Business Organizations and Environment in a Global Context: A Case Study of Armani in Japan

BUSINESS ORGANISATIONS AND ENVIRONMENT IN A
GLOBAL CONTEXT
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Table of Contents
Introduction......................................................................................................................................3
Background to Business Organization.............................................................................................4
Business Environment.....................................................................................................................5
Porter’s Five Forces.........................................................................................................................9
Conclusion:....................................................................................................................................13
Reference List:...............................................................................................................................14
Appendix:......................................................................................................................................16
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Introduction
In order to stay competitive in the market, it has become essential for the company to implement
effective plan to gain advantage over its competitors. The chosen company for this particular
project is Armani, Japan. Japan is considered as the third largest fashion apparel importer after
the European Union and the United States.
For the business expansion, it is essential to consider both the internal and external factors.
Additionally, the country is the trendsetter for the other Asian countries. E-retail is affecting the
fashion industry of the country. In order to deliver the best services to the customers, it is
essential to use the available resources in order to maintain the supply chain management in the
right way. The expansion of the trade is somehow is depended on the suppliers of the country.
This assignment will investigate the external factors affecting the business of the company in
Japan. Additionally, the assignment will display the PESTLE analysis and Porter’s Five Forces.
The assignment will also provide time plan for implementing the strategy effectively. This will
help the company to gain the competitive advantage over its competitors.
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Background to Business Organization
Armani is an Italian fashion company, which also operates its trade in other international market.
The company was founded in the year 1975 by Sergio Galeotti and Giorgio Armani. The
company designs, manufactures, retails and distributes shoes, watches, house interiors, leather
goods, jewelry, cosmetics, eyewear and others. The brand markets its products under several
names such as Emporio Armani, Giorgio Armani Prive, Armani Jeans and others. Additionally,
the brand makes use of the association with the Armani name with high fashion and it benefits
from the prestige in the fashion industry. As per the reports, in the year 2016, the total revenue of
the company was estimated to be €2.9 billion. Over the years, the turnover of the company is
increasing at the rapid pace (Armani.com, 2018). In the year 2011, the turnover of the company
was estimated to be €1275 million and in the year 2015, the turnover of the company was
estimated to be €1701 million.
Figure 1: Turnover of Armani
(Source: statista.com 2018).
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