Impacts Upon Skinclads Business in the Next Five Years Essay -- Busin

Impacts Upon Skinclads Business in the Next Five YearsIn order to analyse the operating environment of Skinclad, an audit ofthe procedure of the organisation was executed. This took the formof an environmental scan which assessed the internal and externalenvironment of the company. The findings of this scan will provide anunderstanding and appreciation of the many factors impacting directlyor indirectly upon the companys operations. The report explores themacro and micro environmental factors which are likely to impact uponSkinclads business over the next cardinal years, reviews the internalfactors, existing marketing mix and highlights possible problemsareas. The Swot analysis lists the main strength of the business, itsweakness and likely threats and opportunities the company may face inthe future. Finally, the report identifies recommendations andpossible options for improving production and the financial viabilityof Skinclad.MACRO ENVIRONMENTAL FACTORSPEST ANALYSIS A1A PEST ana lysis is an environmental scan of the macro economic factorsimpacting on the operations of an organisation. It analyses thefollowing factors and its relation to the UK Textile labor* Political* Economical* Social* TechnologicalThe relevance of this analysis is significant in gauging world trendsand its consequent role in influencing social, cultural,technological, demographical and economical factors. The analysisnotes with interest the current state of the UK Textile industry whichhas experienced a slump since the young 1990 (Figure 1). The figureshows that total output had declined significantly over the period andproduction has collapsed by 30%. This may be attributed to the effectof globalisation and a pocket to importing clothing from cheaper Asianmarkets such as Philippines, Indonesia and Bangladesh. Many localmanufacturers were affected by this move. A theatrical role in point was Marksand Spencer who were connected to local producers until the early 2000when they were f orced to source garments from cheaper suppliersoutside of the UK to compete with the influx of European retailers.The establishment of the European Union and institution of the Eurodollar has further exacerbated the function for local producers as astrong UK currency () has made exports more costly to other regionsin the Eur... ...shionShared Values This is not applicable to the caseSustainable Competitive Advantage Has been in existence for over twenty two year Developed an establish network that includes, suppliers, retailersAppendix 4==========8 PsProduct* Jackets and full-length coats in twenty different stylesPlace* Old dilapidated building in the old textile industry main districtPrice* Basic assumption that product is high priced since product is high qualityPromotion=========* This information was not provided in the case. However, the pick out for promotion may be limited as there is a direct link to a retailer who purchase the majority of the product reach* Profit ha s been eroded over the years with a net value of 1 on certain productPhysical* Old rented premises in what used to be the hub of the UK textile industryProcess* This information was not available from the casePeople- Not accessible from caseAppendix 5----------Ansoff Matrixexisting productsnew productsExistingMarketsMarket PenetrationProduct DevelopmentNewMarketsMarket DevelopmentDiversification