Resources and Capacities    8
Tangible Resources    8
Physical Resources    8
Financial Resources    9
Intangible Resources    9
Capacities    10
VRIO Analysis    10
Value    10
Rarity    10
Imitable    10
Organisation    10
Strengths and Weaknesses Matrix    10
Strengths    10
Weaknesses    10
3. External Analysis    11
PEST Analysis    11
i. Political Structure    11
ii. Economic Structure    12
iii. Technological Structure    12
iv. Social Structure    13
Analysis of Porter’s Five Forces    14
i. Bargaining Power of Suppliers    14
ii. Bargaining Power of Consumers    14
iii. Threats on Income of Substitute Products    15
iv. Threat of New Entrants    15
v. Rivalry among Competitors    15
Opportunities and Threats Matrix    16
Opportunities    16
Threats    16
4. Proposal Based on Internal and External Analyses    16
Defensive Strategy    16
Offensive Strategy    17
Survival Strategy    17
Reorientation Strategy    18
5. Develop a BSC in the form of a matrix    18
Customers:    19
Business Process:    19
Learning and Growth Perspective:    20
6. Based on Contribution of Michael Porter, Proposing and Justifying    20
Strategy in Cost Leadership    20
Differentiation Strategy    22
Focus Strategy    23
References    24
Introduction
The report is prepared with an aim to resolve few points of concern for BACHI Barcelona. The company is a leading brand for handbags and accessories for men and women. The mission, vision and values will be identified for it. Along with this, the internal and external analysis will be done to identify strengths, opportunities, weaknesses and threats for BACHI Barcelona.
VRIO analysis, PEST analysis and Porter’s Five Forces Model will be helpful in identifying and developing different strategies such as survival, reorientation defensive and offensive for the company. The report will be completed with BSC matric and differentiation, focused and cost leadership strategies.
1. Mission, Vision and Values of BACHI Barcelona
Mission
The company holds the mission of creating quality bags by serving uniqueness and exclusivity to every client in their every purchase (Gnjidic, 2018). The focus is on attaining sustainability through continuous improvement of merchandise by using eco-friendly materials and creating perfect piece every time.
Vision
Their vision is to be the leading brand and creating a brand image, which is recognised by the customers and to hold a strong place in social platform and leveraging on competitive pillar to beat the competition in the market (Garasova, 2019).
Values
Elegance:
They have exclusive and elegant collection, which is a style statement among men and women and suits the style of every personality. They have designs, which are multi-purpose and suitable for any occasion helped the brand to stand out in the market with confidence.
Quality:
High quality is not just a feature. It is by choice. Creating and delivering products, which are not only aesthetically sound but also ensures raising quality bars every time is crucial for the company. Taking smallest details into account the team creates masterpieces in accessories and handbags (Wheeler, 2022).
Originality:
It is main idea behind every design so it keeps motivating the customers to buy more. This has helped BACHI Barcelona to create designs, which are original and differentiates the product in the market. The sustainable and eco-friendly material has helped in creating a brand that is loved by customers.
Passion:
The team is dedicatedly creating pieces and they are passionate about what they share and practice. They keep a close watch on recent trends and follow them in their designs.
Commitment:
The bulk orders are completed within stipulated time and time bound production is carried to ensure orders reach to customers on time. Various virtues of the products are explained on the website so that customers are aware of their purchase and its qualities.
2. Internal Analysis
Internal Analysis Based on Evaluation of Website and Any Internal Elements
Competitive Advantages and Disadvantages
Creative ideas and uniqueness helps a company to gain competitive advantage over competitors. These two aspects help the company to stay ahead in the competition and offer new each time to the customers. The way every product is created should be communicated to the customers so that they realise the effort and hours taken to make it.
Competitive Advantages
Differentiation:
It is important to create differentiated and unique products so that customers can relate to the brand. The company prints BACHI on both the sides (inside and outside) of every product to ensure that originality and quality is maintained. The products manufactured by the company are of high standards and value. They are especially crafted keeping customer’s expectations in mind.
Pricing:
Being a leading brand, the prices are on lower side. This has helped the company in gaining the confidence of the customers that high quality products not necessarily come with bigger price tags.
Sustainability:
As the material procured is eco-friendly and does not cause any harm to environment, it act as major factor of competitive advantage in the market. The modern and aware customer is considerate about what they are buying and thus give due importance to sustainable products for their use.
Production:
BACHI have an advantage of national production in Barcelona, which is not available to competitors. In addition, each product is manufactured with great care and expertise to add uniqueness and quality.
Suppliers:
The traditional and close relationship with suppliers is a key to success as it ensures uninterrupted supply of raw material for production. This has helped to gain economies of scale as raw material is procured with competitive price advantage.
Competition:
At present, it is giving tough competition in the market. Due to its elaboration in Barcelona, it is difficult for competitors to take its position.
Competitive Disadvantages
· The physical stores are not planned by the company and hence it is completely dependent on digital channel for its sales.
· The competitors such as Afortunadas and Zubi are recognised brands, present in international market and variety of products to offer. They are constantly creating new designs as compared to BACHI is large numbers.
· The skills to capture market and dealing with economics is not with BACHI and hence it faces stiff competition.
· Due to lesser visibility on social media, many opportunities get untapped.
· The cost for transportation is high and negotiations have not been initiated yet by the owners on this front.
Tangible Resources (Physical and Financial), Intangible Resources and Capacities 
Tangible Resources
Physical Resources 
Resources, which are counted as physical, are the materials, which are expected for the assembling of satchels. For instance, calfskins, prints, zippers, paint, textures and so forth. The accessibility of the sacks ought to be checked from time to circumstances such as regardless of whether the stocks are prepared and they are prepared available to be purchased or not. Accessibility of actual property for assembling sacks, which incorporates hardware or machines, utilised, vehicles, cameras to screen and so on.
Financial Resources
The organisation is claimed by the two proprietors and enterprising women Meritxell and Nuria. Hence, BACHI gets commitments from the two accomplices. They have great clients and providers. As far as bank costs and commissions are concerned, they accommodate their workings worthwhile circumstances for extension of business account.
Intangible Resources
Theoretical assets can be truly challenging to acquire and they are additionally hard for the contenders to start with them. Elusive assets are used in routine and needs practice subsequently. Elusive assets are established inside the organisation. Such assets incorporate close entity with suppliers, memorability, e-commerce stores, plan, lawful encounters, innovation, savvy of proprietors, eco-accommodating material, design contributing to a blog, administrations and energy for work (Tumsifu, Dev & Gekombe, 2020).
Immaterial assets are grouped into two types of classifications; Theoretical human assets and elusive non-human assets. The HR incorporates the two accomplices having extraordinary information in design, advertising, advancement, legitimate assets and maintainability of the organisation. It likewise incorporates a guarantee to attempt the development of a specific undertaking.
The relationship of BACHI with its providers has forever been awesome, along these lines; the exceptional association can be viewed as a fundamental wellspring of human immaterial sources. Provider organisation connections and joint efforts with advertising firms, informal communities and clothes are human immaterial assets.
Non-human elusive assets incorporate BACHI's web-based inventories, online journals to inform about news, support for brand and social feeds on Facebook, Twitter as well as Instagram. It likewise incorporates consumer loyalty, vision, values, mission and pamphlet distributing.
Capacities
BACHI is an entrepreneurial vision by two effective women who crate normal plans to make handbags and purses that can be deemed as classical and modified according to client's necessities and prerequisites. They plan eco-accommodating items without forfeiting the possibility of creative plans. They have great associations with 20 providers who give unrefined substance to BACHI.
VRIO Analysis
    VRIO Analysis
    Value
    Rarity
    Imitable
    Organisation
    Space for manufacturing
    Yes
    No
    No
    Yes
    Contribution of capital
    Yes
    No
    No
    Yes
    Materials
    Yes
    No
    No
    Yes
    Resources for knowledge sharing
    Yes
    Yes
    No
    Yes
    Motivation and commitment
    Yes
    Yes
    No
    Yes
    Inventory
    Yes
    No
    No
    Yes
    Relationship with supplier
    Yes
    No
    No
    Yes
    Relationship with customer
    Yes
    No
    No
    Yes
    Blogs, reports, news and activities
    Yes
    Yes
    No
    Yes
    Selling online, online catalogues
    Yes
    No
    No
    Yes
(Source: Alexandru-Ilie, Alexandru, Iulian & Valentin, 2020)
 Strengths and Weaknesses Matrix
    Strengths
    Weaknesses
    · Designs are unique and original
· Legal formalities are well taken care of by the company
· New and beautiful designs
· High...