Tuesday, January 7, 2020
Strategic Management - Business Management Free Essay Example, 2500 words
Fashion industry has seen a lot of revolution and even the giants in Paris and Milan have not been spared. With the rise of USA and ASIA and fashion centres of the world, the company needs to wake up to the changes taking place in the market. As part of the strategic management, the company should first embrace the e-commerce models to have more links between designers and customers. It should also look into expansion strategy to widen its operation base. This model should be in line with the following analysis of the business and its operation environment. The company should not be disposed to tycoon McQueen since it can use this proposed model to turn round its fortunes. (Michael and Jude, 1997) External Analysis (a) Political The company operates in an enabling political environment. The fusion of the political and business environment is suitable for its operation. The business commission has already barred McQueen from acquiring the company as per its rules. With the formation of the European Union the company should move on with its deal with Romania to implement the RFDI project which will help link its customers with designers to ensure that it places in the market what customers want. We will write a custom essay sample on Strategic Management - Business & Management or any topic specifically for you Only $17.96 $11.86/pageorder now The European Union provides a wide customer base from where it can operate. (Brandford et al. , 2000) (b) Economic The Economic fortunes of the market are changing as consumers have gained more disposable income. With this knowledge the company should move from low fashion industrial segment which has become crowded to fast fashion segment in line with its competitors. The formation of European Union provides a large customer base that can provide a huge economic base for the company. With a 30 million pounds overdraft, and thinking of expansion strategy, the company should seek external funding for its operation. A merger with another fashion industry operating in an outside market but with a sound financial base can be an option in the operation and expansion strategy. Falling economic fortune and operation capital for the company is a threat that should be addressed immediately. (c) Social The changing social trends in the market should be used to the advantage of the company. Customers have changed their loyalty to clothe stores and flock where they can find the latest fashions regardless of the price. In line with this, the company should see an opportunity of attracting the customers by providing the fast fashion designs. The strategy of holding cat walks with its designs should not be dispensed off as it has a lot of social effect to the customers but only if the company retails the current fashions.