SG7001 Managing Strategy & Operations and Partnerships Assignment Sample 2024
Activity 3: Recommendation and Justification
Training of employees
Training is crucial for organizational development as well as its success and an employee gets to improve himself on both personal and professional levels through proper training. Thus Atelier Chiang Mai can achieve positive results in their clothing businesses. Training to the employees may involve elaborating the missions, visions, rules as well as regulations of the organization. The knowledge of the employees gets enhanced through providing proper training and thus they become more responsible regarding their job roles at the organization and contribute their best in the businesses (Halofsky et al. 2018). There are multiple benefits that can be achieved by organizations like Atelier Chiang Mai such as Improving the morale of the employees, fewer accidents during the work, better understanding regarding the job environment, chances of self-development, and increased productivity.
Purchasing
Contemporarily purchasing has been recognized to put a huge impact on the bottom line of Atelier Chiang Mai and thus it directly affects two main driving forces of the organization: sales and costs. In order to get a satisfactory result, Atelier Chiang Mai needs to spend more than 50% of all its revenues that it is receiving as income through sales. Atelier Chiang Mai can develop this field through further development in its marketing and advertising, legal, information technology, logistics, temporary labor as well as other associated categories. 1% saving in materials cost can be equivalent to a 10% increase in turnover on behalf of Atelier Chiang Mai (Mariani and Giorgio, 2017).
Supply chain improvement
Improvement in the supply chain involves setting up certain projects as well as initiatives that will enhance the existing supply chain of the organization. Chain supply projects, optimizing process initiatives as well as eliminating wastes are usually focused on improving in order to have a more streamlined and effective chain. The goals and objectives of an organization also get modified along with an evolved supply chain of the industry. Generally, there are five major areas that can be found within an organization like Atelier Chiang Mai that directly contribute much to informing the supply chain of the organization (Johnstone and Wilkinson, 2018). Sales and marketing, manufacturing, internal business management, customer service, and inventory management along with distribution are the major areas that need to be focused on in order to get an improved supply chain on behalf of the company.
Activity 4: PEST Analysis
PEST Analysis
PEST often refers to PEST analysis as simply a concept of marketing principles. The outer market condition is analyzed on behalf of an organization through this so that the right decisions can be made in the case of manufacturing as well as sales. PESTLE refers to six major factors that play crucial roles in forming business strategies. P stands for Political, E for Economic, S for Social, T for Technological. All these factors provide a bird’s eye view of the outer environment in order for sustaining the business for a longer period of time. Six factors are further being elaborated in the following:
- Political: It simply determines how the existing government influences the business as well as its economy. Several governmental policies act on the factor directly that further affects the business that Atelier Chiang Mai does. These policies may include tax policies, fiscal policies, trade policies, and so on. These eventually affect the revenue generation of the industry. Moreover, several boycotts on using animal skins for cloth manufacturing compelled the government to restrict several other raw materials that companies generally use. The new regulations on these factors have left companies like Atelier Chiang Mai with limited choices to go through their internal manufacturing processes. This made the company think twice regarding managing the raw materials to produce quality garments for its customers (Joneset al. 2017). Moreover, taxes, as well as company policies, resulted in a price hike on the manufactured products higher than average that may further affect its businesses nationwide. The ministers can be found to adopt contemporary fashion clothes directly or indirectly by promoting the fashion industries like Atelier Chiang Mai. This can be utilized as an opportunity by the companies as well.
- Economic: This factor mainly determines the economic performance of the industry and its long-term effects on the overall business. This factor directly determines the prices and services provided by the company. Economic factors include inflation rates, interest rates, foreign exchange rates as well as economic growth patterns of the company. It may also associate with Foreign Direct Investment (FDI) in many cases. Being a fashion clothing industry, Atelier Chiang Mai needs to target the right market in order to gain a positive result in case of sales (Liuet al. 2018).
People are low on income and often found to be living in the area with a huge unemployment rate especially in third-world countries where people mainly spend their earnings mainly on food and rent. In these cases, Atelier Chiang Mai may struggle to establish their business and so it needs to take a positive approach towards forming its business strategies. Atelier Chiang Mai mainly focuses on producing fashion clothing that may hamper their businesses in third-world countries. Thus in order to achieve a desired economic result, Atelier Chiang Mai needs to focus on producing both formal and casual outfits mostly in these kinds of business environments.
- Social: The local market and the direct influence of the buyer are analyzed through studying this factor. The social environment of the current market, as well as the competitors, are analyzed using this factor as well. Moreover, current market demands along with the trends are judged for making the right decisions on behalf of Atelier Chiang Mai. Thus it becomes possible and easy for the industry to present the right product at the right time to the customers. Moreover, demographic characteristics, norms, customs as well as values of the population within which Atelier Chiang Mai operates are possible to be presented through studying this particular factor. Population growth rate, age distribution, income distribution, career attributes, safety emphasis, health consciousness, lifestyle attributes along cultural barriers can also be studied through this factor (Ismailet al. 2018). Atelier Chiang Mai can especially utilize this factor in order to target its potential customers in the market.
- Technological: These factors are highly associated with the internal technological innovation of the industry. Technology makes operation management easier for the organization with the help of advanced monitoring equipment. These factors allow Atelier Chiang Mai to bring several technological incentives, innovation, automation, research, and development within its businesses. The workforce also gets motivated to give their contribution fully with the help of these devices. Moreover, the current market congestion also becomes easy to analyze with the help of these factors. Thus Atelier Chiang Mai can make the right decisions for their businesses in order to sustain them for a longer period of time. A better supply chain management can be well taken care of with the help of these factors. Proper resource management becomes easy for the organization through economic analysis and thus Atelier Chiang Mai can avoid unnecessary spendings. Implementation of the automation techniques also enables the organization to cut costs in its human resource and the productivity gets improved as well and it also can increase the efficiency of the business (Hanet al. 2018).
Activity 5: Partnership
Atelier Chiang Mai is known to be a fashion clothing industry that mainly focuses on producing quality products followed by the contemporary fashion trend. There are three main business chains that can be found with the help of what Atelier Chiang Mai has been doing well with its products nationwide. It all starts with the source of raw materials being a trustworthy partner of the company. Next comes the manufacturing unit within the organization where raw materials are turned into quality products with the help of professional designers who also play a crucial role in the business being a partner of the industry (Keers and van Fenema, 2018). Lastly, the distribution network involves several partners who help distribute the fashion products of the company nationwide as well as promote those even internationally. The business relationship with the partners on behalf of Atelier Chiang Mai can be explained through the Entity theory.
Entity theory
The concept of this theory is associated with separating the business transactions from the personal transactions of the owner. This theory accurately helps to determine the financial position of a business by distinguishing between the personal business assets of the owner and his liabilities (Nurmala et al. 2018). The characteristics of the theory can be stated as the following:
- It incorporates the owner’s name that is considered as a separate entity.
- It separates the personal assets from the assets of the business stakeholders.
- It also states the stakeholders to be possessed with limited liability.
- Obligations may arise only from the business officials.
- Profits belong to the industry until dividends are declared.
References
Halofsky, J.E., Andrews-Key, S.A., Edwards, J.E., Johnston, M.H., Nelson, H.W., Peterson, D.L., Schmitt, K.M., Swanston, C.W. and Williamson, T.B., 2018. Adapting forest management to climate change: The state of science and applications in Canada and the United States. Forest Ecology and Management, 421, pp.84-97. Available at https://www.fs.usda.gov/treesearch/pubs/download/61348.pdf
Han, W., Huang, Y. and Macbeth, D., 2018. Performance measurement of cross-culture supply chain partnership: a case study in the Chinese automotive industry. International Journal of Production Research, 56(7), pp.2437-2451. Available at http://orca.cf.ac.uk/105220/1/IJPR%20Manuscript%20FINAL.pdf
Ismail, S.A., Heeks, R., Nicholson, B. and Aman, A., 2018. Analyzing conflict and its management within ICT4D partnerships: an institutional logics perspective. Information Technology for Development, 24(1), pp.165-187. Available at https://www.researchgate.net/profile/Richard_Heeks/publication/316563145_Analyzing_conflict_and_its_management_within_ICT4D_partnerships_an_institutional_logics_perspective/links/5a9073f745851535bcd59df9/Analyzing-conflict-and-its-management-within-ICT4D-partnerships-an-institutional-logics-perspective.pdf
Johnstone, S. and Wilkinson, A., 2018. The potential of labour− management partnership: a longitudinal case analysis. British Journal of Management, 29(3), pp.554-570. Available at https://strathprints.strath.ac.uk/73624/1/Johnstone_Wilkinson_BJM_2018_The_potential_of_labour_management.pdf
Jones, G.J., Edwards, M., Bocarro, J.N., Bunds, K.S. and Smith, J.W., 2017. Collaborative advantages: The role of interorganizational partnerships for youth sport nonprofit organizations. Journal of Sport Management, 31(2), pp.148-160. Available at https://www.researchgate.net/profile/Gareth_Jones50/publication/312929775_Collaborative_Advantages_The_Role_of_Interorganizational_Partnerships_for_Youth_Sport_Nonprofit_Organizations/links/5963cfdfa6fdccc9b16061cf/Collaborative-Advantages-The-Role-of-Interorganizational-Partnerships-for-Youth-Sport-Nonprofit-Organizations.pdf
Keers, B.B. and van Fenema, P.C., 2018. Managing risks in public-private partnership formation projects. International Journal of Project Management, 36(6), pp.861-875. Available at https://fardapaper.ir/mohavaha/uploads/2018/09/Fardapaper-Managing-risks-in-public-private-partnership-formation-projects.pdf
Liu, H.J., Love, P.E., Smith, J., Irani, Z., Hajli, N. and Sing, M.C., 2018. From design to operations: a process management life-cycle performance measurement system for Public-Private Partnerships. Production Planning & Control, 29(1), pp.68-83. Available at http://nrl.northumbria.ac.uk/id/eprint/31783/1/PPC_FromDesigntoOperation_AcceptedVersion.pdf
Mariani, M.M. and Giorgio, L., 2017. The “Pink Night” festival revisited: Meta-events and the role of destination partnerships in staging event tourism. Annals of Tourism Research, 62, pp.89-109. Available at http://centaur.reading.ac.uk/70261/1/MetaEvent_ok.pdf
Nurmala, N., de Vries, J. and de Leeuw, S., 2018. Cross-sector humanitarian–business partnerships in managing humanitarian logistics: an empirical verification. International Journal of Production Research, 56(21), pp.6842-6858. Available at https://www.tandfonline.com/doi/pdf/10.1080/00207543.2018.1449977
Wilmer, H., Derner, J.D., Fernández-Giménez, M.E., Briske, D.D., Augustine, D.J. and Porensky, L.M., 2018. Collaborative adaptive rangeland management fosters management-science partnerships. Rangeland Ecology & Management, 71(5), pp.646-657. Available at https://www.ars.usda.gov/ARSUserFiles/49263/5.%20Wilmer%20et%20al%202018%20Rangeland%20Ecology%20and%20Management%20-%20CARM.pdf
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