Business Environment Assignment - Topshop UK
Added on 2020-11-12
12 Pages4165 Words247 Views
Business environment
Table of ContentsINTRODUCTION ..........................................................................................................................3TASK ..............................................................................................................................................3A) Analyse the current environmental influences on the Apparel retailer sub sector............3B) Analyse the internal business environment through value chain analysis........................5C) Explanation of appropriate adaptations of selection firm..................................................8D) Reflection on the usefulness of the porter's forces model.................................................9CONCLUSION .............................................................................................................................10REFERENCES..............................................................................................................................12
INTRODUCTION Business environment is made with two factors such as internal and external whichaffects the operations of organisation. In other words, sustainability of firm that is affectedthrough various factors such as interior or outside part of the firm. Internal consists employees,suppliers, structure, value and belief of the organisation whereas, external includes economical,political, legal etc. that influences the organisational culture in positive or negative way. Thechosen organisation for this assignment is Topshop which was founded in 1964 and based in UK.It is a retailer company engaged in selling wide range clothing products. This report is includedporter five force model for identifying present environmental impacts on the organisation alongwith its positive and negative impact. Value chain method for analysing the internalenvironment. Appropriate methods which may helpful for the organisation in future period willalso covered in this report. TASK A) Analyse the current environmental influences on the Apparel retailer sub sectorIn present scenario, there is a tough competition in the clothing sector among the variousplayers. Due to which, the UK economy is developing from past 5 years, as there are many bigbrands established within the boundary and they are providing huge tax duty to the government.It is very essential for an organisation to develop plans and strategies so that, they will getsustainability in the market. There are various factors which can influences the operationalactivities of a firm so that, it is necessary for identifying factors due to which, they will be able inrunning their business activities. For analysing the current environmental factors porter's fiveforces model can be used because with the help of this, organisation can analysing their currentposition in the market and it also defines the profitability along with competitiveness of the firmIt is briefly described as under:Bargaining power of supplier is the first force of model in which, the company isproviding their manufacturing goods in the marketplace through their suppliers. There are a largenumber of suppliers are present in fashion industry so their power is low in terms of providingthreat to company (Adeoye and Elegunde, 2012). For e.g. if a supplier is charging extra marginon supplying the product then company can chose other supplier for delivering their goods and
services to their customers. Therefore, it can be said that the bargaining power of supplier is low.The suppliers for Topshop is huge, hence, it can choose one who will provide raw material atlowest price. However, there is one obstacle, and that is that input should be as per the demandof Topshop, in case, only some of the suppliers provide specific material, then costs will be highand the entity will not have any other option. Bargaining power of customer is the second determinant in this, the customers are theking of the market so that, they can chose products as per their requirement. There are variousnumber of players located in the market of UK such as Topshop, Marks and Spencer, EthelAustin etc. so that, customer's have various options due to which they can select goods whichwill fulfil their needs and expectations. For example if a retailer will increases its product pricesthen its sale will be reduced because its rivals are providing same product in low price. So that, itis essential for an organisation who is dealing in fashion sector that they have to sustain theirprices due to which, their growth will be maintained in the marketplace. Therefore, the power ofbuyers is relatively very high. Topshop is a company offering variety of products in order toremain competitive. Hence, there is always a pressure form its customers to introduce productsthat will provide highest satisfaction and will help retaining its customers (Babatunde andAdebisi, 2012). Competition from existing players in clothing sector, companies who are providing theirproducts in the apparel sector therefore, they have to face lots of competition from the giantplayers in the marketplace. There are various big players present in this industry such as M&S ,Ethel Austin, Topshop etc. they are providing number of varieties in their products to thecustomers due to which their sales is increases. In order to getting sustainability and competitiveadvantage companies have to make changes and innovation in their existing products. With thehelp of this, they can attain maximum number of customers towards their offerings. Hence, therivalry competition in clothing industry is very high. Topshop has close competition with ZARA,which offers same products with similar prices. Topshop has to face cut-throat competition,hence, it should target young people to by giving them discounts and attractive offers (Belás andet. al., 2014).Threat of New entrants are not providing adequate menace to the existing player in thefashion sector. As UK's fashion sector is fulfilled from various giant players such as M&S, Next,topman etc. and they are providing huge tax duty to the government due to which, their brand
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