Impact of recent changes in industry conditions on the strategic management practices of an organisation.

Abstract

This research evaluated the strategic management practices of the Kingsgate Clothing Group, which operates within the clothing and textile industry. The industry is undergoing dramatic changes since the opening up of the South African economy and the advent of globalisation. These changes have occurred within the political and economic spectrum and include factors such as trade and tariff agreements, changes in labour legislation, exports, illegal imports which has impacted on the organisation. A framework on strategic management was developed highlighting the factors necessary for strategy development, key issues in the external enviroment, strategic capabilities, organisational structure and culture and leadership issues. Various strategic management tools were used to analyse the Kingsgate Clothing Group's present strategy in the light of the changing industry conditions. These tools included value chain analysis, financial analysis and SWOT analysis. Based on the conclusions drawn from the analysis recommendations were made on the company's future strategy and the way forward in order for them to achieve sustainable competitive advantage.