Thursday, September 26, 2019

Business Organisation Assignment Example | Topics and Well Written Essays - 3000 words

Business Organisation - Assignment Example Currently, it is making a strong presence in the United States and other parts of Europe (Ted Baker Plc 2006). Its 2006 annual report states that the company has 102 retail outlets comprised of 19 UK stores, 7 overseas stores, 68 concessions, and 8 outlet stores. Since its inception, Ted Baker Plc has already imbued itself with the commitment of quality designer clothes. The company's core competence is threefold comprising design, product quality, and attention to detail. The company is known to have "for applying quirky twists to their products" (Ted Baker Plc Annual Report 2006). Thus, Ted Baker has become the "official outfitter" (Hoovers 2006) for trendy individuals. Instead of trying to capture the mass market, the company opts to win the purchasing power of the high-end market who wants quality and top of the line clothing. It is irrefutable that business organisations like Ted Baker Plc need to cope with the challenges posed by the changes and developments happening in their external environments. This report will look at how the impact of the evolution of a single global village in the operations and strategic directions. Each recommendation will be supported by analyses utilising management tools and techniques. In order to recommend strategic direction that Ted Baker Plc should t... These tools are designed to reveal the internal factors which affect the performance and well being of the firm. Recognizing that environmental forces are also important, environmental scanning will also be conducted. The conceptual frameworks to be used are Porter's generic strategies, Porter's five forces model, and SWO analysis. 2.1. Porter's Generic Strategies According to Porter, companies can stick to three best strategies-cost leadership, market segmentation, and differentiation. Generic strategies are highly commended because they identify a certain area that a company can focus instead of trying to be "everything." These definite winning strategies help business organizations to market scope and their competency (Thomson 2004). In its website, Ted Baker Plc states its threefold strategy as: "considered expansion of Ted Baker collections; controlled distribution through main channels-retail wholesale, and licensing; and carefully managed development of overseas markets" (Ted Baker Plc 2006). As stated above, these strategies are supported by the manufacturer's main competences which are design, product quality, and attention to detail. Through these factors, Ted Baker Plc is able to establish an image of quality and trend which sets it apart from its other competitors. Even though clothing is very much like a homogenous good, the business organisation is able to define itself and create an image in the mind of consumers. In line with Porter's generic strategies, it is apparent that the company is banking on a differentiation strategy for success. Ted Baker offers not just any other ordinary clothing company. Standardstyle states that the company's products are

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