Factors Affecting Business Strategy and Social Responsibility

The provided assignment focuses on understanding the different factors that influence a company's business strategy and social responsibility. It categorizes these factors into six main sections: trade restrictions, discretionary income, demographic characteristics, social media, discrimination law, and green500. For each factor, the assignment provides examples of how companies like Ted Baker can develop strategies to overcome or address them, such as making design choices based on cultural differences or promoting products through digital marketing campaigns. The document emphasizes the importance of considering these factors in developing a favorable corporate social strategy for the welfare of both the company and society.

Retail Theory and
Practice

Table of Contents
INTRODUCTION...........................................................................................................................3
Introduction to retail...............................................................................................................3
Overview on Ted Baker..........................................................................................................3
Key changes within UK's fashion retail.................................................................................4
Relevant changes within micro environment factor...............................................................5
Strategies and tactics that could be used by company............................................................6
Recommendations............................................................................................................................9
CONCLUSION................................................................................................................................9
REFRENCES.................................................................................................................................11
APPENDIX....................................................................................................................................12

INTRODUCTION
Retailer are one who engage themselves in resale of goods and services in smaller
quantity to ultimate consumer. They act as an intermediary by linking producer of the product
with its end user or for whom it was produced. For the better understanding of this report Ted
Baker company has been selected which is British retail clothing company. The global brand that
is Ted Baker basically deals in clothing for women, men and children clothing as well as
accessories (Zada, 2017). This report carries discussion about retailer and overview on company.
Additionally, it include changes in UK's fashion retail as well as relevant changes within micro
environment. Furthermore, identify best suitable strategy for the tactics of company.
Introduction to retail
The term retail refer to selling of goods and services through intermediary or multiple
distribution channel to earn significant amount of profit. The role of retail market is to purchase
the goods from wholesaler or directly from producer with the purpose to deliver it to customer.
Additionally the retail mix apart from 4P's that is product, price, place and promotion also
includes the other two P's which are personnel and promotion. Moreover, with the expansion of
digital economy retail market either operate their business from brick and mortar store or by
online retailing (Dimitrakopoulou, 2015). If the business is into fashion then they initially
identify the market trend or preferences of customer. Accordingly, they select the design for their
cloths and finally present their stuff either in their own retail store or sale it to other retailers
who finally makes the use of their personnel to present the product in such a manner it gains the
attention of its targeted segment.
Overview on Ted Baker
Ted Baker is a fashion retail premium company whose headquarter is in London, United
Kingdom. It was founded in 1987 and basically deals in clothing for different category such as
men, women and kids. The founder of Teb Baker was Ray Kelvin who took the initiative and
started the business in 1988 with its first store. After few years they take licensee in their
footwear to manufacture supreme quality of fooptwear. Respective company has earned more
than £550.2 million of revenue on 2018 and has more than four hundred stores worldwide which
shows the market size of it is enormous. One of the reasons for their growth was that with the
help of their wholesale business they expanded their presence in street. They basically cater huge

customers from their physical store as well as through online platform. Moreover, their first brick
and mortar store was opened around thirty years back in Glasgow then they earned suitable profit
and further opened various store in places like Manchester, Nottingham and so on. Additionally,
they offer various discounts and showcases wide variety of product through their website to
enhance their market size and cover world wide population. Therefore, even after huge
competition in retail industry above mentioned company earn huge profit because they come up
with unique style (Votsari, 2015). For which they analysing the demand of their existing
customer which keeps on changing with the change in time. Thus, Ted Baker is known for its
commercial fashion stuff that include distinct hues as well as pattern for its high quality design
due to which they have sound financial position.
Key changes within UK's fashion retail
To analyse the external macro environment factor for fashion retail Ted Baker PESTEL
analysis is used that causes direct impact on the growth as well as existence of company.
Political factor: Political factor include trade restriction, government stability,wage
legislation etc. that directly affect profitability of firm. Herein, Ted Baker which deals in
personal as well household goods run its operations in various countries within UK. Thus, they
should diversify their risk by analysing the political condition appropriately. For instance,
company can make provision to minimise trade restriction or trade barrier that arise while
importing the goods on other country. Along with that company must abide by the labour
legislation like fair wages on the basis of output produced. This help the company to maintain
the transparency and decrease the negative implication of political factor.
Economical factor: It include inflation rate, foreign exchange rate and so on that
positively or negatively affect the business. In context to Ted Baker, must operate its business on
the basis of different economic cycle like during the time of boom company can launch premium
products because at that time customer is ready to spend. Similarly, at the time of inflation
company can bring different rage of product with comparatively low price. This clearly depict
business operate in dynamic environment so they need to adopt strategy for UK market
accordingly (Rajkumar and Arulraj, 2018).
Social factor: Ted baker should know about the belief, shared culture and attitude of
population before starting their operations. Thus, selected company must make effective decision
or design the outfit based on the likings of customer otherwise company can loose its customer.

Therefore, to make it easier company can make division on the basis of demographical factor
that includes age, gender and so on. Accordingly, they can promote their product for their target
market (Akehurst and Alexander, 2013).
Technology factor: Technology factor includes innovation, research and development.
With the change in time company must adopt technological changes. In context to Ted Baker
remains updated in social media to enhance their reach and increase the conversion rate of UK's
population. This also helps the company to spread brand awareness about the company.
Therefore, to gain the positive publicity respective company is a part of various fashion shows
and collaborated with various designer to promote their brand at large scale. These strategies has
worked in favour of company to gaining the huge base of loyal customer.
Environmental factor: Company must consider environment factor like pollution target
to minimise the implication of those factor which can negatively affect the environment. Ted
Baker is a part of corporate social responsibility where they have collaborate with various non
profit organisation such as MADE-BY which helps to improve the life cycle of brand from raw
material till preparation of final good. Apart from that they are a part of Green500 where to try to
reduce the emission of carbon. Additionally, they have abolished the use of plastic bags which
are harmful for the environment of UK.
Legal factor: It include right and laws prepared by various countries of UK which needs
to be abide by company to run its business process smoothly. Ted Baker follows appropriate
code of conduct for its employees like safe place to work, clean environment and fixed working
hours. Along with that they have promote equal laws for all personnel who are the part of
respective organisation. This method helps to gain the trust of employee and promote them to
efficiently work for the organisation (Kolokolnikov, 2013).
Relevant changes within micro environment factor
Micro environment include factors like competitor, supplier, shareholder, media and
employee that directly affect the strategy, performance and decision made by business.
Competitors: It is significant for the company to do competitive analysis of its
competitor. Otherwise the strategies adopted by competitor can directly impact on the
performance of business. As Ted Baker is well known brand having lot of competitors like
Armani, Tom Ford, Oliver Spencer and so on. In order to operate in competitive environment

selected company adopt differentiated strategy so that customer will find their product distinct
from competitors.
Customer: Customers are the source of revenue for the company due to company should
attract new customer as well as retain existing customers by satisfying their need. In context to,
Ted Baker provides different design and uses different pattern for various category like classic
cloths for men and creative pattern for kids.
Supplier: Supplier are one who provide raw material to the company to start their
production process without any hurdle. Respective company make strong supplier relation so
that they don't remain short off raw material and can get high quality material at reasonable
price.
Media: Organisations makes the use top media to connect with their customers and
portrait positive image of company. Ted Baker remain active in various social media sites like
Instagram to post the various pictures of their product. Along with that during the festive season
they come up with new collection to increase the footfall of their company. Moreover, they have
collaborated with various designers to gain the attention of public (Crawley, Swailes and Walsh,
2013).
Employee: Employees helps the organisation to make their goal achievable. Herein,
respective organisation provides continuous training and learning session to their staff like, how
to deal with customers or how to handle their grievances peacefully. This improves the existing
knowledge of employees which can be utilised in favour of company. Along with training
respective company follows the guideline or code of conduit for its employee like providing
them hygienic environment to work. This helps in motivating the employee and helps the
company to achieve organisational objective.
Strategies and tactics that could be used by company
Macro environmental analysis includes PESTLE which is clearly stated below:
Political factor
Trade restriction: In order to promote domestic countries product, the government of
other company can impose trade restriction. These trade restriction are in form of high tariff or
imposing restriction in the quality of product that can hamper the profitability of Ted Baker.
Thus, to overcome trade barrier selected company can plan for strategy like installation of
manufacturing unit or plant in various countries.

Wage legislation: Each country has their own legislation that safeguard the interest of
labour like fair wages and fixed working hours. Thus, before starting operations in any country
selected company must make strategy or concept on the basis of other country's legislation and
abide by them.
Economical factor
Inflation rate: Inflation rate refer to rise in prices of commodities like food, clothing as
so on. It decreases the purchasing power of consumer leads to less circulation of money within
economy. In that case Ted Baker can implement various concept like they should avoid long
term investment and must lower down the prices of their product. So that instead of saving
customer can invest their income on reasonable range of product.
Discretionary income: It refer to the income which comes in the hand of customer after
deduction of all taxes. In simple, words, customer utilise this income for making all its
expenditure. In context to respective company, must analyse the purchasing power or the
discretionary income of various country before expanding their operations. In such case
company can set different price strategy based on income of consumer (Evans, 2017).
Social factor
Culture: Company must make effective decision based on dressing pattern and selection
of colours on the basis of culture of various country. Therefore, company must make different
promotion strategy for different segment to appeal the interest of existing as well as potential
customer by designing appropriate marketing message.
Demographic : demographic factors include various variable like gender, size of family,
income, occupation etc. Thus, selected company can use various concept like they can divide the
population on the basis of various variables and according they should target the market. For
instance, they target to children, younger generation and adult.
Technology factor
Social media: With the increase of digitalisation, Ted baker has widen its reach by
making the policy or strategy for expansion of their brand. They are active on various social
media platform like Twitter, Facebook, Instagram and so on. This helps them to engage wide
traffic at cheaper rates (Karrholm, 2016).

Fashion show: Respective company use fashion show platform, or fashion magazine to
showcase their latest trend. Thus, for this they use digital idea or solution like live streaming
shows to gain the interest of customer for their brand.
Environmental factor
Green500: Companies must make CSR strategy to secure the interest of environment or
society. Herein, Ted Baker the aim of London Green500 is to reduce the emission of carbon like
by 2015 they have decided to reduce it by approx 60%.
Avoid the use of non biodegradable resources: Selected company avoid the use of
plastic bags which are not good for the sake of environment. Thus, they have made effective
strategy by replacing plastic bags with paper bags (Parab and Salker, 2018).
Legal factor
Code of conduct: Apart from performing the business operations, selected company take
the care of environment as well as their employee by providing them safe as well as clean
environment to work. Along with that they have made strategy against child labour due to which
its is considered as favourable place for employee to work.
Discrimination law: Above mentioned company adopt uniform law for its all internal
member whether male or female and avoid favouritism due to which they are successful in
maintaining long term employer employee relationship. Along with that the turnover and
absenteeism rate of respective company's employee is low
Micro environment factor are mainly the stakeholders of the company that affect its
performance in following ways:
Customers
Identify their preferences: Selected company must try to identify the latest preference or
interest of consumer and accordingly they must design the products. This concept helps in
eliminating the gap between the need of customer and production done by company.
Competitors
Analyse the move of competitor: Though Ted baker believes in providing differentiated
product for its customers along with that they provide should keep a check on its rivalries
strategy such as pricing strategy. This helps the company to gain advantage over their
competitors (Spaargaren, Oosterveer and Loeber, 2013).
Employee

Positive reinforcement: Respective company should motivate their employees by
providing them monetary or non monetary benefit. For instance, company can set sales target for
its sales team. This measure not only help company but to sales person to gaining additional
income.
Recommendations
 If Ted Baker wants to expand its market with or diversify its brand in other country. For
this they should analyse the macro as well as micro environment factor significantly and
adopt the strategy accordingly. To conduct macro analysis company can take the help of
PESTLE analysis and for micro factor company should analyse all the stakeholder.
 Though company has made collaboration with designer but they should also form
strategic alliances with its competitor to create win win situation for both of the fashion
retailers.
 As there are more than four hundred outlet of Ted Baker which is profitable for company.
But to retain its customer they should provide training session like run seminar,
conference or practical training session to its existing as well as new staff. This method
helps in updating the knowledge and skill of their personnel.
 With the help of social media company enhances their connectivity with various
customers. Thus this connectivity should also be maintained in their physical retail stores
as the company has to bear cost for its retail store. Therefore, they must generate suitable
profit from their brick and mortar outlet as well. To make this happen staff of company as
well as presentation of stock plays a significant role.
CONCLUSION
From the above project report it has been articulated that identification of continuously
changing customer preferences and trends is essential in fashion retail business in order to
achieve targeted performance and to adopt and implement new innovation and innovative
processes accordingly. This assist organisation to attain sustainable growth by retaining existing
customer base and attracting potential customers. Identification of external factors using
PESTEL analysis provide assistance to gain detailed and relevant information or knowledge
about current government rules and regulation, latest technology, updated rate of inflation etc.

Moreover, conducting macro environment's PESTEL analysis assist business organisation to
gain knowledge about behaviour of consumers on the basis of latest fashion.

REFRENCES
Books and Journal
Zada, I., 2017. Studying the External Environment of the Organizations and Evaluating the
Strategic Options to Win a Business Competition.
Dimitrakopoulou, P., 2015. The Development Of A Bussiness Strategy Model For A Luxury
Brand.
Votsari, E., 2015. The Chinese Luxury Fashion Market.
Rajkumar, C. and Arulraj, A., 2018. Seed mediated synthesis of nanosized zinc oxide and its
electron transporting activity in dye-sensitized solar cells. Materials Research Express.
5(1). p.015029.
Kolokolnikov, A., 2013. International Fur Trade: Trends, Challenges, Prospects.
Crawley, E., Swailes, S. and Walsh, D., 2013. Introduction to international human resource
management. Oxford University Press.
Evans, N. N., 2017. The internationalisation strategies of small and medium-sized enterprises
(SMEs) clothing suppliers in the UK (Doctoral dissertation, Manchester Metropolitan
University).
Parab, S. S. and Salker, A. V., 2018. Structural and optical properties of Tb and Na–Tb co-doped
Ca3V2O8 phosphors prepared by sol–gel process. Materials Research Express. 5(1).
p.016302.
Akehurst, G. and Alexander, N. eds., 2013. The internationalisation of retailing. Routledge.
Spaargaren, G., Oosterveer, P. and Loeber, A. eds., 2013. Food practices in transition: changing
food consumption, retail and production in the age of reflexive modernity. Routledge.
Karrholm, M., 2016. Retailising space: Architecture, retail and the territorialisation of public
space. Routledge.

APPENDIX
Political Economical Social Technology Legal Environmental
Trade
restriction
Discretionary
income
Social media
Wage
legislation
Demographic Discrimination
law:
Inflation rate Green500
Culture Fashion show
Code of
conduct:
Avoid the use
of non
biodegradable
resources
Strategy adopted for various factors are defined below:
Trade restriction Wage legislation Political factor To overcome the barrier of
trade restriction company can
open manufacturing unit in
other country. Similarly, for
wage legislation company
must formulate same or equal
laws for all its internal staff.
Discretionary income Inflation rate Economical factor The pricing strategy as well
as different range of product
should be introduced on the

basis of discretionary income
as well as economic cycle
Culture Demographic Social factor Ted Baker must make design
strategy like use different
combination of colour on the
basis of culture or belief of
customer. Similarly, they
launches product for various
category based on their
demographic strategy.
Social media Fashion show Technology factor Selected company promoted
their product by making the
use of digital marketing
strategy and sponsor various
fashion shows.
Discrimination law Code of conduct Legal factor Company need to make
strategy regarding unbiasness
among employees as well as
working toward welfare of
society.
Green500 Avoid the use of
non
biodegradable
resources
Environmental Respective company should
adopt favourable corporate
social strategy for the welfare
of company.