Business Organization and Analysis: Christian Dior in Sweden

This report provides a business analysis of Christian Dior's operations, focusing on its presence in Sweden. The report begins with an overview of the company, including its market share and key competitors. It then delves into external factors influencing the business, utilizing PESTEL and Porter's Five Forces analyses to assess the political, economic, social, technological, legal, and competitive environments. The analysis identifies opportunities and threats, such as the rise of online retailing, the impact of imitation products, and the competitive landscape. The report also discusses the application of analytical approaches to address organizational challenges, particularly the importance of effective communication and teamwork within the company. Overall, the report aims to provide a comprehensive understanding of Dior's business strategies and the factors shaping its success in the Swedish market, with recommendations for improvement.

Business Organisation

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1. Overview of organisation........................................................................................................3
Interpretation: As seen above Christian Dior hold 16% market share as compared to their
competitors..................................................................................................................................5
2. External factors of business organisation Background information on the business
environment/country...................................................................................................................5
SWOT IS NOT NECESSARY FOR THIS, ESPECIALLY IF YOU COULDCCLEARLY
IDENTIFY OPPORTUNITIES & THREATS FROM THE MACRO-ENVIRONMENT. THE
STRENGTHS COULD BEBUILT INTO PORTER’S STRATEGIES......................................8
3. Application of appropriate analytical approach......................................................................8
4. Use and application of appropriate data..................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES REFERENCING NOT DONE APPROPRIATELY...........................................12

INTRODUCTION
Business organisation is said to be an important aspect of any entity that are involve in
managing their operations in most effective manner. As it is an individual or group of people that
are merged together to achieve certain organisational goals. There are so many types of business
organisation that are associated with individual profit motive and some are for non-profit (Nature
of business organisation and accounting systems, 2017). The main objectives of this project are
to organise, plan and control resources within an organisation with the motive to achieve their
overall objectives. Under this project overview and nature of Dior business entity in global
context in Sweden. On the other hand, various factors are also being discuss under this those are
affecting business environment. The primary objective of this report is to find out the ways and
corrective actions in order to enhance the existing business operations into large scale. For this
the company need to focus on those developing those products which are of superior quality
which helps in attaining loyal customers and thus able to gain competitive advantage.. The main
part of this company is giving more emphasis on those products which are of superior quality.
WHAT IS THE OBJECTIVE OF YOUR REPORT? IT IS EITHER TO DETERMINE THE
FEASIBILITY OF ENTERING A NEW MARKET OR EXPANDING IN A CURRENT
MARKET. THIS DEPENDS ON WHETHER THE ORGANISATION HAS A PRESENCE
THERE ALREADY
TASK 1
1. Overview of organisation
Christian Dior is a company which is a French based and this will have engaged in the
production as well as distribution based on consumer goods. They are having a largest group and
holds 42.36% shares along with this they are having some voting rights approx. 59.01%.
Business entity deals in the different products such as leather goods, fashion accessories,
jewellery, footwear and so on and delivers best as well as unique products. In Sweden, they are
selling unique and different products. They remain largely and deals with women offerings.
Merchandise are deal and sold with the products with a portfolio of retail stores in the whole
world and by using the online store (Carayannis, Sindakis and Walter, 2015).
The company having main three competitors which includes Kering, Gianni Versace and
Chanel and they are also doing best businesses in the market. Vision statement of the business
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entity is to become the world's largest and most popular brand in high competition and provide
true luxury requires and delivers the genuine materials along with the sincerity of craftsmen. The
mission statement of Christian Dior company which was in Sweden is to create or build positive
environment so that employees can produce better products to the consumers and based on that
they can boost their sales and generate maximum profit. Another mission statement of firm is to
make women elegant and this become Christian Dior desire.
Dior company is designing unique products and they are having a digitalized vision that
is enhancing the reality from catwalk and it is created with the various photographers. They are
facing so many complications by doing the collection by choosing the appropriate and correct
path of mixing and different fabrics. The main part of this company is giving more emphasis on
those products which are of superior quality. It involves in different mode of advertising as in
print, online and national television. As tends are changing demand of quality product are
increasing among various people.
Last 3 years Profits of Christian Dior:
Interpretation: As seen above, the profits of Christian Dior business are increasing
continuously. As the business earn profits in all their businesses but on the other side the
company also faces some losses in wines and spirits business but if we observe on overall basis
the business earn profit by 2668(in millions) from 2012 to 2014.
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A TOO DESCRIPTIVE BACKGROUND ON THE ORGANISATION. WHAT ABOUT
DATA? FINANCIAL PERFORMANCE, LIKE PROFIT OVER THE PAST 3 YEARS??
MARKET SHARE?ETC. USE OF DATA, DIAGRAMS AND EXAMPLES ACCOUNT FOR
20% OF THE MARKS
Interpretation: As seen above Christian Dior hold 16% market share as compared to their
competitors.
2. External factors of business organisation Background information on the business
environment/country
Dior is one of a largest French company and in Sweden who usually deal in luxury goods
production. As they are already a well settled company and they want to introduce their business
at new market and for this they must prepare their strategies according to external environment
and for this they have two major sources: Porter five forces analysis and PESTEL. By applying
these two methods, company can identify all the threats which measure in business environment.
PESTEL analysis: The basis business factor those are affecting performance of Dior
company which is based on external factors of environment. There are various components are:
Political – The tax policy for the given organisation plays an important role in its total
sale of products. As its offerings are exchanged globally it must follow all the trade laws against
it (Neubauer and Lank, 2016). Legal law against maximum working hours is set around 44 hours
in a week which cannot exceed and minimum wage rate needs to be fulfilled.
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Economic factor – Dior in Sweden has good stable market which helps it in continuing
with the work effectively ad also it has got attractive market as it receives great opportunities
which help given company in expanding its scale.
Social – The demand of company’s product is highly affected by the present trend in the
market as it deals in product type which has a good range of variety in the market. To maintain
its total sales company needs to make changes on their products on continuous process.
Technological – As the external surroundings of company keeps of fluctuating the code
of conduct also changes. Hence to deliver best quality products in the market company needs to
adopt the latest technology items so that it can produce cost effective output and can maximise
its profit (Storey, 2016).
Porter five forces analysis: It is a business framework which is helpful in identify the
level of competition in market as well as developed strategy through which this operation gets
done. In this there are five major elements are found out which are: Threat of new entry: In luxury products industry, many new firms are attracting towards
this. A major objective of this concern is that this industry is highly profit generating. As
threat of new entry is high but Dior is already a established firm as new firms require
more and more time for set up. Threat of substitute: Substitute of every product is found at market. This substitute is low
in range as mostly number of users get attracted towards them. Dior in Sweden having a
price of goods are high in range and number of alternatives which are present in market
are large. As for them, threat of substitute is high so management must maintain their
quality so customers will only consume their products not alternatives. Bargaining power of customers: If number of products are more in market then it leads to
increase in bargaining power of customers. As according to present market world,
number of manufacturer for each product are high and all of them are a part of keen
competitive market world. As this rise the bargaining power of users in which consumers
have large number of manufacturer of same products and they can consume it from any
one of them (Mežinska, Lapiņa and Mazais, 2015). Dior must take this thing in their
account and for this managers and leaders have to maintain their quality so that chances
of shift get decline.
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 Bargaining power of suppliers: According to this perspective in which range of suppliers
are more in number so that bargaining power of suppliers is less. As for this, every
company have a right to conduct an appropriate bargaining from that for prices of product
on which they deliver raw material. Dior company have high bargaining power from their
providers through which they can purchase raw material on low prices. If their providers
neglect from this, then they have a right to shift their purchasing to other.
 Industry level: Number of competitors is more within the same industry. This increase the
industry rivalry in luxury products selling. This affect the competitive advantage because
large number of sellers for same products with variety offers are already found out.
Hence, management must maintain their innovation through which they can low down
this fact and issue. Dior in Sweden should maintain their prices as well as quality so that
chances of shift within the industry get decline.
In addition to this there are certain opportunities and threats that make impact on the
business operation of Dior enterprise. Such are as follows:
Opportunities Threats
 They must put more efforts into online
retailing and this will be having an
effective medium.
 They are having a prominent brand
related to fashion and this focuses on
initiatives which helps in increasing
popularity among different individuals.
 Christian Dior wants to expand their
business in the emerging market and it
helps in increasing demand for the
luxury products.
 They must tie up with the leading
fashion brand so that they become
successful in attracting large number of
 They are having a fake imitation as it is
having an adverse effect on the
business of Christian Dior in Sweden.
 Global slowdown along with the
recession can decrease in the luxury
market.
 There are so many designers in the
market and they are having an
exclusive wear which is a threat to
brand.
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consumers.
SWOT IS NOT NECESSARY FOR THIS, ESPECIALLY IF YOU COULDCCLEARLY
IDENTIFY OPPORTUNITIES & THREATS FROM THE MACRO-ENVIRONMENT.
THE STRENGTHS COULD BEBUILT INTO PORTER’S STRATEGIES
3. Application of appropriate analytical approach
Analytical approach is considering as the major thing through which management can
break down their problems into many smaller pieces and then take appropriate action against
such fact. It is same as the formal analysis and management must use this approach through
which they can settle down all the problems in an effective manner. In a business organisation,
there are vast number of problems are identified and it is a duty of manager to use appropriate
steps which aid them in managing such facts and problems (Napolitano, Marino and Ojala,
2015).
Dior company in Sweden is one of largest super mart and there are various number of
employees are working together. Thus, all of them have different interest and working pattern
thus, managers must take appropriate steps to work on them. All the employees and workers who
lead to work there have different interest and do not want to work with each other. This is a big
and major problem because if no one lead to work together then company will not able to attain
their targets on time.
Hence, managers first must identify this problem and break it down into some major
groups as per requirement and take appropriate steps for such context. For this one of a best
method to overcome from this serious cause is grouping method under which, company become
able to communicate with all their associates and find out a major case behind this fact. Also, it
leads to create a feeling of contribution and thus they all will start to work as a team. Another
major step under this is cluster grouping which signifies that all of employees who have similar
interest will come under a same category which aid in clearing out their issues.
This work not get done with the help of applying analytical approach on a business where
a lack of team work is a serious problem. It also initiates a problem solving skill into an
individual so that all problems get sorted out on short run basis and it became easy to deal out
with any major cause in an appropriate manner (Murali, Pugazhendhi and Muralidharan, 2016).
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By applying analytical approach by a manager, it built a sense of duty into them and its
skills for handling out with major problems get done in an appropriate manner. Thus, for every
manager it is their duty to carry out all the problems and then break them down into many
smaller pieces and then work on them through which their work become appropriate in nature.
Moreover, company must inspect their financial statement through which they can set
their objectives which must get accomplish according to time. Financial statement gets improvise
as with the working as team become effective. Thus, efficiency of a company tends to rise and
management can use all their resources in an appropriate manner. Financial statement provides
the actual information of a company that are they are capable to generate more and more profit
for their long-term purpose and sustainability of business (Limwichitr, Broady-Preston and Ellis,
2015).
4. Use and application of appropriate data
For calculating the different ratios which assist in identifying and analysing the
performance and productivity. They can calculate ratios by using the financial statements which
include:
Ratios which are to be calculated:
Liquidity ratio: It is a type of ratio which is calculated between the liquid assets as well as
liabilities of a bank along with the other institution. These ratios help in measuring the ability of
the business entity to pay its short term as well as long term obligations and by using these ratios
they can make correct decision.
Liquidity Ratio Formula 2015 2016
Current ratio Current asset/current
liabilities
1.50:1 1.44:1
Quick ratio Current assets-stock/
Current liabilities
0.41:1 0.40:1
Profitability ratio: It is a class of financial metrics which is used to assess as well as analyse the
business abilities so that they can earn more income as doing the comparison on expenses along
with the other relevant costs which is to be incurred during the specific period.
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Profitability Ratio Formula 2015 2016
Gross profit ratio Gross profit/net sales
*100
64.90% 65.60%
Net Profit Net profit / Net
sales*100
6.78% 4.13%
Return on Equity Net
income/shareholder's
equity
21.38% 14.70%
Interpretation: According to the calculation of these liquidity and profitability ratio is
necessary. From the financial statements of business entity interpretation needs to be done as it
helps in identifying as well as determining the performance of firm in the marketplace. Along
with this it assists Dior company in selling the products and services to consumers which will aid
in increasing the sales as well as generating more revenue according to sales. After calculating or
computing the ratios of Dior company which was in Sweden, analysing as well as evaluation
needs to be done.
When the interpretation done, it has been analysed that in 2015, gross profit of firm is 64.9%
but in 2016, 25.6% as it is decreasing from the previous year. In 2015, net profit is 6.78% and in
2016, 4.13% as it is increasing. Current ratio is 1.50:1 in 2016 but in 2017, 1.44:1 is to be
calculated as it is also increasing as current ideal ratio is 2:1. So, it denotes the better
performance of the business in the market. Quick ratio is 0.41:1 in 2015 where as in 2016, 0.40:1
but ideal quick ratio is 1:1. By computation of return on equity, in 2015 is 21.38% and in 2016 is
14.70%. It denotes the company performance that is better in the market and they become
successful. A SEPARATE SECTION IS NOT REQUIRED!! This means that you simply make
use of data, examples & diagrams throughout your report!
CONCLUSION
After summing up the report, it has been concluded that Dior company having a total
revenue that is 41.6 billion. This company sells the luxury goods and it is controlled and chaired
by businessman. They hold 42.36% shares and 59.01% voting rights. Managers as well as
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employees of business entity must do proper analysis of environment as well as organisation as it
is helps in identifying and analysing the strength as well as weakness. Along with this they can
adopt different analytical approach which will help in expanding their business and aid in
attaining goals and objectives. They must use appropriate data which will helps in analysing
performance.
YOUR REPORT REQUITRES MUCHMORE WORK. FIRST, YOU NEED TO STRUCTURE
IT BETTER. YOU ALSO NEED TO MAKE GOOD USE OF DATA, EXAMPLES AND
DIAGRAMS WHICH ACCOUNT FOR 20% OF THE MARKS
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REFERENCES REFERENCING NOT DONE APPROPRIATELY
Books and journals
Carayannis, E. G., Sindakis, S and Walter, C., 2015. Business model innovation as lever of
organizational sustainability. The Journal of Technology Transfer. 40(1). pp.85-104.
Limwichitr, S., Broady-Preston, J and Ellis, D., 2015. A discussion of problems in implementing
organisational cultural change: Developing a learning organisation in University
Libraries. Library Review. 64(6/7). pp.480-488.
McMurray, S and et. al., 2016. Employer demands from business graduates. Education+
Training. 58(1). pp.112-132.
Mežinska, I., Lapiņa, I and Mazais, J., 2015. Integrated management systems towards sustainable
and socially responsible organisation. Total Quality Management & Business
Excellence. 26(5-6). pp.469-481.
Murali, S., Pugazhendhi, S and Muralidharan, C., 2016. Modelling and Investigating the
relationship of after sales service quality with customer satisfaction, retention and
loyalty–a case study of home appliances business. Journal of Retailing and Consumer
Services. 30. pp.67-83.
Napolitano, M. R., Marino, V. and Ojala, J., 2015. In search of an integrated framework of
business longevity. Business History. 57(7). pp.955-969.
Neubauer, F and Lank, A.G., 2016. The family business: Its governance for sustainability.
Springer.
Storey, D. J., 2016. Understanding the small business sector. Routledge.
Online
Nature of business organisation and accounting systems. 2017. [Online]. Available through:
<http://opentuition.com/fia/ma1/nature-of-business-organisation/>. [Accessed on 5th
August 2017].
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