Strategies-the way to succeed -A case study of Lindex

Abstract

Background and problem discussion: The main objective for the typical company is to accomplish profit. To accomplish superior performance the literature states that it is not enough with a well operating management control system, it must based on good strategies that are communicated throughout the whole organisation. However, many organisations have problems with the implementation of the strategies. The question is therefore; why could managers consider their strategies “right”, when they at the same time thought that the strategy implementation was a failure? Aim of study: The aim of the thesis is three-fold: (1) to compare the strategy process within Lindex with what Kaplan and Norton advocates; (2) to describe the components Lindex considers most important and analyse whether there is any correlation with what the literature recommends and; (3) trying to observe, whether the strategy process actually has been successful in Lindex so far. Method: This thesis uses a qualitative approach, and a case company is studied. For this thesis, both primary and secondary data has been used. The information gathered from the case company is compared with the literature in the field. Delimitations: The authors have chosen to study a company in depth to see what an optimal strategy process can look like. The information used in the theoretical chapter has its starting-point in the newly published article Mastering the Management System, by Kaplan and Norton. For the analysis, the situation in Lindex at the time of this thesis will be considered, since the company is not entirely finished with the implementation process. Analysis and conclusion: Companies need strategies because they need an instrument that can control and organise their processes to head in the right direction. Companies change strategies because that the old strategies no longer serve the objectives, they are not well implemented, and/or a decreasing profit, which cannot be regained with the assistance of the old strategies. The strategy process Lindex recent went through have almost only similarities with what Kaplan and Norton suggest. It seems like Lindex today understand the importance that all managers in a company agree and share the same picture about the organisation. Most of the components Lindex stated as essential to succeed with, were the same as the literature advocated, however, three differences were found. If Lindex focuses on the stated components and succeed with them, it ought to imply that the company will be more successful with its strategies this time and so gain superior performance. Suggestions for further studies: Since Lindex is in the middle of the implementation process, it would be interesting to study if the implementation process succeeds in the future. Another interesting study would be to discover how the strategies are followed further down in the organisation.