MBB7007M Global Business Strategy Assignment
Strategic Audit
The organisation financial and business performance analysis enables to shed light on extended specific parameters, where company internal factors analysis further holds huge importance. Swot analysis, will enable in depth critical analysis of specific vision oriented determinants based on finance and business performance parameters. Strategic audit enables to specifically improvise extended scope, for vital growth retention among consumers (Olcott, 2020). Company has to ideally analyse varied working scenarios pertaining to profound extensive abilities, and new cultural vision oriented expertise for reaching new business grounds actively.
- Strengths: Forever 21 has strength of providing customers affordable prices, customer friendly business service, which has enhanced performance growth benchmarks diversely. It has stable aspects, where it has been focusing on quality oriented practices for customers (Lopez-Cabrale. and Valle-Cabrera, 2020). Brand has been possessing international positioning, within various parts of globe which has enabled business to grow fundamentally on varied directions.
- Weaknesses: The brand faces weakness of private ownership, centralized decisions making and focusing on less trendy retail services which has lowered efficiency perspectives. Forever is less competent towards providing new trendy fashion retail clothing services among customers, which has lowered revenue in business and financial performance. Company has been witnessing financial decline, in terms of revenue and goodwill within competitive fashion retail industry.
- Opportunities: The brand has opportunity for craze towards fashion, new changing fashion services and expertise enhancement among mechanical competitive abilities. It further has opportunity to significantly improvise new extended mechanism, diverse end leadership oriented goals for gaining competitive brand growth in fashion industry.
- Threats: The economic cries, and need for recycling and sustainable business services holds high demand where it paces scope for extensive determined paradigms within longer run (Voisin, 2021). Company has to adhere towards leveraging new scope, with competitive growth faced in industry for achieving success.
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Figure 1: Forever 21 falls out of Favour with teen consumers
(Source: Statista, 2021)
The analysis of Company business and financial positioning enables us to analyse that company has been witnessing down fall from it peek profitability years being in 2010 (Narbutaité Aflaki, 2021). The recent revenue analysis shows Forever 21 some stores have been potentially closed, due to extended decline being witnessed in business aspects. The company faces hug decline in profit standards within recent years in 2022, revenue peak achieved was $4.0 which signifies profit decline within sales.
Figure 2: Forever 21- Score year to year
(Source: Forever 21 Is Failing with Gen Z & Millennial Shoppers, 2020)
Forever 21 has high amount of debt and stalling sales, where it has been struggling to develop interests among consumers within teen’s consumers and within marketplace. The company faces decline in retail market in the past five years according to IBIS World, where forever 21 are feeling the loss of that market share.
Company has to ideally innovate in terms of business aspects for scaling up extended priorities in terms of competitive vision, and extensively work on improvising financial and business performance criteria (Carlquist and Juncker, 2019). The business and financial aspects in Forever 21 are not proper at present, needs new criteria expansion for larger untapped goals actively. It has to further redefine vision and actively innovate on new long term business goals for higher profitability scenarios functionally.
Analysis
The issues identified above enables to shed light on fact that Forever 21, has been witnessing decline in business turnover and consumers market turnover within recent years. Technology and advancement, marketing standards are lacking accuracy for extensive modernisation which has to be shaped up and actively worked on. This factor holds huge scope, for developing new growth strategies and building change model for profound engagement (Knudsen and Larsson, 2021). It has been also found that Forever 21 need to invest on new mechanism, functionally correlate adherence on extended vision and optimistically enhance functional growth priorities.
Porter five force analysis
The porter five force model, will enable to get ideal strategic competencies presently present in Forever 21 and factors it needs to bring change on for wider end goals. Forces in porter five force models, will enable specific analysis about competitive factors being faced by company within industry (Nivala et. al. 2020). Its expertise analysis correlated towards extended business goals, and new steps which are crucial to be taken for gaining profitability standards diversely.
- Bargaining power of consumers: The force within factor of bargaining power of consumers is medium, where this signifies it has less threat from consumers due to old brand goodwill. Although, it has to primitively invest on bringing new standards and mechanical innovation for bringing new creative business services catering to extended growth paradigms (Knudsen and Larsson, 2021). Consumer’s preferences have to prioritize up for reaching new end functional competitive pathways for strengthened quality productive standards.
- Rivalry among existing competitors: The factors hold importance, where rivalry among existing competitors specifically enables to gain knowledge that it has strong threat for company. Forever 21, has high competition from industry businesses among companies where fashion retail is widely expanding into varied new pathways. Force has to ideally prioritize where industry competition is huge in terms of marketing, profitability and diversified consumer services.
- Threat of new entrants: Force is medium within this factor; as new entrants are coming with innovation within fashion retail global industry. However, when it comes to global market presence the fashion 21 has old brand positioning within industry which has enabled competitive brand goodwill to be formed functionally. It moreover, needs to competently work on advancement in terms of innovation, mechanical business standards and culturally bring rapid creative benchmarks for gaining extended mechanism reach on.
- Bargaining power of Suppliers: The factor holds low risk presently for company as it has own suppliers within brand has to further diversify only its market presence for catering to extended demands (France al. 2016). With low bargaining power of suppliers, forever 21 will be able to generate new revenue grounds by leveraging new extended mechanism for stronger productivity.
- Threat of substitutes: The force of threat among substitutes holds huge power, where consumers within recent time have various options within fashion retail services. With increased competition in industry, people have various other options, based on significant working goals where it advances scope for keen priorities. It holds huge edge benchmarks for company, to retain major standards and strengthened expertise. This signifies importance of strengthening rapport among management, based on new products range and specifically improvise diverse goals for extended new priorities engagement (Ramalingam, 2021).
It has been identified that company has to further renovate and extensively bring forward new strategies, marketing for leveraging growth in terms of diverse determinants. The above analysis from all forces, have enabled us to gain knowledge related to extended priorities within external industry aspects where company has to personify new changes. Globally fashion retail industry is widely transforming, with new changes coming up in forms of technologies and marketing scenarios for extended diversified goals. Forever 21, has to also expand on commercial goals for retained working standards and specific efficacy criteria for higher profitability in terms of revenue perspectives (Fernández Reyes and Reyes, 2018).
Ansoff Matrix
Another growth development model which will enable Forever 21 to harness innovation and technological up gradation for fastening its business services is by implementing strategies under Ansoff Matrix. There are strategies such as market penetration, market development and product development along with diversification which enables business to reach new thresholds functionally within longer terms standards. Company has to be optimistic, towards taking up new priorities and extensively collaborating on mechanism for strengthened productivity paradigms innovatively.
- Market penetration: The strategy of market penetration evolves focusing on penetration on higher market share by tapping into existing products in existing market, by increasing sales among people with new innovation among products. It evolves specific focus on strategic thinking, brainstorming among market parameters and adhering smart marketing to gain expertise fundamentally. This also correlates focus on extending priorities to improvise international global market, and improvising extensive marketing standards for extended vision growth. It will primitively enable business to penetrate deeper into new pathways and extensively cultivate innovation mechanism, for profitable long term goals (Best Digital Marketing Strategies 2020 for Your Business, 2020).
- Market development: The strategy of market development is all about focusing on introduction of existing products into new markets, for recognized diverse standards and sales opportunities into productive proactive services. Forever 21 by taking this growth strategy will be working towards leveraging specific rise of various fashionable services extensively (Chatzimichailidou al. 2017). Reaching out to the latest fashion retail clothing standards as per new demands will enable company to diversify and expand rapidly under wider edge benchmarks.
- Product development: Forever 21 by taking up product development will be able to invest strategically on new fashion products retail services requiring modernisation and innovation. Product development will make supply chain advance, speedily engage on new technologies for reaching best working standards under industry domains. It will also primitively develop competitive functional growth reach new benchmarks, by generating diverse fashion clothing available for people. It critically also holds importance, to evolve on higher productive standards and generate specific revenue rise for diverse benchmarks functionally
- Diversification: The role of diversification strategy is to determine new extended company business expansion facilities for reaching into untapped business long term goals priorities. By diversification, specific vision is expanded on for extended business end benchmarks which rapidly plays crucial role as per new business standards. Forever 21, will be able to diversify its working commercial scope, by strengthening its reach and leveraging growth among wider domains. CSR adoption and various other parameters of diversified business strategies will enable business scope to be diversified and reach into untapped paradigms globally
From the above analysis of all factors, it has been analyzed that diversification and product development will be adopted by Forever 21 for strengthening its business growth strategies. It has been also found that mechanism diversification into new standards; services under fashion retail will enable business to grow extensively. This holds specific vision priorities and edge benchmarks for correlated growth in terms of revenue profitability, goodwill among consumers (The top 20 performance marketing strategies for 2020, 2019).
Lewis change management model
Change management model plays keen essential role, for extending focus on improvising new strategies and operation based functional aspects. Lewis change management model will enable Forever 21 to improvise analytical working efficiency, based on technological innovation within mechanism for fashion services to significantly improvise. Bringing change is highly needed with innovation on top priorities, for extended growth structure goals and technical vision paradigms (Brexendorf and Keller 2017). Forever 21, by bringing change will be able to significantly work on competitive determinants and gather edge new benchmarks for wider end mechanism.
- Unfreezing: At this stage for developing new change in technology, and investments will be planned for strengthening fashion retail clothing under brand. The old technologies and strategies where company is lacking efficiency, will be unfreeze for developing new changes as per demands in market place. The company will be also planning up to develop new changes strategically, by building motivation for operative growth as per competitive standards. Business revenue growth will be planned by up scaling technologies, digital marketing set ups for strengthening vital management profoundly on wider scenarios. Role of unfreezing is to remove old technologies, and freeze only new changes needed in business grounds for cultivating motivation.
- Freezing: Forever 21, at this stage of freezing will be implementing practical usage of best technologies and machinery for producing high quality fashion retail services under brand. It aims to diversify significant criteria for strengthened competent vision and engagement as per best long term growth avenues. Company at this stage will also be working with transformational leadership vision, for bringing overall productive changes in technologies output and mass media usage for marketing. The freezing stage plays crucial role for developing functional goals, rapport on mechanism growth factors which rapidly holds huge importance. It will adhere on new investments priorities and put best mechanism for strategic working competencies, to achieve profitability and goodwill benchmarks (Bhagwat and Bach, 2016).
- Refreezing: The refreezing stage comes as last stage for change management successful implementation where business technologies are put into practical action for monitoring changes put up. It will enable Forever 21 to keep monitoring check on changes done, investments return and functional working output by engaging with top stakeholders. It will refreeze all changes for finalizing company business goals and actions, within longer time period (Abbas, 2019). Refreezing all changes taken place in technology and marketing standards with digital advancement, company new end term long profitability can be prioritized with best standards.
From the above discussed changes in model. Forever 21 has been able to specifically work towards strengthening new practical changes successfully on new fundamental grounds. It has been practically bringing analysis on importance of change management, strategies for shaping up extended long term business performance standards innovatively (Anthonysamy et. al. 2020).
Figure 3: Lewis change management model
(Source: Lewin Change Model Template, 2020)
Critical Reflection
From the recent project, analysis has enabled me to further retain new critical learning based on mechanism growth standards for extended abilities in my professional academic abilities. It can be also analyzed that project, further has enabled me to primitively gain confidence in my writing, researching skills and derive competent engagement functionally for wider end growth standards ((Dechawatanapaisal, 2018). My analytical understanding about various business models has improved significantly, where project report has enabled me to critically improvise new extended creative ideas for professional growth. I have been able to learn time management with super efficiency, better multi-tasking proficiency with active technologies for combating completion with efficiency. The research has concluded importance pertaining on wider end mechanism, based upon significant functional goals for retained business oriented professional learning.
Research has also further enabled me to work on my weaknesses, where i have been able to confidently improvise new learning specifically on extended mechanism for fundamental growth criteria. I have been able to critically advance on scope, for new subject knowledge area related to marketing, promotions and leadership which holds huge importance. From the completion of research report, I further have been able to work on complex segments by taking up supervision from my superiors and specific mentors. This has enabled me to critically gain proactive insights about various business models innovatively, inevitable importance of change procedures which harnesses specific efficacy profoundly. It has also engaged my profound strengths, creatively to practice on new business ideas and abilities to shape up critical goals for reaching specific thresholds successfully (Chowdhury, 2017). There were moments, and aspects where I felt less confident and rigid to continue with my project where my motivation to reach new learning aspects further improvised. I have been able to improvise primitive exposure, related to extended new criteria for extended mechanism and specific learning aptitude.
Commercially it has been also found that businesses globally are taking huge steps for competitive engagement, and advance on working scope for higher profitability. Benchmarks’ pertaining to engaged working professional growth standards holds huge priorities and specific learning progression towards developed ideas enhanced my vision to reach new competitive abilities (Couto and Ferreira, 2017). It can be also analyzed that specific learning efficacy has been found to be essential as per specific efficiency perspectives, for gaining motivated growth benchmarks.
I have been able to strengthen my communication interpersonal skills also by taking up project, and collaborating with team mates. Furthermore, engaged working criteria has personified new engaged ideas abilities to be taken shape practically for best professional progressive goals within academic standards. I have been able to competitively work towards engaged wellness, by performing my best standards for strengthened higher quality enrichment standards specifically. For future performance goals, i will look forward to strengthening my core strengths and ideas with specific learning supervision and acknowledged abilities.
Recommendations and Conclusion
Forever 21 for achieving new business standards within functional productive fashion retail clothing services, has to improvise its leadership in business strategies. There are varied other new pathways, which can be explored up for achieving stringent growth benchmarks and improvising revenue and goodwill. Recommendations in context of Forever 21 are as follows:
- Implementation of transformational leadership will enable company to determine change in business management, and generate proactive keen standards with motivate business organisation. Leaders within company, by integrating transformational competent pathways will be able to determine long term fundamental progression actively. Training, brainstorming sessions are highly crucial when it comes to implementing change as it will enable business to grow further into optimistic success (Alemu, 2017).
- Strategic investments on machinery, business expansion parameters will enable forever 21 to significantly expand on varied new standards commercially for fundamental growth aspects. Investment on new fashion retail clothing priorities, will enable business to evolve on global edge critically and strengthen up fundamental vision within longer run. The brand by leveraging rise on new technologies for marketing, will be able to cater to digital standards and advance on mechanism for strengthened quality optimisation.
Conclusion
Global business strategy holds crucial role in recent business domains, where businesses are taking functional competitive steps for harnessing best innovation. From the above analyzed aspects in report, it has been concluded that Forever 21 being one of the best fashion retail company has been seeing decline in revenue standards due to mechanical dysfunction. Marketing and production innovation are lacking in business standards, which signifies importance of developing new business goals.
The report has concluded swot analysis, and business financial information about company where it shows business turnover has declined in last 3 years. Study has summarized further fundamental growth priorities, analysis done with usage of Ansoff matrix growth strategies where diversification and product development have been prioritized. Report further concluded change management steps, for bringing change in new technologies further and significant up gradation among working determinants profoundly. Forever 21, by investing on new mechanism pertaining towards faster up gradation of services and consumer’s services will be able to market out its productive services better. The study further has critical reflection of various skills learnt such as specific time management, analytical working and team working skills which advances scope for extended new criteria growth. Report has also further concluded importance of business advancement in new technologies, advancing on specific business framework and put up profound engagement among working domains.
References
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Online
Best Digital Marketing Strategies 2020 for Your Business. (2020). [Online]. Available Through :< https://citrusleaf.in/blog/best-digital-marketing-strategies-2020-for-your-business/>
The strategy that failed the business model of Forever 21. (2021). [Online]. Available Through :< https://thestrategystory.com/2021/06/28/wrong-strategy-in-forever-21-business-model>
The top 20 performance marketing strategies for (2020). [Online]. Available Through :< https://www.thedrum.com/news/2019/12/02/the-top-20-performance-marketing-strategies-2020>
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