External Factors Affecting a Business
INTRODUCTION
EXTERNAL FACTORS AFFECTING THE COMPANY'S BUSINESS AND PROSPECTS
There are many factors that affect the Company's business and the results of its operations, some of which are beyond the control of the Company. The following is a description of some of the important factors that may cause the actual results of the Company's operations in future periods to differ materially from those currently expected or desired.
OBJECTIVE
The objective of this paper is to introduce the external factors affecting the jeans industry from a business view.
1. GENERAL ECONOMIC AND INDUSTRY CONDITIONS
Any general economic, business or industry conditions that cause customers or potential customers to reduce or delay their investments in the jeans industry could have a negative effect on the Company's strength and profitability. For example, a softening of demand for jeans ware may result in decreased revenues (or at least declining revenue growth rates) for jeans manufacturers in general and the Company in particular and may result in pricing pressures for products that the Company sells.
2. COMPETITION
The jeans industry is highly competitive. The intense competition inherent in the industry could result in the loss of customers or pricing pressures.
3. INTERNATIONAL ACTIVITIES
The Company's future growth rates and success are in-part dependent on continued growth and success in international markets. As is...
first quarter of FY2012, prolonged, shortages in supplies due to capacity issues or other factors affecting the manufacturing process alter the price of these products. When there is a shortage in supplies the company may not be able to source required components in adequate quantities in a timely manner (Cisco Systems, Inc. SWOT Analysis, 2013).The company may be obligated to purchase components at higher than normal prices in the current market because of purchase commitments. When this happens its gross margin is affected. Supply chain issues also lead to delay in order fulfillment, affecting the revenues and margins of the company (Cisco Systems Inc. SWOT Analysis, 2013)
...choices for executives, and gaining rapport with local suppliers, the corporation stands a good chance of achieving success in their foreign expansion.
General Motors is knocking on the door to world class business performance. Ohmae’s five stages of global operation support General Motors aspirations. From stage one to stage five there are significant differences to becoming a global organization. For instance, stage one, states that a company supports arm’s length customer export activity by a domestic company that links up with local and distributors to function. This stage represents the entry level global corporation. General Motors is at stage 4 of Ohmae’s five stages of becoming a global corporation, because it has exemplified the following traits: Systems and tools used globally not just at headquarters, R&D, Engineering and other business operations have a global focus, and all support functions are applied globally. (MFGO 601, WK. #2 Lecture Notes) An example of Ohmae’s, stage ...
Analysis of sports clothing industry, including its main features, key market drivers and competition within industry.
The strengths of the book come from its’ accessibility. The book is easy to follow and provides readers with a great deal of information about the production of mass-manufactured clothing. As well as brings awareness to its’ many issues which we inadvertently take part in when we purchase such products. The book is well written and thoroughly researched but does have its’ share of weaknesses.
Firms exist with the purpose of create and deliver economic value (Bensaco et al 2010, p. 365); therefore, business that create better economic value than its competitors will attain an advantage position in market place. Companies might try to improve its sales (profit) through domestic expansion, product diversification or by internationalisation; this report will focus on the reasons of espressamente Illy to expand internationally; additionally, its sources of competitive advantage and, the analysis of three markets in which company want to participate.
Investing or venturing into the international market involves critical analysis of the internal and external environment in which the company operates. Usually, a company will decide to venture internationally due to a saturated market or fierce competition in the current country of operation. The demand for a company’s products may have diminished as a result of an economic crisis thus the company will target a foreign market to sustain its sales. In other words, the firms expand internationally to seek new customers for its products. For example, the current Euro zone crisis led to low demand in Europe and many companies extended their businesses to emerging markets where demand was high. A company may also venture in the international market to enhance the cost-effectiveness of its operations especially for manufacturing companies that will benefit from low costs of production in developing world. Global expansion is a long term project as it involves demanding logistics to be successful. Thorough research must be undertaken to ensure that the expansion will create value for share...
Consumers tend to be more demanding and more arbitrary, so use appropriate strategy will be critical to all fast fashion retailers.
... this and their marketing strategy will be key if they are to remain viable, grow and compete in the market.
The article provides examples of companies that have faced the crisis. For instance, the premium position captivity reason was among the main factors causing Levi Strauss to lose its share of market. ...
In the world of fashion, there is denim. It is one of the world’s oldest fabrics, and has been modified and remodelled to go with the latest fashion trends. The first ones who wore this fabric are workers in the California Gold Rush era, designed by Jacob Davis because of its sturdy material that withstood the harsh working conditions. Not just them, even sailors from Italy use this material too as their sailing uniform. Then, it started appearing as an actor’s apparel, and that’s when denim started to become one of a fashion item. People started wearing jeans as part of their daily apparel and even adding their own ideas, such as studs and colouring it with different shades of denim. It doesn’t only stop around that era, but today, they are seen everywhere and has become a major clothing piece for almost all of the age groups. As a reference, we can see young children already wears jeans as part of their clothing, the teenagers added jeans to their wardrobe, and even for the seniors, they consider jeans as a simple and comfortable clothing pieces.
Jeans have become one of the most popular articles of casual dress around the world. Nothing speaks louder than consumers’ demand; estimated over 800 million pairs of blue jeans are produced worldwide, which represents a multi-billion dollar business. According to market-research firm NPD Group, Americans bought $13.8 billion of jeans in the year ended April 30, 2011. Another resource claims that North America alone accounts for 39% of global purchases of jeans, followed by Western Europe at 20%, Japan and Korea at 10%, and the rest of the world at 31%.
withstanding a large recession, and commanding high market share. In the last five years, the company’s
On the Ansoff matrix below is shown what growth strategies for new and existing products and markets can be used from the company.
Fast Fashion may be the most significant disruptive in the retail industry today. Troublesome novelties, or product or services, that alter an prevailing market by presenting minimalism, suitability, convenience and affordability, have the most positive influence on a company. Because fashion is ever changing and technology is always evolving the amount of production time it takes for something to be manufactured