SG7001 Managing Strategy & Operations and Partnerships Assignment Sample 2024
Introduction
The Atelier Chiang Mai is a popular business in fashion founded by two fashion lovers. Its sole objective is to produce high quality fashion apparels for its customers. It offers professional service in garment production. The company promises to be a one stop solution for apparel production needs.
Develop issues pertinent to Atelier Chiang Mai in the light of the success factors developed in component 1
The Atelier is a clothing manufacturing business established in Thailand and is dedicated to manufacturing premium quality clothing for its clients (Chiang-mai-clothing.com, 2021). It is known for providing fully integrated service to brands and designers. The company is looking forward to creating a simplified clothing collection in Asia.
The company has a vision of constantly reinventing with new and creative ideas. The textile industry in Asian markets has been growing at a rapid pace . A number of factors have contributed to the growth of the apparel industry in Thailand and Vietnam.
Amore liberalised international trade has been the crucial driving force. apart from these , a stable socio political environment along with cheap and skilled labour as well as factories with experienced craftsmanship are responsible for the flourishing garment industry.
This has been particularly useful in attracting the Western Brands. The region is favourable for fashion giants and is offering tough competition to China. It‘s popularity as China’s competitor has been due to value offerings at affordable cost. The region of Chiang Mai operation possesses a lot of competitive advantage in itself.
The government has taken the initiative to differentiate the region by setting up a social dialogue. It has been done with the view that low cost of labour will not be enough for the big clients to look for sourcing opportunities.
The western brands are much cautious about their supply chain, particularly working conditions of their suppliers (Umam and Sommanawat, 2019, p.67). So, the suppliers are always in search of improving working conditions.
The growing popularity of the region for being an apparel sourcing destination has been attributed to the increasing free trade agreements between the region and its trading partners. This phenomenon is expected to continue in the same manner in the near future.
The textile and clothing sector is highly benefitted from the free trade agreements. The basic exemption of custom duty on a large variety of products has helped it grow as a favourite destination for apparel sourcing (Chan et al. 2017, p.487).
The company has been able to set its name due to a host of services offered to its clients. It offers clothing line design, sourcing and full integrated service. International clients prefer a professional production service to take care of all the needs from creation to production services. It looks to engage a highly skilled designers, pattern makers and craftsmen to work tirelessly to produce the variety that it clients require.
The environment engagements rules are followed by the company are considered exceptional in Asian markets (Chiang-mai-clothing.com, 2021). The service offered is in confirmation with the European standards. With such specialisation, it is able to offer high quality products to its clients at reasonable pricing. Success factors for Atelier the co. is managed by European and Thai entrepreneurs who face and solve many challenges in producing products of their own brands.
So, Atelier is able to provide a fully integrative solution to its clients for providing a professional integrative service, the Co. is acting responsibly to win the trust and loyalty of its partners which is reflected in the it is offering the following promises. These promises or principles are serving as crucial driving factors for its success (Macchion et al. 2018, p.14). These are:
- Effective quality control management
- Scheduling of production process
- Efficient shipping and customer relation management
- Respect for human rights and responsibility towards the environment
Commitment to Us and UK standards
The factory provides a free check of the fabric procured by the co. The co. is able to source high quality fabric firm its wide network of fabric suppliers who ensure timely delivery as well as competitive prices. The co. Has one more quality assurance check which involves checking all the garments for defects.
It always tries to meet its clients with high end products. The packaging step also involves checking for the final time that the garments are in perfect shape. The packaging of the garments is carried out al with professional expertise. The co. has a good experience in Asian markets.
It builds trust with its partners by ensuring a timely delivery of service. The fashion contractors are at ease with timely delivery and insurance backed products. It takes full responsibility of the garments until it is delivered to the shipping company.
All kinds of custom clearance problems are efficiently resolved by the co. It manages all its waste disposal activities effectively and pays proper heed to the human rights application in operational process.
Assess these options using RACES and create a proposal. Include an explanation of the resultant strategic direction of Atelier Chiang Mai
The company is fully dedicated to premium quality garment manufacturing for its clients. It has the vision of offering fully integrated professional service to fashion brands, designers and start ups. The co. IT is currently eyeing at simplifying the complex process of establishing collection in Asia.
Since , the Co offers products based on certain values and principles , the main issued was to look for skilled and trained staff who would be driven by the values to work under the process by maintaining its standards. To get an experienced staff that would face the challenges by remaining within the boundary of principles was difficult which a first issue is. Another issued faced with experienced staffers was that they were resistant to new changes in values and methods of working.
The second issue was concerned with the salaries in Thailand which is higher than most of the surrounding countries. The craftsmanship and education of its team is far superior and high quality fabric availability together adds to the competitive strength of the business (Anim et al. 2018, p.4).
The competitive scenario for the co. Is not so fierce that it would threaten its existence. The company its mission of offering quality is unable to find reliable partners for sourcing its needs can be taken as the third issue.
The RACE model provides a framework for applying marketing strategies. The idea behind the RACE model is to provide a simple structure for companies to develop a Omni channel communication model which effectively addresses the audience and converts them into probable prospects for sales.
With evolution of the marketing space, there is need to effectively integrate both the online as well as traditional communication channels. As per Mullarkey and Hevner, (2019, p.16), RACE is an action oriented and offers practical approach to applying the different marketing tactics. It is perfect for integrating both the online and offline marketing mediums.
The company is engaged in offering high quality and textile accessories for it clients in a detailed production process. The co. maintains high standards with commitment to principles such as quality control , respect of human rights and protection to environment.
It is working with a network of reliable and flexible partners who would help it uphold its values. The corporately strategy of Alistair is rooted in the external environment faced by the business. Tourism is a major contributor in the economy of Thailand.
It is subjected to the policies announced by the govt from time to time. The instability in the political environment is the major cause of disruption in business activities. The currency Thai boot has been subjected to various flexibilities and the country has faced several crisis . Due to volatility in the currency, investors stay away from investing in companies.
Crisis times prove difficult for the business to arrange capital for investments. The government is keen on making key regulatory changes to attract investors from across the globe (Svobodová, 2021, p.90).
The openness to trade with signing of free trade agreements has proven highly beneficial for the garment manufacturers. The education level in Thailand is quite good and there is an abundance of cheap labour which if harnessed properly help improve the revenue figures for the textile manufacturers. The social factors make it a popular tourist destination. After tourism, agriculture is the second major contributor to the GDP (Jestratijevic et al. 2021, p.14).
Thailand is moving forward with a new outlook to technological changes. Technology is rapidly developing in Thailand due to the tech savvy outlook of the people. People are increasingly taking up careers in data protecting and cyber security. This can be utilised by the start up businesses. Alistair also has numerous advantages in employing the tech oriented mindset in harnessing the opportunities in the market.
Since, the fashion industry is highly dependent on innovation, having a large pool of tech savvy workforce is a good step in that direction. There are many laws which are unique to Thailand. These laws have a strong influence on the social environment and culture of the region (Svobodová, 2021, p.90).
A co. Needs to strictly maintain the legal boundary for keeping its operations smoothly. The Atliers is looking forward to build a workplace culture that is able to attract foreign clients. Maintaining a healthy balance between the legal framework and the innovative outlook is a crucial challenge for the company.
Rapid industrialisation in Thailand has contributed to a depletion of the natural resources (Aidinopoulou and Sampson, 2017, p.89). The govt is looking to conserve its natural resources. The Altiers is complementing the effort of the govt by being responsible to the environment in its operations. It is very efficiently engaged in management of wastes.
All the waste fabrics generated from its production pipeline is given to the local tribes for use. All the other chemical wastes are disposed off easily in local recycling plants. It is trying to ensure every step for a greener environment.
The company also has a great respect for the human rights .The wages paid by the Co. is considerably higher than those paid in developing countries. Innovation is a crucial driver of the fashion industry. The brand must constantly reinvent itself with ideas and creativity to address the needs of its clients. Acting responsibly to the environment and upholding the quality standards of its offerings will help ensure its growth ahead.
Defend your proposal and preferred strategic direction by explaining why each stage of the analysis was needed in order to ensure your proposal is robust
The manufacturing landscape in this textile and garment industry will be influenced by three factors These will be cost ,competitive nests and closeness. Cost has played a major role in sourcing of materials over the years. High cost destinations like the UK and Us have shifted their apparel sourcing needs to the Asian countries particularly due to their low cost manufacturing due to cheap labour market (Macchion et al. 2017, p.195).
The trend will continue to grow as low destinations like Thailand will become a favourite for procuring apparels . The Atlier has a golden chance of harnessing this opportunity by making use of the cheap labour and materials .The highly skilled workforce will be supportive in bringing innovation which is a must to survive in the fashion industry .
The apparel manufacturers are growing their competitive advantage to gain maximum clients from the West. An efficient network with the destination market is critical for its development. The foreign clients are looking for suppliers who can offer full packaged service where variety will be delivered within the shortest time span.
This provides an excellent opportunity to the co. in looking for scaling opportunities and establishing their brand reputation. Europe has particularly turned to the Asian markets for its bulk supplies .Atlier can look grab this opportunity by building workplace culture and supply process that resonates with those of the suppliers.
Adopting a strategy of digital transformation and integrating the current digital trends will help to gain manufacturing and supply chain excellence. Technology will help in gaining an edge in scale and improving production efficiency (Macchion et al. 2017, p.191).
Scarcity of skilled labour and rising wage costs are the major hindering elements to efficient garment manufacturing in the western nations. Thanks to a skilled and educated workforce , the atelier has a competitive edge in performing at its peak and emerge as a leading manufacturer across the globe .There has been a continues rise in consumer demand due to increased expenditure on clothing .
As far as the fast fashion trend is concerned , it is shaping the fashion industry by attracting the consumer towards trendy clothes .the fast fashion influencers are working to make the offerings penetrate to the consumer at the lower end of economic profile .
The influx of technology in fashion is creating a new experience for the customers .Adopting the latest technical trends will shape the fortune of Atier ahead. Technology will create the framework for bringing in the necessary innovation for attaining efficiency in overall operation. Sustainability will be the main pillar for future growth .
The growing concerns about the environment and the integration of technology for an improved and transparent supply chin calls for stricter adherence to all the compliances (Zhao et al. 2017, p.94).The Atelier must look to expand its horizon of environmental concerns .increasing CSR will look to enhance its reputation as a brand . The company must look for new breakthroughs in material recycling.
Reuse of garments wherever possible or fixing or transforming the material for another use can also be looked forward to .Resale of refurbished garments could be another step in taking sustainability forward. The Atlier must look forwarded to make the production more efficient so that social development goals are easily attained .
The innovation is carried out in the company to include all the manufacturing steps o the production .The company is targeting a more integrative manufacturing process that will be capable of serving the customer as fully fledged package . With quality in its heart and services delivered by professional experts ,the co. is bound to offer value at reasonable pricing.
The company also has a positive approach of learning from mistakes. Being serous about the mistakes and correcting hem without delay is a positive outlook which will definitely add to the performance of the co.
The Co. looks to protect its logo and brand seriously .its clothing manufacturing at foreign locations usually begins with signing of agreements (Kaharuddin et al. 2017, p.418). Patens are a legal way of protecting the innovative efforts of a co. as it is a crucial competitive edge for the business. Protection of intellectual property rights is very crucial in the fashion industry .
The co. is heavily focused on protecting its uniqueness in the legal structure where it operates . Installing a sense of trust and confidence will add to the brand image of the co. and at the same time will prevent the company from the menace of duplication efforts
Conclusion
The fashion demand is surging at a fast pace. Capitalising on the opportunities will require working with values that will not only raise revenue margins , but also will need protection o the society through sustainable plans .proper implementation of strategies will ensure tapping the unexplored opportunities in the market .
References
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