Tommy Hilfiger Company: A Business Analysis Report

Desklib provides past papers and solved assignments. This report analyzes Tommy Hilfiger's business strategies.

Individual written assignment
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Contents
Introduction...................................................................................................................... 3
Assignment 1................................................................................................................... 4
Conclusion:.................................................................................................................... 11
References:....................................................................................................................12
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Introduction
In this assignment, a thorough and brief study is made on the company Tommy Hilfiger.
This company is based in America while its business operating area is spread in various
countries including the United Kingdom. The company is working on designing the
dress on a large scale and it is engaged in the manufacturing of men wear. The
company takes the benefit from its competitor as the company sells its products with the
best quality and this will enable the company to make high profits in comparison with its
competitor in a competitive market. The Tommy Hilfiger Company have work on
different and various functional areas like human resources department, accounting and
supply chain management and others function which is performed by the company for
taking the advantages of the market from its competitor.
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Assignment 1
In the context of Tommy Hilfiger Company, this company previously known by the name
of Tommy Hilfiger Corporation. The Tommy Hilfiger Company was founded by the
fashion designer named Tommy Hilfiger, that’s why the company named is taken on the
name of its founder. The main business of this company is to provide the best garments
and accessories to its customer’s at the best affordable price with good quality material.
The company was founded in 1985 by the person who’s named Tommy Hilfiger who
resides in the United State of America. The organization takes advantages from the
various economic and other factors in order to maintain they're and take benefits from
the environment of competition. The factors that help the company management in
different forms like research it’s existing customers and new (fresh) customers so that it
will help direct the company to generate high profits as with its competitor. The
company main competitors in the fashion design market are Ralph Lauren, Perry Ellis
International, Burberry, Oxford Industries, Sequential Brands Group, Coach, Gucci,
Giorgio Armani, Carolina Herrera and Donna Karan (Cascio, 2015). All the company (its
competitors) is also work in the same line at a large level. The performance of other
company influences the Tommy Hilfiger company performance in various parts of the
business. The area of the company that is in related to the company functional areas
are:
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Sources: By Authors, 2019
Human resource:
In every organization (whether public or private) company whose business operation
areas are on large scale need human resources department. The department has a
responsibility to recruit a good staff in the organization who have skills to operate their
activities in relation with the company and able to face workload in order to make
company success in the long term. Many businesses like Tommy Hilfiger considered
human resource is an important part of the organization (Noe, 2017). From this will
helps the new employees to take learn new skills and thereby it can increase the size of
company competitive advantages in business operation over time. The human
resources are the function of Tommy Hilfiger Company that deals with issues such as
compensation. In the organization, the human resources department performs human
resource management and overseeing various factors for the compliance rules and
regulations as per the standards and policies of the country. The function of human
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Human resource
Finance and accounting
Marketing
Operations/logistics/supply chain management

resources is not only up to the recruit of employees, but it also has the function of doing
the other various parts related to human resources such as:
 Recruit new staff/employee.
 Finding any legal action is taken against the employee.
 Assistance plan.
 Provide training and professional skills and development.
 Discuss the company payroll system.
Finance and accounting:
It is also the function of the company in which all the cost and accounting part of the
company related are included. The term finance is related to the cost and capital that is
borrowed from the outside like taking a loan from the internal monetary fund, World
Bank, etc. while on the other part of the business that is an accounting. This term is a
relation with the company accounting policies how they will make their accounting
transaction for the purpose of recording business transactions. In this part of the
function of the company, the company research and find the sources where the
company take capital in order to purchase material or paying any amount dues (Bricker,
et. al., 2017). Management of finance and accounting should observe that amount
borrowing should be at low cost. Finance is a wider term as accounting because
accounting term is focused on the company day to day business capital inflow and
outflow while finance related with the management of assets and liabilities and also
makes planning for the future development of the organization. This will help and
relevant to the company in a competitive in such a way that if the cost of the borrowing
funds is low and minimum then it make a plan to expand their business operations.
Ultimately this will help directly company to take a great position in the competitive
market with its competitors (Libby, 2017).
Marketing:
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The term marketing refers to a process of doing promotion business products into the
market by different methods like promotion via the internet, face to face door promotion
and others. In simple words, it can be defined that this function of marketing in an
organization is performed by the management of marketing in order to promote the
buying and selling of a product in the business market. This process will help Tommy
Hilfiger Company to achieve a competitive position in the business sector that will make
the company different in different forms from others. In marketing includes product,
promotion, place, and price which are generally also known as the marketing four P’s
(Liu, et. al., 2017). The four P’s are:
Sources: By Authors, 2019
In the marketing process, the first P is the product. It refers to items or group of items
that should be available or offer to customers. Before introducing the product in the
market, appropriate process should be adopted by the company in order to
understanding the need and preference of the customers to avoid any type of wastage
of time and money and should evaluate how company product like jeans helps in
standing or making position in the market and how it will differ from its competitors. The
product that offers by the Tommy Hilfiger Company fulfills the needs of their customers
((O’connor, 2016).
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Product
Place
Price
Promotion

The place is the factor that influences company marketability and profitability in different
business geographical areas. It refers to where the company produces is sold out. The
key point in place while selecting is to find out where and by which method the product
or services of the Tommy Hilfiger Company are sold in order to cover the large market
sector.
Price, it refers to the amount of money charged from the customers against the product
sold. While determining the price of the product, the management should consider all
the factors of the cost that will incur during the production until the end point of sale. The
company also considers the price tag of the product that is sold by its competitors in the
market due to knowing that their product price is sufficient or able to influence the
customer for their product.
The last P is a promotion, refers to the process of integrated marketing communications
between both parties. It includes various activities of the promotion department like
advertisement via online or offline mode, sales promotion via using digital mode and
others.
Supply chain management:
The term supply chain refers to act as a connector between the company, individual,
technology, and resources and other factors that may affect organization wealth and
performance over the period. The word supply chain management (SCM) is the wider
term that includes all the activities of the Tommy Hilfiger company, require from the
starting point of purchasing raw material to the selling of finished goods or product to
the user off the consumer or customers. The process of supply chain management
assist the company to market plan, execute and take control over the production and
this is the best method for the Tommy Hilfiger company in order to make a cost-effective
product that is easily influenced or attract the customer and sold the whole units as
soon as. If this was done then the company will take a competitive advantage in the
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business market and able to defeat their competitors in the market or kick out them. The
process of supply chain starts from ground level or zero levels i.e. purchasing of raw
material from the supplier of the material and transfer raw material to the manufacture
and it end when the raw material transfer or deliver to the manufacturer for the purpose
of manufacturing process starts as soon as so that the product available in the market
for buying and selling (Christopher, 2016). By using supply chain, management
oversees the supply of material from in-house to the outside i.e. market. Proper use of
supply chain management encourages Tommy Hilfiger Company and also increases
efficiency, profit margin and also makes a reduction in cost.
The company Tommy Hilfiger is different from its competitor's company like Gucci,
Giorgio Armani, Carolina Herrera, and others in such a way that Tommy Hilfiger
company focus the quality of the product and how to reduce cost without compromise
the quality of the product. While the other company always searching that low they will
increase their profitability. The organization follows all the rules and regulation as per
the employment for the purpose of recruiting new employees in their organization and
also used best marketing plans in order to promote their products in a geographical
area with good qualities at best prices. The company responds to the market as they
offer the best quality product at an affordable price considering the viewpoint of every
class of customers who can easily afford their [product and used them for the long term.
The company acquires a new position in the market by providing various types of
products to their customers at minimum cost. This will help and encourage the company
to make new changes to the context of customer and provide always good quality
product so that they never switch on the products.
Over time changes the company also use the new and best technology in the
manufacturing of products like jeans, t-shirts and its accessories like belt, etc. The
position of the company over the past year totally changed due to the use of the method
on a constant rate and use various upgraded technology in their manufacturing process.
This will lead the company to reduce cost without compromise with the quality of the
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product. The changes in position are also due to the uses of finance and accounting
along with better working staff who are always dedicated to their work and all the
management as a company will work according to the company rules and other which
make company better position in the market (Dereli, 2015).
At the end, the company should always focus on the customers need and wants for
making the organization successful in the next coming 2-5years because customers are
the main person in the market and take power to influence the company net profitability.
Tommy Hilfiger always makes a change in their technology as an adaption of new
updated technology that will always help to increase the profit and decrease the
company cost. This will ultimately lead the company and always place at a high level
from its competitors.
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Conclusion:
It is hereby concluded that the Tommy Hilfiger Company is a manufacturing
organization whose work of manufacturing garments and provide at different
geographical places with using good marketing technique so that the name and fame of
the company explore in different sectors. It has been seen that company over the past
year achieved good growth in their manufacturing and also developed their new
strategies that will help the management in order to take a decision regarding the
purchasing raw material from where and at minimum price. The company Tommy
Hilfiger also taken the advantage of being using the price at low cost from its
competitors so that the company is able to make success and achieved constantly their
position in the past few years and if this will follow in the next 2-5 years then it makes it
large and expand their business areas in other different countries where the product is
not yet being sold. At last, the company followed a well-defined pre-planned method
makes a company profit.
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References:
 Bricker, J., Dettling, L.J., Henriques, A., Hsu, J.W., Jacobs, L., Moore, K.B., Pack, S.,
Sabelhaus, J., Thompson, J. and Windle, R.A., 2017. Changes in US family finances
from 2013 to 2016: Evidence from the Survey of Consumer Finances. Fed. Res.
Bull., 103, p.1.
 Cascio, W.F., 2015. Managing human resources. McGraw-Hill.
 Christopher, M., 2016. Logistics & supply chain management. Pearson UK.
 Dereli, D.D., 2015. Innovation management in global competition and competitive
advantage. Procedia-Social and Behavioral Sciences, 195, pp.1365-1370.
 Libby, R., 2017. Accounting and human information processing. In The Routledge
Companion to Behavioural Accounting Research (pp. 42-54). Routledge.
 Liu, Y., Li, K.J., Chen, H. and Balachander, S., 2017. The effects of products’ aesthetic
design on demand and marketing-mix effectiveness: The role of segment prototypicality
and brand consistency. Journal of Marketing, 81(1), pp.83-102.
 Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M., 2017. Human resource
management: Gaining a competitive advantage. New York, NY: McGraw-Hill Education.
 O'Connor, T.F., Lawrence, X.Y. and Lee, S.L., 2016. Emerging technology: A key
enabler for modernizing pharmaceutical manufacturing and advancing product
quality. International journal of pharmaceutics, 509(1-2), pp.492-498.
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