Business Contexts and its Management - Industry Trend Report and Client Report

Business Contexts and its
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1: Industry Trend Report......................................................................................................3
External environment factor analysis...........................................................................................3
Internal environment factor analysis............................................................................................4
The Influence of change and culture in Operational Management .............................................5
Stakeholder Analysis of ASOS Organisation..............................................................................8
PART 2: Client report......................................................................................................................9
Strategic planning of ASOS organisation....................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1
APPENDIX......................................................................................................................................2

INTRODUCTION
In the growing competition, its important to understand the business context and its
influence on management decisions. Different strategical tools need to be used to clearly define
the position of a business including the impact of internal and external environment. The report
will analyse the industrial trend and suggest few strategic plan for the overall growth of the
organisation. The report will critically analyse the challenges faced by an organisation and the
measures to be considered.
PART 1: Industry Trend Report
Introduction & Identifying Issues
This report will be based on ASOS (E-commerce industry), a online fashion retailer. The
company was set up in 2000 by Nick Robertson, Andrew Regan, Quentin Griffiths and Deborah
Thorpe. The E-commerce company deal in a wide range of fashion clothing for man, woman and
children. The cited company provide worldwide free shipping that has helped in gaining more
customer satisfaction even when the entire world was facing crises. The report will analyse the
strategic plan of the company, market size and the opportunities. Growing competition in the
market and high non strategic cost is the major issue faced by the company.
External environment factor analysis
In UK, the e-commerce industries revenue is expected to reach US$199.90bn in 2022. the
online industry market penetration of UK is 82% in 2021 and the largest segment is fashion
industries. ASOS generated £3.91 billion revenue in year 2021 in comparison with £2.73 billion
in 2019, which clearly show a increase. Revenue has grown by approx 19%. It market include
over 25 million people all over the world and almost 40% is based in UK.
Red ocean vs blue ocean strategy: Red ocean strategy refers to when a company struggle
to secure a position in the market whereas blue ocean strategy is when a company make its
position in the required market (Au and Tucker, 2018). In context with ASOS, which has shifted
from red to blue ocean strategy as initially a company focuses more on reduce cost to attract
more customer and create a place for themselves in the existing market. The focus was more on
the value based product according to the demand to sustain in the market place. As it has

successfully obtained the market, a gradual shift has been seen from red to blue ocean strategy as
now the company emphasis on free delivery worldwide and the customers can directly buy from
their website. Around 1 million customer visit companies website in 1 month. In response, even
when the world was going through pandemic and most companies hardly able to survive, a huge
profitability is seen in E-commerce industries and ASOS has become a leading name in online
fashion retailers.
The main external factors that affect the industry is the competition. As everything is
going online, the competition has increased. In today's busy world, online shopping helps to save
time and energy. Without going out, you can get all the pleasure just by one click. Easy home
delivery, return facility and easy comparison of prices are the key factor (Fitrianingrum, 2020).
In the pandemic situation, online industry is been highlighted and emerged as an saviour to many
problems as delivering day to day needs and basic requirement to the door step. When entire
world was closed, the E-commerce industry continue to function.
Research regarding the latest fashion trend and meeting the demands of the customers is
the priority for the company due to competition in the market. The company has to adopt to the
latest technology. Promotion of the products through social media can be profitable to the
company which will lead to more customers.
Internal environment factor analysis
The internal environment of the company depends upon how it operates. It includes
organisational culture, ethics, employees, customer, technology, management and strategies
applied (Kwilinski and et.al., 2019.). ASOS VRIO Analysis is done is to obtain the internal
information about the organisation. VRIO framework stands for valuable, rare, imitation and
organisation (Miethlich and Oldenburg, 2019). This tool is used to understand the organisation
internal strength, available resources and capabilities for long term advantage to the organisation.
The organisation review their VRIO constantly because of the change in the market, competition
and customers.
 Valuable: it refers to the resources which add on to the value of ASOS. The resources
which are valuable to the organisation are their technology, skilled employees, market
image and position, customer satisfaction, range of product, financial resources, flexible