Reflective Business Strategy Report for Monoluxe Ltd

This reflective business strategy report discusses Monoluxe Ltd, a UK-based luxury shoe maker organization. It covers their mission, vision, and values, corporate objectives, major strategic decisions, situational analysis, and the impact of emerging technology on the future of business. The report also provides recommendations for future managers. The report is based on the year 2015 and offers key lessons learned from the company's performance.

REFLECTIVE BUSINESS
STRATEGY REPORT

Table of Contents
BACKGROUND.............................................................................................................................2
MISSION, VISION, AND VALUES OF MONULUXE LTD.......................................................2
CORPORATE OBJECTIVES-........................................................................................................3
EVALUATION OF MAJOR STRATEGIC DECISION................................................................3
The year which stood out-...........................................................................................................4
Key lessons learnt-.......................................................................................................................4
SITUATIONAL ANALYSIS-.........................................................................................................5
Situational analysis-.....................................................................................................................6
industry and sector analysis-........................................................................................................7
THE IMPACT OF EMERGING TECHNOLOGY ON THE FUTURE OF BUSINESS.............11
RECOMMENDATIONS TO FUTURE MANAGERS................................................................12
REFERENCES................................................................................................................................1

BACKGROUND
MONOLUXE Ltd is a shoe maker organization which is getting operated in UK and providing
luxury and precious shoes to its customers. This is a very prestigious organization among people
due to vintage quality of product and keeping customers in centre.
In the market the company is facing great competition, in the report the performance of the year
2015 has been considered.
MISSION, VISION, AND VALUES OF MONULUXE LTD.
Mission-
 To extend the best set of values to our customers and making strong place in the shoe
market.
 Giving the best quality goods to the customers.
 Being very accessible and attractive.
 Upholding social moralities.
 To be Number One in the nation.
 Values of the organization consist honesty, innovation, righteousness, credibility,
working with full potential and the biggest thing to make the customers satisfied.
CORPORATE OBJECTIVES-
MONULUXE Ltd is engaged in manufacturing of luxury shoes and providing it to its elite
customers. The main objective of the organization is to strengthen its position in the nation and
making strong place in the industry (Nandonde, 2019)
 To achieve 20% market share by the year 2015
 Gain ROE around 10% every year.
 Image rating of the organisation is supposed to be kept at around 70.
 Attaining A grade image rating.
 The market grasp of the company is also needed to be soared up to 2015.
 EPS of the company has to be increased to 5.5 between the year 2010 to 2014.

EVALUATION OF MAJOR STRATEGIC DECISION
In the year 2010 when company very first time got introduced in the market with its unique and
luxury shoes for vintage customers. It had vision to expand the business across the world. In the
first year the targeted area was Asia pacific and North America. In 2010 when the investors'
expectation score for the company was 100 and as it was expected the company achieved it. Now
there were a lot of competitors so company decided to expand its operations so can cope up
them. In 2011 production was hiked in the targeted market, due to the taken strategic decision the
expected score of investors took a height and reached to 105 at the same time the leading
company had this score around 114 (Pool, 2018)
Company realized that the capacity of workers was not as much efficient as it should
have been so robot-assisted production technology was introduced in 2012, due to taken action
the investor expectation score surged and reached to 111 which was second best in the industry.
Further, in the year 2012 marketing (Owako and Owako, 2019) was also given full attention in
order to place tougher competition before the key competitors of Monoluxe Ltd.
Robotics changed the employee model and now the productivity hiked up to 50% in the
plant so in 2013 the rating surged to 119 and the company secured number one position in the
entire shoe industry. In 2014 company faced some issues since due to use of robotics the conflict
took place and uproar also affected the operations to some extent yet the performance was good.
Company also made purchase of new equipment and machineries in order to hike its
performance in the market. In 2015 the results of the all these actions started being reflected in
the performance of the organization. In the year net profit of the company has been 220907 and
Investor’s expectations also roared since EPS was around 11.82% in the year.
The year which stood out-
The year 2015 had shown something bigger and better compares to the previous years. In
this year not only the profits of the organization but other key indicators like EPS, Net revenues,
Net profit, Expectations of investors all had been better and stronger.
One of the main reason this year performed outstanding was the cumulative efforts of
previous years. Since while starting the operations there have been so many perilous situations
for the company but over the time it changed some strategies. For instance, using Robotics,
Hiking hold of equipment, targeting one market, countering competition, and using marketing in

fully fledged manner. These all actions were taken in different years but generally it takes time to
reflect results of such smart moves, Which ultimately made the year 2015 stand out
(Antomarioni, 2021)
Some other reasons were like higher expectations of investors made the company better
choice that has been strong reason behind bigger funds of the organization which drove it to
purchase more plants and equipment. In the year 2015 the equity of the company was 590023
and retain earnings were 183519 so ultimately ending equity was 773542, which is third highest
among the competitors of Monoluxe Ltd.
Key lessons learnt-
The key lessons learnt from the year that business like Monoluxe Ltd which is engaged in
shoe manufacturing organization which is very much dynamic and also faces huge competition
as well, so it is better to target such segment and by deploying full capacity to uproar the
marketing so can make sure better dissemination of product awareness too (He and Xiao, 2019)
Despite better performance due to adaption of robotic technology, but it also kicked off
conflict with the employees which is not a good symbol for a high performing organization.
Some other aspects such as market diversification is also needed.
The workforce statistics of the company at the end of the year 2015 are not much
satisfactory since in the markets like North America, Asia pacific, Latin America it is having a
good hold but at the same time in Europe Africa realm the presence of the organization is very
disheartening, since all key elements like wages, fringe benefits, overtime pay, compensation are
showing 0 with respect to payment to labours. Even workforce productivity is also null.
In 2015 North America 437 employees, in Asia pacific 1363, in Latin America 657
employees were deployed but in Europe Africa the data was 0. Here it is deciphered that the
company is not expanding its business there at the same time other competitors are already
notched up their presence.
SITUATIONAL ANALYSIS-
For the company SOSTAC model is as follows-

SOSTAC is the model which clears the picture of the organization such as where it is, where it
wants to go and how it would be carried out.
Factors
Situational analysis For this purpose PESTLE would be used.
Objectives To expand the operations of business.
Strategies A set of strategies are used.
Tactics Better products and hyper marketing.
Actions The strategies would be implemented.
Control Standards and some benchmarks are decided so
can control.
Situational analysis-
For the purpose PESTLE analysis has been carried out.
Components
Political factors The approach of the government has been very much dynamic but due
to their policy of giving boost to the industry it would be in benefit for
the company (Riwayadi, Deliabilda and Panahatan, 2021)
In retail sector some other political aspects like policies of the
government such as labour laws, some rules such as regulation made by
government based on competition regulation must be taken into
consideration. The company focus on special tariff and changing rates
on export import regulations. Keeping in mind about trade tariff
company focus on expanding its business in new and emerging markets.
Economic factors Due to economic factor, such as change in interest rate, unemployment
and inflation rate, the company have to be very active while keeping
track on trend. The economic well-being may influence the firm's
performance. It has been noted that the economy of UK has a high
influence on the nations which is nearby. Due to these factors potential

customer purchasing power may get impacted. Before implementing
any strategy the MONULUXE has to focus on factors that will impact
purchasing power.
Sociological factors Nowadays, customer purchasing behaviour can influence the power of
customers. Factors such as cultural values, social trends and lifestyles
have high impact on the company's business operations. As per the
survey taken almost 3.1 % of GDP of UK is spent on industry centre as
compared to other areas. With the support of social factors the company
can enhance their performance. It is essential for them to keep track on
changing social trends and demographics.
Technological factors Due to heavy competition in the usage of technology the company have
to be very active and keep themselves up to date. Changing technology
and innovation can influence the purchasing power of customers.
Automation helps the firm to achieve success and also influence the
important decisions in order to launch new goods.
Environmental factors Nowadays, customer are more environmental conscious as they not only
desire for the value for money, but they also focus on to become a good
citize (Widya Yudha, 2018)n in the society. The company must focus
on shortage of raw materials, reduction of wastage and climate change
which can impact the industries. The firm is focusing on CSR and
maintain sustainability to achieve customer base.
Legal factors It is essential for the company to focus on changing legal factors which
can influence the success of business. It includes employment laws,
customer protection laws and health and safety laws. In order to run
business smoothly and operate ethically it is essential for company to
abreast itself with all changing aspects related to legal factors so that
they can separate successfully.

industry and sector analysis-
The company is getting operated in the shoe industry which is very much dynamic in nature so
for the sector the analysis is carried out using Porter's five forces model.
Porter's five forces- this is the analysis used to rip off the situations pertain to the industry.
1) competition in the industry-
The shoe industry is very vibrant in UK there are so many competitors who are performing quite
higher in the market such as Churchs, Freed, Gina etc. so the industry is offering a wide window
of opportunity to the companies (Widya Yudha, 2018)
2) Potential of new entrants into the industry-
The market is very wide and also offers great opportunity to new entrants as well but due to
reasons such as pre-existence of big market giants it would not be easier for new entrants to
come and make it. Further rules and regulations are also placing toughness to the new entrants.
3) Power of suppliers
In the market supply chain is performing good and for making the shoes there are ample types of
such row materials needed for instance plastic, rubber, skin of animals etc. in the market the
capacity of suppliers is also very good. Along the side some aspects like credit giving ability is
not favourable which can impact the business (Widya Yudha, 2018)
4) Power of customers
The customers in the market are having good purchasing power, over the years in the market the
value of such lavish shoes is going up which offers good scope to the producers. Further the
personal income indicators, purchase power parity and GDP aspects are looking in the favour of
the company.
5) Threat of substitute products-
Since the market is unique in nature and offers vintage shoes which are having their specific
customer base. There is no such very close substitute product is looking available in the nearest
future. But the only threat may be experienced is due to Channing social norms. People may
prefer plastic made shoes which are not trademark product of the company, mainly leather shoes
are being made so here perilous situations can take place.

Differentiation strategy- in this industry, there are intense competitive rivalry seen
which can impact the business operations. The company achieved good position in the market in
the recent 5 years because they have provided quality services or products at affordable price.
Also, they have made outstanding progress on the global market which helped them to capture
greater market share in the competitive world (Gao and Hafsi, 2019).
The company used differentiation strategy effective which differentiate them from its
competitors. Hence, the company has gained competitive advantage in the year* by selling its
quality products to customer at affordable price. The major vision of the company is to be
number one in the competitive market and industry. In order to achieve success the company is
investing extensively such as personnel and services.
Personnel- the company is using innovative strategy to work effectively. We value the
concerns raised by staff members and also motivate them to work as a team which foster their
productive work environment. The company provide attractive payment which encourage them
to work towards their goals.
Product- between 2014 and 2015 the company has raised its market position at global
level by providing goods which has improved reputation and customer were attracted by its
attractive and affordable prices.
The firm has also provides excellent customer services giving them 24×7 customer
feedback service via email. With the help of effective distribution channels the company meet its
organizational goals.
Monoluxe Ltd have adapted keller's brand equity model
With the help of kellers brand equity model the company is able to build reputation of its
brand and create good image in the minds of customers. By doing so firm helped them grow and
also provide major benefits from the growth of its image.
 Identify- the firm's customers perceive products they have provided to them to be a
quality brand.
 Meaning- with the help of perception given by customer the company is able to provide
meaningful response and the reason to make purchase from them on regular basis.
 Relationships- the firm have build strong relationships with its customers by providing
them on time service and on time response.

 Due to customer strong perception the company is getting great response from customers
which helped them to focus on competitive advantages.
Strategic drift
 Sometimes the firm drift away from their chosen strategy. It has been said that the most
industries encounter challenges due to they fail to highlight the importance of strategic
drift.

 In phase 1 the first stage which is known as incremental change, the company is
experiencing little change.
 Phase 2 says that the business is losing its competitive advantage and not able to achieve
success comes under strategic drift stage .
 Phase 3- flux when there is now a significant gap seen in between what the market
expects from the firm and what the company is going to deliver to customers or
stakeholders.
 Phase 4 which is known as death or transformational change says - the management team
of the firm recognize the needs for change with the support of strategic direction or the
business dies at the end.
Benchmarking
To be successful, it is essential for companies to achieve competitive advantages and
measure the continuous success. Due to heavy competition in the industry, the company needs to
compare their performance and also processes effective so that management team can make
important decisions (Eisert and et.al., 2020). With the help of benchmarking, the firm is able to
gain competitive advantages which helps them to measure their performance on continuous

basis. Monoluxe Ltd, continuously focus on comparing its processes and progress level with its
direct competitors in the market. By doing so, the management team is able to gather detailed
knowledge on position in the marketplace.
CSR- corporate social responsibility
It plays a vital role in the success of business as people are more attracted towards CSR
system and sustainability. The success of organization is totally based on CSR as this can help
them to meet the needs of stakeholders and employees and also customers (Barnett, Henriques
and Husted, 2020). In order to make strategic decisions and daily important decisions the
company is focusing on meeting the requirements raised by employees, customers and
shareholders. It is essential for the company to take shareholders into considerations. Due to
growing awareness about CSR, Monoluxe Ltd focus on CSR activities such as charitable
contributions, providing training and development sessions for the betterment of employees,
recycled packing, reduce wastage, proper utilization of resources and energy efficiency etc.
THE IMPACT OF EMERGING TECHNOLOGY ON THE FUTURE OF
BUSINESS
As we all know that in today's era, changing trends in technology has put pressure on
companies to adapt new and advanced technology rapidly. The companies who focus on
adopting emerging technologies such as artificial intelligence, robotics, e-commerce facilities
and many more, they are able to gain competitive advantages. Nowadays, emerging technologies
continue to impact the way we live, enjoy, work and interact with other people, it can be negative
or positive impact (Jensen and Alcala eds., 2019). By using advanced technology, automation,
collaborative robots and shoemaking tools, the footwear industry is able to increase productivity
and make quality services more accessible for the convenience of customers.
By using collaborative robotics in the manufacturing process of shoes the company is
able to design it properly. Nowadays, the appearance of more affordable and reliable sensors has
been greatly facilitated in the shoe making process. This can be used in the maintenance of work
area and also in products packaging. Along with this, the company is using computer vision with
which it is possible for the company manufacturing department to detect the object position
clearly so that process can be completed.

Another technology which is impacting the industry is 3D printers and method called 3D
print. By applying this tool in the manufacturing process the company can easily design shoe in a
effective way. This tool has greatly facilitated the procedures which has provided great
development in making shoes.
 The major positive impact of using the above-mentioned technology is: the company can
get greater resource savings which helps them to work efficiently and enhance process of
shoemaking.
 By using this method, the firm is able to complete task and achieve automated systems
with less time of production.
 Greater flexibility can be achieved when making modification with the help of emerging
technology. But due to more dependency on technology the company has to face many
challenges such as bugs, lack of face-to-face communication between employees and
stealing of important information, people feel more isolated. By using this method, the company can serve in a better way to the user, achieve fast
growth, run its business smoothly and share useful information through technology
methods.
RECOMMENDATIONS TO FUTURE MANAGERS
It is advisable to future managers to not depend too much on emerging technology and also learn
how to address difficult challenges.
It is also suggested gathering feedback from customers and employees both to enhance team
building so that necessary changes must be done accordingly.
 Always find new ways to provide a better service to compete in the competitive world,
sometimes focus on traditional methods too rather than depending on modern technology.

REFERENCES
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Faccia, A. and Cavaliere, L., 2021. Online Banking in Italy.“Widiba Bank” Case Study, PESTLE
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strategy? Evidence from Chinese private SMEs. European Management Review. 16(3).
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Jensen, E. T. and Alcala, R. T. eds., 2019. The Impact of Emerging Technologies on the Law of
Armed Conflict (Vol. 2). Oxford University Press, USA.
Nandonde, F. A., 2019. A PESTLE analysis of international retailing in the East African
Community. Global Business and Organizational Excellence. 38(4). pp.54-61.
Owako, L. A. and Owako, L. A., 2019. Strategic Responses Adopted By Bata Shoe Kenya Plc To
Changes In The External Environment (Doctoral dissertation, University of Nairobi).
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evidence and implications for the human resource function. Emerald Open
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Pool, J. K.,2018. Employing fuzzy ANP for ranking the personality of international brands in the
sports shoe industry. Journal of Modelling in Management.
Reyes, J., Alvarez, K., Martínez, A. and Guamán, J., 2018. Total productive maintenance for the
sewing process in footwear. Journal of Industrial Engineering and Management. 11(4).
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Riwayadi, E., Deliabilda, S. A. and Panahatan, M. B., 2021, August. PESTLE ANALYSIS OF
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