Limited-time offer! Save up to 50% Off | Solutions starting at $6 each  

PESTLE analysis of House of Fraser

Added on - 12 Nov 2020

Trusted by +2 million users,
1000+ happy students everyday
Showing pages 1 to 4 of 11 pages
Strategic management
Table of ContentsINTRODUCTION...........................................................................................................................1MAIN BODY..................................................................................................................................11.Defining the purpose of the House of Fraser..........................................................................12. Reason behind going of House of Fraser into administration.................................................13. SWOT analysis of House of Fraser........................................................................................24. PESTLE analysis of House of Fraser......................................................................................25. Evaluation of current situation and gaps tat are required to be addressed..............................2CONCLUSION................................................................................................................................2REFERENCES................................................................................................................................3
INTRODUCTIONStrategic management is a continuous process of planning, monitoring, analyzing andassessment various aspects of the organisation to achieve the organizational goals and objectives.In the present report strategic analysis of one of them major retail chain of UK, House of Fraseris carries out who has gone under administration recently. The evaluation is carries out byconducting SWOT and PESTLE analysis of the organization to determine the internal andexternal factors affecting the operation of the business. With this an evaluation is carried outwith the outcomes of both analysis whether they meet the aims and objective of firm or not. Inthe last section of the report a detailed elevation is presented with current situation and gaps aredetermined which company needs to fill in its future strategy.MAIN BODY1.Defining the purpose of the House of FraserMission:To be at the heart of every celebration and provide heart's desire to everyconsumer(House of Fraser, 2018). The organizational Behaviours mustdeliver industry-defining standards in everything they do, ensuring ourcustomers honour them by making Fraser Hart their first choice, each timeand every time.Vision:To gives shape and direction to the future of the organisation with providingguiding lights.Valuestatement:What the organization believe is important in the way they work and behaveand this defines the way thing are get done for the organization in preset offuture times(House of Fraser | Business,2018).Objectives:The objective of the organization is to have a single heartbeat for the systemhaving single window of all the personnel.2. Reason behind going of House of Fraser into administrationGoing into administration means the administration and control of an organisation ispassed on to an appointed administrator by the court. The aim of the administrator is to leverageto assets of the company and repay the debts quickly. Ernst and Young has appointed as theadministrators of House of Fraser and it will close 31 of its store out of 59. The organization isfacing turbulence in its administration and profits for longtimeHouse of Fraser calls in1
administrators,2018). Having 59 stores in UK is a big deals abut with change in time trends andtechnology it didn't get updated with and this lead to the fact that lost interest going to theoutlays and store of House of Fraser. Another reasons for the reduced popularity was notcutting down the stores which were not popular anymore and having too much brands in thestore. The chains were using traditional way to present the products and it did not apply anymethods to make is appealing virtually and physically that attract the consumers.All these factors lead to a combination of issues such as raise in the costs, poor trading,lack on investment and inflexible and expensive store estate. This lead to enhance the cost suchas bricks and mortar and lately it has been found that lot of the goods sold in House of Fraserdoes not longer to it anymore rather more hasn't 600 third party concession owners werehawking them(House of Fraser administration,2018). The brand owned by the chain weretaking back seats. All these factors lead to reduction in profitability and popularity of theproducts and brand name House of Fraser with this the liabilities of the house increased and itstarted in lagging the payments to the creditors and all theses factors together were responsiblefor getting the House of Fraser into administration.3. SWOT analysis of House of FraserStrengths:one of the major strength of House Fraser is determined as having a strongBritish Heritage, having 59 stores in UK and Ireland. Having in hose brands like Biba andLinea. Providing facilities and service of click, buy and collect, mobile optimization, recognitionreward card and Master card. The strength of the organization also includes a wide range of thebrands and product availability at the store(Haile and Krupka, 2016). This chain enjoys as goodbrand image and reputation in markets of London and Ireland as this is a firm established in1859 which is almost 170 years old, hence hold immense level of trust worthiness of theconsumers.Weakness:The weaknesses of House of Fraser can be listed as non adherence to thenewer technology which are being adopted by each and every organisation in the market tosurvive in industry for a long term. The online shopping platform of the organization does notprovide a good and effective base for online purchasing which is one of the essential factor ofshopping in the present time. The stores of the House of Fraser do not get updated with thechange in trends and preferences of the consumers. Also, the cost of maintenance of stores is2
desklib-logo
You’re reading a preview
Preview Documents

To View Complete Document

Click the button to download
Subscribe to our plans

Download This Document