SG7001 Managing Strategy Operations and Partnerships Assignment Sample 2023
Introduction
The modern corporate world highlights the characteristics of being highly dynamic as well as competitive. Possessing strong and effective competitive advantages holds the utmost importance for a firm to survive and grow in an industry (Taçoğlu et. al. 2019). Moreover, competitive factors enable an organisation to boost its sales and enhance profitability in comparison to other rival firms in the concerned industry. The present report sheds light on the competitive advantages and success factors possessed by Atelier Chiang Mai, a cloth manufacturing concern in Thailand. Additionally, it highlights the three key issues by using the RACES model and analyses the resultant strategic directions. Lastly, the present report demonstrates the robustness and viability of the proposal by evaluating the preferred strategic directions.
Content and analysis
Competitive benefits
The Thailand cloth manufacturer, Atelier Chiang Mai is well-known as a high-end manufacturer, primarily dedicated to design and manufacture premium quality garments. The company is committed to offering integrated products and services to various fashion designers, start-ups, or established brands (Leal et. al. 2019). The company faced a major issue related to the quality compromise of the manufactured garments. It highlighted the fact that best-quality clothes are generally expensive to produce and demand intensive procedures for manufacturing. This served as a major rationale behind creating and establishing the company’s workshop. It resulted in economies of scale as well as ensured the best quality of the manufactured clothes.
Atelier Chiang Mai observed quick expansion and initiated its high-quality product offerings to other fashion companies as well as everyone in general at affordable prices. The workshop of the company incorporated highly qualified and expert stitches as well as pattern makers that are focused on producing clothes or garments for capsule collections or reputed fashion brands. However, the workshop is also established for producing per-piece designs for wedding outfits for the general public as well.
The Atelier Chiang Mai manufactures high-quality clothes as well as textile accessories including scarves and bags. The firm possesses a strong competitive advantage in the textile industry with a professional workshop incorporated with a detailed process of production. Moreover, the company provides contractual guarantees related to essential aspects of quality control, deadline engagements, Respect of Human Rights, and Environmental Issues (Puertas Medina et. al. 2020). The other services offered by the company which help it to stand apart from the rival firms include pattern making and sampling, fabric sourcing, fashion advice, fashion designing, several finishing alternatives, and much more. Additionally, the company offers integrated or personalised services to its international clients by discussing and evaluating the demanded attributes of the product directly with the client. It enables the firm to maintain healthy and long-lasting relationships which also ensures the loyalty of the customers towards the cloth manufacturer.
Although the Atelier Chiang Mai Company is well-established, it faced or encountered some serious issues in the past years. The issues impose great effects on the functioning as well as the operations of the company. The principal issues faced by Atelier Chiang Mai include internationalisation, quality and control management, and technological advancements or digitalisation. Internationalisation is a major factor that is observed to drive firms towards immense growth and success in the modern corporate world. Internationalisation grants freedom and independence from business cycles in a single local market. Moreover, it offers benefits in terms of increased revenues, enhanced risk management, improved profitability and growth potential, longer product lifespan, easy cash-flow management, increased brand visibility, and longer product lifespan (Santos and Dieguez, 2021). Hence, it contributes to the major issues faced by the company in the previous scenarios.
Another principal issue faced by Atelier Chiang Mai is ineffective management and quality control of the produced clothes or garments. Poor quality of clothes leads to dissatisfaction among the customers as well as presents a bad image of the company in the mindsets of existing as well as prospective customers. In addition to this, ineffective management strategies and control measures further result in low productivity and performance levels, as well as lacks of defined quality standards in the clothes produced. It imposed adverse effects on Atelier Chiang Mai in terms of customer loss and low sales (de Oliveira Neto et. al. 2019). Moreover, ineffective product management and control can lead to low employee morale, wastage of resources, poor brand image, and reduced profitability aspects.
The other major challenge faced by Atelier Chiang Mai was ever-changing technological advancements as well as digital techniques for undertaking business operations. Digitalisation and technological advancements are gaining utmost importance in the modern corporate world as it enables an organisation to gain a strong and long-lasting competitive advantage in the industry (Ballie and Woods, 2018). Technology in the textile industry immensely supports the firm to stay updated with the fast-changing trends and customer preferences, to simplify the production process by implementing robotics, cloud computing, and Artificial Intelligence. Moreover, the implementation of the latest digital technologies will enable Atelier Chiang Mai to cut costs, ensure fast and easier processes and an operation, analyse the changing fashion trends, boosts sales, and lastly, enhance profitability aspects in the long run. Hence, the three pertinent issues to Atelier Chiang Mai created obstacles in the path of growth, development, and success in the textile industry of Thailand.
Developing corporate strategy options
The development of frameworks or options for corporate strategies is very crucial for an organisation to ensure its growth and success in the long run. It also enables the firm to gain a strong competitive advantage as well as formulate plans focusing on enhancing the productivity levels in operations and activities. In the current scenario, the Atelier Chiang Mai Company should evaluate and analyse the issues and then develop key strategies so that it can successfully implement them within the workplace. The RACES model is the best suitable to analyse and understand the corporate strategic options.
The RACE Model
The RACE Model is the best suitable to design and develop a strategic and effective PR plan for a company. RACE is an abbreviation for Research, Action and planning, Communication and relationship building, and lastly, Evaluation (Chaffey, 2020). The five steps of the RACE model or process are proved to be effective in identifying the problem, develop an action plan, and evaluate the results. The steps of the model or process will enable the company to identify, evaluate, and analyse the key issues or challenges which will further act as a base to develop effective corporate strategies to gain strong and long-lasting competitive advantages. Moreover, proper research and an action plan will help Atelier Chiang Mai company to focus on three highlighted issues: Internationalisation, Technology and digitalisation, and ineffective management and quality control.
The first step of Research involves proper research and analysis of different stakeholder groups in order to identify and define the opportunity or the problem. The next or the second step deals with the development of an action plan which supports a firm to formulate a plan to adopt suitable strategies and fulfill the changing demands of the customers in the future (Li, 2018). The second step of the action plan also includes the relevant data and information which is to be communicated as well as the suitable way to address and reach the concerned audience. The third step of communication and building relationships includes conveying or delivering the message to the target audience by using different media platforms. It demands the selection of the most appropriate and correct media channel which includes television, social media platforms, magazines, hoardings or boards, and many more. The last step of the RACE Model or process focuses on evaluating the end results and outcomes of the approach. It ensures that the results are aligned with the primary objectives of the process as well as to measure the effectiveness of the selected media channel.
The development of strategic options for Atelier Chiang Mai includes the aspects of internationalisation, ineffective management and quality control measures, and the latest technological advancements or digitalisation. To fulfil this purpose, the cloth manufacturer, Atelier Chiang Mai should conduct researches concerning the latest technological advancements and digital technologies. Latest technologies and digital techniques hold the potential to cut operational costs, make the work easier and faster, offer benefits in terms of efficiency and effectiveness, as well as increase productivity levels. In addition to this, the adoption and implementation of digital techniques will also help Atelier Chiang Mai to identify and analyse the ever-changing trends and preferences of the customers in the fashion industry. The relevant data and information collected through different digital technologies including artificial intelligence, cloud computing software, and social media platforms will act as a base in the development of future strategies and plans (Kirill et. al. 2018). Also, the latest innovative techniques of production or selling clothes will help the company to gain a strong competitive advantage and build an attractive brand image in the industry.
Moreover, Atelier Chiang Mai should understand the benefits of going international. Internationalisation will help the company to strengthen its brand name, widening the product market, cater to more customers, increase profits, and many more. The company should initiate a partnership with suitable reputed companies operating in the global fashion industry. Also, the company can adopt effective promotional techniques to advertise its product offerings which will attract individual clients towards the company (Oelze, 2017).This strategy will help Atelier Chiang Mai to boost its sales by catering to individual customers based on their demands and specific product attributes. Moreover, the company can enter into the trading field with suitable fashion firms in different nations. It will enable the firm to increase brand visibility and gain a reputation in the global market.
Lastly, Atelier Chiang Mai should incorporate strong and effective managers who possess the skills and capabilities of guiding, directing, and controlling the operations at the workplace. Product quality and effective management are crucial aspects of an organisation. Moreover, the best quality products will influence the existing and the potential customers towards the company and help to retain their loyalty. Effective management will ensure proper control and supervision of the quality standards and desired product attributes. It will further ensure minimum wastage of resources, increased levels of performance and productivity, as well as determine growth in the long run (Tursunov, 2018). Excellent management and best quality products will drive Atelier Chiang Mai towards the path of success and enable it to gain a strong competitive advantage in the industry.
Proposal
Development and planning for strategic options are critical and essential for an organisation to meet the set goals and objectives. In the present scenario, Atelier Chiang Mai should adopt and implement developed corporate strategies for addressing the challenges and issues including internationalisation, technological advancements, and ineffective management and quality control (Taçoğlu et. al. 2019). The objectives of the proposal are:
- To determine effective strategies for addressing and resolving the issues and challenges faced by the company.
- To identify and analyse the challenges of internationalisation as well as implement the strategies focusing on expanding the business operations in the international platform.
- To implement the latest technological advancements and digital techniques at the workplace.
- To adopt effective and best suitable strategies focusing on internationalisation as well as the selection of appropriate entry modes.
- To identify challenges faced by managers in managing the operations and ensuring the best quality of the produced clothes.
- To implement excellent strategies focusing on strong management and fulfilment of defined quality standards of the clothes or garments.
The proposed strategic directions focus on adapting to the ever-changing environmental factors of the international corporate world, technological factors, and managerial aspects within the firm. It can be analysed from the present scenario that addressing the needs of the modern corporate world should be addressed otherwise these factors will impose great threats on Atelier Chiang Mai. Moreover, the company should analyse different entry modes for expanding its business operations and yield immense benefits (Leal et. al. 2019). Effective management and quality control should be prioritised by the company in order to ensure enhanced productivity levels, improved profitability, and the best quality of the cloth produced.
In addition to this, Atelier Chiang Mai should identify and evaluate the latest technological trends and innovative techniques of undertaking manufacturing processes. Innovation and the latest technologies will help the company in several ways and hence contribute to enhancing the profitability aspects of the firm. Such strategies and techniques will enable the company to gain strong, unique, and long-term advantages to stand tall against the rival firms in the fashion industry.
The proposed strategic direction for the cloth manufacturer sheds light and assesses the main issues or challenges in terms of internationalisation, latest technological advancements, and ineffective management. The three issues or problems highlighted in the report play a vital role in determining growth, development, and profitability in the long run. Furthermore, the aspects of internationalisation and effective management go hand-in-hand, as both aspects complement each other (Puertas Medina et. al. 2020). The issue of innovation and technological advancements helps a firm in several ways and drives it towards the path of success. The three challenges demand an effective solution and hold the potential to enable Atelier Chiang Mai to gain a strong competitive advantage in the fashion industry.
Internationalisation refers to expanding the business operations and catering to a wide customer market in another country. It offers immense benefits to a company in terms of increased business reach, enhanced brand name and reputation, improved profitability, and advantages in the global corporate scenario. The proposed strategic direction of going international by trading with reputed fashion companies in the suitable country as well as catering to individual customer needs is effective and will enable the company to boosts its sale. The strategic direction will also help Atelier Chiang Mai to cater to the demands of customers belonging to different groups which will eventually result in product diversification (Santos and Dieguez, 2021). Hence, the proposed strategic direction is observed to be promising and focuses on enhancing the revenue generation of the firm and provides competitive advantages in the industry.
The proposed strategic direction of implementing effective management techniques or incorporating great leaders holds utmost importance for the cloth manufacturer. It will help Atelier Chiang Mai to ensure increased levels of productivity and performance, effectiveness and efficiency at the workplace, and direction of individual efforts towards organisational goals and objectives. Additionally, it will also ensure fulfilment of desired quality standards of the cloth which will offer strong and unique advantages to the company and stand tall in the industry.
The third proposed strategic direction of technological advancements and digital techniques will support Atelier Chiang Mai in several ways. The company should identify and analyse the latest technological trends in the industry and implement the most suitable ones to aid the manufacturing process. Innovation and the latest technologies will help the company in several ways and hence contribute to enhancing the profitability aspects of the firm (Ballie and Woods, 2018). Social media platforms and the latest software will also enable the firm to analyse the changing demands and preferences of the customers in the fashion industry. Moreover, social media platforms will immensely help Atelier Chiang Mai to interact and communicate with its present as well as potential customers and hence build long-lasting and strong relationships.
Conclusion
The present report articulates that gaining competitive advantages in an industry holds utmost importance for an organisation. It highlighted the case study of Atelier Chiang Mai, a cloth manufacturer in Thailand. The report highlighted and assessed three issues including internationalisation, technology and innovation, and ineffective management and quality control measures. The report proposed strategic directions using the RACE model and lastly, evaluated their robustness concerning the cloth manufacturing company.
References
Ballie, J. and Woods, M., (2018). Circular by Design: A Model for Engaging Fashion/Textile SMEs with Strategies for Designed Reuse. In Unmaking Waste in Production and Consumption: Towards the Circular Economy. Emerald Publishing Limited.
de Oliveira Neto, G.C., Correia, J.M.F., Silva, P.C., de Oliveira Sanches, A.G. and Lucato, W.C., (2019). Cleaner Production in the textile industry and its relationship to sustainable development goals. Journal of cleaner production, 228, pp.1514-1525.
Kirill, K., Bobir, T. and Ziedulla, H., (2018). Estimation methodology of efficiency of production capacity management at textile enterprises. Бюллетеньнауки и практики, 4(1).
Leal, D.V., Toledo, G.L. and Junior, D.K., (2019). Competitiveness in the textile industry due to electronic commerce.
Li, P.Y., (2018). Top management team characteristics and firm internationalization: The moderating role of the size of middle managers. International Business Review, 27(1), pp.125-138.
Oelze, N., (2017). Sustainable supply chain management implementation–enablers and barriers in the textile industry. Sustainability, 9(8), p.1435.
Puertas Medina, R., Martí Selva, M.L. and Calafat Marzal, C., (2020). An analysis of innovation in textile companies: An efficiency approach. Bulletin of Economic Research, 72(1), pp.63-76.
Santos, S. and Dieguez, T., (2021). Open Innovation as a Strategy to Sustainably Compete in the Textile Industry. In Financial Management and Risk Analysis Strategies for Business Sustainability (pp. 146-172). IGI Global.
Taçoğlu, C., Ceylan, C. and Kazançoğlu, Y., (2019). Analysis of variables affecting competitiveness of SMEs in the textile industry. Journal of Business Economics and Management, 20(4), pp.648-673.
Tursunov, B.O., (2018). Modern methods of production capacity usage management in textile enterprises. Economics and Innovative Technologies, 2018(3), p.32.
Online:
Chaffey, 2020. The RACE model. [Online:]. Accessed through:<https://www.davechaffey.com/digital-marketing-glossary/race-marketing-planning-model/>
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