Armani Strategy Report: Environmental Factors and Alternatives

This report provides a strategic analysis of the Armani fashion brand, examining both its macro and internal environments. It begins with an assessment of macro-environmental factors, including political, social, economic, technological, legal, and environmental influences (PESTLE analysis) impacting Armani's operations over the past 3-5 years. The report then delves into an internal analysis, evaluating Armani's strengths, weaknesses, opportunities, and threats (SWOT analysis). This includes discussions on competitive pressures, market trends, and the brand's internal capabilities. The analysis culminates in a critical evaluation of the firm's performance and a presentation of different strategic alternatives for enhancing its effectiveness and mitigating risks, offering insights into strategic planning and reporting for systematic management within the fashion industry.

Strategy report
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
1) MACRO ENVIRONMENTAL FACTORS ANALYSIS...........................................................3
2) INTERNAL ENVIRONMENT OF ORGANIZATIONAL........................................................4
3) CRITICAL EVALUATION AND DIFFERENT ALTERNATIVES........................................5
CONCLUSION................................................................................................................................6
REFERENCE...................................................................................................................................7
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INTRODUCTION
Strategic report is essential for preparing all planning procedures to be followed on to
achieve organization's effectiveness and reducing risks occur at workplace. The present report is
based on understanding different environmental factors of Armani company that affects the
organization's business operations. It is one of the most known fashion industry organization of
UK that provides different luxury fashion products. In this regard, critical evaluation on last
years' operations and current position of entity can be described through this assignment.
Moreover, strategic management and various alternatives for firm's effectiveness are to be
introduced. Hence, learners are able to understand the significance of strategic planning and
reporting for systematic management of organization through this report.
1) MACRO ENVIRONMENTAL FACTORS ANALYSIS
Being new head of research team in UK corporate PLC, I would like to analyze all
macro environmental factors of Armani of over last 3 to 5 years (Armani , 2016):-
Political factors
 UK government is fully supporting
business and under this it reduce import
and export duties. This thing support
business in the mentioned nation. Thus,
in upcoming time period demand for
the Armani products will increase in
the market.
Social factors
 People are preferring to purchase
fashionable items. Thus, it can be said
that consumer behavior of people is in
favor of the firm product.
Economic determinants
 Changes in interest rates and
government policies affects economic
environment of the nation. Current
condition of UK is not good and this
may lead to reduction in sale of the
firm product.
Technological factors
 Changes in technologies is taking place
at rapid pace and this may create
challenge for the business firm.
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Legal factors
 Firm is following all rules and
regulations tightly. However, there is
threat to firm on this front and in case
of failure to comply with law strict
action can be taken against same which
may tarnish firm image among the
customers.
Environmental factors
 Firm is adopting environment
protection measures to secure and
making less harm to environment.
Therefore, above mentioned environmental factors impact on organization's effectiveness
as well business operations. It is analyzed that over last 3 to 5 years' performance identification,
different kinds of ups and downs have be witnessed in the business organization as well interest
and exchange rate for producing goods have become flexible that affects financial position of the
company (Payette and Kimpton, 2013). In this regard, government interference and following on
various rules and obligations given by government impacts on firm's operations for clothing and
accessory products of fashion industry. However, due to dynamics in technologies for better
quality services and high level of competition, business operations of Armani has impact that is
interlinked with further productivity and profitability of organization. Hence, by focusing on all
the external environmental factors, decisions are made for operating business activities in the
future time (Van and et.al., 2014).
Thus, according to analysis of different environmental factors as PESTLE, it is
recognized that luxury goods provided by Armani are quite expensive therefore financial
position of firm get affected. In this regard, different kinds of determinants are achieved that
proceed generate various ideas for further business operations. Moreover, changes in government
policies impacts on economic and non-monetary performances of organization. Thus, legal rules
and obligations are provided for getting adjusted according to technological changes and various
factors effect on company's effectiveness. Political factors:- Different factors such as weak demand of fashionable product and
higher price of products impacts on Armani negatively. Therefore, changes in
government rules and regulations impacts on business of organization. Thus, it is needed
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for fashionable product Provider Company to prepare strategies and implementing
different tools for politically stability. Socio-cultural factors:- Due to changes in social systems and differences in choices of
various countries' people, productivity and profitability of Armani get impacted.
However, different purchase behavior and social systems are related to environment of
business organization by which further strategies get implemented for providing services
according to different cultures and their interests. Economic environmental factors:- These determinants includes changes in interest rates
and income tax planning affects Armani affects financial and non-economic performance
(Leahy and et.al., 2016). In this regard, according to different earning potentials of
various customers, demand and supply for luxury goods provided by company. Technological changes:- Time to time technologies changes that impacts on quality of
fashionable product. Thereby, getting adjusted according to these changes is difficult
because of resources and fund inefficiency. Thus, it is needed for manager to prepare
strategies according to technological changes to improve efficiency of the organization. Legal factors:- Environmental factors regarding legal includes different determinants as
Armani revenue is not affected by single country of region. Therefore, following on
different rules are obtained for operating business activities (French and et.al., 2014). In
addition to this, acquisition of business organization expresses that impacts on its
implementation.
 Environmental factors:- As per analysis of Armani performance, it is recognized that
there is poor control abilities to manage fashionable productof organization. It is
interrelated with effectiveness of business operations and different factors to improve
quality services of organization. However, environmental factor's analysis also presents
wastage of exceed material. Thus, it is needed for manger of Armani to prepare planning
for systematic allocation of resources and fund.
2) INTERNAL ENVIRONMENT OF ORGANIZATIONAL
Strength
 One of the oldest fashion house
Weakness
 High level of competition
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 Provides brand product and well known
with products' names.
 For advertisement and marketing using
celebrities like film star etc.
 Inefficient selling of luxury goods.
Opportunities
 To adopt new and current fashion
trends
 Brand expansion
 Enhancing online marketing
 Adopting creative innovations for
fashionable and attractive clothes
 Using different techniques for
advertisement to pull customers at high
level.

Threats
 Government policies on trade among
countries of the world.
 Cut throat competition
 Different countries' various restrictions
on import and export of services.
 Changes in public interest towards
quality services of organization.
Internal analysis of business operations for Armani includes analyzing its strength,
weakness, opportunities and threats which presents actual performance of the organization. On
the basis of these determinants, further planning is made as well decisions are taken for
increasing efficiency including adequate management of overall business activities. In
accordance to this, positive and negative aspects of organization is presented over 3 to 5 years
for production and supplement of product services of products by company (French and et.al.,
2014). In addition to this, various kinds of opportunities can be grabbed for better quality
services and sustaining its good reputation in the market for long time periodicity. For increasing
creativity in products, Armani can adopt varieties of techniques to enhance efficiency and
maintaining customers' attraction towards product services produced by the entity. It affects
productivity and profitability of the firm for next further years for maintaining its goodwill
regarding clothes and other services. Moreover, organization can expand in the future through
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online marketing by producing and distributing goods by order services (Gauthier and Jbilou,
2016).
Therefore, as per SWOT analysis, it is analyzed that Armani is one the oldest
organization of retail sector industry of UK. However, its strength, weakness, opportunities to
expand business are expressed. In this regard, it is evaluated that there is high level of
competition available for brand image and different customers' choices. Thus, it is needed for
entity to adopt innovations for better quality services and expanding brand image of luxury
goods provided by organization effectively.
Strength:- It is analyzed that Armani is one of the most old fashion organization of UK
that provides luxury goods and clothes (Van and et.al., 2014). Including this, company has
strong financial performance in which advertisement of product services is done through using
celebrities. Therefore, organization has effective positive aspect financially.
Weakness:- There is high level of competition in sustaining organization and its product
services in market. In this process, weakness of Armani is critically evaluated as there is
inefficient luxury goods selling to maintain customers' interest towards product services.
Opportunities:- Weaknesses occur at workplace can be reduced through grabbing
opportunities through adopting changes and expansion of brand to maintain consumers' attraction
with goods and services provided by Armani.
Threats:- Different kinds of threats are obtained at Armani including competitiveness,
differences in countries' people choice and so on (Hallgren and Burnett, 2014). Therefore, it is
needed to prepare strategies according to reducing threats and accepting challenges occur at
workplace. Hence, through analyzing this threats and making decisions for their reduction,
organization's effectiveness can be achieved at high level. However, their efficiencies will also
get improved adequately.
3) CRITICAL EVALUATION AND DIFFERENT ALTERNATIVES
As per internal and external environmental factors, actual performance of organization is
recognized that creates different ideas for better quality services and sustaining its position for
effective time period. However, the positive side is that has been effectively operating its
business by accepting different challenges which occur in the workplace (Hallgren and Burnett,
2014). In order to address the weakness that is identified in SWOT analysis firm has planned
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effectively for improving its quality services and efficiencies at high level for making decisions
regarding innovations as well maintaining its effectiveness for developing business and
competitive strategies effectively.
On the critical side, it is obtained that analysis and predictions over further
implementation can be wrong which can affect the organization's performance. In accordance to
this, lack of adequate resources and fund affects the production and distribution system of luxury
goods as well services provided by the Armani (Leahy and et.al., 2016). Including this, variances
in business operations remains challenging for operating further business activities with
following on determined planning procedures. In addition to this, analyses of past performances
and making decisions on this basis affect the effectiveness for further operations.
Therefore, it is essential for manager of Armani to analyze organization's performance
and make decisions more effectively for implementation in future time. In this regard, various
tools and techniques can be applied for better quality services and enhancing its efficiencies for
long time period (Blanco and Cohen, 2016). However, by adopting new innovations and
implementing set planning is required for company's effectiveness as well its quality services in
future time.
CONCLUSION
The study concludes that the strategy report is crucial for analyzing organization's
performance and further making decisions for increasing quality services at high level. However,
internal and external environmental factors has affected the last 3 to 5 years is presented that
leads to sustain good reputation of Armani. Including this, significance of strategy report is
achieved through this assignment for proceeding to improving efficiency and sustaining position
of entity for long time period.
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REFERENCE
Books and Journals
Blanco, J.M. and Cohen, J., 2016. Macro-environmental Factors Driving Organised Crime. In
Using Open Data to Detect Organized Crime Threats. 675(4). pp.137-166.
French, D. and et.al., 2014. Mayson, French & Ryan on company law. Oxford University Press,
USA.
Gauthier, A.P. and Jbilou, J., 2016. A strategic initiative to foster interprofessional collaboration:
A case report using a men’s healthy living programme. Journal of Interprofessional Care.
679(4). pp.829-831.
Hallgren, K. and Burnett, A., 2014. Companion Document for the Strategic Data Project and
Education Pioneers Year 2 Report: Changing Education Agencies from the Inside Out
(No. 7dfeda7ddb0c4d17a7089331ac82cd10). Mathematica Policy Research. 89(5). pp.67-
78.
Leahy, C. and et.al., 2016. From practical to strategic changes: Strengthening gender in WASH.
Final research report. The international Journal of Accounting Education and Research.
Urbana. 6(1). pp.9-89.
Payette, S. and Kimpton, M., 2013. Strategic Overview-Updates and Future Directions from the
DSpace Foundation and Fedora Commons. Georgia Institute of Technology.
Van D. and et.al., 2014. Primary school children’s internet skills: a report on performance tests
of operational, formal, information, and strategic internet skills. International journal of
communication. 6(5). pp.23.
Online
Armani . 2016. [Online]. Available through: <www.Armani.co.uk.in>. [Accessed on 12th May
2017].
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