Case Study Analysis Part B

This report analyzes Outland Denim's opportunities and weaknesses, PESTLE analysis, and strategies for business success. The preferred option for long-term success is exporting, and indicator benchmarks are used to evaluate progress.

Case Study Analysis
Part B

EXECUTIVE SUMMARY
The current study is based on benchmarking, which allows the company to protect its
products and services. In addition, it has highlighted the strategy that the firm must employ in
order to run their business. It has also shown the company's weak spots and lagging indicators.

Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN DISCUSSION......................................................................................................................5
Discuss and critically analyse the 3 options selected for the opportunity...................................5
Discuss and justify the preferred 1 option that will ensure the organisation’s long-term
success.........................................................................................................................................6
Indicator benchmarks that will be used to assess the organisation’s progress............................7
CONCLUSION ...............................................................................................................................9
REFERENCES .............................................................................................................................10

INTRODUCTION
Organizational practices are considered as the actions and behaviors of employees working
in a business organization. They are basically 5Ps of an organization which include purpose,
philosophy, priorities, practices and projections. Organizational practices help in converting the
ideas and values in the culture of organization into the practical actions along with the
movements which can keep the organization running actively (Agyabeng-Mensah and et. al.,
2021). It is found as an essential for a business organization to follow the good practices which
are really good enough for sorting the things in place along with ensuring the procedures of a
moving in the correct direction in a time affective manner. The chosen organization for this
report is Outland Denim which is an Australian denim company. Outland Denim, a well-known
Australian business whose CEO is James Bartle, gets its fabric from Boss, a Turkish mill that has
been committed to ethical and environmental issues since 1951. It deals with a wide range of
apparel products based on a high proportion of eco-friendly materials such as cotton and
sustainable raw resources. It also has clothing for both men and women, such as jeans, shirts,
coats, and boots. The current market overview of the company is too good in order to attract
more customers by providing them with sustainable goods. Outland Denim's market share is
around 25%, but it has been impacted by Covid 19 and a huge number of customers. This report
deals with the weakness and opportunity of respective organization along with the PESTLE
analysis. Furthermore, it also includes the discussion on the opportunities available to the
organization and indicator benchmarks.
From the assessment 1, several weakness of the respective business organization have been
analysed which include pinpoint quality concern and financial weakness. On the other hand,
outland Denim has some opportunities as well which include expansion in the new markets such
as Netherlands, United Kingdom and many more (Pernegger, 2021). Along with this, the
management of the respective business organization is performing their operation by following
all the factors of PESTLE analysis which include political, economic, social, technological, legal
and environmental factors. The respective organization is following all the rules and regulations
in an effective and efficient manner while performing its operations. COVID-19 effected the
economy of Australia as well, hence the organization face several losses, they are performing
operation for the categories including women, men, children.
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MAIN DISCUSSION
Discuss and critically analyse the 3 options selected for the opportunity
From assessment 1 of the respective report, it has been founded at there are several opportunities
and weakness of Outland Denim and it has been found as necessary for the management to
develop several strategies to grab the opportunities which are available in the market as it leads
to the enhancement of productivity and profitability of organisation. One important of
opportunity available in the market for Outland Denim is the expansion of organisation in
different markets such as United Kingdom and Netherlands. Below mention are the several ways
in which the respective opportunity can be gained by the management of business organisation: Exporting: it is defined as the best international expansion method of business
organisation under which the products and services are being manufactured domestically
and then they are send it to the markets of different countries. It is found as the traditional
and most establish method of a global expansion of a business organisation. Outland
Denim can also adopt the method of exporting when they expand there business
operations in Netherlands and United Kingdom (Alzoubi and Ahmed, 2019). It is not
required to establish any manufacturing unit in the respective country because the
manufacturing will be done only in the domestic country. It state that the management of
outland Denim is required to invest a minimum amount of capital while adopting this
method. On the other hand, this method do not provide the complete control in the hand
of management of organisation, involving high amount of transportation cost along with
inadequate access to local markets. Licensing and franchising: licensing is also consider as the important method of
expansion of business organisation under which a licence has been provided to the
licensee from licensor for the purpose of using the intellectual property which include
Goodwill patent and copyright in the exchange of a fixed royalty fee. Franchising is just
similar to the licensing because it also provide right to the franchisee to use the brand
image and name. It is defined as an arrangement in which a business organisation grants
authorization to an organisation in the target nation to use the licensor's property by
granting them rights to use the licensor's property (Ooi, Ooi and Memon, 2020). Outland
Denim can leverage this international marketing strategy by enabling other countries'
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enterprises to use their assets, including as manufacturing techniques, patents, and
trademarks. The licensee has charged a predetermined price in exchange for authorization
to use their property. Because the organisation is not obliged to do the political and
economic exposure of a new country, this technique has been shown to be less risky. In
this type of commercial partnership, a licensor grants access to the patent claims of
another company. Licensing has a number of advantages, including giving an additional
source of income, minimizing risk for both parties, and making it simple to reach a
foreign market (Antony, Swarnakar and Pepper, 2021).
 Partnership and strategic alliance: It is also another international marketing approach in
which a company might form a joint venture with a local company in the company's
target country. This method could be used by Outland Denim to extend their company
operations in the foreign market. Outland Denim has the ability to develop joint ventures
with local enterprises in the target country. Among the techniques of global expansion,
partnerships and strategic alliances are mutually advantageous. It requires forming
partnerships or alliances with local businesses in the new market (Salim, Sundarakani
and Lasrado, 2019). This approach of international expansion enables both businesses to
meet their objectives.
Above mention are the several options which have been selected by the Outland Denim
organisation for the opportunity. All these options have their own advantage and disadvantages
and the management of organisation cancel it any of the above mentioned options in order to
enhance the profitability and productivity of organisation. Before adopting any of the strategy of
expansion of business organisation in United Kingdom or Netherlands, it is recommended to the
business organisation to do PESTLE analysis in order to know about the external elements which
can affect the business operations.
Discuss and justify the preferred 1 option that will ensure the organisation’s long-term success.
From the above analysis, it has been found that exporting is the best option for outland denim
in order to ensure the long term success and sustainability in the new market (Maurya and
Agarwal, 2018). Exporting method have a lots of advantages which are explained below in
detail: Good product always sell: it is the first advantage of exporting that a business can be
started by anyone with a good idea or any product. Outland Denim have a good idea offer
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producing the name clothes for the all category of people. It is considered as advantage
because the right product will give the higher competitive price. For the same purpose it
is necessary into develop the product in such a manner so that they can meet the
requirements of customers. Limitless market: Outland Denim is free to sell their products in any of the country in all
over the world it means that the market is limitless. If the Outland Denim sale their
products only in Australia, it will work as limited to the market size to only to the local
level. Exporting of a products in different countries male leads to the getting unlimited
opportunities to the talent. Foreign markets can offer higher prices: United Kingdom is a well developed country.
Hands the customers of United Kingdom can offer the higher prices of the products of
outland the name. It is totally depend on the markets in which the business organisation is
working (Joshi, Deshpande and Pawar, 2019). It is the main reason behind exporting the
products that the business organisation will get the higher prices for their products in the
foreign market.
 Government benefits for exporters: The government of several countries have a
developed rules and regulations while doing exporting along with the several benefits so
which are provided to the organisation if they export their products in the foreign
markets. Several of a benefits have been provided by the government to the organisation
which include rebates in service tax and value added tax to exporters.
Above mentioned are the several advantages of doing exporting over Denim products which
have been produced by the Outland Denim company. All these factors shows that the business
organisation is going to achiever higher success in the future because of a higher profitability and
productivity of organisation. The success of a business organisation can only be analyses through
the productivity and profitability along with the brand image of . Increase in the productivity and
profitability through doing exporting of their products in the different countries which include
United Kingdom and Netherlands as well.
Indicator benchmarks that will be used to assess the organisation’s progress
Benchmark is the methods of tools which are being used by the business organizations in
order to measure the outcomes of the business organizations and ensuring that the firm should
attain the desired goals and objectives (Kamble, Gunasekaran and Dhone, 2020). The major
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objective of bench marking is bringing improvement in the procedures to strengthen performance
of company which also result in the enhancement of satisfaction of customers and increasing
revenue generation. In simple words, it can be said that the indicator bench marking create goals
for the business organization, so that they can perform their operations in such a manner, so that
the decided level of goals can be attained. Outland Denim is also using indicator bench marking.
It helps the management of Outland Denim organization t analyze the specific areas where the
business firm excels along with the areas which require improvement as well. The respective
business organization is willing to setting objectives, they can take the advantage of Key
performance indicators and Benchmarks as well because it will help the management in bringing
changes and following the modifications in order to attain the decided goals and objectives.
Outland Denim can develop several objectives in order to make the effective use and taking
advantage of KPIs and benchmarks. Some of goals developed by the management of Outland
Denim are given below;
 Increase the sales of organization by 20% at the end of year 2022.
 Expanding the operations of respective business organization in the different new
countries including Netherlands and United Kingdom.
 Enhancing the productivity of employees by 2 times by providing them training.
Above mentioned are the several goals and objectives which are being developed by the
management of business organization. It work as the motivating employees, so that they can
work effectively and attain the organizational goals and objectives in an effective and efficient
manner. These goals work as the bench mark for the management and after the completion of
time period, the management will compare the actual performance with the decided performance
(Coe, Wiley and Bekker, 2019). It help them in analysing the weaker sections of organization
and they have to look on the sections, so that they can perform effectively and efficiently in
future, which also result in the future growth and success of business organizations as well.
Through analysing the difference among the desired and actual performance, the management
can also bring effective strategies in their working which may result in the increase in
profitability and productivity of organization along with creation of higher brand image and
higher market share as well. Bench marking leads to the implementation of creative ideas which
can be performed by the organization after analysing the performance difference. It also result in
the increase in competition in the market or industry which help the organization in maintaining
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their current position which is better in the terms of success rate of respective business
organization.
CONCLUSION
From the above report, it has been concluded that the organisational practices are found as
necessary for all the business organisations as the performance of all business operations leads to
the productivity and profitability of organisation. In order to gain the higher profitability and
productivity, it is necessary for the management to ensure the proper functioning of
organisational practices. There are several weakness and opportunities available to the business
organisation. All the companies work for decreasing the weakness, so that they can focus on
grabbing the opportunities available to the organisation in the market. In addition to this, the
management perform SWOT analysis in order to know about the strength, weakness,
opportunities and threats to a business organisation. PESTLE analysis has been also done by the
management of a business organisation for the purpose of knowing about the several external
factors of business which are affecting to the business operations as well. In order to grab the
opportunities, the management have to develop several strategies. It is necessary for the
management of business organisation to select the relevant and effective ways of grabbing the
opportunity which also provide the long term stability in the market along with enhancing the
profitability and productivity of business firm. Indicator benchmark also help the business
organisation in evaluating the performance of business operations.
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REFERENCES
Books and journal
Agyabeng-Mensah and et. al., 2021. Organisational identity and circular economy: Are inter and
intra organisational learning, lean management and zero waste practices worth
pursuing?. Sustainable Production and Consumption, 28, pp.648-662.
Alzoubi, H. and Ahmed, G., 2019. Do TQM practices improve organisational success? A case
study of electronics industry in the UAE. International Journal of Economics and
Business Research, 17(4), pp.459-472.
Antony, J., Swarnakar, V., Cudney, E. and Pepper, M., 2021. A meta-analytic investigation of
lean practices and their impact on organisational performance. Total Quality
Management & Business Excellence, pp.1-27.
Coe, I.R., Wiley, R. and Bekker, L.G., 2019. Organisational best practices towards gender
equality in science and medicine. The Lancet, 393(10171), pp.587-593.
Joshi, A.S., Deshpande, V.S. and Pawar, P.J., 2019. Evaluating the effect of organisational
practices on work effectiveness of employees. International Journal of Management
Concepts and Philosophy, 12(2), pp.133-149.
Kamble, S., Gunasekaran, A. and Dhone, N.C., 2020. Industry 4.0 and lean manufacturing
practices for sustainable organisational performance in Indian manufacturing
companies. International Journal of Production Research, 58(5), pp.1319-1337.
Maurya, K.K. and Agarwal, M., 2018. Organisational talent management and perceived
employer branding. International Journal of Organizational Analysis.
Ooi, S.K., Ooi, C.A. and Memon, K.R., 2020. The role of CSR oriented organisational culture in
eco-innovation practices. World Review of Entrepreneurship, Management and
Sustainable Development, 16(5), pp.538-556.
Pernegger, L., 2021. Effects of the state’s informal practices on organisational capability and
social inclusion: Three cases of city governance in Johannesburg. Urban Studies, 58(6),
pp.1193-1210.
Salim, T.A., Sundarakani, B. and Lasrado, F., 2019. The relationship between TQM practices
and organisational innovation outcomes: moderating and mediating the role of
slack. The TQM Journal.
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