Business Report: Analysis of TK Maxx's Challenges and Strategies

This report provides a comprehensive business analysis of TK Maxx, a prominent retail brand in the UK. It delves into the company's background, its operational environment, and the challenges it faces, including intense competition, changing consumer needs, and operational management issues. The report highlights the importance of understanding various areas such as competitors, target customers, and market trends. It identifies and ranks the top three problems affecting TK Maxx, offering insights into their impact and potential solutions. The analysis also explores the external factors influencing the company's performance, such as tax rates and market dynamics. The report concludes with a strategic overview, suggesting how TK Maxx can overcome these challenges and maintain its market position by implementing effective marketing strategies and focusing on product quality and brand awareness.

BUSINESS CONSULTING

Table of Contents
INTRODUCTION...............................................................................................................................2
TASK....................................................................................................................................................2
About company and problems that it faces........................................................................................2
Importance of different areas for T.K Maxx......................................................................................3
Three problems that firm is facing and reason behind ranking these as top three..............................4
CONCLUSION....................................................................................................................................5
REFERENCES....................................................................................................................................7

INTRODUCTION
Business consulting is quite beneficial for companies in recent time as it helps to
improve operational efficiency and performance level of a company, who operate in specific
sector. This term support organizations while operating its ventures in market in context of
managing business functions and dealing with challenges. The current assignment will be
based on TK. Maxx, which consider as part of TJX organizations family situated in the
United Kingdom. This study will describe information about chosen brand and define issues
that they are facing. It will explain importance of understanding different areas by
organization. Furthermore, this report will clarify analysis of top three problems that select
firm is facing and purpose for ranking these challenges as top 3.
TASK
About company and problems that it faces
TK. Maxx is well known brand in UK, it is subsidiary of American home and apparel
products firm TJX firms established in Framingham (Schroeder, 2017). Chosen company set
up it venture in Ireland and United Kingdom in 1994. It offers consumers a wide range of
quality and fashionable brands with up to 60 percent discount suggested retail prices. At
organization, workers deliver ever changing collection of designer items and brand names at
costs up to 60% less more than RRP and at beneficial offer to prices in a department outlet.
Own label companies that appear in selected company outlets include Arabella & Addison,
Frederik Anderson of Copenhagen and Kenar. Furthermore, it analyses that firm offer beauty
items and cosmetics to customers by considering their needs and preferences, which is really
very essential to do.
While operating business in any market or sector a company face several challenges
and problems that could impact negatively upon current management practices and venture
activities. In case of TK. Maxx, firm also face some issues that directly impact its
profitability and productivity in negative manner. The most common issue that firm is facing
relate to administration of venture operations and growth tactics is intense competition within
retail industry. Increasing number of fashion brand either small or large create competitive
environment in market where T.K. Maxx operate (MCKINNON, 2018). Because of this
factor, company face issue in context of managing operations, retaining buyers and be
competitive, which require a lot of hard work and efforts as well. It put high pressure on
existing and new applicants to perform even better and drive them to be productive which is

quite beneficial for chosen brand in term of gaining competitive advantages and serving
quality product to consumers by conducting ethical practices. High competition in industry
also bring challenge for company in term of satisfying target market and analysing their
needs. The overall procedure can consume a lot of time and efforts in regard to management
(Guo, Choi and Shen, 2020). It has been summarized that only one element occur issue for
firm which it has been faced from longer period of time.
Without managing performance of business and functions company could not be able
to grow effectively and sustain for longer period of time. Because of competitive atmosphere,
T.K. Maxx could face a lot of problems along with above one. It can put negative impact on
strategic decision making of manager and leader leadership style, which could overcome by
taking effective actions and developing tactics in context of same.
Importance of different areas for T.K Maxx
T.K. Maxx is the most popular European off-price retailer in the UK with more
outlets, more ranges of items and quality brands that gain attention of new buyers. Its stores
operate through out Australia, Germany, Austria, Ireland, Netherlands etc, calculating 515
stores in Europe and 35 in Australia in 2017. In order to operate business and manage
performances of all outlets, chosen brand needs to understand varied areas such as
competitors, market, target consumers and influencing factors.
Competitors-
The main reason behind above discuss issue is this element as it can be analysed that
increasing rivalry can develop competitive environment, which directly put negative
influence upon current practices and activities like decision making (Rashid and Barnes,
2017). It is really very essential for T.K. Maxx organization to analyse and identify its
competitors and their power which can impact business tactics and plans in negative manner.
TESCO, Primark, H&M etc. are included in list of selected company competitors who are
able to give tough competition to its business.
Target customers-
A particular group of people at which T.K. Maxx brand aims its items like apparel,
home etc. These consumers are those who are most likely to purchase from this brand (So
and et.al., 2017). Along with above component, company needs to determine potential buyers
and target them. Furthermore, after doing this its management should understand the needs

and preferences to each customer, which make them able to serve target market in effective
and systematic manner. It has been analysed that female and male are the target consumers of
firm age up to 18 to 24 years olds.
Market-
A market can be defined as a place where an organization has managed its functions
and operated business in systematic manner or where consumers go to purchase things like
cosmetic, cloths and other products exchange of money. T.K. Maxx needs to understand
current activities and act conduct in market by other brand and also analyse trends that
influence decision making process of buyers. As these things could also bring challenging
situation for company like above one and occur issues.
External factors-
There are different types of external factors available in the world of business that
could impact in negative and positive manner on T.K. Maxx profitability & productivity,
which frim needs to understand and determine as well in order to take further actions. For
example, increase tax rate is one of the external elements or force that impact negatively upon
trading procedure of chosen organization. It also develops problems in front of management
and overall venture.
It can critically analyse that areas such as competitors, external factors and target
consumers are important for company to know as bring benefits in form of taking better
actions after analysing their impacts. On the other hand, in order to gather data about all
factors company needs to spend more time which is not possible.
Three problems that firm is facing and reason behind ranking these as top three
Intense competition-
One of the biggest issues that T.K. Maxx has face is managing business while leading
in retail industry because of increasing competition degree which influence decision making
of manager and leader in context of managing performance of business and workers as well.
This problem can lead to decrease sales but only for short term period, because by creating
effective strategies and conduct overall market analysis management can overcome it. There
are many options company can use in context of this.
Changing needs of buyers-

Other challenge or issue that chosen organization can face is manufacture and then
sell variety of products because changing needs and preferences of consumers impact
production as well as marketing strategies in negative manner. In recent time, people follow
trends and fashion style which his or her favourite celebrity wear. It impacts negatively on
manufacture and sell activities of T.K. Maxx company because fashion styles and trends has
changed and due to that customer can like to purchase items accordingly.
Manage trading operation-
With two different problems, T.K. Maxx face third one and that is managing trading
procedure because of high tax rate that decrease operational efficiency and success changes
in profitable market. Due to this factor, it gives negatives experience to management in
regard to pay extra charge that affect current financial performance and budget of
organization.
Reason for ranking above three issues-
The first issue is state at top level because it impacts overall performance and profits
margin in negative manner more than other factors. For example, competitors are those who
negatively affect T.K. Maxx in term increasing level of pressure upon management in context
of developing growth plans and success gaining strategies. Without understanding and
analysing rivals’ activities firm could not be able to develop further and current plans.
Furthermore, second problem place at next stage because it could not impact at extreme level
as it only affects decision making and production practices or strategies in negative manner,
which can overcome by conducting market research and taking beneficial actions. Third one
state at last phase because it could be handled by overcoming above two and hiring new
applicants who are able to develop effective and influencing marketing content.
CONCLUSION
By summing up above discussion, it has been concluded that TK. Maxx company by
taking right decision and developing strategic management plans overcome three different
challenges or problems which it has faced while operated business within retail industry from
longer period of time. It has been identified that chosen company has successfully beat its
rivals by improving product quality and increasing performance level. Furthermore, it has
been summarized that by developing effective marketing tactics firm reach at global level and
promote its products all over the world. By conducing effective marketing attempts

organization has successfully generated brand awareness. Moreover, enterprise by targeting
consumers has create influencing advertise content that directly influence mind of each buyer
and drive them towards purchase.

REFERENCES
Book and Journals
Guo, S., Choi, T.M. and Shen, B., 2020. Green product development under competition: a
study of the fashion apparel industry. European Journal of Operational Research.
280(2). pp.523-538.
MCKINNON, A., 2018. Improving environmental performance retail logistics. Logistics and
Retail Management: Emerging Issues and New Challenges in the Retail Supply
Chain. p.279.
Rashid, A. and Barnes, L., 2017. Country of origin: reshoring implication in the context of
the UK fashion industry. In Reshoring of Manufacturing (pp. 183-201). Springer,
Cham.
Schroeder, J.E., 2017. Corporate branding in perspective: a typology. European Journal of
Marketing.
So, K.K.F and et.al., 2017. The missing link in building customer brand identification: The
role of brand attractiveness. Tourism Management. 59. pp.640-651.
Online
At TK Maxx. 2020. [Online]. Available Through: <https://www.tkmaxx.com/uk/en/how-we-
do-it>