Ted Baker Management Report: Industry and External Landscape Analysis

This management report provides a comprehensive analysis of Ted Baker's business environment. It begins with an introduction and then delves into an industry analysis using Porter's Five Forces model, assessing the competitive landscape. The report then examines Ted Baker's international trade position, followed by an exploration of political and economic factors influencing its operations. Social and environmental factors are also analyzed, considering their impact on the business. The report assesses the risks and opportunities associated with each of these factors. Finally, the report provides recommendations for Ted Baker to thrive in its environment, concluding with a summary of the key findings and insights. The report covers various aspects of the business environment, including industry dynamics, international trade, political, economic, social, and environmental factors. The report also makes recommendations for the company to succeed.

Management report of
Ted Bakers

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Industry analysis of organisation.................................................................................................1
International trade position..........................................................................................................3
Political and economic factors.....................................................................................................3
Social and environmental factors.................................................................................................4
RECOMMENDATIONS.................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Management report of organisation is that report which include detail of different factors which
can impact an organisation (Agnihotri, 2016). It includes analysis of industry in which business
operates and various external factors which can impact business. This project report includes
study of business of Ted Baker which is retail organisation providing luxury clothing to their
customers. This organisation is founded in 19888 by Ray Kelvin in Scotland. This project report
includes industry analysis as well as analysis of international trade position of company. It also
includes identification of political and economic factors as well as social and environmental
factors.
MAIN BODY
Industry analysis of organisation
Porters 5 forces model: Porters five force model is one od model which is used by firm to
analyse industry in which they want to operate their business (Börzel and Langbein, 2019). This
model is introduced by Michel E. Porter in the year 1979. It is one of strategic management tool
for any origination which analyse competitiveness present in company. This model helps
business of Ted Baker to understand competitiveness within industry and these forces are as
follows:
 Threat of new entrants: Ted Baker is operating in industry in which economies of sales
is difficult. This provide cost advantage to only companies who has large capacities for
producing products and result in less threat for new entry as new entry need to bear high
production cost in industry. Differentiation in this industry is high as firm is selling
differentiated products rather than focusing on standard products. Customers are attracted
with differentiated products, advertising as well as customer service which is difficult for
new entry in industry. New firm require huge capital to bear expenses to be incurred for
establishment of their business in industry. Government rules and policies also create
problem for business as company require license and also need to fulfil legal requirement.
All these factors create problem for new entry and as a result there are less threat of new
entry for firm.
 Bargaining power of suppliers: There are large number of suppliers in compare to
buyer in industry and as a result supplier has less bargaining power. Products provided by
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supplier are less differentiated, low switching cost and of standardise. Supplier are not
offering other product to their buyers and there is no substitute of their products which
make power of supplier as a strong force. Supplier is not creating a threat for business of
Ted baker in industry in which company is operating. Profit of organisation is linked with
their supplier and these tr offering their products to firm at reasonable price as result firm
does not have much treat of bargaining power of supplier as they have less control over
prices.
 Bargaining power of buyers: Ted Baker is operating in an industry where there are
large number of suppliers in compare to firm which are producing goods (Charfeddine
and Mrabet, 2017). This result in less firm available for customers to buy their products.
As a result, buyers have less power to control prices and make weak forces within
industry. High differentiation in industry does not provide alternative product to buyer
which make it difficult for them to switch. This also make bargaining power of buyer as
weak. Quality of product is more important for buyer which make them less sensitives for
price. This also reduce bargaining power of buyer within particular industry.
 Threat of substitute: industry in which Ted Baker is operating has a smaller number of
substitutes for their products. These smaller number of substitute’s are produced by low
earning profit industries and as a result, there is no limit on profit earned by company in
that industry which make substitute products as a weaker force in industry. Few
substitutes with high quality are available in industry are high prices that are offered by
Ted Baker at low price than these substitutes with good quality. This allow customers to
not switch on substitute products. This make threat of substitute at low within industry.
 Rivalry among existing firm: There are less numbers of competitors in this industry
who are selling luxury clothes like Ted Baker (Chuang and Huang, 2018). But these
competitors are large in their size and result of this is that any move make by a company
is notices by other competitors which make rivalry as weak force among industry. These
smaller number of competitors with large market size which engage competitors in
gaining their position through competitive action to become leaders of market. This result
in strong rivalry within industry in different makrut players. But growth of Ted Baker is
increasing within industry and this growth indicate less competitive action in competitors
as there is no need for capture market share.
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International trade position
International trade refers to a process in which business is expanding their operation across
geographic location. These provide various opportunity of a company to expand their market
share and can earn more profit for business. But at same time there are various challenges occur
in international trade for companies (Cucari, Esposito de Falco and Orlando, 2018). To overcome
these challenges, business can adopt different positioning, targeting and segmenting strategies.
Business of Ted Baker is providing luxury clothing to their customers. Organisation is providing
their product and service in international service. Countries in which business providing their
services include Australia, Canada, France, Indonesia, Italy, Singapore, South Africa and many
more. They are providing high quality products to their customers at competitive prices.
Company is differentiating their products in term of quality as well as service. Company is
targeting people of high-income segment who wants luxury clothing and services. Company has
made differentiated position in minds of their target customers related to their brand as they are
offering premium products at reasonable prices. They are using different marketing strategies for
increasing awareness of their products.
Political and economic factors
Political and economic factors are external factors which create intense impact on business
operating in international market (Espinoza and Soulier, 2016). There are various components of
political and economic factors which create impact on business of Ted Baker that are as follows:
Political factors: Political factors are those which include Interference of government in
operation of business. There are various political factors which create impact on business of Ted
Baker which are as follows:
 Political stability: Political stability is one of political factors which impact business and
its growth in market. Political instability create impact on trust of investors as well as
stakeholders. In present situation, there is political instability in different countries due to
global pandemic. This can create impact on growth as well as marketing opportunities of
Ted Baker at business is offering their products in international market.
 Changing policies: Changes in government policies can create impact on business and
its performance due to increase uncertainty in environment. It is important for business
like Ted baker to understand current trend in political scenario of different countries
which may occur in changes in government priorities towards development of industries.
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 Pressure group and government system: It is important for Ted Baker to analyse
protest of pressure group, social activist, worker union as they play important role in
formulation of policies for business (Evans, 2016). Collaboration with these groups of
Ted Baker helps company to enhance collaboration with community as well as helps to
attain long term goals. Democratic environment of politics makes international business
more comfortable and provide them various opportunity.
 Taxation and trade restriction: Conducting of business operation in other country with
high tax structure create negative impact on profitability of business of Ted Baker. These
high taxation structure of conte create problem for business of Ted baker and prevent
export of their products. Whereas entry of company in market with low taxation profit
various benefit to company and also provide opportunity to earn more profit.
Economic factors: Economic factors are those which are related to economic condition,
demand, economic position of company (McKibben and Taylor, 2020). There are various factors
of economic factors which create impact on business of Ted baker and these are as follows:
 Inflation and employment rates: Ted Bakers ability to attain long term growth of their
company is influence by growth rate of GDP. High GDP rate in country indicate that
there is high buying power of their customer. Whereas high unemployment rate in
country indicate that there are labour available in country who are ready to work at low
wage rate.
 Labour market condition: Demand as well as supply of labour helps in determination
of wages rate as well as supply of labours who has skills. It is important for organisation
of Ted Baker to understand labour market condition which helps them to attract skills
labour towards their organisation.
Social and environmental factors
Social Factors: Social factors are those which include social norm, culture and belief of people
living in that country (Wang and Sun, 2016). There are various social factors which create
impact on business of Ted Baker and these are as follows:
 Demographic trend: Changes in demographics in a particular country create impact on
business and these include aging, population, variable of socio-economic factors. Study
of these aspects helps business in finding right market with growth potential and also
allow business to formulate their strategies on that basis.
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 Purchase pattern and behaviour: Purchasing pattern of buyers is influence within
purchase power. Understanding purchase patter of customers helps business to analyse
interest of customers as well as their spending pattern.
Environmental Factors: Environmental factors are those which are related to environment,
pollution, climate, whether changes and many more (Porter and Prenzler, 2016). Some of
environmental factors which create impact on business of Ted Baker are as follows:
 Recycling and waste management: Increasing awareness in customer related to
environment create impact on business. These pollutions and environment factors are
important for business as government has made various regulation related to these
aspects. It is important for business to adopt strategies related to recycling as well as for
waste management.
 Renewable technology: There are various countries which are encouraging investment
for renewable technologies and business of Ted Baker can take advantage of this and can
invest in these technologies which provide benefit to business for long term
sustainability.
RECOMMENDATIONS
To sum up everything that has been stated above, it can be recommended that firm need to
analyse various factors that helps them to understand which factors create positive impact on
enterprise and which are not. These analyses include industry analysis that provide them
information of which aspect present in industry can affect business. With analysation of this,
business of Ted Baker needs to be aware of their competitors as there are less competitors in
industry but as large market share. These factors can create impact on competitive action in their
organisation. To overcome this factors, business of Ted baker should adopt differentiation as
well as offer qualitative customer service to increase satisfaction of their business.
Business also need to adopt various strategies to overcome of impact of political and
economic factors. They need to prepare of any changes in policies of government in particular
company. They also need to follow government rules and regulation. These helps business to
overcome these factors Business can also follow corporate social responsibility which helps them
to get support of local people as well as local government and can reduce negative impact of
political factors on their enterprise.
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CONCLUSION
From above mentioned project report, it can be concluded that Management report is one of
report which include analysation of different factors which can impact on business. By
analysation of these factors business can formulate various strategies as well as policies. Firm
can conduct industry analysis which helps them to understand competitiveness in industry. It also
helps them to understand different components of industry in which firm operates. By studying
their trade position, firm can serve their customers effectively. Firm also analyse different
aspects of political and economic environment as these create direct impact on business. Firm
also need to analyse environmental and social factors that helps them to understand their
customers preferences and buying habits.
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REFERENCES
Books and journals
Agnihotri, A., 2016. Extending boundaries of blue ocean strategy. Journal of Strategic
Marketing, 24(6), pp.519-528.
Börzel, T.A. and Langbein, J., 2019. Core–periphery disparities in Europe: is there a link
between political and economic divergence?. West European Politics, 42(5), pp.941-
964.
Charfeddine, L. and Mrabet, Z., 2017. The impact of economic development and social-political
factors on ecological footprint: A panel data analysis for 15 MENA
countries. Renewable and Sustainable Energy Reviews, 76, pp.138-154.
Chuang, S.P. and Huang, S.J., 2018. The effect of environmental corporate social responsibility
on environmental performance and business competitiveness: The mediation of green
information technology capital. Journal of Business Ethics, 150(4), pp.991-1009.
Cucari, N., Esposito de Falco, S. and Orlando, B., 2018. Diversity of board of directors and
environmental social governance: Evidence from Italian listed companies. Corporate
Social Responsibility and Environmental Management, 25(3), pp.250-266.
Espinoza, L.A.T. and Soulier, M., 2016. An examination of copper contained in international
trade flows. Mineral Economics, 29(2), pp.47-56.
Evans, N.G., 2016. Sustainable competitive advantage in tourism organizations: A strategic
model applying service dominant logic and tourism's defining characteristics. Tourism
Management Perspectives, 18, pp.14-25.
McKibben, H.E. and Taylor, T.W., 2020. Trade balance and policy complexity: explaining
political elites’ focus on international trade at the domestic level. International
Interactions, 46(1), pp.28-50.
Porter, L.E. and Prenzler, T., 2016. The code of silence and ethical perceptions. Policing: An
International Journal of Police Strategies & Management.
Wang, Q. and Sun, X., 2016. The role of socio-political and economic factors in fertility decline:
a cross-country analysis. World development, 87, pp.360-370.
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