Assignment of the individual assignment For the Strategic Management of the Postgraduate Diploma in Business Management, University of Colombo (2013/14)

1. ANALYSIS THE STRATEGIES OF THE NOLIMIT
PgDBM 504 – Strategic Management
Individual Assignment 1
Mohammed Muthalif Fathima Nasriya
Registration No. 072
Postgraduate Diploma in Business Management
Faculty of Graduate Studies
University of Colombo
Sri Lanka
June 2014

2. CONTENTS PAGE NO.
1. Strategy: Vision, mission & strategy of the organization 01
2. Rationale for the strategy selected: 02 - 05
3. Objective of the strategy 06
4. Programmes to be implemented pertaining to the strategy 06
5. Budgetary requirements for market expansion 07
6. Performance indicator 08
7. References 09

3. 1. "STRATEGY"
VISION
"To be the biggest retail family fashion chain in Sri Lanka"
MISSION
"To be the leading retail fashion chain in Sri Lanka, provide a variety of quality products at
an affordable price for the whole family coupled with value added services, thereby winning
the trust and confidence of customers to become a house hold name in Sri Lanka"
According to this vision, mission statements to achieve; their strategy is;
EXPAND THE MARKET AND BECOME A HOUSE HOLD NAME: "Provide a
variety of quality products at an affordable price for the whole family at any age
through Locate the showrooms in strategic towns and cities across the Island"

4. 2. RATIONALE FOR THE STRATEGY SELECTED:
Strategy is a pattern of action and resource allocation designed to achieve the organization’s
target through the current strategy. It’s a process that involves managers from all parts of the
organization in the formulation and implementation of strategic goals and strategies. When
we examine why organizations always seems to beat their competition, they will again and
again find evidence of a thoughtful strategy. NOLIMIT seem to be able to take almost any
product and services and go up against almost any competitor and win.
Strategy involves in decision making process about the organization’s long-term strategies. It
has a strong external orientation and cover major portions of the organization.
Senior executives are responsible for the development and execution of the strategic draft,
although they usually do not personally formulate or implement the entire strategy and
NOLIMIT consider their all employees to be their most valuable asset, and not just a staff
members, as it is the employees who carries out all the company’s activities. The progress of
the company is dependent on their all employees strategically. Because, NOLIMIT feels;
If, No employees – No sales
If, No sales _ No profit
If, No profit _ No company
Strategies are having major targets or end results. Those results are related to the long-term
survival, value and growth of the NOLIMIT. Typical strategies include various measures of
return to shareholders, profitability, and quantity of output market share, productivity and
contribution for the society.
Quality with affordable price is the key to create and sustaining competitive advantage to
reach the strategy of the NOLIMIT. Customer defined quality represents the best value of
NOLIMIT can put in to its product and services for the market. These products or services
should culminate in an optimal combination of cost, function utility, launching new designs,
bringing new fashion on fast and value addition of the products.
Efforts to manage quality require developing a set of strategies, setting goals and objectives
along with action plans, and carrying out other steps in the strategic process and
implementation. A promoting number of Team Leaders and area managers are discover the
strong link between quality and profitability. Quality and affordable price orientation has
become high task in NOLIMIT. Because of that quality guides to better reputation, more
purchases and a sustainable competitive advantage.
2.1. Reason for identified the strategy to locate the showrooms in strategic towns and
cities in every year.
NOLIMIT concerning as strategic town and cities, firstly from commercial capital of the Sri
Lanka is Colombo. They mean for commercial and strategically town or cities should be
commercial busy, multicultural, modern, and educated big population. Sri Lanka is a
multicultural country. So without target one culture they are concerning multi environmental
fashion. Hence they already identified 21 strategic towns and established their showrooms.
They are targeting every financial year to open one branch in their successive Sri Lanka’s
biggest fashion chain.

5. Year 2014 is NOLIMIT’s 22nd
anniversary will held on November. For this year they are
going to be set as their strategic way Gampaha is identified as their strategic city and big
market location. NOLIMIT always they before implement as long term showroom, they are
giving discount centre in low price consuming and free offers to the customers to get fit with
their environment as trial for another targeting new showroom.
2.2. SWOT Analysis for the strategy
Strength:
 Experience and understanding of the fashion and designing industry
 Great downtown locations
 Retail offering clothing and accessories for men, women and children at any age.
 Providing a variety of quality products at any affordable price for the whole family.
 Unique shopping experience with exceptional customer service through; Internally
well trained staff/ human resources.
WEAKNESS:
 Large market, it is women
 Lack of ideas to make price decision as per affordable price in unavoidable
circumstance also missing analyze on it.
OPPORTUNITIES:
 Finding strategic towns or cities as location depend as per R & D used market area.
 Outstanding shopping experience will lead to repeat business
 Dedicated management team and there employees are most valuable asset, not just a
staff member, the progress of the company is dependent on their employees.
THREATS:
 Cost and effectiveness of marketing to women and children
 Day to day changing life style with fashion and designing
 New retail fashion and design apparel members may or may not be enter into the
industry can bring more high Competition in the industry
NOLIMIT has proved to be a superior customer service to gain competitive advantage. Take
care to provide a personalized service to each and every customer.
Hence, success of the NOLIMIT in the industry from cottage to quality, efficiency and
effectiveness resource allocation and usage, current designs most soon introducing to the
market, at least once in a week to become household name through these tools locate the
showrooms in every strategic towns and cities. NOLIMIT’s share is their ability to overcome
the competition in nearly every situation that crops up. However higher quality products with
demanded designs in affordable price is the base of the strategy of NOLIMIT as every
financial year locate a branch in a strategic city or town. According to this

6. 3. OBJECTIVE OF THE STRATEGY
Provides more specific direction on what the organization must do to achieve its vision and
mission—interim steps toward achieving the vision and mission.
3.1. STRATEGIC OBJECTIVES
– Outcomes focused on improving long-term competitive position of the organization
• To become a house hold name in Sri Lanka
• To locate the showrooms in economically and educated developed areas.
• To the best prospects of the company as currently a rapidly growing organization.
• To provide a superior customer service to gain the mission and reach the vision.
• Boost industry’s reputation with customers
• Strengthen presence in local market
• Become leader in new fashion and designing innovation
• Surpass competitors in quality or product performance
3.2. FINANCIAL OBJECTIVES
- Outcomes focused on improving financial performance
• Increase sales growth 6 to 9% per year
• Cut costs by 5% per year every year
• Through the sales growth and the costs cut make an investment to another new branch
(Market Expansion)
• Increase the service charge of the employees 3% per year
• Achieve highest Return on Investment (ROI) in the retail apparel industry
4. PROGRAMMES TO BE IMPLEMENTED PERTAINING TO THE STRATEGY
Strategic implementation is the essential part of the strategic process, and organizations that
develop strategy must expect to include a process for applying the strategy. It should be
supported by structure, technology, human resources rewards, information systems, culture,
leadership, winning the trust and confidence of the customers, cost conscious, wastage
control and etc. Hence the success of a strategy depends on how well employees at low
levels are able and willing to implement it.
Because of that, NOLIMIT always consider from the majority of the staff getting, their first
working experience and they are committed to make their experience a truly rewarding. And
they top management focused on staff training and coaching, rewarding smart working and
loyal employees at every level. Participative management is one of the most popular
approaches used by executives to gain employee’s input and ensure their commitment to
strategy implementation. NOLIMIT currently working with several wholesalers, garment
manufacturers (Internationally and owned) and 150 freelance fashion designers to assemble
their inventory.

7. 5. BUDGETARY REQUIREMENTS FOR MARKET EXPANSION
Details
Budget Amount
Rs.00
Division
Target Market and Identify the Strategic city or town 400,000.00 R&D
Develop corporate website 135,000.00 Marketing
Develop the business plan 117,000.00 R&D
Advertising: Duration: 1/10/2014 -1/11/2014
Outdoor banner
Paper
Television
300,000.00
250,000.00
500,000.00
Marketing
Recruitment 100,000.00 Human Resources
Training and Development 60,000.00
Training and
Development
Internal information technology set up 150,000.00
Information &
Technology
Insurance 10,000,000.00
Administration
Location & Building 29,500,000.00
Showroom interior set up 240,000.00 Construction
Maintenance 546,000.00 Maintenance
Taxes and License 500,000.00
FinanceSalaries & wages 350,000.00
Interest expenses 50,0000
Showroom equipments with computers 180,000.00 Supplies
Telephone 90,000.00
Logistics
Travel 100,000.00
Sales counter with decoration 85,000.00 Sales
Inventory Management System 75,000.00 Audit
Stationary 45,000.00 Supplies
Miscellaneous 100,000.00 Finance
Total expecting expenses 44,323,000.00
Non-operating income 900,000.00 Marketing & R&D
Interest income 66,000.00 Finance
Rental Income 410,000.00 Logistics
Gift received 600,000.00 All divisions
Sponsors 322,000.00
Fashion &
Designers
Total expecting income 2,298,000.00
Equity capital 50,000,000.00
Collection of annual sales expected 60,000,000.00
Sales generate breakeven 25,000,000.00

8. 6. PERFORMANCE INDICATOR
Performance Indicator system is a mechanism of evaluate and the feedback about the
organization’s strategic management. It does provide overall performance about the
company. If it will be provide possible results, big strength for the company. Otherwise if it
will be negative responsible, it should be rearrange the organization.
NOLIMIT’s Performance Indicator Method:
 Introduced Loyalty Card system for measure their affordable price mechanism and
strategic city as convenient location how much got fit with their customers.
 When every customer attends to the NOLIMIT, they are kindly asking are they
coming two or more than two times visit to the NOLIMIT.
 The cash collector issuing ‘Loyalty Customer Card’ and giving 0.8% discount for
every thousand rupees collection.
 Then NOLIMIT measure, how many of customers collecting Loyalty Customer Card
and how much of discount offered to the customers. Receiving number of cards,
number of turns and discount will show the performance of the NOLIMIT.
Other than this, they will also implement a referral programme rewarding customers who
refer new customers with discount coupons. Returns and exchanges must take place within
30days of purchase and receipts are mandatory.
Technologically will be introduced facebook ‘likes’ campaign to measure the performance of
the affordable price and locating the showrooms in identified strategically cities or town for
house hold name of the Sri Lanka. Until before open 22nd
branch they liked by 205, 150
facebook users as their customers. NOLIMIT feels satisfaction of their customers with their
shopping they holding name until their house and environment, through recommending
friends and neighbors also.

9. 7. References
Bateman, Thomas S, Scott A. Snell
Management: building Competitive advantage, 4th
edition. International Edition,
Irwin/McGraw Hill
Hofstede, G. (1985). The interaction between national and organizational value systems.
Journal of Management Studies, 22, 347–357.
http://www.academia.edu/5492552/The_Strategic_Management_Analysis_of_ZARA_Relativ
e_to_the_Case_in_Developing_Countries
http://www.nolimit.lk
NOLIMIT. Annual Report Year of (2013)