Rohan's Entry into the US Market: A Viable Opportunity?
Added on 2019-09-30
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Rohan Case Study for Management in Practice 2016-17HistoryRohan is a British designer and supplier of outdoor clothing and footwear that has 61 stores and an annual turnover of £30 million. Their products are designed in Milton Keynes, Buckinghamshire and manufactured internationallyThe company was founded by husband and wife team Paul and Sarah Howcroft. They lost control of the company in the stock market decline of the 1980’s and the company was owned for a period by Clarks, until a management buyout. In 1993 Paul Howcroft was killed aged 42 in a car accident and the Cann Trust and Colin Fisher took control of the company in 2007 and set about enhancing the product range and simplifying the management structure. In the 2009 recession, the company made an operating loss of £400,000, buttwo years later operating profit stood at £384,000 with a turnover of £17.9m. Sarah Howcroft continues to run a website called 'Rohantime' for fans of the company and its products.Products The company has introduced fabrics not previously used for clothing tailored to Rohans own designs.Products include trousers and shirts made from mosquito repellent and UV protection fabrics, thermal fleeces, hats, socks and shoes. The company has also introduced a system for rating the suitability of their clothing for different Climate Zones. The clothing has been rated for its practicalityrather than stylishness.The following extracts form the Rohan website provide information about Rohan and show the culture and values of the organisation:The Rohan Website can be found at: http://www.rohan.co.uk/Content/AboutUs/HomeRohan MarketingRohan states they are not great fans of bling, overbranding and bull.Everything you need may not sound quite as rock and roll as anything you want but it’s the only starting point they understand.They make gear to keep you protected and comfortable in the world’s wildest places. From performance clothing to shoes and luggage they have created a range that is all you need and nothing you don’t.And everything is built on the original Rohan design principles that were conceived around a kitchen table in North Yorkshire nearly forty years ago and that still make them unique, they claim.
Light but durable, highly packable and fast drying gear means you can take less, travel lighter and getmore done. And because technical benefits are hidden rather than overt the clothing is much more versatile.It excels on trails and mountains but fits in, in a much wider range of settings – bringing the technicalvirtues of performance gear to the everyday.Rohan is designed and constructed to last. Subtle styles and bomb-proof build mean we have an enviable reputation for longevity. Our gear will look good ten years after the latest designer creations have become obsolete.Rohan appeals most to those that have chosen not to run in the latest consumer race. They aren’t aiming to raise the bar of aspiration and ostentation higher and higher through false promises and nonsense. They just make gear that delights our customers and delivers on our promise.Rohan Ethical TradingAs a business and as individuals they take ethical trading very seriously. Rohan has been a member of the Ethical Trading Initiative (ETI) since 2005. This is an alliance of companies, non-governmental organisations (NGOs) and trade union organisations working together to improve the conditions for overseas workers producing for the UK market. They chose to join the ETI as it seems to be the most effective and responsible way of getting things done.They have adopted the ETI Base Code as their code of conduct. The Base Code clearly sets out standards for the treatment of factory workers in all areas such as wages, working hours, conditions,forced and child labour. All our garment suppliers have formally agreed with Rohan to abide by this code. Rohan’s aim is to build proper partnerships with factories so that high quality standards can bemaintained and together they can work on all ethical issues.Rohan works with a relatively small number of partner factories and the product teams regularly visit them throughout the year. However, a further level of inspection and audit will help things improve further and quicker.Rohan Designs has worked closely with the ETI to develop a strategy for working with suppliers in Bangladesh. Since April 2013, Rohan has worked with one well established factory to produce some men’s shirt styles – this factory is included on the factory inspection list as part of the Accord on Fire and Building Safety in Bangladesh and has been independently audited.When it comes to auditing many businesses ask factories to audit themselves - and then to pay for it.Clearly there are some pitfalls to this approach so Rohan have appointed some independent and highly qualified auditors. They do their work on Rohans behalf and at Rohans cost.However well-intentioned any business might be there are always areas for improvement if you lookhard enough. Rohan are pleased to have made a number of pay and safety improvements already since the audit process started. Rohan know this is just a start and that it will be a long journey. They regard everything they are doing as just a stage on this journey, but one that they are fully committed to take together.
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