Benchmarking and Current Strategy of Outland Denim Organization

This report discusses the current strategy of Outland Denim organization and the use of benchmarking to improve their performance. It also identifies strategic weaknesses and lagging indicators that affect the organization's growth.

MGT610
ORGANISATIONAL BEST
PRACTICE

Table of Contents
Executive summary.........................................................................................................................3
INTRODUCTION ..........................................................................................................................4
MAIN BODY...................................................................................................................................4
Current Strategy of Outland Denim organization........................................................................4
Based on the current strategy, what areas of the organization are being analysed?....................5
Lagging indicator 4 benchmark...................................................................................................6
What strategic weaknesses was identified?.................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................1

Executive summary
The present report has been based on benchmarking that allow the organization to
safeguard their product and services. Along with this, it has discussed strategy that need to
be adopted by the firm in order to run their business. It has also shed light on the weak
areas of the company and legging indicators.

INTRODUCTION
Organizational practice are helps the company ins order focusing on behaviour and action
of employees on the basis of daily activities. It is also included engagement of workers, efforts
for rewarding, staying committed, creating cohesive culture etc. To using the best practice it is
necessary to improve the performance for productivity of organization (Aumüller, Bernhardsson
and Faithfull, 2020). There are some ways that helps to share the best practice such as regarding
improving the efficiency, fill knowledge gaps, encourage leadership etc. To manage the changes
helps tos improve the strategy and it also helps for improving the strategy related to finance,
marketings, production etc.
The present report based on Outland Denim that is known for popular brand of Australia ,
CEO of organization is James Bartle, it is the source from Bossa a Turkish mill that is belonged
to ethical and environmental issues since 1951. It is deal with wide ranges of product related to
clothing ons the basis of highs proportion for eco-friendly material that are including cotton and
sustainable raw materials. Also, it offers clothes foe men and women both by including jeans,
shirts, jackets boots etc. The current market overview of company is to good in order to attract
more customer by providing them sustainable goods also the market share of Outland Denim are
related to 25 percent but due to covid 19 and large number of customer it has affected (Clos and
et.al., 2020). Further, the greatest PESTEL element that is affecting the organization’s current
strategy either negatively or positively by considering the environmental factor by offering
sustainable product on the hand technology innovations affect increase the cost of products and
due to economic policy of Australia there are major decision taken by organization in orders to
increases tax and tariff rates that impacted negative buts additions to this, social factor are
necessary to promote different cultures so that it can attract large number of customer.
MAIN BODY
Current Strategy of Outland Denim organization
An organizational strategy is basically a sum of action that a company adopt in order to achieve
its long-term goals and vision. The current strategy of Outland Denim organization includes
sustainable sales strategy, hybrid financing, social medial marketing, pricing strategy and human
resources management strategy. Firstly, the sales strategy of Outland organization involves
sustainable supply chain with the help of which Outland organization promotes human rights,
fair labour practices, environmental progress and anti-corruption policies (Teinemaa and et.al.,

2019). Further, the current strategy of Outland denim company also involves financing strategy
which indicate that Outland denim company uses hybrid option to raise the funds rather than
equity and debts. It is because hybrid rate of return is higher than any debt and equity rate of
return. Another current strategy of Outland denim involves marketing strategy. The marketing
strategy of Outland denim company is such that they use social media platform to promote its
clothing products to local as well as international customers rather than TV advertisement, public
relation and newspaper marketing. It is because the social media marketing strategy is best
promotion strategy of modern time. In addition, the pricing strategy of Outland company with
the help of which they set their cloths price is cost leadership (Tsai and et.al., 2020). It means
the company sets its price keeping in mind the cost coverage as well as profit margin aspects. It
is because the profit that Outland denim company earn from its products sales, is further
reinvested by management in the research and development. This R&D strategy of Outland
denim company indicate that the reinvestment of profit helps the company to research on current
fashion trends including changing preference of customers. In this way, the company uses their
profits in R&D.
Based on the current strategy, what areas of the organization are being analysed?
On the basis of current strategy there are different area of organizations are analysed such
as Outland denim focus on sustainable sales strategy which is help for organization promotes
human rights, fair labour practices, environmental progress and anti-corruption policies. This
practice is related tos environment factor that are need to analyse. Also, it will help for
understanding the company in better manner. The finance strategy are related to key area by
which company can find out the progress ins order identifying how cans it raises the fund by
equity and debt. This helps to manage finance department on the basis of hybrid rate of return is
higher than any debt and equity rate of return. Then marketing strategy are helps to analyse the
areas of socials media marketings that on the basis of developments the brand images of the
company by promoting clothing on different platforms such ass Instagram, Facebook etc (Cunha
and et.al., 2020).
On the basis of traditional method of promotions it helps to identify the organization that
are related tos build goods images of company by promoting on road side so that it can help the
customer by activating them. Further, the strategy used for pricing is cost leadership style that
helps to analyse the market situations of the company and how it can be build customer base on

the basis of this approach. It also helps to find out that the company needs to set price by keeping
in mind readings the coverage and profit margin. It is because the profit that Outland denim
company earn from its products sales, is further reinvested by management in the research and
development. On the basis of R&D strategy of Outland denim company indicate that the
reinvestment of profit helps the company to research on current fashion trends including
changing preference of customers. In this way, the company uses their profits in R&D.
Lagging indicator 4 benchmark
Lagging indicator is defined as observable or measurable factor that changes after
financial or economical variable. In simple words it is related with trend and changes in the
trend. It can be defined as tool used for business operation and strategy as well as to analyse
the trend of economy. It generally differs form leading indicators like retail sales that are
used to forecast and make prediction (Ziegler and et.al., 2021). Moreover, in terms of
business a lagging indicator is key performance indicator that is used to measure the past
performance as well as operational data that impact on business strategy. The business lagging
indicator are basically known as key performance indicator that help in measuring the
performance after sales and customer satisfaction. Although it is bitten difficult or impossible
to influence directly. It helps the organization in providing the insight into the results achieved
by company. Although business can track leading indicators that measure internal
performance like employee satisfaction and customer satisfaction that can be influenced
directly and it can lead into lagging indicators (Demir, 2019). Although organization can make
use of business intelligence tool in order to compare and identify leading and lagging
indicators. Generally it is the tool that forecast about what already happened in the business
and some of its common example are revenue growth and profit. Along with this, it is easy to
identify and comparable in other industry that makes it useful. Although, outline Denise can
analyse their growth by making use of KPI tool t or comparing the sale of the company with
competitors and on monthly basis. It provides the organization with clear idea about the
growth rate and things it needs to work on. If company know about their market situation then
it can easily launch new product in the market.
Moreover, the company need to measure customer satisfaction by making use of
data analytical tool that will help the organization in knowing about the needs and want of
their targeted audience. Along with this, it is necessary for the organization to analysis of the

customer and employees in order to provide them with quality good and services. Thus, if
organization look after this legging factor then it can easily improve their sales and growth
rate. Furthermore, the company is following social media strategy in order to increase the
sales of the business (Verenich and et.al., 2019). Thus, it needs to keep the data protected form
the competitor inn order to keep information of their customer safe. Along with this, company
can make use of bench mark tool in order to protect the identity of the product. This will help
the company in maintaining their growth as well as revenue. In addition to this, another
lagging factor that will affect the organization is unemployment rate. If customer income rate
is low then it Will buy low price product that will result in decreasing revenue of the
company. Thus, company need to analyse the external market in order to know future
threat and goal that will affect company growth and productivity.
What strategic weaknesses was identified?
There are different types of strategic weakness that are identified such as follows:
Financial weakness- this weakness is related to limited cash flow that are commons in
financial weakness but ins this industry the finance are affected in order using expensive
equipment for sustainable practice and other materials which are need to operate. Also, in the
year 2020 chosen firm not made enough cash flow that are affected the cost of product then it
affects the large number of customer by providing profit to them. Lacks of investor are interests
to invest because due to covid there are major problems faced by company. Also, there were
different strategy followed by the company to attract potential investor.
Pinpoint quality concern- When the Organization change the technology it affects the
quality of the product because there are some problems that are affect related to people thought it
has been compromising on quality. To focus more on quantity it affects the market and there
were very customer who were interested to buy the same product by compromising the quality.
Also, it has been identified that it is necessary to adopt this technology which helps the company
by makings more money so that it helps to improve the productivity (Zhang and et.al., 2019).
Poor Marketings strategy- There is poor marketing strategy followed by the company
this is impact on organization ins negative manner. It is necessary to use this technology that
helps the company by providing good brand image. Brand image is affected so it is necessary to
hire market team that can helps for improving the social media strategy such as by promoting
daily update regarding customer review and active on Instagram help to attract large numbers of

customer and because of this is also affected the supply chain and when the supply chain is it
affect market it directly because biggest weakness and at that time competitors get the chance for
attracting the customer by help them to provide discount.
CONCLUSION
From the above report it has been concluded that benchmarking is defined as process
of measuring product, service and processes against competitors that sell similar product.
Although it is one of the important tool that is used by firm in order to improve and
implement changes in business methods and product. Along with this, benchmarking practice
provide better understanding of customer wishes and expectation. Benchmarking help
company in meeting the areas of gap between their standard and other competitor. Thus, it
helps company in prioritizing the areas as well as improving weak areas. The report has
also depicted about the strategy that need to be adopted by the company in order to increase
their sales.

REFERENCES
Books and journals
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