Put yourself in the place of the manager and write a memo to your employees about how your organization will change strategic direction and why.

You are a manager for a major national clothing chain and you have been charged with finding a way to restore your organization's competitive advantage. Recently you have been experiencing competition from two resources:

1. Discount stores have been undercutting your prices as they buy clothes from low-cost foreign manufacturers.
2. Small boutiques in malls are attracting your high-end customers. You are stuck in the middle. You have to decide what to do.

There are many strategic management directions you can choose from. First choose the corporate strategy position for the next two to five years:

1. Growth
2. Stabilize
3. Defense

Next, choose a corporate strategy:

• Concentration strategy
• Concentric diversification strategy
• Vertical integration strategy
• International expansion

Finally, choose the Business Strategy:

1. Low cost leader
2. Differentiation to concentrate on a unique competitive advantage

If you were in charge of this situation, what decisions would you make and why? Be sure to write a discussion the following questions before you decide.

• Should you start to buy or expand abroad to pursue a low cost strategy?
• Should you focus on the high end of the market?
• Or should you pursue both low cost and differentiation?
• Finally, what strategy will you choose to beat your competition?

Use scenario planning to analyze the pros and cons of the best strategy to choose. Write the pros and cons of each corporate strategy and then justify your strategic direction chosen. Feel free to use bullets and business writing.