MNG3701
Assignment 2
Semester 2
2025
, MNG3701 Assignment
Clicks Group Limited — Strategic Analysis
Semester 2, 2025
1. Introduction
Strategic analysis applies systematic frameworks to evaluate an organisation’s internal
capabilities and external environment in order to formulate, implement, and evaluate
strategies that ensure sustainable competitive advantage (Porter, 1979; Barney, 1991).
Common tools include PESTEL for macro-environment scanning, Porter’s Five Forces
for industry analysis, VRIO for internal capability assessment, value chain analysis for
operational mapping, and SWOT/TOWS for strategic synthesis (Johnson, Scholes, &
Whittington, 2017). This essay uses these frameworks to analyse Clicks Group Limited,
based on its Integrated Annual Report (IAR) 2023, covering the year from 1 September
2022 to 31 August 2023 (Clicks Group, 2023). The analysis follows the assignment
structure each question is answered in a separate numbered section with a theoretical
overview first, followed by application to the Clicks case study.
2. Business Description and Reporting Scope
2.1 Theoretical Overview
A comprehensive business description is a critical first step in integrated reporting
because it establishes the identity, boundaries, and context of the organisation for
stakeholders. According to the International Integrated Reporting Council (IIRC)
framework, a business description outlines the organisation’s purpose, primary
activities, markets served, and the way it creates value across multiple forms of capital
(financial, manufactured, intellectual, human, social & relationship, and natural) (Eccles
& Krzus, 2010; IIRC, 2021). This approach moves beyond traditional financial reporting
by embedding a multi-capital perspective that links financial performance to broader
environmental, social, and governance (ESG) outcomes.
Equally important is the reporting scope, which specifies:
, 1. Reporting period — the time frame for which data and narratives are presented.
2. Organisational boundaries — which entities, subsidiaries, or divisions are
included in the report.
3. Stakeholder coverage — the intended primary and secondary audiences, such
as shareholders, customers, employees, regulators, suppliers, and communities.
By clearly articulating both the business description and reporting scope, organisations
provide readers with an essential foundation for interpreting financial results, strategic
priorities, and sustainability commitments. This aligns with integrated reporting’s aim to
present a holistic, connected view of strategy, governance, performance, and prospects
in the context of the external environment.
2.2 Application to Clicks Group Limited
Business Description — Clicks Group Limited is positioned as a retail-led health,
beauty, and wellness group operating primarily in South Africa, with a strategic focus on
making healthcare products and services more accessible to the public. Its operations
are divided into three core segments:
• Clicks Retail Stores — the Group’s flagship retail chain, which combines front-
shop sales (cosmetics, toiletries, personal care, and wellness products) with
regulated in-store pharmacy services. The pharmacy component differentiates
Clicks from general retailers by integrating professional healthcare provision into
the shopping experience.
• UPD (United Pharmaceutical Distributors) Wholesale & Distribution — a
critical part of the Group’s vertically integrated supply chain, UPD distributes
pharmaceuticals, over-the-counter medicines, and health products both to Clicks’
own stores and to external customers such as independent pharmacies and
hospitals.
• Specialist Retail Brands — niche retail formats offering targeted product ranges
in the health and beauty sector, enabling market segmentation and brand
diversification.
Assignment 2
Semester 2
2025
, MNG3701 Assignment
Clicks Group Limited — Strategic Analysis
Semester 2, 2025
1. Introduction
Strategic analysis applies systematic frameworks to evaluate an organisation’s internal
capabilities and external environment in order to formulate, implement, and evaluate
strategies that ensure sustainable competitive advantage (Porter, 1979; Barney, 1991).
Common tools include PESTEL for macro-environment scanning, Porter’s Five Forces
for industry analysis, VRIO for internal capability assessment, value chain analysis for
operational mapping, and SWOT/TOWS for strategic synthesis (Johnson, Scholes, &
Whittington, 2017). This essay uses these frameworks to analyse Clicks Group Limited,
based on its Integrated Annual Report (IAR) 2023, covering the year from 1 September
2022 to 31 August 2023 (Clicks Group, 2023). The analysis follows the assignment
structure each question is answered in a separate numbered section with a theoretical
overview first, followed by application to the Clicks case study.
2. Business Description and Reporting Scope
2.1 Theoretical Overview
A comprehensive business description is a critical first step in integrated reporting
because it establishes the identity, boundaries, and context of the organisation for
stakeholders. According to the International Integrated Reporting Council (IIRC)
framework, a business description outlines the organisation’s purpose, primary
activities, markets served, and the way it creates value across multiple forms of capital
(financial, manufactured, intellectual, human, social & relationship, and natural) (Eccles
& Krzus, 2010; IIRC, 2021). This approach moves beyond traditional financial reporting
by embedding a multi-capital perspective that links financial performance to broader
environmental, social, and governance (ESG) outcomes.
Equally important is the reporting scope, which specifies:
, 1. Reporting period — the time frame for which data and narratives are presented.
2. Organisational boundaries — which entities, subsidiaries, or divisions are
included in the report.
3. Stakeholder coverage — the intended primary and secondary audiences, such
as shareholders, customers, employees, regulators, suppliers, and communities.
By clearly articulating both the business description and reporting scope, organisations
provide readers with an essential foundation for interpreting financial results, strategic
priorities, and sustainability commitments. This aligns with integrated reporting’s aim to
present a holistic, connected view of strategy, governance, performance, and prospects
in the context of the external environment.
2.2 Application to Clicks Group Limited
Business Description — Clicks Group Limited is positioned as a retail-led health,
beauty, and wellness group operating primarily in South Africa, with a strategic focus on
making healthcare products and services more accessible to the public. Its operations
are divided into three core segments:
• Clicks Retail Stores — the Group’s flagship retail chain, which combines front-
shop sales (cosmetics, toiletries, personal care, and wellness products) with
regulated in-store pharmacy services. The pharmacy component differentiates
Clicks from general retailers by integrating professional healthcare provision into
the shopping experience.
• UPD (United Pharmaceutical Distributors) Wholesale & Distribution — a
critical part of the Group’s vertically integrated supply chain, UPD distributes
pharmaceuticals, over-the-counter medicines, and health products both to Clicks’
own stores and to external customers such as independent pharmacies and
hospitals.
• Specialist Retail Brands — niche retail formats offering targeted product ranges
in the health and beauty sector, enabling market segmentation and brand
diversification.
