Business Organisation in a Global Economy

Business organisation in a
global economy

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
1. Company Background.............................................................................................................3
2. Background to the Business environment...............................................................................5
3.Analysis of Business Scenario..................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business Organisation is a process in which a group of people controlling the firm and
having an aim of carrying on commercial enterprise by providing goods and services and fulfil
the needs of customers. It is an systematic approach to achieve the goal. The selected
organisation is “River Island” located in Spain. This report is introduces global business
organisation a firm that work in many countries around the world (Straková, Pártlová and
Váchal, 2017). When any organisation enters in foreign market , they have to compete with the
local organisation in that country as the global business leads high-level of competition among
businesses. Moreover, the foreign businesses must produce high-quality product with low-cost.
The primary objective that will be addressed in this report is to expand the operations of river
island in Spain.
MAIN BODY
1. Company Background
While competing in foreign market the River Island is one of the most well known and
high-street fashion brand, which operates a number of worldwide market. The River Island is a
private company having a headquarter in London and founded in 1948 by Bernard and David
Lewis. Within 60years of fashion retailing experience the company build its goodwill and every
customer loved its brand (Rashid and Barnes, 2020). Its main objective is to produce fashionable
cloths for men and woman within a appropriate budget with a mission that they will provide new
fashionable looks for their customers and build their brand name as it is well known nation
brand. As this company mainly focus towards selling of very broad range but in lower-cost by
targeting middle-market men and women. For future consumption the company invest in other
countries. The company success is based on its ability to develop processes that allow to get new
fashion line into its stores quickly. River Island is one of the fast-moving designer brands with
having more than 18 stores in other countries. It is very exciting, innovative, creative and fun
company. River Island use many method to attract customers by including advertising, available
to order clothes online and with home delivery.
As the allocated country is Spain which is located in Southwestern Europe and occupy
85percent of Iberian Peninsula. It is a country of stone castles, vast monuments which is
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favoured travel destination (Feros, 2017). Spain ranks number 30 in the list of dependencies by
population among 196 countries having an estimation 46,332,614 people in 2019. The history of
Spain began with the death of Caudilo Francisco Franco on November 1975. In 20th century civil
war, absolutism and a impressive return to democracy and known for its extremely high living
standard.
The market share of the retail market in Spain has been predicted to grow rapidly at a
CAGR of 2.2% from €213 billion in 2016 to €240 billion by 2021. The total Spanish clothing
and footwear sector has attained the sales of €27 billion in 2016 which accounted for 12.7%
share of the total retail sales on the country. This represents that market share in retail industry is
competitive and has tremendous opportunities in River island applies relevant expansion
strategies. In case of clothing, the market structure in Spain is oligopolistic which means that few
firms such as Zara are dominant in the market the products sold are differentiated. Major
competitors for River island in Spain for high street and luxury clothing/apparel retail sector
would be Zara, Mango, Desigual, Stradivarius, Bimba y Lola, Adolfo Dominguez, Pull & Bear,
Oysho etc.
Gross profits of River Island Clothing Co. Ltd (2013-2018)
Figure 1: Gross profit
Source: Statista 2020
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