Business Environment Analysis Report: Clark Shoe Leather Company

This report provides a comprehensive analysis of Clark Shoe Leather's business environment. It begins with an introduction to the company and its background, detailing the types of products offered. The core of the report focuses on applying Porter's Five Forces to analyze the competitive environment, examining the threats of new entrants, bargaining power of suppliers and buyers, threat of substitutes, and the intensity of competition within the industry. The report also explores the company's inbound and outbound logistics and operations, and conducts a value chain analysis to identify key value-adding activities. Furthermore, it discusses the role of information technology and innovative ideas in improving business processes within Clark Shoe Leather. The analysis concludes with an overview of the company's strategic position within the footwear industry.

BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
Introduction and background of the organisation...................................................................1
Types of products offered by organisation.............................................................................2
Analysis of competitive environment though implementing Porter's five forces..................2
Outbound and inbound logistic and operations......................................................................5
Analysis to support activities in Porter value chain...............................................................6
Identification of key value adding activities..........................................................................7
Role of Information technology and innovative idea to improves business process.............7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Business environment consists of internal and external aspects that impacts on
organisation operations and functions. Employees, customers, management, suppliers, logistic
etc. are major part of business environment which relates with goals and objectives of business.
The main concern for understanding business surroundings or environment is to match with
customers expectations effectively. This report is composed to understand role of information
technology in an organisational functions and operations. The selected organisation for this
report is clark shoe leather Show leather company (Abu-Naser and Almurshidi, 2016). It is a
British international shoe manufacture which was is operating their business in shoe industry
form more than a century. Moreover, the report highlights on background of organisation with a
brief description about company products and services. Along with this Porter's five forces and
value chain will also be included in this report.
TASK
Introduction and background of the organisation
Clark shoe leather shoe is performing their business in shoe manufacturing and retail
industry from a long period. Almost organisation gain experience of two century due to which it
is easy for company to understand business environment as they already face various up and
down in market. In the present scenario, company develops a large portfolio of products such as
shoe, sandal, slippers and all types of footwear products to attract more number of customers.
Company is performing their work at multi-national level which leads management to gain top
position in footwear industry. In the present scenario, company manage and owned more than
1000 branded store.
The origin of clark shoe leather shoes was started form initial period of 18th century. The
main concern of organisation is to perform task as per pioneers and innovators that are managing
company task from as per goals and objectives to complete work as per demand of customers.
This refers that footwear are part of a human accessories from a longer period and to match
footwear with needs of customers. The beginning of clark shoe leather shoe was started from
designing and delivery of kid shoe (Aidara, 2018). The background of clark shoe leather shoe
belongs to more than 200 years ago when the first slipper was made from the ship of skin.
According to those time period company creates a new and creative off cuts for satisfying needs
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of customers with a combination of craftsmanship as well as innovation. Most of the companies
leads management to deliver better products that demonstrate company backgrounds and culture.
In context of clark shoe leather shoe it increases brand value of company products and services.
Types of products offered by organisation
In the present scenario, company is offering large range and type of products to its
customers. School shoe, Joyance sandal, desert boot, desert trek and Wallabee. Among all over
the UK clark shoe leather is at top priority for school shoe due to its comfortableness and best
quality which is also affordable by customers. Joyance Sandal was manufactured by clark shoe
leather to satisfies needs of children by offering sandal for both boys and girls that are good in
design. Desert boot is also known as one of the most popular boot for industry which is more
from ankle height that offers better quality and long term availability of shoe for customers
(Alsmadi and et. al., 2018). Wallabee manufactured by clark shoe leather from the year 1967 and
it also work as school shoe that satisfies needs of personnel within proper manner. Further, the
main motive of company to launch Wallabee is to enter in the market of North America. In the
last, Desert trek is associated with launching of products that provides shoe to business by
advertising its products as per culture and teams which is satisfying needs of customers in proper
manner. Further, all products of company is designed to match with needs of developing school
shoes.
Analysis of competitive environment though implementing Porter's five forces
Clark shoe leather is performing their work at global level by providing good quality of
footwear products to its customers. It is a manufacturing and retail footwear company that
satisfies needs and wants of personnel in effective manner. According to current market scenario
most of the organisation are performing their work at global level due to which it is essential for
company to understand competitive forces. Porter's five forces is an effective framework for an
organisation that leads clark shoe leather shoe to understand competitive environment of
business. It also refers that with competitive rivals, potential market players and power of
supplier and buyer all essential aspects are considered in report.
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Illustration 1: Source(https://medium.com/product-gyaan/porters-five-
forces-analysis-868945aa5846)
 Threat of new entrants- A company's power is mostly affected due to entry of a new and
potential competitive firm in the organisation. This refers to the approaches by which
company invest time and money to enter into a new industry. It is also determines that by
understanding economic of scale it is easy for organisation to take opportunities in
market. Example- more flexible policy to enter in business refers to easy entry in market
(Bannon, Bardzell and Bødker, 2018). From the perspective of footwear industry it is
complex to provides access to inputs and distribution because of limited opportunities in
industry. But the power of new entrants in market is high it defines so it work as a
demerit for Clark. Like, switching cost is too low due to which customers not prefer to
purchase a product again. Along with start-up to enter in shoe industry requires only
labour and capital so it is positive for new entrepreneurs to deal in market of shoe as it is
not require at high level.
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 Bargaining power of supplier- Raw-materials, resources etc. are most essential part for
the organisation that leads company to perform their work in effective manner because it
is complex to manufacture products without engaging supplier in organisational
operations. Cost of changing and size of supplier are major point that impacts on
demands of products. This also refers that it is mandatory for company to retain in market
for longer period by managing with supplier needs (Blassin and et.al., 2019). In context
of footwear industry supplier concentration is impacting on companies due to low
involvement of factors. clark shoe leather is easily able to deal with supplier power
because of its global presence. This determines company manufactures large quantity of
products so they require more number of resources. Therefore, various supplier compete
with each other to deal with Clark. So company easily deal with power of supplier. Bargaining power of buyer- Consumers are the king of market which leads company to
gain top position in market. clark shoe leather is more focused to deal with company by
generating customer-centric market for their products. To deal with consumer perspective
organisation deal with various features that leads company for achieving top position in
market by completing all task and operations through understanding number of customers
and current trends. The main concern to work with customer approach is to complete all
task and objectives as per buyer needs and wants in order to increases number of satisfies
customers. This refers that all task and operations which are performed by management
of clark shoe leather leads company operations and activities to gain better position in
market. Scope of retail market in shoe industry is too wide so company also invest in
technological aspect to cover online platform. This result it is easy for organisation to
complete whole task and operations as per goals that is used to identify more number of
customers (Bodnar, clark shoe leather and Besterfield-Sacre, 2015). Brand value and
goodwill is most positive point that enhances sale shoes. Therefore, it is easy for
company to deal buyer power by offering affordable prices and large variety of products. Threat of substitute products- According to existing globalisation conditions company
local and international customers are competing with each other to gain more market
area. Substitute of products is understand through analysing performance that substitute
products and leads company to identify cost of change in products. Further, this threat is
high because of wide scope in footwear industry. So both local as well as international
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player formulates new products for entering into their rival market. Power of substitute
products in footwear industry is moderate because of its low segment in market. This also
determines that all task which are managed by shoe industry work as a substitute for each
other due to which its performance and power of products is moderate. clark shoe leather
face challenges due to low switching cost. Along with this because of non-price
competition among products it is analysed that company perform task to its operations
that increase image of products by advertising it through print media and digital
platforms (clark shoe leather and et. al., 2017). It is also analysed that advertise company
acquire better products to perform it work in proper manner.
 Competition in industry- This is most important force for the organisation which
provides methods to enter in market. More the number of competitors along with their
availability of products and services. There are various differences will be monitored in
an industry that leads company to perform its task and operations as per competitive
analysis due to which its operations are impacted as per switch cost and customer loyalty
that enhances business size of clark shoe leather shoe industry through achieve an
competitive advantage. It results in decreasing of power that is hold by company.
Competition among footwear industry is too high. Bobux, Geox, Treads Adidas and
many more are competing with clark shoe leather due to which competition among
industry is too high. This results sale of organisational products is directly impacted alogn
with rival companies are also developing strategy of merger and acquisition with local
supplier due to which its number of operations directly enhance. This is also impacting
on goals of industry which perform company work as per competitive market.
With the above Porter's five force model it is identified that information technology is most
important aspect for organisation. This is also analysed by company to complete its work by
overcoming from challenges which impacts on accomplish of goals and objectives. clark shoe
leather shoe is increasing their market area by using technology that offer more value in products
of company. It also lead company to enhance their customer base by offering good quality
products.
Outbound and inbound logistic and operations
Logistics refers to a procedure that leads a business to formulate an effective supply chain
that leads its operations to complete in organised and sequential manner. Raw-materials and
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inputs which are acquired and transported for completing business in a transport manner. Storage
and further transportation is also leading companies to perform task and project that increases
management to maximise its performance (Cornet and et. al., 2019). Inbound logistic refer to
storage and sourcing that came in a business within internal premises. On the other side,
outbound logistic refers to sent items from outside of warehouse. So it also refers to packing,
transportation and delivery of products to complete their work in effective manner. This also
determines to disturb products as per efficiency of minimize of transport and storage cost to
complete al work in effective manner. It also help in effective management that reduces supply
chain management to offer and manage its services as per inbound and outbound logistic to
deliver products and services within minimum time period. Managing of the company leads
company to deliver all products with logistic so that customers is more important to perform
work as per brand image (Daly and Nataraajan, 2015). In context of clark shoe leather inbound
and outbound logistic is careful to manage and ordered products with managing of warehouses
that transport customers within easy manner.
Analysis to support activities in Porter value chain
Large number of activities are carried by organisation that leads company to perform its
task at global level. This refers that there all functions must be performed as per global
considerations that deliver, market and produce company activities as per organisational actions.
In present scenario, clark shoe leather is more concern to manage their task according to
international level for achieve top position in company. According to this model two kind of
activities are delegated in this function. Inbound logistic, outbound logistic, operations, support
are primary activities which help a business to complete its work within smooth manner.
 Firm infrastructure- The structure work as the base that enhances market probability to
perform all functions and operations with positive approach. It is related with primary
activities that leads business to perform work in effective manner. This is also relates
with all business goals and objectives that is entailing activities with general
management, planning, accounting and many more. All types of functions relates with
business activities that is enhancing more competitiveness in market through using
innovative and unique methods. This results all business task are manage by company to
foster efficiency and growth of business by improving workforce capability and potential
to complete company task and operations in effective manner.
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 Human resource management- Human or individuals are most important asset of
organisation that engage in company work to perform their operations and functions. This
is also leading company to engage employees in part time and full time basis. Human
resource department of clark shoe leather is more concerned to complete task and
operations by recruiting right employees at right time period. With perspective of HR
management company support both primary as well as support activity that boost
performance in an organised manner (Han, 2015). This is also important for organisation
because it is providing better support to improve entire chain that increase performance
of overall operations and functions of company. Although with better activities and
actions company is able to enhance and improve overall process of company by
coordinating and delegating right task to right person.
Identification of key value adding activities
Value adding activities refers to perform all task and projects that improves customer
satisfaction level by enhancing their experience through offering some additional benefits in
company product and services. clark shoe leather shoe offer good quality products to its
customers at affordable prices along with this company also develop similar premises to perform
their work with motive of completing its task at similar level (Iqbal and et. al., 2019). Services
and profitability of business also work also work as a point that leads to gain more benefits in
market. This results overall performance of company is increasing market area that enhances
business size and productivity. The major part that boost value of company is to perform
company task that add high value in market to gain competitive edge in business.
Role of Information technology and innovative idea to improves business process
Information technology plays an essential role in business that improves overall perform
of company to complete task and operations. This is also leading business profitability due to
which its task and operations are completed within minimum time period. IT is an important
aspect that store and process company profits to manage their work as per schedule. clark shoe
leather manage its functions and operations at global level so it is complex to combine all task
and activities so with information technology company perform their work with easy process that
lead company to gain competitive advantage in market. IT in context of business operations as
well as functions perform all task with real time and practical approach. This also results
company perform innovative techniques to manage their work with fulfilment of customer
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demands that departs work and operations with organisational goals and objectives. In the
present scenario, customer satisfaction is most important part of organisation. So with proper
implement of technology data and information which is used by customers is stored for longer
period (Schnoll, 2015). So by providing right subject matter, information and data it is easy for
management to satisfy need of customer in proper manner. Customers satisfaction also determine
as a positive point which is satisfying employees needs by engaging buyers in all operations that
leads company to add more value in company products that enhances expansion of market.
It also helps business to grow and expand its market with motive of utilising online tools
and applications that help customers to increase company products and services. It is also a
convenience point for organisation irrespective of global presence. Business is increasing its
competitive advantage that enhance market area for clark shoe leather shoe by offering them
competitive edge. Information technology is also helping companies to complete and manage
their work as per increasing customer satisfaction level. This also demonstrate that majority of
employees is user friendly with digital age so it work as positive aspect that leads company to
manage all inventory, finance and human resources as per goals that is leading business to
increase its size and brand image that also increase efficiency of work by managing their task
and operations that deal with large database (Singh and Teng, 2016). clark shoe leather is more
benefited with use of information technology it determines that management manage inventory
on global level basis. Along with this task which are performed by company are concerned
towards understanding of customer needs and wants. It also refer by understanding market and
customers. This is easy to use technological advancements that boost sale of clark shoe leather
operates its business in Footwear industry which is more impacted to perform its work as per
trends in market. Further, customer preference is too dynamic that changes within shorter period
of time and most consumers are different in nature that follow own value, belief, culture etc. IT
also help company to expand and grow market by completing whole task and projects to increase
its size and operations as per potential area.
CONCLUSION
In the last, by summarising overall report it is concluded that information technology
perform an essential role for the growth and development of business. The current situation of
footwear industry is too competitive so with innovation perspective it is easy to gain top position
in market. Organisation are also utilising information technology to perform whole work with in
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proper manner that satisfies need of customers by monitoring data related with past sales.
Logistic relates with organisation efficiently managed that improves transportation system of
company. IT also integrates new business tools which is leading organisation to adopt those
methods which leading company to gain competitive edge in market. Along with brand value
and goodwill of company is also increased through using innovation tools.
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