A company has many issues with environments, political and any other in the market.
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Environment issues has become more popular these days and there are many forms at all different levels. This problem has gives impact on various social and economic policies of a country. There are many problems occurs to the companies to achieve the success with many issues in a long period of time. Government has working to solve the issues which gives many impact to the environment. There are various resources that manage the problems of financial management and report to the Government (Aklin and Urpelainen, 2013). They gives many accounting standard to comply with the accounting practices.
Mulberry is established in United Kingdom in 1971 founded by Roger Saul. It is a Luxury fashion company that includes men and women fashions, footwear and leather accessories. It has launched a programme that encourage the young generation by providing training and skill sessions.
A company has facing many issues in the growing market. It is necessary to conduct many analysis that gives a Business Environment advantage in this field. It gives a good business structure and increasing the operations of the company (Avery and Bergsteiner, 2011).
Companies are making various analysis by many macro factors to make high growth. Here are so many elements that gives the Mulberry to analyse their performance with these.
Political: Politics is always plays a vital role in making the business world. All the business can not be able to start their work without any government permission. So the government interference is not just bound towards only to public sector but it can resist any firm for any of the product production. Mulberry is one the largest leading brand in fashion. It has many of its outlets, transportation services, factories (Bartoccini and et. al., 2014.). So, it is important for them to get aware about all the political decisions. They should also have to get properly enquired about the import and export system as well as also the government policies. Since Mulberry has its own global existence and it is worldwide famous leading fashion brand so they don't want to get any unnecessary closure of their organisation in any country in which they want to start their operational activity.
Economical: Mulberry should have to take the adequate details about the economic growth of the country so the management can made their inflation or deflation policies for their own. They should also have to get the knowledge about the exchange rates and interest rates so the management can made decisions related to the exports and imports. Higher inflation rate states that the brand is not affordable by the general public (Bouis and Welch, 2010). Hence, Mulberry have to get aware about all the rates of inflation,exchange,interest or all the taxation charges also because mulberry is a brand and it can not be afford by the lower class of the society. So, they have to take care about that the market is suitable for them or not.
Social factor:The social factor made a impacts on the fashion industry because the sellers who have spending ability plays important role for economy elasticity. During the duration of recession, when mostly economy got unemployed and it increases the demand of the products which can not be easily affordable (Burton, Jenks and Williams, 2013). So it is important for every company to made items according to the pattern of spending of the customer and also takes the fashion trend in mind. The companies like Mulberry have to produce according to the population. So the mulberry have to kept in mind the innovative ideas and also the fashion trend as a base.
Technological factors: The technology always plays a important role in increasing the efficiency of the company. Change in technology control the quality of any product and also maintain the standard for that product. The other different techniques are used by Mulberry for the promotion of their products. Like mulberry use social media technology for the virtual existence of their product.
Legal factors: The legal factors always been a part of every organisation. All the organisations knows well about their legal obligations which are related to their association. If the firms fulfil the legal formalities then its reputation in the global market become good (Cerón-Palma and et. al., 2013). So the Mulberry have to done all the lawful activities and identify them in the international market. So, they become one of the faithful brands.
Environmental factors: Modern consumers are well being aware about the activities which are related to the environment and they mostly used those products which are beneficial to the environment. So the Mulberry used those methods which are in favour of the environment.
It is an analysis of business and its operations that can gives Mulberry a competitive advantage. It is use by the management to understand various factors through their strength, weakness, opportunities and threats (Eccles and Krzus, 2010). It is good approach to search many kinds of categories that regard to the Mulberry. It is a self analysing system where people of management can take the idea of their product.
Strength: There are many factors in a business that gives the advantage to a company. Mulberry has various network all over the world to distribute their product in the market. The employees of the company has excellent potential to work here. Various investors are4 investing in the company because of its high brand value (Hak, Kovanda and Weinzettel, 2012). The local market of the company has good connection with the company. Mulberry has so many years experience in the fashion market to make good market. There are so many barriers to the another company in the market for the entrance because of high brand value. Company has superior market to its competitors that gives benefit to the company for the long run.
Weakness: It is a point where the rival companies can take advantage of their less imperfection in particular act. Mulberry is a fashion company that requires to make the advertisement and it creates the cost of the company. Company should make researches time to time and pay high cost in researches and development in the market (HuangLuo and Xia, 2013). Future is not certain so there should make arrangements for the further maintaining the position. This is the fast growing sector that has many new trends coming in the market and obsolete the old trends. They are following within the company by researching on many factors.
Opportunities: It comes form the external environment where various opportunities to the company. Mulberry has various venture capital to invest in the company. There are various new products developed in the market in the market and services to make company competitive advantage. Company provides the growth in the economy with the new acquisitions to make their product effectively in the market. There are various new planning by the manager to make their product attractive to the customers.
Threats: these are external factors which has many hurdles in the planning of the operations of the company. This industry cannot grow fast it has many factors. There was the cost of product making is so high in an industry (Kaneko, 2010). The workers are not so highly qualified in the company so they can lack their opportunities. Mulberry making so many product that are used for the people to grow their fashion but the cost of the labour is so high.
Capabilities of Mulberry: To achieve their ability they should set the the competitive advantages and customer interest and strength of the competitors against others. They should measure the new innovation in the market and trends following by the customers which may be depend upon the analysis. Mulberry has the quality product with good delivery and satisfy the customer demands in the market (Leal Filho, 2012). There should be the relationship between the capabilities and profitability in the company to achieve their goals with high profit.
Porter's five forces model:
It is an analysis within the industry to develop the business strategy. This model uses for measuring the profitability of an industry. These are the factors that includes micro environment to affect the ability of the consumers and the profit. There are the five forces provides to analyse in the Mulberry-
Threat of substitute products: The company has various products or services to deal with the customers. There are many competitors of the company which has various common product that increases the probability and consumers attract with them (Lo, 2010). Majority of buyers always want a product which has good quality and less price and they would switch to the substitute. There are product differentiation that gives a product more attractive and standard. Mulberry should focus on the activity of rivals that may make the substitute product with the less price. Customers easily switch with the other product if they feel that it is good for them.
Threats of established rivals: There are many competitor in the market who are making innovation in their product to achieve high profit (Maniatopoulos, Andrews and Shabani, 2015). Rival companies maintain their low storage cost to enlarge their productivity. Zara is also a company who produces trendy outfit to the men and women and creates a large competition to Mulberry.
Threat of new entrants: Where the market has high return then the threat of new product may gives barriers to entry in the market. Competitors produces new product for the customers in the market to attract them and creates threat for Mulberry. There are so many product that creates high competitions in the market and lowers the profit of a company (Rainey, 2010).
Bargaining power of supplier: In a company there was a supplier who made the product for the company. If supplier have high bargaining power then it make the decrease in the profit of the company. Supplier have the low bargaining power in the Mulberry because there are so many supplier exist in the market.
Bargaining power of customers: Mulberry has various types of buyer that have so many choices and they need to maintain the price according to the customers. Buyer power is high because they have so many alternatives in the market to choose any particular product.
There are many strategies which need to follow by the companies to maintain the financial position of the company. In the fast growing industry company has many competitors to generate the high profit of a company (Rothaermel, 2015). They follows various models which needs to apply in the company by operating various operations. There are various factors that need to analyse by the company to make a good decision. Companies using various strategies to make a good decision process. There are various matrix followed by the companies to allocate their resources in various units. It helps the company to the long-term planning to develop their products. It considers the business growth by investing in many products that are useful to the company. This approaches should gives the understanding by operating various actions. There is the analytical tool which analyse the management of product and portfolio analysis. It made the link between market share and profitability to make high growth of the business (Slack, 2015). Mulberry is a company who has many fashion stores at various places that uses BCG matrix to grow the share market.
There are many models that gives the company a comparison to their competitors. Mulberry faces various issues for the existence in the market for the long run (Wang and et. al., 2011). Company can evaluate the performance on the basis of various models. At the time of planning they should focus on the many factors which need to apply in the operations of the organisation.
In the Pestle analysis company focuses on the various issues. Mulberry needs to focuses on the regulations provided by the government. Company should follow the rules in their working and follow the policies but at the same time it becomes very strict to follow by the company mangers. Factories are produces fashion apparels and maintain the record of their production to show their proper analyses of accounting. Company marketing at a very high level that gives high growth to the company but there are so many political issues face by the company. Companies should follow many taxation policies in the economy. Company make sure that they focuses on the imports and exports and their specified guidelines that sometime very complicated to follow. Mulberry has many outlets to their consumer by following latest trends to satisfy the needs of the customer. There are many innovative ideas that makes the company's product differentiation to achieve the high goals. Company needs to make technologies in their product but sometime if technology does not works properly then it lowers the profit very fast. Company need to follow many legal rules to maintain the position in the market. Mulberry working with all the legal factors and focuses on them. There are various products that should be healthful to the environment. Company should follow many signs that need to be fulfilled by the companies to make their product actively uses by the consumers. Sometime it can be against the companies and activities are against the policies. Company should follow many formalities to maintain the position in the market.
In Swot analysis company analyse its strength by using various internal factors. It gives the idea that what is the strength of a company and and how to maintain this in the market. A company has follows various factors that provides the achievement of the company in various fields. Mulberry has the strength that it has very good market networks to make there products available to every customers. By making various new products and creates differentiation gives more benefits to Mulberry. Company should maintain its strength in the business otherwise the graph of the company becomes very down (Slack, 2015). A company has some weaknesses because there are various competitors who wants to achieve their targets by satisfying the customer needs at a very low price. The cost on the advertisement creates a heavy cost to the company that lowers the profit of the company. Company has various opportunities to grab in the market after analysing it. Mulberry has so many threats like many rivalry companies produces the product at a very cheap cost that switches the customer interest also. The cost of the worker is sometime so high and it creates gives high product cost also for the customer. There are so many threats to the company from its rival companies that may have success in the industry.
Company focuses on many issues that can be faces by the companies in the market. There are so many models that gives the report on many factors. Mulberry is a company which produces many fashion apparels to the customers by analysing many elements. For the fashion industry there are so many customers in the market who uses their goods and services. Customers has a high power to bargain the product otherwise they can switch because they have many options. A company has so many competitors in the fashion industry and all are working to achieve their high profit growth in the market. Mulberry has the ultimate growth in the company is to satisfy its customers and make the growth in profit. There are so many suppliers in the market to supply their product to the company (Zhang, Lior and Jin, 2011). A company should work according to the concept of the market. There are so many rivals in the market for Mulberry who can lowers the profit of the company. A competitor of a company may have the substitute of the product and it can affect the customers and attract for this. The customers always have the choice in the product and they can take the advantage of the offer. It will give a negative impact to the company also because all competitors wants to make their product best. They gives best offers to attract the consumers and known by public in a very short period of time.
Critical evaluation of Mulberry
Companies are organised into strategic units that faces various challenges. Boston Consulting group produces a model for developing the product of a company. Models considers the market growth by various approaches (Teece, 2010). There are the resources to business units mentioned as below:
It is designed in a way so that it can help the Mulberry in making strategies which help them to achieve sustainability in long run. As well as this will also ensures profitability and productivity. BCG matrix is divided in four sections which are related with growth of firm into the market and growth of market share. Four quadrants of BCG Matrix are dogs, question mark, stars and cash cows. Managerial personnels of Mulberry can use the concepts which are mentioned in this concept for strategic planning and controlling. Four sections of Matrix and their use by Mulberry is explained below :
Dogs : Dogs represent those product which less market penetration and less market share as well as they have less growth. Management of Mulberry should immediately drain out such product and services as they provide less return over the investment (Verma and et. al., 2016).
Question mark : This section is also termed as Problem child as it is not clearly understandable that weather such product will become a star or it may be possible that this is dropped in dog section. Market growth rate is high but there is low market share for that product.
Stars : This section has that products which carries high growth market and high market share. Products in this section generate more return on investment. Mulberry should maintain this position of such products.
Cash Cow : Mulberry need to exploit such product as much as they can as market growth rate is low but market share is high for products in this section.
Ans off matrix
In order to port rate alternative growth strategies, Ans off matrix presents for focusing on Mulberry. Through considers different ways, potential products and market can be develops. With the help of different existing products and services of the enterprise, manager can introduce new element in market (Fasth-Berglund and Stahre, 2013). In existing market following combination of different products can be shown as below:
Ans off matrix
With the help of different growth strategies, the cited business can attain profitability and high market share:
Market penetration: In order to achieve overall potential, Mulberry need to concentrate on current market segment which can assist to enhance market share and profits. In this aspect, the organisation can enhance their products through providing it on less cost Bergottini, Otegui and Junier, 2015. Hence, overall growth of the company can be taken at workplace through capture whole market. It is very risky for the company because fund is requires from existing products and services. With the help of increasing market share, saturation can be assist to grow between different region. Thus, penetration strategy is so risky for development of market of company.
Market development: In this aspect, the chosen organisation need to target through existing products and services in new market segment so that growth can be achieve. Hence, Mulberry can easily enhance their operations through development criteria which assist to overcome issues and problems (Manso and Castro-Gomes, 2015. In addition to this, the cited organisation can attracts customer through existing products and services. This strategy is related with strength of the business which make additional market segmentation for enhance strength and reduce weaknesses. The chosen business requires full knowledge of existing products and services of market so that they can easily develop profitability (Fasth-Berglund and Stahre, 2013).
Product development: The chosen organisation need to make development with new products in market. In this way, Mulberry have to introduced new products and services within the marketplace so that they can attain profits in effective manner. In existing market segment, the company have to establish new things so that customers can be attracts at workplace (Bergottini, Otegui and Junier, 2015). New product development carry enhancement in market share so that specific products can be made at workplace. In this aspect, new product can be introduced through targeting in existing products and services.
Diversification: In addition to this, Mulberry need to introduced new products line which is ahead from existing products. Thus, they can easily capture whole market for enhance profits and outcomes of the business. Beside this, diversification can also taken in term of enhance products and services outside the company so that competences can be take place at business. Diversification is also taken as reasonable choice so that high risk can be eliminate with enhance return from products and services (Satiani, Williams and Ellison,2013). . It is the great advantage for business to get potential gain and attractive industry. Thus, overall risk element can be reduce from business portfolio.
SAFs framework assist to cover-up overall growth which describes for overall growth and maintain competitive advantages (Manso and Castro-Gomes, 2015). In this aspect following elements can be taken within Mulberry:
Suitability: Economy is moving towards renewable energy that describes for moving towards green and renewable energy. In order to diversify the business operations of Mulberry, maintenance are requires that ascertain for investing internal resources and making products and services. Renewable energy demonstrate to make direction towards external environment analysis. In this way, emerging solutions can be taken through investment can be made according to expenses in renewable energy. Demand of oil gases is very high so that the company need to take innovations through investing profitability (Fasth-Berglund and Stahre, 2013). Political regulations are ascertained through attain competitive advantages and long term goals in same manner. In addition to this, in large scale environment can also be protects from different outcomes. Thus, strategic direction of the chosen company needs to be sustainable which can be differs to generate productivity and large scale economy for society.
Acceptability: Acceptability component take part that refers through demonstrate expected performances of company. In respect to this, strategic direction assist to perceive company performance and referring to different stakeholder. Apart from this, for employees growth strategies is based on long term commitment with customer that can make focus on long term commitment and safety which assist to enhance qualitative standards (Manso and Castro-Gomes, 2015. In this aspect, career opportunities also helps to imply for long term employment. Customer experienced can also make long term plan through business can attracts customer and create benefits from suppliers. In this way, Mulberry can focus on quality and safety of products and services that are describes for enhance performances and various other benefits. Operations of the chosen organisation can be attention through regulations and evaluation of different activities which can be support from profitability. It can be hamper to enterprise in term of development and ascertain positive results at workplace (Bergottini, Otegui and Junier, 2015).
Feasibility: For analysis strategic direction, it is essential to demonstrate direction which can be evaluates from resources. For analysis resources, 6 M model can be used that determines money, machinery, manpower, men, market and make up (Plan) through different services and continuous growth. Challenges that are face by company that require proper knowledge and technology to ascertain business direction in proper manner (Fasth-Berglund and Stahre, 2013). It can affect to the company and its overall productivity so that market share can be enhance easily through various activities. Maintenance and support are essentials part that requires for enhance market share and development of market share. Further, when Mulberry want to provide qualitative products and services, they have to ascertain international recruitment for smooth functioning. Hence, it will assist to gain competitive advantages from different activities and actions which can be made through improving machinery technological process and software programs (Manso and Castro-Gomes, 2015).
From the above discussion, it has been assesses that Mulberry has various advantages and profitability through enhance production capacity. In this way, they can set targets and goals which the business want to achieve in systematic manner. The company has different types of strategies through they can easily expand their operations and outcomes that assist to gain profitability. As per the view of Bergottini, Otegui and Junier, 2015, it can be stated that the chosen organisation can easily enhance their productivity and income from different activities. In this way, productivity can be assesses at workplace which easily get profits. With the help of net profit, the highest income and different activities can be measure at workplace. Thus, it describes for development of firm outcomes (Bergottini, Otegui and Junier, 2015). In this way, irrigation facility can be expand from different activities and nutrient management practices can be explains for enhance net profits and main things for production. The cited firm requires addressing properly so that they can easily develop market in different areas. However, Satiani, Williams and Ellison,2013 argued that Mulberry need to concentrate on diversification so that they can easily attain profits and positive results. In this way, there are various resources which needed to make focus on profits and positive results. There are different way which assist to develop performances for growing woody plants in different areas (Satiani, Williams and Ellison,2013).
In addition to this, the chosen organisation need to ascertain on following recommendations so that profits can be enhance easily:
Maintain relations with customer
Evaluates pricing: The chosen organisation need to introduced effective pricing strategies, through they will able to develops plan and outcomes in proper manner. In this aspect, penetration pricing strategy can be implements at workplace so that organisation can easily develop their results and performances. In this way, Mulberry need to identify potential market so that they are able to deliver effective products and services to various customer (Kirchoff, Omar and Fugate, 2016).
Improves weak spot: With the help of weak points, the company can easily assess that where they can enhance operations and results for maintain business solution. Thus, Mulberry can easily improve performances in effective manner. In this aspect, they can easily expand operations and outcomes for measure performances. The company has crucial advantages to maintain their results and outcomes from different activities and functions. Thus, they are trying to identify performance and develops solutions for ascertain results (Tseng, 2013).
Continuous improvement in business performance: To monitor business performance, it is required to determine improvement. In this way, the chosen organisation need to develops outcomes through they can enhance profitability in different areas. Hence, they will able to demonstrate monitoring and reviewing each activity which ascertain for development of the organisation. In addition to this, Mulberry can also take effective system which taken for determines continuous positive results and outcomes (Sempels and Hoffmann, 2013.).
Employee involvement: When employee are take part in business objectives and goals, the company can easily enhance profits and results in effective manner. In this aspect, various workers are share ideas and opinion through Mulberry can easily develop targets and profits very high. Further, the company can also measure their performances which need to be taken for maintain sustainability at workplace. In this way, the cited firm get different types of opinion and ideas so that improvements in organisation results can be ascertain in effective manner. It is crucial aspect for the chosen organisation so that they can easily develop profitability (Fasth-Berglund and Stahre, 2013).
Explore new market: With the help of exploring new market opportunities, Mulberry can easily expand operations for measure their outcomes and performances. In this way, new market entry strategies assist to enhance share and generates profits. Thus, effective strategies can be taken at workplace which determines for developing results and profits. It also describes new opportunities within the market so that the chosen business should try to enhance it very carefully (Wang and Wang, 2017).
Professional development In this way, Mulberry should provide proper training and development program to employee so that they can participate for achieve common goals and objectives. In this aspect, employee take advise and guidelines from superior towards work of the company so that they can easily sustain in market and overall development can be taken easily. Beside this, development plan can also be taken at workplace which describes for achieving goals and objectives in systematic way (Garbie, 2017). Hence, it is easily develops for measure performances and results of the industry.
High quality of products and services: In order to overcome customer problems, Mulberry needed to enhance their products and service quality. In this way, they can easily attain objectives and goals in systematic manner. Thus, business can develops profitability and overall growth so that they can attain results at workplace (Chiarini, 2014). In this way, the chosen firm can easily maintain sustainability of customer which are helpful to overall growth of the enterprise. In addition to this, quality of products and services assist to measure performance of the company that taken for development of operations. Hence, overall growth can be achieve for maintain business results (Manso and Castro-Gomes, 2015).
Customer values: Customer values are based on perception which describes needs and wants. Hence, it is essential to deliver services in effective manner which assist to get high performances and potential growth. In addition to this, it is also ascertained for making positivity that maintain overall growth and potential results. It also helpful to Mulberry for enhance potential customer at workplace who can take part for attain profitability and positive results at workplace (Grice and Franck, 2014). In this way, overall transaction and activities need to e taken at workplace that assist to grow outcomes and results in effective manner. Hence, production of the chosen business can assist to set targets and objectives of the company.
It has been observed that there are so many factors that evaluate the company's performance by various models. A company has many issues with environments, political and any other in the market. Mulberry faces various issues in the fashion industry that can be solved by applying many factors. Sometimes companies are focuses on the price of the product and they provides bad quality product to them. Company evaluate the structure of organisation by using various models. Company focuses on the market orientation strategy to make their performance growth at all levels. Companies analyse their strategy and works according to their plans.
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