Table of Contents
Overview of the New Company
Primark is the fashion brand of Associated British Food. The new sector of clothing that will be started by the company will be named as Premier Clothes. One of the logic behind the chosen name is its ability to reflect the fact that the fashion apparels are highly luxurious. The name clearly mentions that the new company sells clothes so that there is no compromise on quality. Moreover, the vision of the chosen company is to become a leader in producing winter fashion apparels for the targeted population of youths irrespective of their gender. It seems that the name of the new company is directly related to the vision. This is because the name clearly highlights about the need of selling the best quality apparels so that a leading position in the market can be obtained.
Arriving at the Mission Statement
Mission statement reflects the activities which are carried out for reaching the vision (Talbot, 2003). Accordingly, the mission statement of Premier Clothes can be to create strong collaboration with the best fashion apparel manufacturer so that it is possible to offer the exclusive quality of winter fashion apparels to the young men and women in the region of UK.
We can do it today.
Factors Outlining the Strategic Plan
The various factors that were considered while reaching at the strategic plan include analysis of both the external and internal environment. Internal environment comprise the need to hire the most competent fashion designers. It will enable Premier Clothing to understand the latest demand of clothes, which are present in the apparel market of the UK. Accordingly, Premier Clothes is supposed to collaborate with the manufacturer of fashion apparels that provide the most demanding clothes. Premier Clothes has planned to expand into the market of the UK within 3-4 years. This is supposed to raise the market share of the new company so that it is possible to gain leading position in the UK market.
The strategic plan of Premier Clothes has further focused on considering the level of competition that exists in the market. It will be useful in framing effective strategies as compared to its competitors. Competitor analysis is not only useful in enabling Premier Clothes in the local market of the UK but rather on an international basis. Premier Clothes has already planned to expand its operations in the international market within 5 years of time. The strategic planning procedure has also considered about the need of estimating the costs of running the retail outlets. Those outlets are planned to open in the UK market, pertaining to which the costs will be kept lower in comparison with its rival firms.
Use of Analytical Framework for Denison-Making
The uses of analytical frameworks will help in getting insights on whether the strategic plan of expanding into the foreign market and the UK is feasible. Probability theory has assisted in determining the chance of success after expansion. Most importantly, the exact chances of competitor penetration and demand of the winter garments in the future has been determined with the use of the theory of probability. Likewise, trend analysis is useful in determining the future pattern of earning revenue and costs incurred. Thereafter, trend analysis reflects the future pattern in profit earning.
Strategic options are useful in the sense that it enables an organisation to easily evaluate the steps to be taken for expanding successfully into the new market areas. One such strategy is the three horizon strategy, which mentions about the three steps for successfully penetrating into the market. The first horizon is called short jump, wherein initiatives are taken for extending the current business. In the given case, short jump simply involves adding new winter fashion garments by Premier Clothes for male and female youth of the UK market. The step also invoves offering discounts to attract new customers (McGuire, 2016). Second horizon is known as medium-jump, wherein initiatives are taken to raise the scope of the business. In this stage, Premier Clothes is supposed to make small collaborations with some of the well known brands which are located in the UK. This will enable the new company to more readily penetrate into the market of winter apparels for young men and women. The third stage known as long jump is responsible for developing a business on a long term basis. In the given scenario, initiative of Premier Clothes to start its own retail outlet can be regarded as a long jump (Thompson, 2006). The strategies of expansion are to be taken with the UK to prevent any adverse effects due to drop in the value of sterling (Giles, 2016).
PESTLE analysis has been useful to explore about the effect of political, economic, social, technological, legal and ecological effects on the business of Premier Clothes. It is observed that Brexit is a political issue that can hamper the business, whereas the growth is in the garments market is a positive economic situation (Bowler, 2017). Fall in the value of pound after Brexit has also caused reduction in trade for the UK based organizations especially to remaining parts of Europe (Macdonald & Strupczewski, 2017; Hendriksz, 2017). Positive social condition is depicted from the inclination of the public towards garments. New and advanced technologies are used for production, and Premier Clothes therefore need to be well-aligned with the legal rules and environment laws (Crown Copyright, n.d.; Crown Copyright, n.d.a; Hounslea, 2016).
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