DEDEMAN Case Study

National School of Political and Administrative Studies
Faculty of Management
MA Programs and Investment Management
STRATEGY AND PROJECT PORTFOLIO COURSE
DEDEMAN-Case study
GROUP PROJECT
PIM
First Year
2018
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STRATEGY AND PROJECT PORTFOLIO Case study: DEDEMAN
GROUP PROJECT - PIM First Year 2018
SUMMARY
1 INTRODUCTION _____________________________________________________ 3
2 Company description ________________________________________________ 6
3 THE STRATEGIC TRICHOTOMY IN BUSINESS ______________________________ 9
3.1 Vision ______________________________________________________________ 9
3.2 Mission _____________________________________________________________ 9
3.3 Objectives __________________________________________________________ 10
4 EXTERNAL AND INTERNAL ENVIRONMENT ANALYSES _____________________ 11
4.1 SWOT Analysis ______________________________________________________ 11
4.2 PESTLE Analysis _____________________________________________________ 13
4.3 PORTER FIVE FORCES MODEL __________________________________________ 16
4.4 STAKEHOLDERS Analysis ______________________________________________ 20
5 COMPANY’S ASSESMENT BASED ON RBV THEORY ________________________ 22
5.2 Organization value chain ______________________________________________ 24
5.3 Capabilities and competences evaluation _________________________________ 25
6 THE STRATEGY IMPLEMETATION AT DEDEMAN __________________________ 27
6.1 Strategic leadership at DEDEMAN _______________________________________ 27
6.2 Strategic implementation _____________________________________________ 28
7 THE EVALUATION OF THE STRATEGY IMPLEMENTATION AT DEDEMAN _______ 33
8 CONCLUSIONS _____________________________________________________ 36
9 REFERENCES ______________________________________________________ 38
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1 INTRODUCTION
by Dumitru Bodoni Gina Cristina
Our paperwork focus on the strategy of DEDEMAN.
In essence, the following issue will be given by DEDEMAN. Why did DEDEMAN's
overall implementation strategy from 2020 match with as, Romanians, and it did not match the
Moldovan market and what could be beneficially changed in the future?
The following issues will be addressed to limit the issue: - Which internal / external factors
– PESTLE analysis –, from the home market could DEDEMAN benefit? - To what extent can
DEDEMAN be true to their values out of Romanian borders in the pursuit of success?
Method
We answer the problem formulation from a theoretical point of departure, where we use
empirical material from DEDEMAN internet site and various stakeholders in the similar area of
activity (DIY stores).
The majority of the task scale based on discussion about the connection between the
different theories and behaviors DEDEMAN has experienced. The paper will look into what values
DEDEMAN lives in Romania and see if they can exploit the open international market or if
DEDEMAN needs to adjust their image to fit in. The paperwork scale is divided into sections
where the first is to look into both internal and external relations, to assess whether individual
factors are the pros or cons of expansion tool. To draw conclusions, the right models and theories
will be used.
Then, in this paperwork, we realize the PESTLE, SWOT and RBV analyses. These
analyses should form the basis of a Implementation Strategy, its potential compared to the
DEDEMAN range and future opportunities.
Literature resources
The literature used in the assignment is predominantly DEDEMAN official site, blogs and
economic journals and online portals. The strategic analysis of DEDEMAN is based on various
articles and opinions that can match time-consuming analysis models.
Sources from other self-employed or private-economic groups have been evaluated
individually, but predominantly credible, predicted are written by persons with an economic
background. Literature around DEDEMAN has mentioned the doorway very positively and it has
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been important to sharpen analyzes and conclusions based on this kind of literature. The amount
of sources varies in each section as needed, evaluated on the depth of sections.
The strategic analyzes have several sources that illustrate theory and models as Porter
Model and Chain Value, SWOT, PESTLE and RBV.
Limitation
The strategic analysis of DEDEMAN will be based on DEDEMAN's internal values and
deals with boundaries by the factors that directly or indirectly influence market development
related to the our market. Porter theories and PESTLE analyses are used to dictate the external
relationships and the internal is delimited into a Porter value chain analysis and a review of
PESTLE's.
The SWOT analysis gives us a broader insight into DEDEMAN values. These theories
give everyone a good overview and some significant values can be drawn. Key figures that give
an overview of consumer opportunities for consumption and an expectation for the future.
Unfortunately, for building the process of strategy (Formulation, Implementation,
Evaluation and Modification) on the long term strategy at DEDEMAN were not found during the
research.
Structure
The paper will be divided into two chapters, with corresponding subdivisions. First section
will consist the formulation and the second one the implementation and evaluation of the strategy.
In conclusion, all of these matters will be discussed, but for the purpose of presenting some
guidelines that DEDEMAN may take advantage of in the future.
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2 COMPANY DESCRIPTION
by Stavar Cosmina Alexandra
The first DEDEMAN store was opened in 1992 by two young mathematicians.
Firstly, it was a mini-market and in time it became a huge success.
Nowadays, they are good competitors for the international brands as BRICODEPOT,
LEROY MERLIN, PRACTIKER, OBI, HORNBACH and AMBIENT (Voinea, M. 2012)
Maps with DEDEMAN Stores around the country. Print screen from www.dedeman.ro
DEDEMAN is a Romanian company founded by two Romanian brothers, Adrian and
Dragoș Pavăl, în 1994. DEDEMAN has since grown into national group with more than 10 000
employees (ibid.).
Real liberal economic values have brought them to one leading position on the DEDEMAN
furniture and accessories market.
DEDEMAN is selected in this paperwork to determine the reason for a mixed reception
in the different markets, - with particular focus on furniture opening of more stores in Romania
and the two brothers’ dream to open the DEDEMAN store outside of the Romanian borders (e.g.
Moldova), from 2015 onwards.
DEDEMAN has have an ambitious goal of exploiting the explosive growth expected in our
national middle class and aimed at opening 50 stores in over a 10-year period. However, it quickly
became clear to the brothers the buyers did not receive easily the fire and values in the same way
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as the buyers knew from other occidental furniture markets ( IKEA etc). Actually, in Moldova
Paval brothers had acted naively and used an undifferentiated marketing strategy, forgetting that
there the bribe is even worse than here, even we are Romanians here and in Chisinau, and their
commercial politics had not been effective.
Business ideas to sell goods at low prices, by buying in large quantities without
wholesalers. Dragoş Paval was ambitious and the first goal was to open a big store, then, to better
manage negotiating power with suppliers. The goal was quickly achieved and the reason for the
expansion was so much accelerated was that it was largely liquidity and free to start new stores.
Paval’s brothers real chance was that in 1993, a year after Dragos Paval set up DEDEMAN,
the state was pressured by the European community to start privatizing and decided to give more
commercial space to the so-called ”management location”.
The DEDEMAN hypermarket network is expanding to Galaţi they rotated the capital, they
used to pay the stock at the end of the year. Thus, they made an incredibly large capital.
With this capital, but especially with loans taken from banks, the Paval brothers began to
expand on a simple and efficient plan. Instead of renting commercial premises, they preferred to
borrow and buy them. Bank interest rates were high, but never higher than the gallop inflation rate
of the 1990s, which made loans easier to pay. When they reached the third furniture store in Bacau,
they wondered what the next step was
They started to build markets in Roman, Comanesti, Iasi. In short time, they reached 20
small shops for selling furniture and fittings.
It happened in 2001. The Pavle Brothers paused for a moment and made the first decade
of the DEDEMAN history. They had gone with an employee and a 16-square-foot boutique, and
in 2012, 245 people and 20 stores that had raced the cities of Moldova.
DEDEMAN is a Romanian retailer specializing in a wide product range of furniture
household articles. DEDEMAN has always been proud of their company values and founded by
and for Romanians.
The company specialized a procurement strategy, where economies of scale differentiated
them from their competitors. DEDEMAN tried to expand to Moldova as result of the long
internationalization process. DEDEMAN tried to target the emerging evolving Moldovan
middleclass as their target group. The issue was the Moldovan intention to enter in UE and the
continuous little growing of GDP (little but continuous – In the Brothers vision this could become
an opportunity). The growth in real wages had changed the consumer behavior, without
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DEDEMAN realizing it. The new behavior did not match with DEDEMAN strategy of a wide
product range and within a few years, DEDEMAN had to renounce the Moldovan dream in 2017.
DEDEMAN can either choose to renounce at the emerging market beyond Prut of make
some drastic changes to their strategy. DEDEMAN can go back to basic and only sell quality beds
to the evolved middleclass. It will fit the behavior in the future, but on expense on the value of
DEDEMAN. Values that are weighed heavily by Paval brothers, the founders of DEDEMAN.
In 2018, DEDEMAN has a network of 48 stores. The company is in the process of
nationwide expansion. The stores range from 7,500 to 18,000 square meters, offering a diversified
assortment of over 45,000 products (www.dedeman.ro).
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CHAPTER I. STRATEGY FORMULATION

3 THE STRATEGIC TRICHOTOMY IN BUSINESS
3.1 Vision – “IT IS DEVOTED TO YOUR PLANS”
The vision of DEDEMAN is explained on the definition given by C. Bratianu, “an ideal
state projected in the future and which forms a desirable development of that particular
organization” (Bratianu, 2018).
DEDEMAN's vision is to maintain its first place in DIY domain and its expansion in the
international market (Voinea, 2012). Also, Paval brothers want to maintain DEDEMAN in the
elite of the Romanian retail by constant concern for the quality of the services and products offered
to the clients and by the value of the company's human capital (www.dedeman.ro).
3.2 Mission
Their mission (the vocation, the "credo", the charter), the starting point in the elaboration
of the strategy, it represents a set of principles guiding its activity derives from the vision.
The evolution direction of the organization consists in the natural expectations, something
between the linear strategy and the inertial movement.
However, the DEDEMAN’s mission for the next years will continue to offer high-quality
goods and services and to satisfy all customers, whether they are plumbers, painters, small
craftsmen, construction and installation firms or small shops, by offering shop consultancy:
 Ensuring consensus within the organization about the goals pursued; providing a
basis for motivating the use of resources;
 Developing a unitary concept for the allocation of resources;
 Establishing a harmony environment in the company;
 Consider the mission as a landmark for the stakeholders who can identify
themselves with the goals and actions of the firm and remove those who are not
able to do so;
 Formulation of goals, general goals of the organization, and facilitating their
translation into objectives of effort, effect, efficiency, objectives that can be easily
assessed and controlled.
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3.3 Objectives
by Glejaru Georgeta Liliana
The objectives are the quantitative expression of some future states for the organization.
These, together with the company's management value system and the company's mission, define
a set of fundamental values and relatively lasting self-constraints over time that outline the basic
philosophy of the firm and the fundamental frame of reference for choosing objectives and actions
(Bratianu, 2018).
Nr. Name of strategy
Specifications /instruments
crt performance domain
1. Profitability Financial indicators (profit rate, market share value, return
on investment, dividend size)
2. Market share Segments that are of interest to the firm
3. Innovation – ’the ability to Number of new products introduced in manufacturing
continuously transform The seven elements are (Lawson & Samson's model (2001,
knowledge and ideas into new p. 385-387):
products, processes and strategy and vision, organizational intelligence, creativity
systems for the benefit of the and idea management, organizational structure and system,
firm and its stakeholders’ culture, environment, and technology management,
(Lawson & Samson's model utilization of own competence - harnessing the competence
(2001, p. 384). base), new stream and mainstream activities. The term new
stream means the resources the company possesses
dedicated to identifying and creating new value for
customers. Mainstream activities are the part of the
company that comes into contact with customers and the
market.
4. Productivity Efficiency in the use of resources to obtain products
5. Human and financial How to purchase and use them
resources, materials and
information
6. Managerial Performance Criteria for evaluating managers and programs to improve
their professional potential, but also by setting criteria for
evaluating executives and programs to maintain a favorable
attitude of employees
7. Implication in CSR Partnerships with various social NGOs.
Allocation of the social scholarship for poor children.
We should not forget that the ‘vision and the mission of the company are deeply supported
by the corporate values which are integrated into the spiritual knowledge field’ (Bratianu&Orzea,
p. 14).
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4 EXTERNAL AND INTERNAL ENVIRONMENT ANALYSES
4.1 SWOT Analysis

by Roman Ispas Virginia Ionela
SWOT Analysis Methodology
All firms and organizations regularly adjust their internal policies and strategies, and they
constantly adapt to the situation in the environment in which they operate.
In order to find out about the real situation of the company, what and how to build (or
adjust) the company these policies and strategies, different types of analysis can be used.
This essential technique involves discussing strengths, weaknesses, opportunities and
threats. These are commonly referred to as SWOT analysis (strenghts, weaknesses, opportunities
and threats).
SWOT analysis is a precursor of planning within institutions, companies or organizations
when the evaluation is made from a critical perspective.
The goal
The main purpose of the SWOT analysis is to bring to the attention of a company-critical
evaluation (internal environment of the firm) put in the equation with the current situation of the
external environment of the firm so that it can maintain firm in temporal equilibrium in the two
environments.
Organizations accomplish this balance by evaluating new programs and services with the
intention of maximizing organizational performance.
Stages of SWOT analysis
SWOT is a strategic process described hence the acronym (Helfer, Kalika & Orsoni, 2013,
Management strategique, p. 450). The detection of Strengths and then those of Weaknesses carried
out following an internal analysis, succeeds the identification of Opportunities and Threats
resulting from an analysis of the environment.
On the examination of these bases, one makes the strategic choices.
The planning runs in the four stages: collection and evaluation of key data, collection of
data about the organization that collects and categorizes four categories: strengths, weaknesses,
opportunities and threats, development of a SWOT matrix and the objectives, and integrating
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SWOT analysis into decision (Helfer, Kalika&Orsoni, 2013, Management. Cas et applications.
p.79):
I. The first stage of the SWOT analysis involves the collection and evaluation of key data.
Depending on the organization, this data could include the real situation of material and human
resources, sources of funding, technological development level within the company. Once the data
has been collected and analyzed, the organization's capabilities in these areas are evaluated.
II. The second stage of the SWOT analysis is a collection of data about the organization
that collects and categorizes four categories: strengths, weaknesses, opportunities and threats.
Strengths and weaknesses in general come from internal factors within the organization, while
opportunities and threats are framed by external factors.
III. The third stage involves the development of a SWOT matrix for each business
alternative. This stage will be found in the Objectives section, and
IV. The fourth stage involves integrating SWOT analysis into decision making to
determine which business alternative best suits the organization's overall strategic plan. For this
final step, a set of measures will be considered.
DEDEMAN’s SWOT:
STRENGHTS WEAKNESSES
 Professional Employees in most of  Some fields are not represented by the
the fields professionals
 Assistance during and after purchase  Site with an unfriendly interface
 Quality vs cost report for the product  Restricted models of the DIY tools
 Diversity of products
 Large parking in the complex
 Weekly promotions
 Compartmentalized store in deferent
fields
 On line acquisition
 Simona Halep is the image of
DEDEMAN
OPPORTUNITIES THREATS
 Suppliers from this field (Romanian  Current competition: IKEA,
and/or foreigners) are looking for a Praktiker, Arabesque, Bricostore
retailer to sell the products  Selective customers who want
 Many suppliers want to sell a huge customized products
amount of products  Increasingly selective and demanding
 The emerging construction domain customers
 Green buildings and innovative  The Romanian instability regulation
design and law
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4.2 PESTLE Analysis

by Popa Razvan Alexandru
The PESTLE analysis will elucidate the macroeconomic conditions that influence
DEDEMAN's strategic options.
A PESTLE analysis of a theoretical tool for analyzing a company's outside world. It
basically covers all conceivable factors that influence the company's value creation.
PESTLE is Acronym for Political, Economic, Social, Technological and Legal and
Environmental (Racoceanu, 2018), which are the main points of value creation in all companies.
Print screen from Hedley, A. http://www.hedleyconsulting.com/pdf/13feb-why-merge.pdf
This is a useful tool for understanding the development or decline of a market that
implicitly defines the position, potential and direction of a business. Using the PESTEL analysis:
― strategic planning of a business;
― planning in marketing;
― product development;
― research reports.
Variants of the PEST model is an extension to several factors.
According to Hedley, the steps of a PESTEL analysis:
― Identify the topic to be analyzed, and the subject of interest to which it relates;
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― Definition of space can be made from the following points of view: An entity that
delimits its area of interest;
― Positioning in international relations;
― Strategic option, such as entering a new domain or area of interest;
― potential purchases, start-ups and company expansions;
― A potential partnership;
― opportunity for investment and development.
PESTLE Analysis at DEDEMAN

Political
In every EU nation, the political forces affect the businesses environment twice, national
level and to harmonize with European treaties (legislation, directives and regulation). From supply
chain activities to sales, all of them are influenced by the political forces. Political stability leads
to economic stability and in turn it means better sales and profits.
How friendly the government’s policies are decides how favorable the environment of a
certain nation is for business brands. Political instability on the other hand can disrupt the business
environment, and In Romania the instability is one of the biggest problem for business
environment.
Companies are experiencing an increasing focus on Corporate Social Responsibility
(CSR). Pressure comes primarily from consumers, but it has been developed in common standards
for CSR. It has been required to take an active position in the area, thus placing additional pressure
on DEDEMAN to control and assess their suppliers. However, CSR has also given DEDEMAN
positive branding and is used to create better goodwill from customers.
Economic
The global economy has a major impact on most retail stores in our country. Public savings
and economic policies give consumers less money between their hands that can be used for
consumption. The moment offers great political interference that can regulate business conditions.
Media often speaks about the self-taxed percentage or the purchasing act, where topics
such as guarantee and warranty is popular.
DEDEMAN, like many companies, has been affected by the 2008 financial crisis.
However, DEDEMAN was not affected by crisis, on the contrary. In the following years their turn-
over increased thanks to growing their number of stores, from 30 to 50 stores.
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Inflation is important in relation to suppliers and DEDEMAN has already found that
inflation has led to price increases for goods purchased from suppliers (www.dedeman.ro).
DEDEMAN has many suppliers from different countries and it can be a major factor in
using suppliers deprived of stable inflation rates.
Social
The increased focus on CSR, DEDEMAN has positively influenced educational field in
Romania by offering in 2017, 150 scholarships of 350 lei/month for poor children raised in rural
areas
Paval Brothers also talks about more initiatives and future costs in the CSR activities.
DEDEMAN is the main investor in a program named Every child in kindergarten, initiated
by Ovidiu Ro Association.
DEDEMAN has become a sponsor in education projects regarding technology and science
such as First Tech Challenge Romania and “Fonduri Stiintescu” to encourage the children desire
to become more aware with environmental area.
Therefore, it is expected that DEDEMAN will adapt its product range to still be able to sell
goods to its customers, which it may be expected to grow older.
Technological
The technological development in IT goes enormously. If e-commerce in the future could
play a bigger role, imagine some physical stores becoming redundant. Continuous technological
development is also helping to effect all processes in DEDEMAN. As retail logistics one of the
biggest costs and challenges, technology has given DEDEMAN new opportunities.
Legal
One of the biggest problems for the Romanian companies is changeable law regulation
according to the current political situation. DEDEMAN, like the other companies, is affected by
Law no. 153/2017 regarding the salaries and the taxes related.
Environment
Consumers have become more environmentally aware over the years. DEDEMAN expects
consumers to make more demands on products traded in the stores. It is about expectations that
the production has been made in accordance with ethical and environmental requirements. Just
like the change in population demographics, the outside world expects DEDEMAN to change their
product range to meet the environmental demands of the customers.
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DEDEMAN has become a sponsor in education projects regarding technology and science
such as First Tech Challenge Romania and “Fonduri Stiintescu” to encourage the children desire
to become more aware with environmental area.
Advantages of PESTLE analysis
The analysis can be converted into a quantitative scientific evaluation by measuring the
components in the sections.
The quantitative assessment can also be based on establishing coefficients of importance
for the factors considered;
Evaluation is all the more useful when considering several markets in order to decide which
ones have more potential or more obstacles, ex. in the past they had stores in Rep. Moldova, but
in 2017, they were closed;
Ex. For the development of DEDEMAN business, namely the option for the investments
in the new stores, the decision may concern: choosing between international market development
or in Romanian rural areas, concentrating on the domestic market or exporting the products made
in Furniture Factory in Bacau.
4.3 PORTER FIVE FORCES MODEL

by Oprea Andreea Laura
Theoretical framework
The model is used as a market analysis to provide insight into how competitive situations
are in the existing market. The model takes into account the 5 external factors and hence the name.
The model includes the following factors (Porter, M. E. (2008, January):
 the threat of new entrants,
 the bargaining power of buyers
 the bargaining power of suppliers
 the threat of substituting products or services and
 rivalry among existing competitors
The market to be considered is defined as follows:
 The Romanian retail market for all-homes accessories. Purchases are made directly. The
market contains all consumer segments and a very wide and deep product range. The market
includes both e-commerce and physical stores.
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 Rivalry among existing providers. There are major providers in the defined market:
BRICODEPOT, LEROY MERLIN, PRACTIKER, OBI, HORNBACH and AMBIENT.
 The market is also called heterogeneous as consumers compromise the level of preference for
the suppliers' products, brands and designs. The products are highly heterogeneous, and
competitors often compete with the price to attract customers.
 However, the main providers have focused on their own department stores and modernized
and expanded area for giant warehouses.
DEDEMAN's field of activity is building materials retail and interior and exterior fitting
(electrical, sanitary, sewerage and gas, building materials, interior fittings, tools and accessories,
tools and equipment, furniture, garden products, protective equipment, electronic and household
appliances, etc.).
 Competition or rivalry between existing competitors

The competition is extremely high on the Romanian retail market. DEDEMAN company strongly
copes with competitors, such as BRICODEPOT, LEROY MERLIN, PRACTIKER, OBI,
HORNBACH and AMBIENT.
Competitors often compete with the price to attract customers. The strategies of the large
providers have been different where DEDEMAN has used vertical integration to buy smaller
competitors and strengthened its position on the market (as smaller furniture stores).
Loyalty to the store is not characterized as you earn more than what you pay for. However,
loyalty may occur if you are looking for products with high involvement, but often you will seek
competitors specializing in these product groups.
Looking at marketing, DEDEMAN has a clear advantage in the Romanian market, as a
national company.
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 New entrants
The threat from new providers is not affected the DEDEMAN company because they have
the main market in DIY retailing with various fields.
The advantage of the existing ones, however, is their size and scope for economies of scale.
Their low costs can not be imitated without a huge start-up capital.
There are only new competitors in the same order of magnitude. The major providers will
have the best opportunity to lower the price as they have the scope and the capital to compete for
a long period.
A new DEDEMAN field is focused on e-commerce, which is just a market DEDEMAN
recently entered. The entry barriers in this market are high, as well as the possibility of becoming
large seems very limited.
 The customers
The market is characterized by an incredible number of customers, so the risk of falling
sales is minimal persistent customers. The individual customer is also a very small part of the total
revenue and therefore has very little negotiating power.
The lower price could the market face or risk losing sales. The branch and DEDEMAN
also sell B2B and it is assumed that customers have greater negotiating power as they buy larger
volumes.
Customers have power because the market is characterized by low switching costs. It is
not expected that the customers remain loyal to the individual company as customer service does
not become priority.
The smaller stores can hit the segment seeking higher service. However, DEDEMAN and
other retailers can win customer loyalty through their wide and deep range. In DEDEMAN and
the related industries, there are often unknown brands, why the brand rarely will mean anything to
buyer and consumer.
However, quality still needs to be considered, even though the price is the overriding factor
in the customer's decision making process.
The customer's negotiation strength must therefore be termed very low today.
A threat poses that other products and services can meet the same needs as DEDEMAN's
customers. DEDEMAN sells virtually everything in interior design and with the wide range they
have taken care of substitute products. If introduced substitute products on the market,
DEDEMAN will quickly be able to incorporate this product into their product range. In order to
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be at the forefront of development, DEDEMAN has created a section on their website, who can
come up with requests for changes and future products in the DEDEMAN assortment.
It is precisely the possibility of getting substitute products in order to meet the needs and
wishes of customers. Customers seek higher quality for housing articles.
 Substitution products:
The threat of substituting products is not very important. DEDEMAN has the opportunity
to update new product categories into their portfolio.
 Suppliers
The customer relationship between DEDEMAN and suppliers is extremely important, as
the strength ratio has an impact on price, quality and delivery. The DEDEMAN range consists of
a huge number of product types.
Many suppliers mean that each has low negotiating power.
Negotiation strengths depend on the amount of goods the individual supplier negotiates.
The many are good at DEDEMAN who can pick and choose, as well as choose the suppliers with
the best trading conditions.
The selling suppliers for unique and customized products have greater strength against
DEDEMAN (e.g. photovoltaic cells suppliers for hot water production).
DEDEMAN's vision with offers and good prices must also be consistent with the suppliers.
It is beneficial for suppliers to be quality-proof and focus on design and quality. DEDEMAN is
largely using Supply Chain Management. A greater focus on SCM would be a Win / Win for both
parties to increase the negotiating power of both parties.
DEDEMAN became the fourth largest retail player in Central and Eastern Europe, offering
a rich and varied portfolio of products, with a market share of 1.9%.
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4.4 STAKEHOLDERS Analysis

by Oprea Andreea Laura
Stakeholders Matrix Characteristics of Expectations, needs,
assignment by stakeholder groups aspirations, interests of
influence / interested groups
interest
ABCD
Financier D The financiers aims to There is a high interest in
achieve general objectives, return on investment,
especially economic ones, positive yield
by financially supporting the
activities
Management D The management of the Achievement of efficient
company focused on and effective strategic
developing a good relation objectives, budget
with suppliers, keeping the increase.
employees satisfied and
fulfillment of buyers needs
Employees A Employees need to be kept A good income,
satisfied with facilities recognition of merits,
offered and also with salary. more facilities, incentives,
Employees working in the 48 career
retail chains of the retail
chain are dynamic, pragmatic
and always mindful of the
requirements, plans and
needs of customers and
partners.
Suppliers C Distributors, suppliers of raw Efficient relationship,
materials, products and profit constant payment
equipment, partners, credit flow, reliability, safety
operators (BRD Finance, and trust.
Cetelem, UniCredit, Garanti
Bank, ERB Retail Services
etc.). To ensure collaboration
with such suppliers,
DEDEMAN has established
trust-based and mutually
beneficial relations for both
sides.
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Stakeholders Matrix Characteristics of Expectations, needs,

assignment by stakeholder groups aspirations, interests of
influence / interested groups
interest
ABCD
Clients / B The power / pressure of Quality, good prices,
Beneficiaries buyers is high on the professionalism, diversity
Romanian retail market, as
customers decide whether to
buy or not, do not set product
specifications, but can
influence market trends.
They are trying to get low
prices for quality products,
which results in lower
profitability and market
competition on the market
Competition C Rivalry between existing Fair competition/
competitors is extremely potential partners
high on the Romanian retail
market, and DEDEMAN has
to face strong competitors
such as IKEA, Practiker,
Arabesque, Bricostore, etc.
Strategic D These stakeholders desire Efficient relationship,
Partners partnerships, organized on long-term contracts, profit
the basis of economic
efficiency, advantageous
contracts capable to bring
certain benefices for both
parts (exemple:
RAIFFEISEN BANK).
Media A Media is willing to provide Transparency, openness
valid information regarding to the market,
the company's activity. They communication
are a very important means of
communication with people
through advertising.
 Stakeholders in group A: need only minumum effort for monitoring

 Stakeholders in group B: should be kept informed as they may be able to influence more
powerful stakeholders.
 Staleholders in group C: they are powerful but the level of interest is low. Generally
expected to be passive.
 Stakeholders in group D: They are both powerful and interested. Their co-operation is of
key importance for new strategies.
21
5 COMPANY’S ASSESMENT BASED ON RBV THEORY

5.1 Grant’s framework for analysing resources and capabilities

Grant proposes his framework on competitive strategy formulation based on the notion of
‘resources and capabilities as a source of direction and the foundation for strategy’. In the extant
literature on strategic management, this has been termed ‘resource-based view’ (RBV) of the
firm.(Racoceanu, 2018).
In the following table, Grant posits a five-step framework, starting with evaluating the
firm’s resources and capabilities, which is followed by assessing the ability of resources and
capabilities to provide competitive advantage.
The fourth step is called strategy selection, which deals with exploiting internal resources
and capabilities and external opportunities in the optimum way. In the light of the ever-changing
business external environment, Grant perceives a firm’s resources and capabilities as the most
reliable and enduring bases for developing competitive strategies. The final step of the framework
is the need to extend and upgrade the firm’s resources. He reckons that not only resources and
capabilities need to be considered to develop strategies, but also they are to be renewed and
maintained by strategies (Grant, 1991, April).
22
Competitive STRATEGY Key success factors

advantage LOGO: Quality, Efficiency and
Quality product “IT IS DEVOTED Efficacy,
Diversification TO YOUR PLANS” Consultancy,
100% Romanian capital – Oriented to the Development from
Very competitive chain client town to rural area,
management Assistance, Brand
reputation
CAPABILITIES
Resouces
Tangible Intangible
- Financial: - Technology: Human resources
 Cash-flow  www.dedeman.ro - more 10.000 employees
 Profitability  e-commerce - employees qualified at
- physical:  digitalized intra and work
 50 stores interdepartmental - friendly teams
 more 40.000 products relations and with - good interdepartmental
 Truck fleet its stakeholders relation
 Head office - Reputation: - employees oriented to
 Stocks
 DEDEMAN Brand the customer’s
 Stock market shares
 DIY leader in requirements
 Handbook for
Integrated Management
Romanian market - motivation:
(Quality, environment, - Culture : Integrating the - fringe benefits
Occupational Health high quality of in HR in - respect ethics and
and Safety : ISO 9001, organizational structure equity
14001, OHSAS 18001) - Know-how to deal with
customers and suppliers
23
5.2 Organization value chain

Primary activities and support activities take place in a social organization can be grouped
into: primary activities and support or secondary activities. Primary activities are those that directly
contribute to the realization of products and services as well as their sale or distribution to the
beneficiaries. It is therefore about the physical creation of these products or services, in accordance
with the mission of that organization.
Support activities are secondary to the production process, but they are necessary.
The value chain of the organization is the sequencing of primary and supporting activities
that contribute to value creation in the form of products or services. Value chain analysis aims to
identify the costs associated with these activity sequences and to find solutions that lead to
activities that add value as much as possible to the lowest costs. The link between these activity
sequences is achieved by the human resource in the organization and therefore human resource
management is very important (Bratianu, 2018).
Primary activities can be structured into: logistics of inputs, production or output of
products and services, output logistics, marketing and sales, and service activities. For instance,
for logistics of inputs we can consider, in the case of an industrial plant, activities such as: receiving
and controlling the quality of primary goods, storing materials, ensuring the internal transport of
these materials, ensuring their inventory, etc.
If instead of a factory we consider a non-profit organization, such as a university, entry
logistics refer to the organization and conduct of admission for students, with activities such as:
developing the admission procedure in the university, publishing and displaying this procedure;
and (if applicable), evaluating these evidence, displaying the results and clarifying the complaints.
All these sequences are analyzed within the value chain and solutions are sought to reduce
their cost, without affecting the value created and the quality of the results. At the same time, this
analysis should be followed by a comparison with similar capabilities and similar value chains of
competitors, with the possibility of creating or maintaining competitive advantage (Porter, M. E.
2008, January).
Value chain analysis aims to highlight, in addition to cost and efficiency of activities, the
strengths and weaknesses of the organization.
24
Infrastructure
 Legal: according with Romanian Laws in force
 Administrative: 50 stores in Romania, truck fleet, furniture factory in Bacau
 Accounting: according with balance sheet, turn-over: more than 500 billions
Euro
Support activities
 Management: The Paval brothers

Human Resources Management – to give a business competitive advantage
 hired more 10.000 employees
 motivated and rewarded employees
Technology development – to create a competitive advantage
 R&D
 ITC systems
 E-commerce
Procurement – to add a competitive advantage
 Contracts with suppliers
 More 40.000 products in their stores
Inbound Operations Outbound Marketing & Service
Logistics  Arranging the Logistics Sales  Providing
 Receiving, goods for  Selling the  Advertising and customer
inventory and selling – goods to the communication service and
distribution merchandise clients product’s to maintaining the
stocks, products customers for value of
from suppliers selling goods products
to the  Return
warehouses insurance
Primary activities
5.3 Capabilities and competences evaluation
Capability Core competencies derived from resources Evaluation

Managerial: • Tangible resources:
Foreseen the - Physical: opening new stores and
client’ warehouses;
requirements – • Intangible resources: It is almost genuine as a
- Technology development: own site, online company because it takes
store, mobile application; times for development the
• Human resources: employees involved in core competencies and
consulting and counseling, also provided specific expertise.
maintenance and assistance services;
25
Capability Core competencies derived from resources Evaluation

Financial • Tangible resources: Complete service of the
Huge amount of - Financial resources: cash-flow and liquidity. product from the furniture
products – Those give the opportunity for planned factory or from suppliers to
Portfolio acquisition of the goods. the customers with return
- Physical: diversification of products insurance
Product Chain surpassing more 40.000 items; furniture
Management manufacturing in the Bacau factory
Technical and • Tangible resources: The capabilities and
ITC - Handbook for Integrated Management resources are difficult to
(tools and (Quality, environment, Occupational Health transfer
equipment for and Safety : ISO 9001, 14001, OHSAS 18001)
selling, - technical and ITC infrastructures
transportation, • Intangible resources:
etc. - know-how to deal with customers and
suppliers (stakeholders)
• Human Resources:
- trained, follow-up trained and motivated
employees
Marketing and • Intangible resources: Trust, brand reputation,

sales - reputation (sometimes) aggressive
High quality - leader in Romanian DIY market advertising.
services for • Tangible resources:
customers - e-commerce and selling
- advertising
- partnership with Simona Halep
• Human Resources:
- professional
26
CHAPTER II. STRATEGY IMPLEMENTATION

By Dumitru Bodoni Gina-Cristina
In this section, we will draw the DEDEMAN’s implementation strategy for growth,
investments and, then, we will continue the evaluation of DEDEMAN’ s strategy.
6 THE STRATEGY IMPLEMENTATION AT DEDEMAN

6.1 Strategic leadership at DEDEMAN
The implementation of a strategy could become the Interplay of environment, leadership,
diversification and expansion. At DEDEMAN, the strategic management is based on the owners’
leadership, Paval brothers.
In an organization, the leadership could have three roles.
The leaders could be innovators, analyst and decision maker.
In our study case, we think that the leadership’s role of Paval Brothers is the decision maker
style of leadership because “the decision maker help to achieve vision so the most important role
of leadership is to make decisions. Leaders are responsible for proper functioning of the
organization. So they have to decide what to do, how to do and by whom…The key task they
perform is to create networks that align the organization with environment both internal and
external, also locally and globally”. (Jabbar & Hussein, 2017).
We think that the Pavel brothers are good decision makers for strategic management at
DEDEMAN and we will evidentiate their roles in DEDEMAN Company by underlining some of
their important actions.
In present, Dragos and Adrian Paval have a fortune estimated at 920-950 million euros and
are ranked second in the Top 300 richest Romanians by Capital magazine. It seems that they have
a good sense of investments, as (http://www.economica.net):
 In the last years, the stock market share for DEDEMAN has grown from 16.7
million shares at 19.9 million.
 They bought 5% of shares from The Electrica Group (3.58 million shares of
Transelectrica, which accounted for 4.88% of the company's capital).
 They signed for acquisition of the five office buildings built around the AFI
Cotroceni Mall at a value of 164 million euros (However, it seems the transaction
was not put in practice),
27
 They took over a 20% stake in Moldova Farming Bacau, which operates around
8,000 hectares of arable land.
 They detain32.7% from Cemacon ceramic blocks manufacturer.
 Of course, they detain the largest DIY retail outfit in Romania.
In strategic management the leaders have various roles (Moesia, 2007):
 The leader introduces the environment for change.
 Then, (s)he select his/her key players from the organization by breaking down the
current hierarchy. This is the shortest way to create a team.
 The following step is to formulate the vision and strategy by the help of a visionary
process that clarify the strategy for understanding of whole organization.
In a private company, it could develop a unique system that evaluates the strategy at every
stage of the work within the organization (in fact, this is generally true for all types of
organizations).
6.2 Strategic implementation

In general terms, the strategy of every Romanian company has taken into consideration at
least three basic forces:
(a) In spite of the opportunity created by becoming a member of the most important
international state actors club, EU and NATO, Romanian political and legal environment changes
continuously and irregularly, with frequent discontinuities and wide swings in its rate of change,
(b) the DEDEMAN organizational operating system above all seeks to stabilize its
actions, despite the characteristics of the environment it serves, and
(c) Pavel Brothers’s leadership whose role is to mediate between these two forces, to
maintain the stability of the organization's operating system while at the same time insuring its
adaptation to environmental change.
In our case, the DEDEMAN strategy can then be viewed as the set of consistent behaviors
by which the organization establishes for a time its place in its environment, and their strategy can
be viewed as the organization's response to environmental change, constrained by the momentum
of the permanent changes in Romanian law and accelerated or dampened by the leadership.
Both brothers Paval are above all stories of how law momentum constrains and conditions
strategic change, at least after the initial strategic direction has been set (from a little market with
28
food to a chain DIY stores). Any large DIY company is mightily constrained by its core cultural
and structural organization reflected on the Romanian free market.
It seems that DEDEMAN was not affected much by financial crisis in 2000’ years.
Unfortunately, according to DEDEMAN's financial data for 2016 and 2017, DEDEMAN
appears to be facing a lot of difficulties in paying rates to banks, business development loans.
6.2.1 Ansoff Matrix – for strategic growt

Strategic options, also called business growth vectors, are those lines of action a firm can
address in order to achieve strategic goals, with implications for all business activities or a relevant
part of them.
Strategic growth strategy is best defined through Ansoff' s growth matrix. The matrix is
used to analyze the company's approach and opportunity for growth. The matrix is compiled over
2 axes, which may be current or new. The 2 axes are defined as Markets and Products.
Starting from ANSOFF Matrix, we have developed four options in the following table
(Bratianu, 2018; Team FME 2013):
EXISTING NEW
PRODUCT
EXISTING
MARKET PENETRATION PRODUCT DEVELOPMENT

STRATEGY STRATEGY
MARKET
NEW
MARKET DEVELOPMENT DIVERSIFICATION STRATEGY

STRATEGY
The two main variables in a strategic marketing decision are:

 The market in which DEDEMAN was going to operate – mainly in Romania
 The products intended for sale – everything is linked with DIY concept and Green
energy and friendly environment buildings and construction (Sustainable Development
– Europe 2020).
According to Ansoff Matrix, the main strategy of DEDEMAN is Market Penetration and
the least one (actually, they do not have or it is not public), the Diversification strategy, which has
the following characteristics (Team FME, 2013):
Market Penetration strategy:
29
 Sell more products (existing) in existing national market

 Low risk/cost – they maintain the medium prices and promotional item for selling
 Marketing mix strategy (it is developed in the next section)
 Used frequently if competition exists (substitute goods)
 Attempting to sell a product for a different occasion.
Market development strategy:
Market development can be divided into several categories where one can either expand
the market towards one-sided customer segments or use new forms of distribution.
Additionally, DEDEMAN has also this strategy with the following characteristics:
 Achieve high sales/higher market share of existing products in new markets.
 Medium risk.
 Marketing strategy i.e. promotion
 New segments/maybe new markets.
Ansoff Matrix Key Points
1. Allows managers to analyze the degree of risk. For DEDEMAN it worked in 2007 -2008,
when the Paval brothers wanted to extend their business in Poland and they renounced.
They were convinced at that time about hard times would come (Voinea, 2012).
2. Managers can then apply decision making techniques to assess costs/potential benefits.
3. Particular strategy could depend on the size of the business, the number of products
produced, rang and mix.
4. A final decision should also reflect additional research both internal and external, primary
and secondary data and an assessment of the current position.
6.2.2 Market Penetration strategy

According with Porter chain value, DEDEMAN does not take high risks for development
and does not have an offensive vision for corporate strategy.
To succeed, DEDEMAN has adapted its policy to Romanian business environment. It is
not really proactive. However, it skipped the financial crisis from 2008.
The strategy for Market penetration is based on the marketing mix: price, promotion,
people, physical environment, process, product and place (Kotler, P, Kartajaya, H, Setiawan I.,
2010, p. 49):
30
 Price: The selling price will be maintained according with the purchasing power of
Romanians.
 Promotion: Promotion is very important for DEDEMAN because in more than 25 years
it has boosted the brand reputation and sells. Promotion is comprised of: advertising in
multimedia, public relation, sales promotion and organization, and the image of
DEDEMAN in 2017 was SIMONA HALEP.
 People: DEDEMAN take care about people, example: the scholarship for poor children
mentioned above and the official communication from www.dedeman.ro where it is
written that the most important active is the Human Resources.
 Physical environment: DEDEMAN has in portfolio friendly environment products.
 Process: Selling process is both in a traditional stores and on-line.
 Product: The portfolio of goods is growing above 40.000 items.
 Place: DEDEMAN strengthens its position in national market by growing its selling
in the existing stores and opening new stores in little towns and rural areas.
Due to the fact that the company has units all over the country, it adopts a differentiated
strategy based on area and market.
The marketing strategy played an important role in the next decade.
Before and after the 2008 crisis, we have observed that fact: to combat their daily routine,
the Romanians began to invest in improving the house. Thus, DEDEMAN decided to portray the
problems of couples and their need for change through (aggressive) advertising spots.
Inconvenient life situations have been created, starting from annoying habits of husband and wife.
These situations were presented through TV, radio and outdoor ads, with the message: with
DEDEMAN it is easier to improve your home than it is to improve your wife or husband’ life..
This strategy has contributed to the fact that DEDEMAN became the leader of the DIY
market in 2010, as the market fell by about 15%, according to industry estimates and DEDEMAN
had a relatively small network of stores (23 stores in the country). After the end of the campaign
(conducted between February and September 2010), turnover and sales increased by over 40% in
the last quarter of the year compared to the same period of 2009. After almost 10 years,
DEDEMAN has a network of 48 stores, two logistics centers and a car park. The company has
over 10,000 employees and sells 45,000 products covering 11 domains (in other documents – the
number of the stores is 50) (www. economica.net).
31
6.2.3 Key success factors

Earlier, we mentioned the key success factors at DEDEMAN. They are: quality, efficiency
and efficacy, consultancy, development from town to rural area, assistance, brand reputation.
Customer
Through development of chain stores around the country, due to 50 stores, the number of
clients is increasing year by year. Increasing customer numbers is proportional to the profit growth.
The care for customers is reflected on adapting on traditional stores and the new e-
commerce (DEDEMAN smart phone/Iphone applications). Also, other factor that contributed to
the increase in turnover were the maturing of existing stores.
Competitors
The differentiation between DEDEMAN and the other DIY stores is given by quality,
efficiency and efficacy, consultancy, and, especially, by the brand reputation.
Being Romanian company, DEDEMAN has won a positive brand reputation. It has built
loyalty and increased customer confidence in the brand and product.
The results of DEDEMAN efforts is to combat tax evasion in the area of building materials
(http://www.agendaconstructiilor.ro, 2018).
Industry
The development of DEDEMAN is reflected in the owners actions by acquisition of the
Furniture Factory in Bacau. By purchasing the furniture factory, DEDEMAN has the all process
from raw material (timbers and limbers) to sell in own retail stores the furniture.
32
7 THE EVALUATION OF THE STRATEGY

IMPLEMENTATION AT DEDEMAN
By Dumitru Bodoni Gina-Cristina

With regard to the nationwide expansion strategy, DEDEMAN adopted a different
approach to that of DIY, which first opened business centers in the capital because it is the most
developed market for trade, and after a few nor did they extend to the province. Instead,
DEDEMAN opened the first successful chain store after 1990.
In our point of view this is a good implementation of a strategic expansion.
The first unit of the current DEDEMAN network that it was inaugurated in Suceava in
2002 with an area of 4,000 square meters. In 2003, the number of those working in the DEDEMAN
network was 369, and in 2004 and 2005 the figures were spectacular: 589, respectively 796
employees. In 2006, the number of employees exceeds the 1000 threshold, being 1224 in the 7
retail chain centers (https://www.dedeman.ro).
Subsequently, the network was expanded to 10 stores in Moldova Romanian County and
in 2006, DEDEMAN entered the market in the southern area of the country and in 2009 opened
the first working point in the capital.
In 2007, DEDEMAN hired 1845 people, and 2008 statistics posted a significant leap over
the 2000 threshold, with 2610 employees (ibidem).
DEDEMAN team development has been and will remain a process that is closely linked to
our expansion strategy and will lead the company from 36 shopping centers in December 2013 to
about 50 in 2017.
At DEDEMAN, “people are the most important asset category” (ibidem).
From the official declarations posted on DEDEMAN site, it is said that at DEDEMAN the
management organization is adapted locally from Western type of management. In another words,
they started “to think globally and act glocally” (Racoceanu, 2018).
All of these efforts have been confirmed by the presence of our company in the top of the
magazine Capital in 2005, the companies that treat their employees with respect, and in 2006 the
number eight in the top of the companies worth working for, the same magazines. In 2010,
Dedeman was the 4th largest employer with Romanian private capital.
33
Figure from DEDEMAN IN CIFRE. www.dedeman.ro/ro/dedeman_in_cifre.html
Another important aspect of the expansion strategy is that land for future workplaces was
purchased long before work began to open up new workstations. For example, in the city of Buzau,
on the list of network inaugurations in 2009, DEDEMAN shareholders bought the land for the
future store three years earlier. In addition, the first retailer's location in Bucharest has been in
DEDEMAN's real estate portfolio for many years. Thus, this was an advantage during the crisis.
In addition to land investment, DEDEMAN has invested much of the company's profits in
sustained development of both capital and management. The company acquired over time means
of transport, software and hardware, shares in other companies and continuously increased its
working capital invested in product stocks.
DEDEMAN has an impressive financial and logistic force that allows it to remain an
important player on a market where competition is increasingly aggressive.
DEDEMAN used a geographic expansion, as it uses the same distribution form “store”.
The Paval brothers’ ambition was in the long run to become the market leader in Romania.
They would therefore challenge the other important completion, as: Practiker or Le Roi
Merlin. They knew that they were in the queue as a market challenger, where companies based on
differentiation and audience conviction could challenge the market leader's place. It posed
DEDEMAN to 3 possibilities where they could either perform a flank attack, frontal attack or
attack on minority companies.
A flank attack
It was focused on some of the smaller target groups on the market. It had slowly given to
DEDEMNA a small market shares and hollow the market leader's position.
34
Attack on niche
Another option was also an attack on niche companies in the market. This is supposed to
be able to compete through their capital.
In the past, the boutiques (niche companies) were very popular because they either differ
dramatically on price or most often they offered the product portfolio.
In 2018, the hyper-markets are in powers. However, DEDEMAN/s strategy could make
the difference in the future because their short-term strategy is based on opening their stores in the
rural area in our country.
A successful attack on niche companies, non-market shares are taken over from the market
leader, but slowly builds up at the expense of the niches.
A direct frontal attack
The third option is a direct frontal attack on the market. They attempted to face the attack
on the market leader by challenging them on the same segments and products that they have
already sold. A frontal attack on the market leader is only successful if it has managed to convince
customers whether it can do better or cheaper than the direct competition.
Clearly, DEDEMAN obviously succeeded the direct attack. This was confirmed by the 48
stores that DEDEMAN detains in 2018.
Here the starting point was the set of: the product, customers or competitors. A product-
oriented approach has been an option for their portfolio of a number of standardized products
without preferences.
***
Based on its focus on competitors and ambition, DEDEMAN must to maintain its position
as a market leader, be competitive. This type of business uses the most effort to observe the
competitor response and the marketplace. The strategy aims to compete with competitors to
respond to the market leader and evaluate which measures can be improved against them. A
strategy that is effective if some of DEDEMAN's competitors fail to exploit their potential and
commit strategic errors.
The newest possible approach for middle term strategy has been launch with the logo -
customer-oriented approach, focusing on customer needs and compiling their strategy.
35
8 CONCLUSIONS
by Dumitru Bodoni Gina Cristina and by Glejaru Georgeta Liliana
Starting from the premise of the strategy’s trichotomy (mission, vision and objectives), the
analyses (SWOT, PESTLE, RBV, Porter chain Value, Ansoff)) had the role to evidentiate the fact
that DEDEMAN is a Romanian succes for strategic management.
The research studied here-constitute a limited data base (the info’s on the internet were
contradictory), but they do call into question a number of assumptions about the process, at least
in certain contexts.
A strategy is not a fixed plan, nor does it change systematically at pre-arranged times solely
at the will of management. The dichotomy between strategy formulation and strategy
implementation could become a false one under certain common conditions, because it could
ignore the DEDEMAN real business agenda (hidden one) that must often follow the conception
of an intended strategy.
The formulation strategy for DEDEMAN was a little bit covered by theoretical framework
of our analysis, we commonly refer to as “strategies” many patterns in organizational decisions
that form without conscious or deliberate thought.
During our research we discovered that DEDEMAN had sometimes the aggressive,
proactive strategy under some conditions. Other times the decision makers of DEDEMAN strategy
seemde hesitant or reactive.
Contingency planning, a popular prescription in times of political turbulence as in our
country can be risky because the plans may tend to become actualized, whether needed or not. It
could sometimes be risky to make strategy explicit because of its direct competitors/rivals notably
in an uncertain environment with the aggressive rush to take over the clients of another company.
Thus, to tell openly the real strategy and its goals precisely, assess its strengths and
weaknesses, plan systematically on schedule, and make the resulting strategies explicit are at best
overly general guide-lines, at worst demonstrably misleading precepts to organizations that face a
confusing reality.
During the research we become able to understand how is the process of strategic
management developed at DEDEMAN (formulation – the strategic trichotomy, the
implementation, evaluation), and the way of strategic thinking of DEDEMAN owners/decision
makers. They are not a risky investors. they demonstrated when they wanted to extend their
36
business aut of Romanian borders but they become aware of the national markets in Poland and
Moldova and they gave up.
This has grown out of a sophisticated understanding of the reality of strategy formation,
and that require an open mind, a recognition of how little we really know about the efervescence
in Romanian business environment.
37
9 REFERENCES
1. Bratianu, C. (2000). Management Strategic. Bucharest: Bucharest.
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3. Bratianu, C. (2018). Course Notes for Advanced Strategic Management. Bucharest:
SNSPA.
4. Robert M. Grant (1991). A_Resource_Based_Theory_of_Competitive_Advantage.
Californian Management Review (3): pp. 114-135.
5. Helfer, J.-P., Kalika, M., & Orsoni, J. (2013). Management strategique (9 ed.). Paris:
Vuibert.
6. Helfer, J.-P., Kalika, M., & Orsoni, J. (2013). Management. Cas et applications. Paris:
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7. Jabbar, A.A. : Hussein, A.M.(2017). The role of leadership in strategic management.
Jabbar et. al., Vol.5 (Iss.5): May, 2017. At . Pp. 1-6.
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10. Moesia 2007: The importance of different leadership roles in the strategic management
process, S.A journal of HRM 2(1) pp. 26-36.
11. Mintzberg, H., Lampel, J., & Ahlstrand, B. (1998). Strategy Safari: The Complete Guide
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division of Simon&Schuster .
12. Porter, M. E. (2008, January). The five competitive forces that shape strategy. Harvard
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13. Racoceanu, C. . (2018) Course Notes. Strategic Management T4 – Internal Environment
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l’action. Montreal, Canada: Les Edition Transcontinental.
15. Voinea, M. (2012). Povestea neştiută a fraţilor Dedeman. Românii care le-au luat faţa
giganţilor din Vest. www.adevarul.ro/economie/afaceri/povestea-nestiuta-fratilor-
dedeman-romanii-le-au-luat-fata-gigantilor-vest-1_50d0b15d596d72009113bb38/
index.html . From December 18, 2012, Accesed at May, 11, 2018.
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19. www.dedeman.ro
38

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National School of Political and Administrative Studies

STRATEGY AND PROJECT PORTFOLIO COURSE

GROUP PROJECT - PIM First Year 2018

2 Company description ________________________________________________ 6

3 THE STRATEGIC TRICHOTOMY IN BUSINESS ______________________________ 9

3.1 Vision ______________________________________________________________ 9

3.2 Mission _____________________________________________________________ 9

3.3 Objectives __________________________________________________________ 10

4 EXTERNAL AND INTERNAL ENVIRONMENT ANALYSES _____________________ 11

4.1 SWOT Analysis ______________________________________________________ 11

4.2 PESTLE Analysis _____________________________________________________ 13

4.3 PORTER FIVE FORCES MODEL __________________________________________ 16

4.4 STAKEHOLDERS Analysis ______________________________________________ 20

5 COMPANY’S ASSESMENT BASED ON RBV THEORY ________________________ 22

5.2 Organization value chain ______________________________________________ 24

5.3 Capabilities and competences evaluation _________________________________ 25

6 THE STRATEGY IMPLEMETATION AT DEDEMAN __________________________ 27

6.1 Strategic leadership at DEDEMAN _______________________________________ 27

6.2 Strategic implementation _____________________________________________ 28

7 THE EVALUATION OF THE STRATEGY IMPLEMENTATION AT DEDEMAN _______ 33

GROUP PROJECT - PIM First Year 2018

GROUP PROJECT - PIM First Year 2018

GROUP PROJECT - PIM First Year 2018

GROUP PROJECT - PIM First Year 2018

GROUP PROJECT - PIM First Year 2018

GROUP PROJECT - PIM First Year 2018

GROUP PROJECT - PIM First Year 2018

CHAPTER I. STRATEGY FORMULATION

GROUP PROJECT - PIM First Year 2018

GROUP PROJECT - PIM First Year 2018

4 EXTERNAL AND INTERNAL ENVIRONMENT ANALYSES

4.1 SWOT Analysis

GROUP PROJECT - PIM First Year 2018

GROUP PROJECT - PIM First Year 2018

4.2 PESTLE Analysis

Print screen from Hedley, A. http://www.hedleyconsulting.com/pdf/13feb-why-merge.pdf

GROUP PROJECT - PIM First Year 2018

PESTLE Analysis at DEDEMAN

GROUP PROJECT - PIM First Year 2018

GROUP PROJECT - PIM First Year 2018

4.3 PORTER FIVE FORCES MODEL

GROUP PROJECT - PIM First Year 2018

 Competition or rivalry between existing competitors

GROUP PROJECT - PIM First Year 2018

GROUP PROJECT - PIM First Year 2018

GROUP PROJECT - PIM First Year 2018

4.4 STAKEHOLDERS Analysis

GROUP PROJECT - PIM First Year 2018

Stakeholders Matrix Characteristics of Expectations, needs,

 Stakeholders in group A: need only minumum effort for monitoring

GROUP PROJECT - PIM First Year 2018

5 COMPANY’S ASSESMENT BASED ON RBV THEORY

5.1 Grant’s framework for analysing resources and capabilities

GROUP PROJECT - PIM First Year 2018

Competitive STRATEGY Key success factors

GROUP PROJECT - PIM First Year 2018

5.2 Organization value chain

GROUP PROJECT - PIM First Year 2018

 Management: The Paval brothers

5.3 Capabilities and competences evaluation

Capability Core competencies derived from resources Evaluation

GROUP PROJECT - PIM First Year 2018

Capability Core competencies derived from resources Evaluation