SG7001 Managing Strategy & Operations and Partnerships Assignment Sample 2024
1. PEST ANALYSIS
| Environmental factors | Issues pertinent to the industry | Implication for the industry |
| Political factor | The political condition of Thailand is not perfect for establishing a fashion business (Barbara et al. 2017). It has been noticed that two political parties are fighting which results in the closing down of stores. | As the political condition of Thailand is not appropriate, Atelier Chaing Mai is recommended not to try its business in Thailand. The sales of the company will be hampered as they might not get proper opportunities to deal with political issues. |
| Economical factor | The economical situation of the country is not good as the country is heard to be suffering from different economical issues from 1997 and is yet not able to resolve them. Due to the presence of an economic crisis, Atelier Chaing Mai will not be able to gain economic profit. | Thailand is still facing an economic recession and has been continuing for many years which are considered to be a negative for Atelier Chaing Mai to start its business. There is a chance of getting bankrupted as the higher authority of Thailand itself takes money from international monetary fund’s (Barbara et al. 2017). |
| Sociocultural factor | Thailand is known to be attracting tourists due to its scenic beauty which provides an opportunity for Atelier Chaing Mai. In contrast as most of the citizens of the nation are farmers the sales rate can be low (Sravanth et al. 2019). | The company is known to be focused on producing high-quality clothes at a higher rate and is not suitable for Thailand as one of the main occupations of the people is agriculture. As it is a well-renowned tourist spot Atelier Chaing Mai has a slim chance of getting its products sold. |
| Technological factor | Technological factors play a positive role in starting the business for Atelier Chaing Mai as the country is technologically fast in comparison to others. The people are noticed to be eager to accept the latest technologies for their improvement (Chiang-mai-clothing.com, 2020). | Atelier Chaing Mai will be able to resolve its issues of producing high-quality garments at low prices with the help of technologies. One of the most terrifying issues of the organization can be solved as people are already well educated and eager about working with the latest technologies (Sravanth et al. 2019). |
Table 1: PEST ANALYSIS
(Sources: Sravanth et al. 2019)
2. PORTERS FORCE
| Porters forces | Strength | Justifications |
| Competitive rivalry [HIGH] | The competition in the fashion industry is high as it is considered to be one of the new industries. | Atelier Chaing Mai being a reputed fashion company can be counted to be a health competitor to the others as there is high demand for it (Chiang-mai-clothing.com, 2020). |
| Supplier power [LOW] | Due to the availability of high-speed internet in today’s world, there are a huge number of suppliers as well as through offline (Kabeyi, 2018). | The fashion company will not be lacking for suppliers as the people of Thailand are fascinated about wearing high branded clothes. |
| Threats of substitution [HIGH] | As a growing industry, there is the availability of a huge number of substitutions. | The marketing strategies, the fashion styles, and the standard of the clothes need to be different and unique to remove the threats of substitution. |
| Power of buyer [HIGH] | The power of the buyer is high as there is a rise of the fashion industry in Thailand as the government has started the project named “Bangkok Fashion City”. | Atelier Chaing Mai can use it as an opportunity by tagging the lowest price for the products to keep minimum profit to attract the customers. |
| New entry threats [HIGH] | Thailand is growing its fashion sense along with the initiatives by the head of the country which provides opportunities for new entries to start their business. | New entry threats are a high alarm for the firm as they can ruin the fashion business of existing companies (Kabeyi, 2018). |
Table 2: PORTERS FORCE
(Sources: Kabeyi, 2018)
3. INDUSTRY LIFE CYCLE
| Identification of the industry | Atelier Chaing Mai belongs to the fashion industry. The company is impactful for Thailand as it can meet the demand of the customers. |
| Industry stage in the life cycle | Introduction phase
The starting phase of the industry where they contain incomplete information regarding the stakeholders. Growth phase Atelier Chaing Mai is expanding its business and can understand its customers’ satisfaction. Maturity phase One of the main phases where the company is not struggling and knows the perfect strategy where and how to invest (Bauer et al. 2017).
Decline phase The final phase declares the companies who can make their business and allows others to provide space for the newcomers. |
| Implications | Atelier Chaing Mai is at present in its growth phase and needs to work more to stay in the industry. |
Table 3: INDUSTRY LIFE CYCLE
(Sources: Bauer et al. 2017)
4. SURVIVAL AND SUCCESS FACTORS
| Issues | Survival factors | Success factors |
| Lower quality products | ● Needs to improve the quality by establishing health relations with the suppliers (Angelis et al. 2017).
● Needs to improve the workshop |
● The products can be eco-friendly. |
| High production cost | ● Requirement of decrease in wastage of materials. | ● Improving the sustainability rate in the company. |
Table 4: SURVIVAL AND SUCCESS FACTORS
(Sources: Angelis et al. 2017)
References
Barbara, C., Cortis, D., Perotti, R., Sammut, C. and Vella, A., 2017. The european insurance industry: A PEST analysis. International Journal of Financial Studies, 5(2), p.14. Available at: https://www.mdpi.com/2227-7072/5/2/14/pdf
Bauer, F., Dao, M.A., Matzler, K. and Tarba, S.Y., 2017. How industry lifecycle sets boundary conditions for M&A integration. Long Range Planning, 50(4), pp.501-517. Available at: https://eprints.lancs.ac.uk/id/eprint/125390/1/15LRP1004R3.pdf
Chiang-mai-clothing.com, 2020 Home Available at: https://chiang-mai-clothing.com/ [Accessed on: 18/06/21]
De Angelis, F., Papi, P., Mencio, F., Rosella, D., Di Carlo, S. and Pompa, G., 2017. Implant survival and success rates in patients with risk factors: results from a long-term retrospective study with a 10 to 18 years follow-up. Eur Rev Med Pharmacol Sci, 21(3), pp.433-437. Available at: https://www.europeanreview.org/wp/wp-content/uploads/433-437-Long-term-follow-up-analysis-of-implant-patients-with-risk-factors.pdf
Kabeyi, M.J.B., 2018. Michael porter’s five competitive forces and generetic strategies, market segmentation strategy and case study of competition in global smartphone manufacturing industry. IJAR, 4(10), pp.39-45. Available at: https://www.researchgate.net/profile/Moses_Kabeyi/publication/337690048_Michael_porter’s_five_competitive_forces_and_generetic_strategies_market_segmentation_strategy_and_case_study_of_competition_in_global_smartphone_manufacturing_industry/links/5e2585de458515ba2096904b/Michael-porters-five-competitive-forces-and-generetic-strategies-market-segmentation-strategy-and-case-study-of-competition-in-global-smartphone-manufacturing-industry.pdf
Sravanth, K.R.S., Sundaram, N. and Kannaiah, D., 2019. PEST analysis of present Indian telecom sector. International Journal of Innovative Technology and Exploring Engineering, 9, pp.4938-4942. Available at: https://www.researchgate.net/profile/Natarajan_Sundaram/publication/338739466_PEST_Analysis_of_Present_Indian_Telecom_Sector/links/5e27fc4492851c3aadcfb88b/PEST-Analysis-of-Present-Indian-Telecom-Sector.pdf
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