Leadership Innovation & Entrepreneurship Report

This report analyzes Next PLC, a multinational company in clothing, footwear, and home products. It covers various aspects of the business, including a description of products and services, company details, operational capabilities, team structure, mission and vision statements, short and long-term goals, ethics, and CSR initiatives. A detailed marketing strategy and plan are presented, encompassing micro and macro analyses, competitive analysis using Porter's generic strategies (cost leadership, differentiation, and focus), and a comprehensive marketing mix (4Ps and extended mix). Financial analysis and projections, including cash flow projections and loan requirement calculations, are also included. The report concludes with an overall assessment of Next PLC's strategies and their potential for future success.

Leadership Innovation and
Entrepreneurship

Table of Contents
INTRODUCTION...........................................................................................................................3
EXECUTIVE SUMMARY.............................................................................................................4
BUSINESS OVERVIEW................................................................................................................5
Description of the products and services....................................................................................5
Company details/ Operational capabilities/ Team......................................................................5
Mission Statement/ Vision/ Short and long term goals/ Ethics/ CSR.........................................6
MARKETING STRATEGY AND MARKETING PLAN .............................................................7
Micro and Macro analysis...........................................................................................................7
Competitive analysis...................................................................................................................8
Marketing mix.............................................................................................................................9
FINANCIAL ANALYSIS AND PROJECTIONS........................................................................10
Cash flow projection.................................................................................................................10
Loan requirement calculations..................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Leadership is the action of leading a group of people of the firm and they have to provide
the encouragement to the team members or subordinates so that they can attain the targets. The
employees of the business entity have to share the new ideas, methods so that they can innovate
or develop the products and services so that they can attain the goals and objectives (Crossan and
Apaydin, 2010). The owners of the business entity having the capacity as well as willingness so
that they can develop, organise along with the manage a business venture so that they can make a
risk in order to generate a more profit. The present report is based on Next PLC which is a
multinational company and deals in clothing, footwear and other home products. In the below
mentioned report, products and services which company is selling has to be discussed along with
the mission and vision of the business entity (Stanford Innovation and Entrepreneurship
Certificate, 2017).
EXECUTIVE SUMMARY
Next PLC is a multinational company which deals in retailing, clothing as well as
footwear. Along with this the business entity provides the high quality products to the
consumers. The company having best employees which having a good knowledge as well as
skills which helps in making the best products and it should be depend on the needs and wants of
the consumers which help NEXT PLC in increasing the sales and generating more revenue. The
business entity have to use relevant laws and regulations which are made by the government and
on the basis of that they can fulfil the legal requirements as well (Crumpton, 2012). Next PLC
have to use appropriate funds which helps in doing the operational activities. To assess the
viability of the business they have to use correct money so that they can take proper use of that.
Along with this they have to pay tax then re-investment should be done. They have to use
relevant tools and techniques so that they can measure the business viability whether it is
physical or financial. They have to make the changes in the business so that risk should be
reflected properly. Along with this feasibility, viability as well as future performance depends on
the financial figures of Next PLC. They have to determine the changes which will help the
business in attaining more profits. The staff members of Next PLC have to make proper and
accurate research so that they can analyse the strength, weakness, opportunity along with the
threats (Dahlstrand and Stevenson, 2010).

BUSINESS OVERVIEW
Description of the products and services
Next PLC deals in clothing, footwear as well as other home products and these are
provide at a affordable price. The merchandise which they are providing to the consumers it
should be in excellent quality. Along with this it is safe as well as fit for their intended purpose.
Next PLC is using appropriate rules and regulations so that they can maintain their standards
which helps in fulfilling the legal requirements. They have to provide a high level of services to
all our consumers (Drucker, 2014). The company provide the best and qualitative products which
helps in increasing the satisfaction level of the consumers so that they can attain the goals and
objectives.
Company details/ Operational capabilities/ Team
Next PLC is a British multinational clothing, footwear as well as home products and
approx. company having 700 stores in which approx. 500 are in UK and around 200 are in
continental Europe as well as Asia. Next PLC is listed on London Stock Exchange. In the year
2014, the foundation named living wag bought the share of Next as well as attended the annual
general meeting which helps in attempting or persuading the firm so that they can make the
payment around £6.70. In 2014, UK having the less tax payers and the retail companies using
more funds to do the promotional activities by hiring the low paid workers which assist in
exploiting the austerity as well as they have to add the staff and make the payment as wages
which assist in welfare of UK (Dunlap‐Hinkler, Kotabe and Mudambi, 2010).
Next PLC having the three main channels which includes Next retail, Next directory as
well as Next international. In the Next retail, there are approx. 500+ branches in UK as well as
Ireland. In the directory of Next, there are around 3 million active consumers which having the
home shop catalogue as well as websites. Along with this in Next international, there are more
than 180 stores in the international market. The company having a brand name as well as
reputation in the market and its own branded younger women's fashion products by using the
wholesale, retail as well as website channels.
The business entity having a best team who having a good knowledge, skills as well as
capabilities and they are using this in producing the products and it helps the firm in attaining the
goals and objectives as well as it also assist in maintaining the position in the competitive market

(García-Morales, Jiménez-Barrionuevo and Gutiérrez-Gutiérrez, 2012). They have to use best
skills so that they can develop the products. The manager of Next PLC have to provide the
proper training and development to the different teams which helps in improving the knowledge
and on the basis of that they can attain the targets as well as goals and objectives.
Mission Statement/ Vision/ Short and long term goals/ Ethics/ CSR
Mission and vision statement of the company is that they have to provide the best quality
services to their consumers which helps in increasing the satisfaction level and on the basis of
that they can attain the success. They have to maintain the quality so that they can maintain their
performance in the competitive market. They have to provide the products and services at a
reasonable price so that each and every consumer can afford that and by that Next PLC will
helps in generating more revenue. Next have to improve the consumers services which helps in
introducing the new initiatives along with this they provide the products and also deliver the
products at home. The consumers of the firm can place the orders and the consumers are able to
check their accounts and they can make the payment online (Gündoğdu, 2012).
They have to start to sell the non-competing the third party brands through the Next
Directory so that they are dedicated to promote the third party offer. Corporate Social
Responsibility of Next PLC which helps in meaning the addressing the key business related
social, ethical as well as environmental matters so that they can run the business in a proper and
efficient manner in a responsible way. They have to use the corporate social responsibility so that
they can use the elements which helps in conducting the business as they believe in making the
good business sense. They have to use the appropriate information on the corporate social
responsibility (Hartley, Sørensen and Torfing, 2013).
The main financial objective of Next PLC so that they can deliver the long term returns to
the shareholders by a combination of the sustainable growth in the earning per share as well as
payment of cash dividends. The employees of the company have to use appropriate policies so
that they can do the continuous identification as well as review of the key business risks as well
as oversees for the development by using the appropriate process so that they can manage the
risk in a proper manner so that they can attain the best results.

MARKETING STRATEGY AND MARKETING PLAN
Micro and Macro analysis
The employees of Next PLC have to do appropriate micro and macro analysis so that
they can attain the success in the competitive market. In the micro analysis, the managers of the
firm can do proper analysis so that they can not face any issues and in Macro they can use
SWOT analysis.
Micro analysis
There are different factors which helps in doing the micro analysis and the company's
performance will depend on these factors. These are:
Competitors: The company having many competitors in the competitive environment and by
providing the best products and services from their competitors at a affordable price (Isaksen and
Akkermans, 2011).
Consumers: These are the important part of the company as it helps in increasing the sales of the
firm. The manager of Next PLC have to provide the products according to the desires of them so
that they can attain the targets. They have to provide the product on the basis of consumer
demand.
Suppliers: When the business entity purchase the raw materials from the suppliers that should be
in high quality so that they can produce the best products and services and that should be
purchased by service users.
SWOT analysis
Strength Weaknesses
Next PLC having attractive, innovative as well
as creative designs in their stores. Along with
this they are having a positive brand image in
the competitive market for Corporate social
responsibility (Johnston and Marshall, 2016).
The company having a good financial positive
in the market and also have the raising sales
which helps in generating more revenue.
The main weakness of the firm is lack of focus
on the positioning that is the employees focus
on the both cost leadership as well as
differentiation. Along with this they are not
having a appropriate strategy which they can
use for achieving the long term success.
Moreover, at the strategic level in the company
not having any effective as well as strong
leadership.

Opportunities Threats
By focusing on the emerging economies, Next
PLC improve or expand their market in the
international business. They have to put more
focus on the clarification of the business
strategy so that they can avoid the stuck. The
employees have to formulate the strategic
alliances with the other business so that they
can do the proper targeting on the basis of
segmentation.
The main threat of Next PLC is to increase the
competition from the discounted clothing
brands. They have to do further deterioration
of the national economy in UK. Along with
this company have to increase the price of the
raw materials. Along with this company having
high competition with Mark & Spencer
(Lindegaard, 2010).
Competitive analysis
For doing the competitive analysis, the employees of Next PLC can use the porter's
generic strategy so that they can manage their operating activities and on the basis of that they
can attain the success as well as goals and objectives. This strategy helps in attaining the
maximum competitive advantage and it is classified into three strategies which are:
Cost leadership strategy: This strategy helps in advocating as well as gaining the
competitive advantage and on the basis of that they can do the low cost of the production of the
products and services. When Next PLC produce more and more goods then they have to increase
the profits by reducing the costs while charging the industry average prices. If company wants to
increase their market share then they have to sell the low cost products and services to their
consumers (Kerr, 2013).
Differentiation strategy: It involves in making the products and services which are
different from each other from the competitors. They have to provide the best products and
services and they are having the innovative features, functionality, durability as well as support
which helps in creating the brand image for their consumer value. For developing the products
according to the needs and wants of the consumers then the employees of Next PLC have to do
proper research and innovate the product. The staff members of the business entity having a
ability to deliver the high quality products and services.
Focus strategy: This strategy is used by the company only in the niche market which
helps in understanding the dynamics of the market as well as unique needs of the consumers

(Lankes, 2011). This strategy helps in developing the unique, low cot as well as well specified
products and services for the market. They have to services the products to their consumers
which helps in building the strong loyalty among consumers.
Marketing mix
Marketing mix is a tool which helps the business entity in designing the appropriate
strategies for selling the products and services to the buyers. It includes the 4P's which are
product, place, price and promotion and extended marketing mix includes the process, people
and physical evidence.
Product: The employees of the firm have to provide the best product and services so that
they can meet the needs and requirements of the consumers. they have to provide the high
quality products to them which help Next PLC in improving the sales as well as assist in
generating more revenue (Rothaermel, 2015). The employees of the firm have to use accurate
resources. This will help them in improving the brand image along with the reputation in the
competitive market.
Place: It denotes the strategy which help the employees in place so that they can allow the
product and that should be put in front of or made available to the consumer which is more
appropriate and convenient to the consumers. They have to provide the product at all stores of
Next PLC so that every consumer can purchase that and on the basis of that they can provide
proper satisfaction to them. Along with this they have to choose appropriate channels for selling
the products to the consumers.
Price: All the products of the company should be in a reasonable price. They have to use
appropriate pricing strategy which succour in fulfilling the consumer expectations as well as
perception of the quality which helps in attaining the goals and objectives. Along with this it also
assist in increasing the brand image in the market. They have to offer the best products to
consumers which helps in increasing the number of consumers so that they can attain the success
in the market.
Promotion: The employees of the company have to use appropriate tools and techniques
for doing the promotion of the products and services. They have to use appropriate information
for making the products and sell it to the potential consumers by providing the proper awareness
of the products and services. They can do the promotion by advertising via newspaper or
magazines. They can use different social networking sites to do the promotion of the products

(Soriano and Huarng, 2013). This helps in expanding the growth, increasing the sales as well as
generating more revenue so that they can attain the maximum position in the market.
FINANCIAL ANALYSIS AND PROJECTIONS
Cash flow projection
The employees of Next PLC have to maintain their cash flow for their business plan as it
helps in forecasting the cash that where they have to spend or where not. It is a important tool for
every business to manage their cash as well as liquidity. It also helps in finding the remaining
balance of cash which helps in expanding the business in the market. The workers have to
manage the worksheet of cash flow and on the basis of that they have to record the cash flow.
Along with this it also includes the figures which helps in finding out the profits which is
generated. The easiest way to forecast the cash flow that they have to break the task into several
steps. Then they have to create a cash flow projection and on that they have to includes the
receivables as well as payables (Trimi and Berbegal-Mirabent, 2012). So, that Next PLC can
manage their debtors and creditors. After that they have to find the operating cash in the
beginning. Along with this they have to find out the sources of cash as well as uses of cash so
that they can find out the surplus as well as deficit. This helps in finding the viability of the
business whether it is financial or physical. Moreover, the employees of Next PLC have to use
appropriate strategies so that they can improve the accuracy by using the different variable
expenses and in this they have to includes months with three payrolls. Along with this they have
to include those months when the insurance premium is due. Along with this they can increase
the estimated tax due to the increased sales. Cash flow helps in analysing the cash whether it is
remaining or spending in developing the products and services.
Loan requirement calculations
While making the business plan to expand the business in the market then they required
the funds and for that they have to take the loans whether from the bank or venture capitalists.
For improving the business they have to focus on the products and services as well as financial
and physical viability of the business. They have to take personal loans at some point which
assist in covering a cost of the purchases as well as cost of the products which needs to be
developed. When company is taking the loans then they have to pay the loans time to time
otherwise it can create a problem for them (Onetti and et.al., 2012). The employees of Next PLC

have to use appropriate strategic approach which succour in providing the facilities and by that
they can not change the time horizon but it can change the whole basis of the asset valuation. For
developing or improving the business they have to take risk which helps in generating more
revenue.
CONCLUSION
From the above analysis it has been analysed that the managers along with the staff
members of Next PLC have to do proper and appropriate analysis of micro as well as macro
factors so that they can not face any issues in making the business plan or developing the
products according to the needs and wants of the consumers. They can use marketing mix for
selling the products to their consumers at a high quality which helps in increasing the satisfaction
level and by that they can increase the sales. They have to take more risk if they want to expand
the business in the market as well as they have to generate more revenue.

REFERENCES
Books and journals
Crossan, M.M and Apaydin, M., 2010. A multi‐dimensional framework of organizational
innovation: A systematic review of the literature. Journal of management studies. 47(6).
pp.1154-1191.
Crumpton, M.A., 2012. Innovation and entrepreneurship. The Bottom Line. 25(3). pp.98-101.
Dahlstrand, A.L and Stevenson, L., 2010. Innovative entrepreneurship policy: linking innovation
and entrepreneurship in a European context. Annals of Innovation & Entrepreneurship.
1(1). p.5602.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Dunlap‐Hinkler, D., Kotabe, M and Mudambi, R., 2010. A story of breakthrough versus
incremental innovation: Corporate entrepreneurship in the global pharmaceutical
industry. Strategic Entrepreneurship Journal. 4(2). pp.106-127.
García-Morales, V.J., Jiménez-Barrionuevo, M.M and Gutiérrez-Gutiérrez, L., 2012.
Transformational leadership influence on organizational performance through
organizational learning and innovation. Journal of business research. 65(7). pp.1040-
1050.
Gündoğdu, M.Ç., 2012. Re-thinking entrepreneurship, intrapreneurship, and innovation: a multi-
concept perspective. Procedia-Social and Behavioral Sciences. 41. pp.296-303.
Hartley, J., Sørensen, E and Torfing, J., 2013. Collaborative innovation: A viable alternative to
market competition and organizational entrepreneurship. Public Administration Review.
73(6). pp.821-830.
Isaksen, S.G and Akkermans, H.J., 2011. Creative climate: A leadership lever for innovation.
The Journal of Creative Behavior. 45(3). pp.161-187.
Johnston, M.W and Marshall, G.W., 2016. Sales force management: Leadership, innovation,
technology. Routledge.
Kerr, W.R., 2013. US high-skilled immigration, innovation, and entrepreneurship: Empirical
approaches and evidence (No. w19377). National Bureau of Economic Research.

Lankes, R.D., 2011. The atlas of new librarianship. The MIT Press.
Lindegaard, S., 2010. The open innovation revolution: essentials, roadblocks, and leadership
skills. John Wiley & Sons.
Onetti, A and et.al., 2012. Internationalization, innovation and entrepreneurship: business models
for new technology-based firms.Journal of Management & Governance. 16(3). pp.337-
368.
Rothaermel, F.T., 2015. Strategic management. New York, NY: McGraw-Hill.
Soriano, D.R and Huarng, K.H., 2013. Innovation and entrepreneurship in knowledge industries.
Journal of Business Research. 66(10). pp.1964-1969.
Trimi, S and Berbegal-Mirabent, J., 2012. Business model innovation in entrepreneurship.
International Entrepreneurship and Management Journal. 8(4). pp.449-465.
Online
Stanford Innovation and Entrepreneurship Certificate. 2017. [Online]. Available through:
<http://scpd.stanford.edu/public/category/courseCategoryCertificateProfile.docertificateI
d=14800052&method=load>. [Accessed on 10th May 2017].