SG7001 Managing Strategy & Operations and Partnerships Assignment Sample 2024
1. Environmental Factors
| Environmental Factors | Issues | Implications on Industries |
| 1. Drought and Flash Flooding | a) As Southeast- Asia is prone to floods and drought, the factor attenuating the flow resulting in disasters(Jiang et al. 2021).
b) Low diffusion and high water levels during and inaccessible working platforms(Jiang et al. 2021). |
Industrialization in a drought and flood-prone area has major effects on a natural disaster. Floods and droughts do not allow the organization to work in a conventional manner. Flooding keeps the water level high, making the working inaccessible whereas droughts make working impossible without any food and water supply (Jiang et al. 2021). |
| 2. Political and Economic Issues | a) Less tourism due to Covid-19
b) Terrorism and Political Issues |
Fewer tourists have accounted for a loss in the industry. As mentioned by Fareed et al. (2018), tourism has always been a boon for the clothing industry of Thailand. Loss in the number of tourists might be due to past terroristic activities in Thailand which may have frightened people. The governmental policies also affect the industry drastically by amendment of new laws which may hamper the integrity. |
| 3. Economic challenges | a) Fall in prices as compared to other markets
b) Fast-growing fashion culture globally(Tudor 2018)
c) Consumerism and short life cycle of clothing and cultural differences (Koszewska, 2018). |
Challenges faced by the Thai clothing industry have always been the increased competition and fall in prices (Tudor 2018). The increase of demand by the consumers leads to high manpower usage which the company may lack, resulting in less production. The rapidly changing fashion trends hamper the industry as they demand an increase in productivity. The cultural and attitude difference across the globe is another reason for the lag of the Thai clothing industry (Koszewska, 2018). |
Table 1: Environmental Factors and their Implications
(Source: Created by Researcher)
2. Porter’s Forces and Strengths
| Porter’s Forces | Strengths in the industry |
| 1. Threat of new entrants(High) | The force determines the difficulty or eases a company receives when a new rival company is established (Fareed et al. 2018). Few obstacles to face are capital, technicalities, loyalty towards customer and regulation by the government (Amelia et al. 2018). |
| 2. Threat of substitutes (Highly Moderate) | The threat of substitute arises when a company cannot meet the expectations of a customer and he finds a better alternate accordingly. As mentioned by Murni et al. (2018), a company is benefitted more if there are fewer competitors and alternates in the market. |
| 3. Bargaining Power of customers (Moderate) | Bargaining power of a customer or a supplier, high-cost margin leads to loss for the company. As stated by Badri et al. (2018), less product price and high gains for the company is indirectly proportional. |
| 4. Bargaining power of suppliers (Moderately high) | The bargaining power of suppliers costs low profit for the company if it has to spend a huge amount on raw materials. The power becomes high when the resources are limited (Badri et al. 2018). |
| 5. Industry Rivalry (Moderate) | The company has to have a fighting spirit for a bigger share in the market so as to hold a strong position (Chan et al. 2017). This helps to defend against the rivalry which may occur due to new entrants. |
Table 2: Porter’s Threats
(Source: Created by Researcher)
3. Life Cycle of Industry Stage and its Implications
| Industry Stage Lifecycle | The industry lifecycle stage refers to the development of an industry and its growth. As mentioned by Sae-Lim and Jermsittiparsert (2019), the life cycle undergoes four stages namely introduction, growth, maturity and decline. These stages may have their own time duration depending upon the existing and external factors affecting the growth or decline of the respective company. |
| Implication on the Industry | The lifecycle and the phases define the time of a company’s survival. As mentioned by Stindt et al. (2019), the characterization done by the phases on a company is structured in a way to make them succeed and determines the rate of success or failure. |
Table 3: Lifecycle Stage Development
(Source: Created by Researcher)
4. Persistent Issues and their Affect
| Survival Factors | Success Factors |
| The survival factors of the clothing industry depend upon the customer and the management of the industry. As mentioned by Gibson et al. (2017), the factors are efficiency, technology, product development, customer support, tie-ups in the industry and several others. Making a name for the company matters a lot in the market as it creates an environment for the survival of any industry. As mentioned by Stindt et al. (2017), experiments with new trends and fashion help the industry to thrive and establish a foot over the market. The intereconomics with different companies with less or no bad debts are beneficial for the company’s survival. | The survival of industry in different situations altogether assesses the success rate. As mentioned by Gibson et al. (2017), the general key factors for success remain the same for the success of any company. The factors of efficiency, developing technology, having good customer support service, loyalty towards customers are some key points. The company uses proper management, leadership, staffs, better marketing strategies that provide better sales and good finances (Sae-Lim and Jermsittiparsert, 2019). The success of any company provides it with a better hold in the market despite all the challenges faced for survival(Jiang et al, 2021). |
Table 4: Survival and Success Factors on Persistent Issues
(Source: Created by Researcher)
References
Amelia, D., Murni, I., Putri, A., Badri, J., & Johan, H. (2019). A Study of Clothing Industry Competitiveness with Porter’s Five Force Approach in KabupatenAgam Central Industry (A Preliminary Study of AmpekAngkek, Banuhampu, Sungai Puar). KnE Social Sciences, 169-185.Retrieved from: https://www.knepublishing.com/index.php/Kne-Social/article/view/4306/8893
Chan, A. T., Ngai, E. W., & Moon, K. K. (2017). The effects of strategic and manufacturing flexibilities and supply chain agility on firm performance in the fashion industry. European Journal of Operational Research, 259(2), 486-499.Retrieved from:http://ganj-ie.iust.ac.ir:8081/images/5/53/8386-English.pdf
Fareed, Z., Meo, M. S., Zulfiqar, B., Shahzad, F., & Wang, N. (2018). Nexus of tourism, terrorism, and economic growth in Thailand: new evidence from asymmetric ARDL cointegration approach. Asia Pacific Journal of Tourism Research, 23(12), 1129-1141.Retrieved from: https://www.researchgate.net/profile/Farrukh_Shahzad8/publication/328196004_Nexus_of_tourism_terrorism_and_economic_growth_in_Thailand_new_evidence_from_asymmetric_ARDL_cointegration_approach/links/5ceae0c492851c4eabc11232/Nexus-of-tourism-terrorism-and-economic-growth-in-Thailand-new-evidence-from-asymmetric-ARDL-cointegration-approach.pdf
Jiang, G., Chen, Z., Siripornpibul, C., Haryono, E., Nguyen, N. X., Oo, T., …& Guo, F. (2021). The karst water environment in Southeast Asia: characteristics, challenges, and approaches. Hydrogeology Journal, 29(1), 123-135.Retrieved from: https://www.researchgate.net/profile/Sinxay_Vongphachanh2/publication/346017338_The_karst_water_environment_in_Southeast_Asia_characteristics_challenges_and_approaches/links/5fb62a51299bf104cf5ad62d/The-karst-water-environment-in-Southeast-Asia-characteristics-challenges-and-approaches.pdf
Koszewska, M. (2018). Circular economy—Challenges for the textile and clothing industry. Autex Research Journal, 18(4), 337-347.Retrieved from:https://www.academia.edu/download/57053655/_23000929_Autex_Research_Journal__Circular_Economy_-_Challenges_for_the_Textile_and_Clothing_Industry1.pdf
Sae-Lim, P., & Jermsittiparsert, K. (2019). Is the fourth industrial revolution a panacea? Risks toward the fourth industrial revolution: Evidence in the thai economy. International Journal of Innovation, Creativity and Change, 5(2), 732-752.Retrieved from:https://www.researchgate.net/profile/Patipan_SaeLim2/publication/335465982_Is_the_Fourth_Industrial_Revolution_a_Panacea_Risks_toward_the_Fourth_Industrial_Revolution_Evidence_in_the_Thai_Economy/links/5d67bf3092851c70c4c6ce08/Is-the-Fourth-Industrial-Revolution-a-Panacea-Risks-toward-the-Fourth-Industrial-Revolution-Evidence-in-the-Thai-Economy.pdf
Stindt, D., QuariguasiFrotaNeto, J., Nuss, C., Dirr, M., Jakowczyk, M., Gibson, A., &Tuma, A. (2017). On the attractiveness of product recovery: The forces that shape reverse markets. Journal of Industrial Ecology, 21(4), 980-994.Retrieved from: https://www.research.manchester.ac.uk/portal/files/36054025/complete_Manuscript_On_the_attractiveness_of_product_recovery.pdf
Tudor, L. (2018). Change in textile and clothing industry. IndustriaTextila, 69(1), 37-43.Retrieved from: http://revistaindustriatextila.ro/images/2018/01/006_LIVIU%20TUDOR_IndustriaTextila_01_2018.pdf
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