SG7001 Assignment Sample – Managing Strategy, Operations and Partnerships 2022
Component 1
Activity 1: An analysis of the implications of the vision of the organisation.
| The vision of Atelier Chiang Mai: | Being created by two fashion lovers, the vision of the company is to produce high-quality fashion clothes for the luxury brand called “Nathalie Fordeyn Paris”. (There is no accurate mention of its vision as per the company’s publicly available data) (Chiang-mai, 2021). | ||
| Quality(organisation characteristics (4Vs) and the desired performance attributes (SQFD&C): | Evaluation | Description & Justification | Implications |
| The volume dimension | Moderate | The company offered its operations to another fashion label since 2015 considering their realisation regarding the increasing demand for the cloths factory in Asia. | The company’s objective to high-quality production reaches more customers because of its ability to produce products in high volume. |
| The variety dimension | High | The company offers higher quantity cloths production to fashion brands along with small quality products to any customers who want to wear unique pieces. Thus, they offer a great variety of clothes. | The uniqueness of cloths and the production process for both large quality and small quantity ensures quality thus adheres to the vision (Chiang-Mai-Clothing, 2021). |
| The variation dimension | High | The company is highly efficient in providing the best services to its client in their price range as it mentions that they source fabrics, create patterns and prototype as per the client’s price and quality positioning. | The company’s operations ensure that its client can get the best products and services as per their budgets. |
| The visibility dimension | High | The company takes care of production, control of service and product quality and shipment (Chiang-Mai-Clothing, 2021). As its clients are companies, they offer products, as the client prefers for example client, may have its own shipping company. It shows the flexibility of the company. | The quality of service also includes how flexible the company is in terms of the demands of customers in shipment. |
| Speed | Moderate | The speed of delivery of the products is not mentioned in the company data, however considering the processes and staff’s integration, it should be good. | There is the positive assumption that the service’s speed would be great considering the overall quality of the study. |
| Flexibility | High | The company already mentioned how flexible it is in terms of manufacture and shipment (Chiang-Mai-Clothing, 2021) | Such flexibility is one of the major determining factors of how the company has been successful in maintaining the quality of overall service. |
| Dependability | High | Chiang Mai ensures its products are delivered safely on time to its clients as it covers production, quality control and shipment. | As the company aims to focus on great service, dependability of the company’s operations becomes an important part which has been successfully done by the company |
| Cost | Moderate | The company offers products based on the cost preferred by clients (Chiang-Mai-Clothing, 2021) | It is effective for reaching the clients easily as they can rely on the brand for quality products at a fair price. |
| Quality | High | The company’s fully integrated service includes technical drawings, pattern making, prototyping samples, large and small production, Quality control, packaging and shipment (Chiang-Mai-Clothing, 2021). Its adherence to ethical chart and environmental engagement ensure great quality of products. | The vision of the company is to deliver quality garments that have been successfully maintained by the company through its integrated service. |
References
Chiang-mai, 2021. About The Atelier. [Online]
Available at: https://chiang-mai-clothing.com/about-workshop/
[Accessed 2 September 2021].
Chiang-mai, 2021. Professional Apparel Manufacturer in Asia. [Online]
Available at: https://chiang-mai-clothing.com/
[Accessed 2 September 2021].
Activity 2: An evaluation of opportunities and threats posed by megatrends
| Megatrends | Key issues affecting the organisation
|
Impact and implications |
| Sustainability | The organisation has strategies to reuse and recycle products in order to manage and reduce wastes. However, all the plans are not properly implemented every time, which is certainly a serious problem for Atelier Chiang Mai. Lack of awareness and training about the sustainability practices create barriers for Atelier to ensure sustainability practices to a greater extent. | The sustainability plans and strategies of Atelier Chiang Mai significantly contribute to brand recognition of the company. But failure in proper implementation of these strategies impact the brand reputation of the firm as well as its operational activities. In order to improve the situation, the organisation first needs to set clear and concise sustainability goals. It will help the organisation to explore opportunities of growth in the apparel industry. |
| Digitalisation | The handmade production process, which is followed by Atelier has low environmental impact, and the organisation tends to maintain this traditional process to ensure environmental sustainability. But continuation of handmade production creates myriad barriers for technological advancement and digitalisation. The organisation mainly encounters problems in terms of quality control because the biggest challenge is to maintain quantity of production and quality (Chiang-mai, 2021). | The company is capable of providing high quality natural, silk, and handmade fabrics with the help of its handmade production process but it affects the quantity of production because advanced machinery helps to produce more (Chiang-mai, 2021). The company can gradually shift to digital system and adopt advanced technologies in its individual operations. Even after adopting advanced technical tools, the company needs to be aware of managing wastes and maintaining product quality properly.
|
| Globalisation | Atelier has plan to develop a trust-able clothing factory in Asia as a strategy of international expansion as they aims to work in this factory with European mindset and standard (Chiang-mai, 2021). However, the rate of expansion in the case of Atelier is relatively lower than the other companies in the fashion industry. | The company has successfully established a strong brand recognition with clear goals of growth and development. The globalisation or rapid expansion can be driven by effective market research and study in the other countries. Targeting the needs of mass market and increasing the level of production are also can be effective strategies for Atelier Chiang Mai to accelerate globalisation. |
References
Chiang-mai, 2021. Environment Protection. [Online]
Available at: https://chiang-mai-clothing.com/guarantee/environment/
[Accessed 2 September 2021].
Chiang-mai, 2021. Professional Apparel Manufacturer in Asia. [Online]
Available at: https://chiang-mai-clothing.com/
[Accessed 2 September 2021]
Activity 3: Proposed recommendation and evaluation
| Recommendations | Atelier Chiang Mai has established a strong reputation in the competitive marketplace with its high-quality products along with ensuring low environmental impact (Chiang-mai, 2021). The company still depends on handmade production process to maintain the quality, so the company is recommended to focus on using digital technologies for various core organisational activities especially marketing.
The company needs to train the employees properly about Atelier’s small, medium, and large scale productions and also the strategy of optimising its textile wastes. The employees should also learn about eco-friendly operations including reusing and recycling fabrics. Instead of completely focusing on the requirements of clients and target customers, the organisation can be recommended to introduce completely unique, innovative and diversified product line. These products will be unique in feature and identifiable. With the help of strong brand reputation, Atelier can set higher price for its high quality products instead of following a competitive pricing strategy. |
| Justification
|
Digital marketing can help the company to reach an extended customer base and promote their products, which will positively impact their sales rate (Yasmin, et al., 2015). In addition to that, digitalisation is also a strategy to gain competitive advantages.
Proper employee training may help to reduce the risks in waste management and implement the process in proper manner. Product diversification can drive sales rate and profitability of the organisation, along with strengthening the brand name to a greater extent. |
| Potential implications
|
The employees will be able to learn about fashion garments manufacturing, which will enhance their skills and competencies. Moreover, they will also be aware of the environmental sustainability practices, which is a major concern of the modern-age organisations.
The customers will be benefitted if the company can minimise adverse environmental impacts because huge amount of waste and the environmental pollution caused by manufacturing of apparel. It can minimise the overall environmental and social impacts, which will benefit the communities to a greater extent. Nathalie Fordeyn Paris, the French luxury brand will also be benefitted by advancement of the services and operations in Atelier. If Atelier can expand digital marketing activities and reach more customers, it will facilitate high quality production and financial benefits of the brand as well.
|
References
Chiang-mai, 2021. About The Atelier. [Online]
Available at: https://chiang-mai-clothing.com/about-workshop/
[Accessed 2 September 2021].
Yasmin, A., Tasneem, S. & Fatema, K., 2015. Effectiveness of digital marketing in the challenging age: An empirical study. International Journal of Management Science and Business Administration, 1(5), pp. 69-80.
Activity 4: A critical analysis of the industry environment.
| Environmental Factor | Issue pertinent to the industry | Implications for the industry |
| Political factor | The political stability in Thailand is weak thereby impacting the export and trade especially internationally. The nation’s democracy does not comply with various business practices (Pathmanand, 2021). Even though there are certain political issues, the government has considered taking the initiative which promotes sustainable fashion (switch-asia, 2020). | When there is political instability, a company suffers to develop new innovative ideas and further intricate them for better business opportunities. |
| Economic factor | The economy of Thailand has become agile, however, it continues to fluctuate which could be an issue. The majority of the revenue of the country is generated by its manufacturing sector (Fibre2fashion, 2021). The apparel sector of Thailand is growing as one of the major Asian fashion manufacturers that helped in strengthening the economic aspect. | The apparel sector’s expansion and success are major implications of the economic stability of Thailand (Worldbank, 2021). As there is the demand of Asian manufacturers, Thailand has become one of the major manufacturers of clothing items as a result these companies have been innovative. Such economic condition of the company has been one of the major growth factors in the clothing industry. |
| Technological factor | Thailand has been one of the major south-east Asian countries that strengthened its technological prowess in the last few years. The country has successfully developed advanced technologies and has been able to utilise them such as Artificial Intelligence, Robotics, and Virtual Reality for better product and service delivery (Thaiembdc, 2021). Many companies with the help of such technological solutions have been able to improve manufacturing ability while reducing its cost and more investment in product innovation continuous. | The clothing and manufacturing industry of Thailand has seen growth due to the supportive environment led by technological advancement. It can be stated that such implication of technology created a major scope of innovation and better production to cater to wide-ranging demands from customers. Thus, many companies have begun their journey in this industry. |
| Porter’s Force | Strength | Reasons/Justification |
| Bargaining power of
buyers |
Medium | Atelier Chiang Mai is the manufacturer of quality and unique cloths thus they offer one of a kind products (CHIANG-MAI-CLOTHING, 2021). Buyers do not have power because of such diversity of the company. However, it is changed due to many companies are available in the sector in recent years. |
| Bargaining power of
suppliers |
Low | The company has been in the industry for a long time and has earned respect from global clients as well. Therefore, it can easily import materials from other suppliers from other countries. On the other hand, suppliers do not earn more by reaching different clients. |
| Threats of
substitution |
Low | The threat of substitution is low as the integrated service of manufacturing to the shipment that the company offers is unique (Chiang-Mai-Clothing, 2021). It effectively uses technologies that ensure great-quality clothes which cannot be easily imitated by others. |
| Threats of new
entrants |
Medium | Although the clothing sector of Thailand has been expanding in the last few years, it does not pose a huge threat considering Chiang Mai is already a reputable company working in various countries. But, the new entrants are also creating new trends so the threat is medium considering it may impact the sales of the company. |
| Competitive rivalry | High | The rivalry in the industry for Chiang Mai is high as over the years the sector has been strengthened and become highly competitive. |
| Identification of the
Industry in question. |
As the Atelier Chiang Mai has become renowned for its premium quality appeals that adhere to environmental and social standards, it operates in the manufacturing clothing industry. |
| Industry stage in the
life cycle |
The industry is currently in the growth stage considering it is now growing quickly and is expected to fulfil huge customer demands however it is still behind the European manufacturing brands (Core, 2010). |
| Implications | The clothing sector of Thailand has witnessed a positive change in terms of its demand that directly made an impact on the Atelier Chiang Mai’s business. Due to such growth opportunities, the company has a scope to increase its revenue and have a competitive advantage in the market. On the other hand, the sector is being innovative as it was continuous to offer trendy clothes and greater features making them all widely available in the market. Therefore, the growth stage of the industry has been a positive influence on the company’s overall success. |
| Issue | Survival Factor | Success Factor |
| The Thai and European clients of the Chiang Mai facing issues in terms of designs, pricing and overall quality of the cloths | The Atelier Chiang Mai is one of the leading clothing manufacturer based on Thailand that offers quality clothes by in-house manufacturing to clients (both companies and individuals) thus does not only manufactures for a single brand. | The company’s fully integrated service that involves technical drawings, pattern making, prototyping sample, large and small production and QC, packaging and shipment is exceptional along with it also acts as professional fashion industry manufacturing for the brands who are its clients (Chiang-Mai-Clothing, 2021). It forms close relation with the fashion brand as it takes into consideration the client’s clothing line in terms of price, quality and marketing. Therefore, the success of the company is because of its ability to offer solutions to the vast amount of demands of the clients. |
| The industry has become immensely competitive as the clothing manufacturers are making rapid growth and expanding their business in the market | The company’s key survival factor would be its objective and the development of activities to reach the objective. It enabled the company to thrive even in such a competitive environment of the industry. As the company’s uniqueness attracted by many clients who all wanted quality products instead of availing vast amount of products in a cheaper range. | The major success factor, in this case, is the highly skilled employee base and ability to understand the gap in the market and offer products or services that are unique and adds value to the company and clients. Additionally, providing quality products understanding the pricing point of customers has been one of the major success factors. |
References
Chiang-mai, 2021. About The Atelier. [Online]
Available at: https://chiang-mai-clothing.com/about-workshop/
[Accessed 2 September 2021].
Chiang-mai, 2021. Professional Apparel Manufacturer in Asia. [Online]
Available at: https://chiang-mai-clothing.com/
[Accessed 2 September 2021].
CHIANG-MAI-CLOTHING, 2021. About The Atelier. [Online]
Available at: https://chiang-mai-clothing.com/about-workshop/
[Accessed 07 May 2021].
Chiang-Mai-Clothing, 2021. Your Clothing Production Partner in Thailand. [Online]
Available at: https://chiang-mai-clothing.com
[Accessed 02 Spentember 2021].
Core, 2010. The competitive position of Thailand’s apparel ndustry: Challenges and opportunities for globalization. [Online]
Available at: https://core.ac.uk/download/pdf/38933604.pdf
[Accessed 03 September 2021].
Fibre2fashion, 2021. Sector overview: The fashion industry in Thailand. [Online]
Available at: https://www.fibre2fashion.com/industry-article/3224/sector-overview-the-fashion-industry-in-thailand#:~:text=The%20fashion%20industry%20is%20a,of%20total%20employment%20in%20manufacturing.
[Accessed 03 September 2021].
Pathmanand, U., 2021. THAILAND: History, Politics and the Rule of Law. Pacific Affairs, 94(01), pp. 190-192.
switch-asia, 2020. Thailand steps up with new policy to promote environmentally-friendly products and services. [Online]
Available at: https://www.switch-asia.eu/news/thailand-steps-up-with-new-policy-to-promote-environmentally-friendly-products-and-services/
[Accessed 03 September 2021].
Thaiembdc, 2021. AI and robotics growing rapidly in Thailand. [Online]
Available at: https://thaiembdc.org/2021/04/28/ai-and-robotics-growing-rapidly-in-thailand/
[Accessed 03 August 2021].
Worldbank, 2021. The World Bank In Thailand. [Online]
Available at: https://www.worldbank.org/en/country/thailand/overview
[Accessed 03 September 2021].
Activity 5: A critical evaluation of the business to business relationships maintained by the organisation
Business to business relationship
Atelier Chiang Mai follows a creative production process to offer a unique clothing line and its manufacturing services involve a full range of services along with manufacturing services. They take care of individual steps of the production process and European designers are also involved in the manufacturing process. The main reason for involving the European designers is that these designers have experience of the large-scale European fashion brands like Dine Von Furstenberg, Sonia Rykiel, and Galliano. This is how, Atelier maintains business to business relationships as its B2B relationship is nurtured by managing relations with fashion brands (Chiang-mai, 2021).
Instead of targeting individual customers, Atelier Chiang Mai maintains relationships with various fashion brands and manufacture garments for these brands across the world. This is how it directly targets other businesses to promote and sell their products. Names of a few fashion brands are given below, for which Chiang Mai manufactures garments.
- Finger Crossed – Thailand
- Things that make you Happy – Belgium
- Nathalie Fordeyn – Paris
- Wako – Paris
Thai and European entrepreneurs manage Atelier and this business to business relationship is not only beneficial for Atelier Chiang Mai but the businesses of these entrepreneurs as well because they receive immense support from Atelier in terms of production while they have several production problems.
Supply chain relationships
Atelier Chiang Mai focuses on manufacturing and supplying garments to renowned brands across the world. The organisation works with myriad textile suppliers of Thailand especially in Chiang Mai and also in Europe and United States (Chiang-mai, 2021).
Moreover, the company also deals with different suppliers of fabric and these suppliers directly deliver products to Atelier’s apparel factory in Thailand. The company focuses on effective relationship management with the suppliers to improve the overall supply chain practices. Environmental sustainability is a key concern for Atelier, and it aims to develop and maintain a green supply chain.
In order to maintain this relationship and streamline supply chain practices, Atelier source its materials from various environmentally trusted suppliers and the organisation also optimises production improvement.
Customer relationships
Effective customer relationship management by Atelier is facilitated by its concern for manufacturing high-quality garments products. Customer relationship is improved by Atelier’s commitment to delivering creative product lines along with addressing the needs of the customers, who look for innovative products.
Atelier Chiang Mai has a commitment to developing a green supply chain, waste management, recycling and reusing procedures, which also reflects in their customer relationship management. The environmental policy applied by this organisation greatly impact both the quality control process as well as the wellbeing of the society and wellbeing. This is how it performs and operates with strong corporate responsibilities.
References
Chiang-mai, 2021. Clothes Production small to large scale. [Online]
Available at: https://chiang-mai-clothing.com/
[Accessed 3 September 2021].
Chiang-mai, 2021. Production Brands and Fashion Businesses. [Online]
Available at: https://chiang-mai-clothing.com/apparel-manufacturer-brand/
[Accessed 3 September 2021].
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