SG7001 Managing Strategy Operations and Partnerships Assignment Sample
Component -1
Introduction
Managing strategy operations and partnerships are very important elements that affect success of a company. Strategic management in the organisation gets affected by several elements including, the vision of the organisation. The organisational vision is essential in strategic planning and implementing the plan of action. In addition to this, megatrends also affect strategic management, and megatrends are concerned with a set of changes or development that is taking place in the industry at a given point in time. Operations and strategic management to get influenced by the environment of the industry that can be identified based on Porter’s five forces and analysis of macro-environmental elements. This study will discuss vision, megatrends affecting business, relationships, and industry environment analysis of Atelier Chiang Mai. It is a professional apparel manufacturer in Thailand and is a creative workshop based in Maejo, Chiang Mai Province, Thailand. They provide integrated services including technical drawings, pattern making, prototyping samples, large and small production and quality checking, packaging, and shipment for their clients or customers that are fashion brands.
Activity 1
| Vision | To create a trust-able clothing factory in Asia that works with European standard and mind-set | ||
| Quality | Evaluation | Description & Justification | Implications |
| Volume | High | The volume of Atelier Chiang Mai is at a high level because the company produces based on orders and produces in small, medium, and large scale production. | The high volume of production allows the company to utilise all its capacity and resources. |
| Variety | High | Atelier Chiang Mai also has a high variety in its operations because it manufactures several brands from different countries. Considering this, the variety in operation is very high. | The company is providing high variety in its integrated services and fashion clothing (Cappa et. al. 2021). It allows to ensure and fulfil the requirements of different clients. |
| Variation | Moderate | Variation is moderate because the company is producing different sizes of orders from clients (Liu et. al. 2019). Hence, variation is at a moderate level, because sometimes the demand is high and sometimes low and moderate. | Variation is at a moderate level but based on regular clients company can predict variation. |
| Visibility | High | The company’s operations practices are highly visible. The company has outlined how different activities are put together and coordinated. | Effective and clear coordination of activities helps in efficiently completing the operational processes of the company (Verfuss et. al. 2018). |
| Speed | High | Atelier Chiang Mai is an apparel manufacturer and manufactures for different brands as well as has an individual line of clothing (Perboli et. al. 2017). Hence, speed needs to be high in its operations. | High speed allows efficient use of resources, and the cost involved is also low. High sped allows the company to produce large quantities in less time. |
| Quality | High | Quality has been significantly emphasised in the company’s production and operations. It is why company operations and products’ quality is very high. | The high-quality product increases the demand for products of the company and also adds value to customer satisfaction. |
| Flexibility | High | The company is offering a variety of services and products. Hence, it is very important that the company has high flexibility in its operations. | High flexibility helps the company immediately and frequently change its operations (Tang et. al. 2021). The time involved in changing shifts is less, and the lead time between changing operation activities is also less. |
| Dependability | Moderate | Atelier Chiang Mai has to the source material, and this is why it has moderate dependability(Boer and Boer, 2018). | Dependability is a negative quality, and high dependability increases the cost of the company and can also negatively affect its operations activities. |
| Cost | Moderate | The company is producing high-quality products and this is why the cost is also high. At the same time, it is also producing for other brands, and this is why overall cost remains moderate. | Operations activities of the company incur a significant cost when high-quality output is produced (Naway and Rahmat, 2019). However, the company can manage the cost by ensuring different types of production. |
Activity 2
Business to business relationships maintained by the organisation
Business to business relationship is concerned with the relationship between doing business including a supplier and a given business. It also includes the relationship between businesses in which the customer is also a business that will be selling products to and consumer (Hofacker et. al. 2020). Atelier Chiang Mai is an apparel manufacturer, and its customers are fashion brands and capsules that are selling their products to customers. The company is managing its supply chain in several ways and has a strong relationship with suppliers. Company source material and Fabric from several countries and have managed the strong relationship with the suppliers. The company is supplying from baby alpaga yarn from Peru and US, Alcantara from Italy, high-end wool from China, Amazing Silk from Thailand, and creative embroideries from Paris and many other places (Franklin and Marshall, 2019). Companies offering for fashion brands who launched their fashion collection and also companies having their clothing line developing large quantity of products at once for retail selling. In order to, maintain a strong relationship with customer’s company provide high-quality products as well as a guarantee over its product through quality control, ecological responsibility, Human Rights, deadline guarantee, and shipment, and border compliance. These activities help in ensuring that customers are getting an overall package in their services and do not require doing anything. The Atelier Chiang Mai works on all the activities from designing to production and then delivering the final products to customers so that they do not have to worry about compliance and regulations.
In relation to clients, the company has several clients who are in form of businesses, and the company also started as only a B2B manufacturer company (Bill et. al. 2020). It started with offering high-quality clothes production services to businesses and fashion brands, and professionals, and later company started producing products for other customers as well as started its own clothing line. Business customers of the company are from several countries including France, Spain, and Italy.
Activity 3
| Megatrend | Key issues affecting the organisation | Impact and implications |
| Consumer centricity | Consumer centricity includes that consumers and their preferences are kept at the centre of business operations. Key issues in is that affect business include, changing customer demographics and the increasing impact of fashion influencers on the customer that require companies to change their practices (SENEL, 2020). Understanding and developing knowledge about the priorities and tastes of customers have become highly important for businesses. | The impact of this megatrend on the business is that they have to frequently determine changes in consumer and customer preference and change their production accordingly. Businesses are required to ensure that they are highly flexible to change their practices and ensure that they are catering to the needs of customers. Implications of the trend are experienced by design and operational processes as well as creativity and innovation in the organisation about fashion clothing. |
| Instant gratification | Instant gratification is another megatrend in which are looking for clothing and fashion that is readily available rather than waiting for months (Grose, 2021). Instant gratification also includes that customers are getting a fast fashion, and fast fashion includes that fashion and taste of customers frequently change and according to which businesses are required to develop new products in the limited time span. Instant gratification has changed as the generation changes and it also provides a competitive advantage to the Atelier Chiang Mai when they can produce fast fashion in a limited time. | The company is required to ensure that it can frequently develop new products and deliver them to customers so that they can introduce them to the market (Frigerio, 2020). In addition to this, the company’s designers also need to be readily available with new designs that they can introduce in the market. It allows the company has a competitive advantage in the industry. |
| Customisation and personalisation | Customization and personalization are important megatrends in the fashion industry. The key issue in this is ensuring that companies can meet the customization requirements of customers (Pinheiro, et. al. 2021). In addition to this customers are also looking for specialised products exclusively created for them. | Customisation and personalization have a strong impact on the company because the Atelier Chiang Mai needs to develop its operations process in a way that it can meet the customisation requirements of customers. Increasing demand for customisation and personalization can also increase the overall cost of the company. Hence, a standard system needs to be developed through which it can meet personalization and customisation while maintaining a low cost of operations. |
| Sustainability | Key issues affecting organisations under this trend include sustainable Sourcing and ethical practices. Customers are giving priority to products that are free of animal cruelty and have been developed from natural materials and products. Another issue in this is Vegan products that customers are looking forward to purchasing. | It has become very important that the company is ensuring guidelines of environmental sustainability in its production (Marques et. al. 2019). In addition to this, the Atelier Chiang Mai also needs to find suppliers who can provide sustainable source material. This issue has an impact on operations practices as well as a selection of material and input that the Atelier Chiang Mai uses for creating products. It is also important to identify sustainable and ethical alternatives for existing standard practices to ensure sustainability. |
Activity 4
| Recommendation | Establishing a flexible manufacturing system in the company to meet customisation requirements. A flexible manufacturing system will also facilitate frequent changes in production. |
| Justification | The establishment of a flexible manufacturing system has been recommended because the fashion industry and apparel manufacturing are requiring frequent changes and customisation (Yadav and Jayswal, 2018). It has become very important that to meet customisation and ensure that product is personalized as per the requirement of the customers manufacturing system of the Atelier Chiang Mai is flexible. In other words, if the manufacturing system is not flexible enough to meet customisation then the company will be increasing a significantly high cost of manufacturing and operation. This is why it is very important that to meet customisation and personalization company is having a flexible manufacturing system. A flexible manufacturing system will require a system in which processes can be frequently changed and a system that does not cause any additional cost when an operation shift is made in manufacturing. |
| Potential implications | The potential implication of flexible manufacturing will be experienced in the operational management of the Atelier Chiang Mai. The company will have to change its operational practices and processes so that it can develop a flexible manufacturing system (Messinis and Vosniakos, 2020). In addition to this, it will also impact the capability of the company to produce a higher amount of personalized and customised products for its customers. The Atelier Chiang Mai will be able to start a new production line in which it can attract more customers for developing customised and personalized products at a reasonable price. In other words, usually customised products are available at a relatively higher cost. Developing a manufacturing system that is flexible enough to create a personalised product will include that product is manufactured at optimum cost and when the cost of production is lower than it will also be available at a relatively lower price. |
Activity 5
| Environmental Factor | Issue(s) pertinent to the industry | Implications for the industry |
| Political | Relationship between countries and impact on cross country business transactions | Political factor has strong influence on businesses involved in international transactions. Sourcing practices and business practices gets significantly influenced by this factor. |
| Economical | Increasing purchasing capacity of middle class customers
Impact of pandemic on economic condition of people |
Increasing purchasing power of middle class customers has a positive impact on the Atelier Chiang Mai and industry (Perera, 2017). Increasing purchasing capacity increases the demand for fashion clothing, and this industry is required to create products that meet the requirement of such customers. Fast fashion is an example through which the needs of such customers can be met.
Pandemic certainly made strong impact on economic condition of people and this is why industry is negatively influenced. People focused on purchasing necessary products and fashion clothing is not one of them. |
| Social | Strong impact of fashion influencers and social media | Fashion influencers and social media are creating a strong impact on customers and their choice regarding clothing and fashion (Christodoulou and Cullinane, 2019). The company can utilise the popularity and impact of fashion influencers by associating them with its brand. Industries getting affected by the increasing demand for products that are executed by Fashion influencers. |
| Technological | Use of digital media and online shopping | Technology issues affecting the industry are the use of digital media channels and social media to influence customer perception regarding fashion. In addition to these increasing use of online channels for purchasing clothing is also an issue that impacts the industry (Achinas et. al. 2019). It has become important that the industry can provide an effective experience to its customers when they are purchasing products online. It will add value to customer satisfaction and will also increase demand for products through the online channel. |
| Legal | Customer protections laws | Customer protection laws are also having a significant impact on the industry. It has become very important that practices of the industry are ethical and legal to ensure their survival and continuous growth. It is important to identify the impact of different customer protection laws and ensure that the practices of the company are according to regulations of such laws. |
| Environmental | Environmental regulations and sustainable fashion | Environmental regulations and sustainable fashion are two important issues in the industry. The implication of these issues includes that industry is required to identify alternative ways through which it can ensure the fashion is sustainable with the least possible environmental impact (Ricci et. al. 2021). Customers have become increasingly conscious of the impact of fashion on the environment, and this is why sustainable fashion is been given priority by customers. |
| Porter’s Force | Strength | Justification/ Reasons |
| Threat of new entrance | Manufacturing capacity and customers from different geographical locations | The company has a strong manufacturing capacity in which it is manufacturing different types of products for customers with different requirements. The ability of the company to produce small-scale, medium-scale, and large-scale products is a strength in which it can ensure that it can manufacture for all kinds of customers with different requirements (Bruijl, 2018). In addition to this, Atelier Chiang Mai also have customers from different geographical locations or from a different country which enables it to give from competition to new entrants in the industry and have a strong position against them. |
| Threat of substitute | Ability to create high quality products and additional services | The company can create high-quality products and in addition to the manufacturing agreement company also provides several additional services such as delivering products to customers from custom clearance and quality checking services enable it to be better than substitute. The company produces fashion clothing and this is why its substitute is other brands or manufacturers producing fashion apparel. |
| Bargaining power of buyers | Quality of the products | Bargaining power is a very strong element in competitive forces however the high quality of the product can reduce the power of buyers to bargain (Bronskaia, 2018). Along with high-quality products or services provided by the company such as designing and developing samples and Sourcing are some of the strengths of the company that produces power of buyers. |
| Bargaining power of suppliers | Multiple suppliers from different geographical locations | The power of suppliers gets influenced by multiple suppliers that the Atelier Chiang Mai has at different geographical locations. having multiple suppliers is sure that the company can get its material and fabric from different suppliers reducing its dependency on suppliers. |
| Industry Rivalry | Strong presence in industry | Industry rivalry is an important competitive force in which companies stand strong by having a strong presence in the industry (Mwakasege, 2020). It is very important that the company is able to cater requirements of customers in several ways and its capacity to produce large scale as well as small scale orders give it a competitive advantage over other manufacturing companies in the industry. |
| Identification of the industry in question | Industry has been put in questions of further growth by situation and impact of Covid-19. |
| Industry stage in the life cycle | Growth |
| Implications | Industry is at growth stage and this is why it requires identifying opportunities and threats that it can influenced by in terms of its sustainable growth (Cucculelli and Peruzzi, 2020). It is very important that company identify where it can make addition efforts in order to sustain it growth stage for a longer period of time. |
| Issue | Survival factor | Success factor |
| Increased strain on natural resources | The survival factor in this issue is getting sustainable sourcing and ensuring that the manufacturing practices of the Atelier Chiang Mai are environment friendly (Arrigo, 2020). This way it will be able to reduce its impact on the strain of natural resources. | The success factor in this issue is identifying possible solutions to make a positive impact on environmental sustainability and taking initiative for environmental sustainability. |
| Frequent shift in consumer preference | The survival factor in this issue is ensuring that the company is able to change its production and offers according to consumer preference. Being reactive to consumer demand is a way through which a company can survive. | The success factor in this issue is being proactive and identifying consumer demand before competitors and providing required solutions. |
| Speed in developing products | The survival factor in this is ensuring that the company requires a minimum time to develop new products (Tudor, 2018). Developing the highest possible speed is a way through with it can survive the issue. | The success factor in this issue is creating fashion trends so that Atelier Chiang Mai can take advantage of being a leader and speed requirements will also reduce best on consumer demand. |
| Fashion influencers | The survival factor in this issue is identifying fashion influencers and associating them with the brand so that their popularity can be used by the company. | The success factor in this issue is developing fashion influencers from the company and using the influence to attract potential customers (Chetioui et. al. 2020). |
Conclusion
Based on the above discussion, it can be concluded that several factors are affecting the strategic management of the Atelier Chiang Mai. However, the company has strong capabilities that it can utilise to increase and improve its presence in the industry. Based on analysis of operational elements company is found to be very strong and efficient in its working. It can be concluded that several megatrends and factors are affecting the Atelier Chiang Mai however, it will be able to address and survive through these trends.
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