Business Environment Analysis of Arcadia Group: Strategies and Models

This report provides a comprehensive analysis of the business environment surrounding the Arcadia Group, a multinational retail company. It begins with an introduction to the business environment, followed by an overview of the Arcadia Group and its operations, including its strategies for making money in the UK market. The report then delves into the internal analysis of the company using the value chain model, examining primary and support activities. Further, it explores the micro-environmental forces impacting the business, such as customers, competitors, suppliers, media, and employees. The analysis includes a SWOT analysis to assess the company's strengths, weaknesses, opportunities, and threats. The report concludes with a summary of the findings and reflections on the academic models used throughout the analysis.

Business environment
analysis

Table of Contents
...................................................................................................................................1
INTRODUCTION ..........................................................................................................................3
1 : Arcadia group ........................................................................................................................3
2 : Value Chain Model.................................................................................................................3
3 : Micro- environmental forces which affects the business........................................................6
4 : Model of internal business environment.................................................................................7
CONCLUSION ...............................................................................................................................8
REFERENCES ...............................................................................................................................9

INTRODUCTION
Business Environment contain various internal and external elements that directly or indirectly
affect business growth and profit. Different organization have different objectives and goals and
business environment help them to fulfil the goals and objectives. This report will present
Arcadia group business strategies that how company work and how they make money in UK.
This will also examine the internal analysis of Arcadia group using value chain model. Report
will also show micro-elements such as suppliers, customers etc. (Akhmetshin, 2017). In the end
of the report it will show reflection on academic model.
1 : Arcadia group
It is a multinational retailer company which deals in clothing. Accessories, and shoes. Its
headquarter is situated in London. It has been established in 2002 as Arcadia group. It sells the
product around the globe. Arcadia group has owned many valuable retailers such Burton, Evans,
Topman, Wallis, Dorothy perkins etc. For making money in UK, Arcadia group always try to
have a communication with its existing customers and audience and try to offer them the
products as per their needs. It is important for the company to know that is there customer getting
information about the various discount offers and sale which Arcadia group is doing for them. As
there are many big retailers of clothing and accessories available in UK so it becomes difficult
for this company to survive there for it has reduces its prices of products and offering new
designs in outfit to attract the customers. To make margin profit it has distributed its product to
high street brands and expand its distribution network. To reaching at more customers it has
opened numerous stores in UK to target the untouched customers, but sometimes it becomes
difficult to open physical stores because it needs high investments as the stores should be
glamorous and attractive with having new stuffs for reducing cost and to make money, it has
collaborated with many big retailers and malls, to open joint showroom. It increases the
customers and audience also give opportunity to the company.
2 : Value Chain Model
This model explains the full range of desirable events to create a product or service. It is a
process where company identify its primary and supportive activity. These activities ad sub parts
such as operations, marketing & sales, services, inbound logistics, outbound logistics, firm
infrastructure human resource management, procurement and technology. These sub parts of
primary and supportive activities help to add values in company’s final product or services. This

model represents the internal activities of company. This models aim is to identify which activity
is best for the company to produces best product and for completive advantages. This model also
shows the activities that are harmful for company’s growth. Value chain model analysis that
Arcadia group has one of the best value chain in comparison to present retailers in market. It
offers approximately 225m units of products distributed in 55 countries across the globe. Arcadia
group have approx. 2500 stores in UK and 500+ stores in different countries. It also has online
market for marketing and sales of the products. It also delivers consumer services for all of its
brands like Topman, Topshop, Evans and Dorothy Perkins etc.
Primary Activities: These activities are directly connected with creating and delivering products
or services. It has five main areas: inbound logistics, operations, outbound logistics, marketing
and sales and services. These primary activities are interlinked with to supportive activities
which help Arcadia group to improve their efficiency and effectiveness towards product
development and services (Stevenson, and Cole, 2018). Primary activities are:
Inbound Logistics: In this activity Arcadia group ensure that the product being used from the
company’s suppliers. This function is also connected with external companies for supply.
Inbound logistics includes activities such as receiving, storing and disseminating inputs to the
product. Arcadia groups carries 225m units from 55 countries using sea, air and road.
Example: Material Handling, warehousing, inventory control etc.
Operations: In this activity raw material and product are manufactured into desired product. In
this phase production equipment is used such as factory conveyor belts. Arcadia group sent
product at production centres for final product. They do attractive packaging’s to attract
customers.
Example: Machining, Packaging, equipment maintenance, testing etc.
Outbound Logistics: This activity ensures the distribution of manufactured product to different
centres such as wholesalers, retailers or consumers. In Arcadia group this department includes
collecting, storing, delivery, processing of orders and physical distribution of the product direct
to buyers. In this activity Arcadia group ensure that product reach to stores or customers.
Example: Manufactured material handling, delivery vehicle operations, order processing and
scheduling etc.
Marketing & Sales: This activity must ensure that the product or services is delivered at exact
customers or stores. In Arcadia group marketing & sales department use marketing mix strategy

to increase its sales. It creates effective strategy that give strong competition to the competitors
(Beretta, Stucki and Hellweg, 2017). Arcadia group represents its products and service very
effectively in market and also use various marketing strategies.
Example: Promotions, advertisement, sale force, quoting, channel relations and pricing.
Service: After the product or service is sold organization offer services to customers related to
products. In this activity customer can complaint if they are unsatisfied with product or service.
In this activity company maintain the values of the product. Arcadia groups provide service to
consumer’s behalf or all brands, stores and internet sales.
Examples: Installation, repair, training, parts supply and product adjustment.
Support Activities: In Value chain model second Activity is supportive activities. It is interlinked
with primary activities. Its aim is to coordinate with primary activities and support for best
possible outcome in product production and for profit of an organization. It is divided into four
parts such as firm infrastructure, human resource management, procurement and technology
development(R&D). These actives are related to primary activities. Supportive activities are:
Firm Infrastructure: It includes number of activities such as planning, general management,
finance, accounting, legal structure, government laws and quality management. Commonly it
supports whole value chain not individual activities. It is one of the most powerful activity this
should not be misjudged. In this activity Arcadia group ensure its finance, legal and management
structure work effectively and efficiently to help organization in growth and profit. Arcadia
group have 2500+ stores in United Kingdom and 500+ stores in different countries.
Human Resource Management: In this activity organization will recruit, train and develop the
correct employees according to their skills and knowledge (Ali, and Akter, 2018). This
department is important for Arcadia group to maintain their image in market and to manage the
different organizations department. Arcadia invest so much on talented employees and they also
provide trainings and develop their skills for profit. Arcadia support each brand with HRM team
and they also covering resources, development and employee relations.
Technology & Development: Innovation and technology development is used to take
competitive advantages. Technology is used in various ways such as add value, research
development, production etc. Arcadia groups provide all IT support for whole groups. Also IT
groups develop online stores. In company technology activities used to develop product and

improve its production process. In organization different technology is used such as
telecommunication technology, accounting automation software. Product design software etc.
Procurement: This department ensure that the raw material quality is good in minimum price and
they give maximum profit. It refers to the purchasing strategy in the company. This is related to
inbound logistic. In Arcadia 255m units is obtained from different 50+ different countries all
over the globe. They obtained raw materials by sea, air or road.
3 : Micro- environmental forces which affects the business
This factor refers to those elements of the organisation which can be controlled by the
management (Warum, 2020). Generally these factor does not influence the entire industries
because the strategies, potential and capabilities of the companies are different. Following are
the factors which affects the business of Arcadia group-
Customers
Customers are very important and crucial for any business. Without a customer there is no sell.
It is important for the business to know who are the customer, what quality of product they want,
as per their needs Arcadia group sells the products to tailored the customers and help them to get
what they are in need for. This company always try to find new customer for that they look
various places like social media and put some advertisement of their brand so that customer get
an idea what this company do. Customer loyalty is decreasing day by day due to the high
competition for that company offers numerous sale offer, festive discounts and provide vouchers
so the customer stick to their company.
Competitors
As this company is a retailer of fashion products so it has to face huge competition as well.
Being a fashion retailer it is must, to set a trend among customers which makes the company
different from the competitors, because it doesn't matter whether it is s big group or a small
retailer everyone has to face competition. Therefore, Arcadia group keeps an eye upon its
competitors what strategies they are making to attract the customers, for that it is must, to know
the unique selling proposition of the company. The price of the product should be affordable and
little lower than the competitors (Akoh, 2020).

Suppliers
Supplier is those who provide raw material and equipments to the company to produce the final
product. It is essential to establish a healthy relation between company and its suppliers, as both
are dependent on each other.
Media
Media plays a great role in promoting the brand and products of the company, so it is necessary
to maintain good relation with the media, because a single negative new can impact the business
and profit of the company there for every company has a PR manger who assist them to use
media (Sinha, 2020).
Employees
Hiring correct employee for correct post is very important for the smooth working of the
company. Company gives training and education to the employees regarding the new trend and
conditions which is going on in the market so that employees can put their all the efforts in
production process.
4 : Model of internal business environment
Swot analysis is the most popular model which shows the strength, weakness, opportunities and
threat of the business. With the help of swot any business and company can get to know its
capabilities, potential, and abilities (Sanito, 2020). By swot company knows where they are
lacking behind and how they can minimize their drawbacks, and how to grab the opportunities to
increase the profit maximisation. Swot assist the company to bring anticipations against threat,
build internal strength against the weaknesses.
Strength
The biggest strength of Arcadia group is it has wide range of clothing products, it is the iconic
group so people are well aware about their brand along with it focuses on providing great
customer services which emphasis the customer to stay loyal.
Weakness
Due to the proliferation of covid it has to shut down its many stores for moths thus has impacted
the profit of the company, but they are trying to overcome this (Hajizadeh, 2019).
Opportunities

As it is a big group so celebrities are always ready to endorse the products of Arcadia group on
advertisement, events and in award shows this is the opportunity for the company along with that
they can hire third party retailers to sell their product under their brand name.
Threat
Increasing competition and entering new companies in the market is a threat to Arcadia group.
As they serve their product around the globe so the economy of every country is falling down
thus it has impacted the company (Dzwigol, 2020).
CONCLUSION
From analysing the report it can be concluded that this report defines the detail about the
company called Arcadia group, its product and where they deal in. This report also elaborates
that how the company make money in UK. It also defines the value chain modes which examines
the internal environment of the company. It also explains the micro-environmental factors which
put impact on the business of the company along with this swot analysis for Arcadia has been
described, and how it helps the company to understand its internal business environment.

REFERENCES
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