Business Scenario of Stitches
Introduction


Stitches is a clothing base company, basically it is a developing business. The Stitches business build revenue, and the company has responsible to build the customer relationship. However, the business improving team can begin with marketing, as well as the organization has increased the production growth. On the other hand, the company sales will be increased based on sales growth.


Company background

The Hepburn set up a new proprietorship with Stitches, basically it a GST registered business that sells sewing machines to the general public, as well as the business supply maintenance service of the machine. The company is established at 1st June, 2018. This company basically follows the Australian Economy. There are three types of sewing sell machine such as

Business opportunities


The Australian e-commerce market is forecast to be worth USD 12.8 billion (approx) in 2016, and is expected to increase to USD 18.7 billion (approx) by 2020, at a projected growth rate of 9.87% per year. Cross-border online shopping is on the rise globally, and Australia is no exception. E-commerce is variable it changes every day with change in nature. New technologies and features have helped level the playing field with traditional retailers. Improvements to shopping cart software have created a quicker, smoother, more customer-friendly shopping experience. Live chat for helping the customers who are having problem in shopping is a great advantage for these companies. Stitches are also an e-commerce company having these opportunities. The use of big data analytics could be an opportunity for this company to understand customer preferences in a better way. Social media sites provide free or low-cost promotions. The women’s apparel industry is growing all the time. Australia has become a more often source for manufacturing women apparel and importing or exporting them to entirely new market. Technology advancement in machinery are also opportunities when the technology makes production or distribution faster or increases its scale, such as machines that cut more garment pieces at a time. Stitches, being an Australian online women’s apparel site they have great opportunities by advancing their technology in machinery.

Rules and Regulation


Fashion industry in Australia has been subjected to legal regulations, from sumptuary laws that limit who can wear certain garments to trade restrictions and varying degrees of intellectual property protection. The laws are mainly divided in different categories like – intellectual, financing and corporate structures, manufacturing, marketing, retail, ethics, sustainability and economic development, international trade and modeling law. Where intellectual property includes the intellectual property protection been a substantial legal concern in fashion brands. Financing and corporate structures includes the law for the issues like the widespread use of factoring, the influx of private equality investment and initial public offerings by major fashion brands (Panayotou, 2016.). Manufacturing faces the legal issues in production of clothing and accessories include the issues of worker safety and other labor practices, garment district zoning and source indication. Marketing faces the legal issues addressed in connection with marketing include labeling requirements, licensing and deceptive advertising. Retail faces the legal issues connected with the retail environment, which include consumer data privacy and the security of credit card information and real estate leasing and ownership. Ethics, sustainability, and economic development faces important problems like organic certification, green washing, fair trade fashion, etc. International trade faces the problems like grey market goods, import and export, custom duties etc. Modeling law faces issues like the regulation of models’ weight in places such as Madrid, Milan and Israel, efforts to curb fashion-related human trafficking. However, these are the important rules and regulations of clothing industries in Australia.

Economic growth


Australia’s economy delectably, surprised most of the analysts when it grew at its fastest to sustain an expansion. Operators in the clothing retailing industry have faced several challenges over the past five years, including cautious consumer spending, intense competition and rising rent costs. The clothing industry’s revenue is expected to grow at an annualized rate of 2.4%(approx) over the five years through 2018-19 to $ 17.1 billion(approx). Australia became the country with the largest median wealth per adult. Textile industry is global and it plays a vital role in economic development of a country(Ishihara and Ching, 2019). Now, innovation has been the most important factor for the economic growth of the textile industry. Textile industry always needed advanced techniques, together, has been the most important component of long time economic growth. Fashion is now having a big impact not only in the established fashion centers on the cost but also in the small cities of the country. This industry provides employment to a huge mass of population. There are companies who are into e-commerce targeting a huge customer base on their comfort level. There are small companies creating great revenues and participating in the economic development of the country. Companies like Stitches who are actually an e- commerce company are getting better in making revenues day by day, as there is a lot of improvement in the Australian economy (Amiram, et al 2015). This kind of online fabric companies gives employment to a huge mass – including the designers, computer programmers, lawyers, accountant, copywriters, project managers, social media developers, etc. hence, these companies create a great impact on the economic growth of the country.


Financial Statement


In this company, there are two types of depreciation that is straight way and another is reducing balance method. The Stitches can apply the depreciation based on the straight line method. Basically, the company had apply straight line depreciation on the furniture. Here the cost of assets is $23650 (incl GST). There are the depreciation value is fixed for 8 years, the salvage value is $9000, according to the straight line depreciation method,

On the other hand, the company will charge the depreciation as reducing balance method. The depreciation rate is 41.82% on the technology. In this method, the depreciation value will be reduced in the basis of 5 years. Here the cost of the technology is $33000, after that the salvage value is $2000.

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Business Strategy A Case Study Of Primark

Business Strategy A Case Study Of Primark

Introduction
In this research, the researcher has incorporated with the various discussions related to the strategic management of an organization. Here, this can be stated that an organization has to face several challenges that are prevailing within the market. The market is highly competitive in nature and hence every company are focusing much on developing the marketing strategies that would enable them to cope up with the competition.
In this assignment, the researcher has considered the marketing strategy of the Primark. It is an organization, which deals with the trending fashion of both men and women. It is an Irish company having it’s headquarter in Dublin, Ireland. The company successfully operates in Belgium, France, UK, US, Austria, Ireland, etc. the company is now developing plans to introduce its products in India. As they are the new entrants in the market, they have to develop a well-defined marketing strategy.

About the Book

This is a solution of Business Strategy A Case Study Of Primark in which we discuss Business Strategy.

Introduction

In this research, the researcher has incorporated with the various discussions related to the strategic management of an organization. Here, this can be stated that an organization has to face several challenges that are prevailing within the market. The market is highly competitive in nature and hence every company are focusing much on developing the marketing strategies that would enable them to cope up with the competition.

In this assignment, the researcher has considered the marketing strategy of the Primark. It is an organization, which deals with the trending fashion of both men and women. It is an Irish company having it’s headquarter in Dublin, Ireland. More Know About:- Computer Software Assignment Help

The company successfully operates in Belgium, France, UK, US, Austria, Ireland, etc. the company is now developing plans to introduce its products in India. As they are the new entrants in the market, they have to develop a well-defined marketing strategy. 

Mission, vision, goals, objectives and core competencies of the company

In this section, the Mission, vision, goals, objectives and core competencies of Primark will be briefly discussed:

Mission of Primark

To serve their ordinary folks with the opportunity to purchase the products as rich people but at low prices.

Vision

  • To be the first choice of the customers
  • Grab the opportunity to be the market leader
  • Proper training to the employees
  • To operate being customer centric

Goals and objectives

  • Offer customers with low price products
  • New innovated products
  • To be the first choice of the customers
  • Make strong marketing strategies to be the market leader
  • Operate sustainably

Core competencies

Develop strategies that would help them to be the market leader and to pose high competition in the market. The competitors are mainly Pantaloons, Zara and H&M (Alexis, 2012, p.67).

Factors contributing strategic planning

There are certain factors that contribute to the strategic planning of the organization named, Primark. According to Sadler (2003), it can be stated that strategic planning is considered to be the stepwise and systematic process to develop the strategy for an organization (Bravo, 2010, p.65). It was further mentioned, that there are three issues that contributes to the strategic planning which are mainly the detachment from reality, lack of ownership and dampening of innovations. 

Figure 1: Issues in strategic planning

(Source: Created by Author)

It is very essential to overcome the issues and to make suitable plans that would develop brand image of the organization.  Five major factors contribute to the development of strategic planning are mainly the Engagement, Innovation, Culture, Communication and Project Management. The development in these factors would help in better strategic planning for Primark.

Figure 2: Factors contributing to strategic planning

(Source: Created by Author) 

Effectiveness of techniques used for strategic planning

There are certain techniques that would help the management to develop a well- defined marketing strategies. For instance, the command planning is only applicable for small business, which has a stable environment (Cohen, 2011, p.61).Read More About:- Computer Systems Development Assignment Help

On the other hand, another technique that would help in strategic planning is the directive planning is only applicable for the large organizations having stable environment. In addition, the top- level management is highly involved in this planning.

The third techniques are the emergent strategy planning. The Primark mainly makes the use of the emergent strategy planning, as it is only applicable for complex organizational environment and mostly performed by expert teams or corporate strategic department.

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