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

Impacts Upon Skinclad's Business in the Next Five Years In order to analyse the operating environment of Skinclad, an audit of the performance of the organisation was executed. This took the form of an environmental scan which assessed the internal and external environment of the company. The findings of this scan will provide an understanding and appreciation of the many factors impacting directly or indirectly upon the company’s operations. The report explores the macro and micro environmental factors which are likely to impact upon Skinclad’s business over the next five years, reviews the internal factors, existing marketing mix and highlights possible problems areas. The Swot analysis lists the main strength of the business, its weakness and likely threats and opportunities the company may face in the future. Finally, the report identifies recommendations and possible options for improving production and the financial viability of Skinclad. MACRO ENVIRONMENTAL FACTORS PEST ANALYSIS A1 A PEST analysis is an environmental scan of the macro economic factors impacting on the operations of an organisation. It analyses the following factors and its relation to the UK Textile industry: * Political * Economical * Social * Technological The relevance of this analysis is significant in gauging world trends and its consequent role in influencing social, cultural, technological, demographical and economical factors. The analysis notes with interest the current state of the UK Textile industry which has experienced a slump since the late 1990 (Figure 1). The figure shows that total output had declined significantly over the period and production has collapsed by 30%. This may be attributed to the effect of globalisation and a shift to importing clothing from cheaper Asian markets such as Philippines, Indonesia and Bangladesh. Many local manufacturers were affected by this move. A case in point was Marks and Spencer who were committed to local producers until the early 2000 when they were forced to source garments from cheaper suppliers outside of the UK to compete with the influx of European retailers. The establishment of the European Union and institution of the Euro dollar has further exacerbated the situation for local producers as a strong UK currency ( £) has made exports more costly to other regions in the Eur... ...shion Shared Values Ø This is not applicable to the case Sustainable Competitive Advantage Ø Has been in existence for over twenty two year Ø Developed an establish network that includes, suppliers, retailers Appendix 4 ========== 8 P’s Product * Jackets and full-length coats in twenty different styles Place * Old dilapidated building in the old textile industry main district Price * Basic assumption that product is high priced since product is high quality Promotion ========= * This information was not provided in the case. However, the need for promotion may be limited as there is a direct link to a retailer who purchase the majority of the product Profit * Profit has been eroded over the years with a net value of  £1 on certain product Physical * Old rented premises in what used to be the hub of the UK textile industry Process * This information was not available from the case People - Not accessible from case Appendix 5 ---------- Ansoff Matrix existing products new products Existing Markets Market Penetration Product Development New Markets Market Development Diversification