Monday, January 27, 2020

Strategic Planning And Analysis Of Primark Marketing Essay

Strategic Planning And Analysis Of Primark Marketing Essay Strategic Planning is a complete process about making strategies, or direction, and allocation of recourses to achieve targets. There are numbers of business analysis techniques which can be used in strategic planning and these are SWOT Analysis PEST Analysis STEER Analysis EPISTEL Analysis Strategic planning simply describes the main objectives and future targets of the organization and the efficient and effective process to achieve those targets. Strategic planning covers three main areas which are as follows Present Position Future Prospects and targets Means to achieve those targets PRIMARK Primark is a one of the leading clothing chain of UK. It was founded in June 1969 in Mary Street Dublin under the trading name of PENNEYS. The store added four more brances in local area within its first year of operation. The first store which was opened outside Dublin was opened in Cork in 1971. In that year there were 12 more stores opened 11 in irland and 1 in Northeren Irland. Move Into Great Britain In 1973, four out-of-town stores opened and like this Primark began its trading operations in Great Britain. In 1984, the first multiple acquisition took place when five Woolworth stores were purchased in Ireland. Further in 1984 to 1994 in ten year period Primark opened 25 stores together in UK and Ireland. In 1992 one of BHS stores was purchased and added in the chain. The year 1995 was the year in which primark made most of its expension when the acquisition of the BHS One-Up-Discount chain took place. With this major expension 16 sotres wew added in UK region and most of them in Greater London with a significant sizes. Another major aquisation was in 1999 when 11 Co-Op stores were added. In 2000, another 11 stores acquired from C A. In October 2001 massive store was opened in Manchester. Primark continued its expension in the following year. As a result, number of reached to 109 in the end of 2001 consisting 75 in Uk and 34 in Ireland. In 2005 six stores were acquired from Allders. In April 2007 two more stores were opened, one in London and the other one was in Livelpool. Entrance to Europe Primark entered in Europe by opening a store in Spain in May 2006 and later in the same year in Semtember a second store was opened in Murica. In 2007 two stores were opened in Spain and in Xanadu. In 2008 three more sotres were opened in Bilbao, Islazul and in Oviedo. In the same year more braches were open in Parque, Zaragoza, Asturias and Coruna. Primark entered in Netherlands market in 2008 by opening its first store in Rotterdam. In 2009 more stores were added in eorupe business by opening the branches in Portugal, Germany and Belgium. Currently, In total 196 stores are in business under the name of PRIMARK. The counts is as follows   Region Number of Branches UK   138 Ireland 38   Spain 14 Portugal 2 The Netherlands   1 Belgium 1 Germany 2 Total 196 STRATEGIC PLANNING HISTORY OF PRIMARK Primark is second largest clothing retailer and runs 13 department including Children wear, women wear, men wear, foot wear, assocries and house holds. New and fashion able clothing with cheap prices are very challenging task among the high intensity of competition among the competitors. Primark has a firmly defined target consumers which are under 35 age group. There are two main methods to earn profits more than normal rates, by establishing a product leader ship or can be through cost leader ship. Primark established a cost leadership because in cost leader ship the firm supplies same product at lower price rather then to provide strong differentiation as like in product leader shipe where coustomers are ready to pay high prices. Primark established a strong strategy of cost leader ship. This strategy is pursued by companies selling affordable products across all sectors. In united states, Southewest Airline has same strategy with success in aviation sector. To maintain this strategy Primark always focuses on buying, logistics and supply chain management. To get world wide fashion trends and discovering of cheap supplies a separate team has been set in UK that travels all over the world. The company sources the manufacturing of its clothes to developing countries like India which have cheap labor. With this strategy PRIMARK saves huge cost. Primark also keep a strong warehousing and distribution network because of its strategy to reduce the time-to-market to as less as possible. To keep that promise Primark uses computerized customs clearance. TNT who provide logestic service world wide, dedicates one of its huge ware house exclusively to Primark stock distribution. Primark established a customer confidence about its cheap price promises. To sustain this strategy Primark has to maintain high efficiency level and effective cost controls on on going basis. WOOLWORTHS Woolworths, the high street retail chain that collapsed in 2008, was founded in 1909. Since then it had grown into a chain of about 800 stores. But the recent history is one of trials and tribulations that ended in entering into administration in November 2008. The retailer faced intense competition from supermarket chains like Sainsbury, Tesco etc. Lately it had entered into entertainment and electronics retail after its acquisition of Entertainment UK. In September 2008, Woolworths announced a pre-tax loss of pound 99 million for the six months ending on August 2, 2008. The company then embarked on a turnaround plan. It decided to sell 120 stores, axe about one-fourth of its products from the stores , reduce web operations and cut jobs. In 2008 the financial crisis brought a severe credit squeeze. The companys banks, GMAC and Burdale decided to recall their loans. The company that was burdened with debts worth pound 385 million had to enter administration. By January 2009 all 807 Woolworths stores in UK were closed. But Woolworths was more a casualty of its flawed strategic planning than the economic recession. STRATEGIC PLANNING AT WOOLWORTH Woolworths strategy had no target segment or focus point. It lacked a single Unique Selling Proposition ( USP).Its product leadership was in the pic n mix sweets. In other product segments like music, books toys etc it was neither a product leader nor a cost leader. (Chandler 1990) Even in the childrens clothes and school uniform segment it soon lost its leadership to retailers like Asda and Tesco. Woolworths strategy had always been to achieve cost leadership. The original US chain founded by Frank Woolworth sold everything at 5 cents. When the chain opened its first store in UK in Liverpool, every item was priced below 6 pence. Woolworths pursued successfully this cost leadership strategy for many years after that. It reached its peak in the 60s and 70s. The company hardly spent anything on branding. Its stores were without frills. But lately the company lost its cost leadership to discounters like Wilkinsons, Tesco etc. Almost anything that it sold now, the competitors were able to sell at a lower or at least the same price. Woolworths was also using a lot of debt or leverage in its capital structure. It was also using debt to open new stores. While it was opening new stores, many of its existing stores were in mess. Another part of Woolworths strategy, right from the beginning, was to sell a variety of merchandise. In its early days the chain was able to undersell its competitors through mass production. This strategy worked so well that at one point of time Woolworth was opening one new store every seventeen days. The IPO of Woolworths in the London Stock Exchange was so successful that for just 15% offloading of its equity in Woolworths UK, the parent company was able to give its shareholders a dividend of 90 cents for every dollar worth of their shares. During the World War-2 the company suffered badly with many of its stores bombed and destroyed during the air raids. Prominent among them was the bombing of the New Cross High Street store in which 160 people were killed. The post-war inflation forced it to give up its under six pence strategy. (Cooper 2003) Woolworths then capitalized on the pop mania of Beatles. It made a fortune selling the Beatles merchandise like dolls and other mascots. It followed this by expanding its entertainment offerings. For opening new stores, Woolworth was taking the real estate on rent or lease. At the last count it had about 700 landlords. Its lease payments were rising at the rate of 2.5% per year. Its rent bill had soared from pound 70 million in 1998 to pound 160 million in 2008. So when the credit crunch and the recession started, Woolworths had no fixed assets to fall back on. After its demerger with Kingfisher in 1982, Woolworths aimed long term growth through operating the following: (Coulson 2004) Hypermarkets. The Big W stores. Woolworths general stores. Streets online. But the company soon reversed its strategy, discontinued the above three stores and started focusing once again on its traditional strength products like confectionery, toys and entertainment. But in spite of narrowing its focus in order to cut costs, Woolworths was not able to match competitors like Wilkinson and Poundland which ate into its market share. Even in the range of product offering, it proved to be no match to Tesco.Its price points were higher and it also lost out on the convenience quotient. When all its strategies failed to bring a turnaround it approached the restructuring specialist Hilco. Hilco agreed to buy Woolworth for a nominal sum of pound 1 and take pound 300 million debt of the retailer. But at the last minute the deal was thwarted by its lenders, Burdale and GMAC. This led the retailer into administration in November 2008, just before the peak Christmas season. (Fifield 1998) COMPARISON AND CRITICAL ANALYSIS OF THE STRATEGIC PLANNING OF PRIMARK AND WOOLWORTHS The strategic plan of Primark consisted of the strategy of growing inorganically as well as organically. For inorganic growth it made strategic acquisitions. For its organic growth the company successfully pursued cost leadership. It was also successful in churning out fashionable clothes that were up to the latest trends. And it churned these at very affordable prices. It did so through strategically using outsourcing and having an integrated supply chain that was extremely fast in delivering. It has a much focused target segment of consumers. (Fleming 2009) If we conduct the SWOT analysis of Primark, we get the following: Strengths- Its cost leadership and its supply chain and logistics processes. These have become a source of competitive advantage for the company. Weakness- It is not into branding. Lack of having brands with high brand equity may hurt its profitability in future. Excessive reliance on outsourcing for manufacturing and supply chain processes make it dependent on suppliers and vendors. Opportunities- There are huge opportunities for retailers of discount fashion clothing. The recession has reduced the disposable income and the consumers have become more value conscious. Threats- The company has recently come under the attack of anti-poverty campaigners for the sweat shops in Bangladesh and India. The company is fighting off its reputation of being an unethical company driven solely by the lust for more profits. On the competitive front it has tough competition in the form of Marks Spencer, Debenhams etc. FIVE FORCES ANALYSIS OF PRIMARK Threat of competitors or intensity of rivalry- The competitive rivalry is reasonably high in the discount fashion segment. Threat of substitutes- The threat of substitutes is high. Fashionable clothes have a large number of substitutes. Bargaining power of suppliers- Discount chains like Primark use a lot of outsourcing from developing countries like India, Bangladesh etc. The bargaining power of these suppliers is low as they are dependent for their revenues on large clients like Primark. Bargaining power of customers- The bargaining power of customers is high. Customers of discount chains like Primark are bargain hunters who look for the best bargain. (Oakland 2003) Threat of new entrants- To produce fashionable clothes at the lowest prices is quite a challenging task. This raises naturally a high barrier to entry. Thus the threat of new entrants is significantly lowered. CORE COMPETENCY OF PRIMARK Core competency is that capability which is central to the existence of a business or corporation. A capability or set of capabilities qualify as core competency if they have the following attributes: (Peter 1989) It is the source of value proposition to the customers. It is difficult for competitors to acquire similar capabilities. The capabilities can be leveraged across different products and markets. The core competency of Primark is to produce fashionable clothes for as low prices as possible. It has been able to do so through entering into strategic partnerships with companies like TNT logistics and outsourcing manufacturing to cheap offshore locations like Bangladesh. VALUE CHAIN ANALYSIS OF PRIMARK The value chain of any organization is divided into two types of activities: Primary activities. Secondary activities. The primary activities of the value chain comprise the following: Inbound logistics. Manufacturing. Outbound logistics. Marketing and Sales. Services. The secondary activities include: Human Resource Management. Technology support and research and development. Procurement. Primark has been able to gain and sustain competitive advantage by focusing on inbound logistics (supply chain), outbound logistics (distribution network), manufacturing (outsourcing to cheaper destinations), technology support (computerized supply chain and distribution connected to point of sales). (Pride, Hughes, Kapoor 2009) As far as its marketing strategy is concerned it has responded to the 4Ps of the marketing mix in the following ways: Product- It has been able to understand the latest trends in fashion. A team of experts travels across the globe and monitors new trends in fashion. Price- The company has been able to deliver the products at very low prices. Place- Primark has an effective distribution network. Its stores are located strategically. Promotion- Primark does not spend too much in branding or promotions. Woolworths, on the other hand, lacked a clear strategic plan. It seemed to be bungling with its strategy. It made many strategic experiments, all of which failed to sustain the 99 year old chain. The SWOT analysis of Woolworths, done retrospectively, reveals the following: Strengths- A ninety-nine years old brand name and a reasonable number of loyal customers. It has a very high brand recall and brand recognition. Weakness- It has no target segment. It lacks product leadership as well as cost leadership. It is trying to sell too many products and is competing across too many categories. Opportunities- The opportunities for discount retailers are always high, especially for high street retailers like Woolworths. Threats- The threats are many. It is using too much debt. It is into too many lease agreements. Most of its stores are on rent. It lacks fixed assets to fall back upon. FIVE FORCES ANALYSIS OF WOOLWORTHS The five forces analysis of Woolworths, if done just before its collapse, reveals the following: (Robert 2008) Threat of competitors- Formidable competitors in the likes of Wilkinson, Tesco etc. Wilkinson and Poundland are especially threatening as they are eating into the share of Woolworths. Threat of Substitutes- The threat of substitutes is high in the retail industry. Bargaining power of the customers- The intensity of competition, the business model to offer products at discounted rates; all serve to increase the bargaining power of customers of a chain like Woolworths. Bargaining power of suppliers- The bargaining power of suppliers is not that high. But since Woolworths was operating on rented real-estate, the bargaining power of landlords (suppliers of real estate) had increased tremendously. The annual rise in the rate of rents of Woolworths was 2.5%. Threat of new entrants- The capital intensive nature of the business raises barriers to entry. Thus the threat of new entrants is not that high. CORE COMPETENCY OF WOOLWORTHS The core competency of Woolworths had been once its capability to offer the lowest cost products in categories like children clothing. It also enjoyed product leadership in pic n mix sweets which it continued to enjoy till its very last days. VALUE CHAIN ANALYSIS OF WOOLWORTHS The key to maintaining cost leadership is managing the value chain activities well. Woolworths failed to manage these value chain activities as well as competitors like Tesco, Poundland etc.It was unable to get the lowest cost supplies. Its distribution (outbound logistics) was such that was unable to enhance its convenience quotient. During its hey-days the company was efficient in large scale manufacturing that enabled it to get lowest cost products through economies of scale. Later on it failed to manage this value chain activity as well. Because of the mismanagement of its value chain activities, Woolworths soon lost its competitive advantage. Primark was able to execute the how question of its strategic plan well. It was able to have such processes that enabled it to achieve its objectives. Woolworths failed on both what and how aspects of strategic planning. It lacked vision about where it wanted to reach in future. And since it did not know where to go (goals and objectives), it also did not know how to reach there. Its strategy was like groping in the dark. It was opening too many stores on debt; it had no target segment and finally it was dealing in too many products. As a result both diseconomies of scale and scope had set in. (Sheshinski, Strom, Baumol 2007) OUTCOME OF THE TWO COMPANIES The outcomes have been starkly opposite for both the companies. For the year to 12 September, 2009, Primarks sales jumped by 20%. Its profits were up by 8% to pound 252 million. The company has acquired the nicknames of Primarni or Pradamark because of its ability to sell catwalk fashion at rock bottom prices. In the recession hit economy of UK, which has entered its six consecutive quarter of GDP contraction, Primark has increased its retail space by 9%. It opened six new stores in UK since the recession started.The chain also contributed 40% to the profits of AB foods which is its holding company. Its stores in the continent are also performing well, especially those in Germany. To support its high rate of growth during recession, Primark opened a new distribution centre in Thrapston, Northampton shire. On the other hand, the recession proved to be the final nail in the coffin of Woolworths. Its debt of pound 340 million proved to be too much. All efforts to salvage it failed when its lenders, GMAC and Burdale, recalled their loans. In November 2008 it entered into administration. Neville Kahn, Dann Butters and Nick Dargan of Deloitte were appointed joint administrators. On 26th November 2008, trading in the Woolworth groups shares was suspended. The 807 stores of Woolworths were closed in phases. In the last days, the stores offered discounts as high as 90% in order to dispose of their merchandise. Some of the stores have been reported to have sold their fixtures and fittings also. 207 of these stores closed two days after Christmas on 27th December 2008. The remaining stores were also closed by 6th January 2009. Approximately 30000 jobs were lost as the 99 year old chain went under, in its centenary year. Now Woolworths has come in its new incarnation of a purely online store from its earlier version of a brick-and-mortar retail chain. After it entered administration and was closed down the Woolworths brand name was bought by Shop Direct Group. On 2nd February 2009, Shop Direct announced its intention to continue Woolworth as a purely online store.The online store uses the same URL as the earlier Woolworths groups retail website, Woolworths.co.uk. The outcomes of the strategic planning could not have been more different for both the companies. Primark capitalized on the need of lower cost fashionable clothes during the current recession. Woolworths through its faulty strategic planning, or more accurately, through its lack of strategic planning became its prey.

Saturday, January 18, 2020

An Interdependent Parter

Created a section of relationships known as interdependent partners. An interdependent parter is someone who you've been with for more than 3 years, have a child by birth or adoption, committed to each other, emotionally and economically viable as a couple. This picture shows a happy couple who aren't married, who are committed to each other. But you can't see from a picture whether there economically viable or good parents to a child.A picture can show the right things but you dont' know if they actually practice them. Two people in a relationship living together who are not legally married. This picture shows a couple living together in an apartment who aren't legally married. This shows the direct definition of a common law relationship. Every provinces has different requirements to get married. Some of the required things are consent, proper mental capacity, being the minimum age, the person you intend to marry can't be close family, and neither one of you can be currently married. This photo shows a wedding taking place. If both parties meet all requirements so they can be legally married. When a married couple lives in separate houses but is still legally married. This photo shows a man packing boxes to move. Because they have decided to separate his wife will stay in the house they bought together and he will have to find somewhere else to live. The due process that legally ends a marriage. This picture shows a man and a women in a court room with lawyers to begin a divorce settlement. Guardians have three responsibilities; supporting the child off their own salary, to ensure all necessities of life are available to the child, to help the child through their physical, emotional, and psychological growth.Neglect: failure to provide basic necessities of lifePhysical abuse: physically harming a child with malice of forethoughtSexual abuse: Sexually assaulting the childEmotional abuse: Harming the child's self esteem, insulting and yelling at them.This photo shows a logo for the children's aid society, one of the services children can reach to if they are being abused or neglected. After parents of a child split up, courts decide where the child will live and who will be his legal guardian. There can be split custody deals where certain parents have him for certain days, or it can be unilateral. This photo shows a child sitting while his parents fight over custody. This shows how intense the fight is and the effect it has on the child. Legal document that states how a persons possessions will be distributed after their death. This is a photo of a will, a legal document that can't be tapered with. The person who creates the will. This photo shows a hand writing a will, the person writing it is the only person who can modify it.

Friday, January 10, 2020

Happiness Express, Inc. Essay

The primary audit objectives that auditors hope to accomplish by confirming the client’s year-end accounts receivable are if the purchaser is real and confirms the balance (existence) and that the transactions that should have been were recorded correctly (completeness). Since confirmations go outside the firm being audited and ask the customers or vendors to confirm or deny amounts that the company is reporting, they also give valuation. The confirmation process lets the auditor figure out if a client even exists and if the correct balances were recorded. The objectives for performing year-end sales cut-off tests is to ensure the transactions are recorded in the correct accounting period (timing/cutoff) and that all the recorded transactions should have been recorded and actually took place (completeness/occurrence). Mistakes or errors in judgment that Coopers & Lybrand may have made in trying to confirm the Wow Wee in 1995 receivable were notifying Michael Goldman that they were going to seek confirmation from Wow Wee, allowing Goldman to do the follow up contact with Wow Wee when the confirmation wasn’t returned, and not doing any follow-up procedures when they finally did receive a conformation from Wow Wee, which ended up being fabricated by Goldberg. I think these mistakes and errors definitely involve negligence in the part of the auditor for over involving Goldberg in the process of confirming Wow Wee’s accounts. I also believe they were reckless because there seems to be no professional skepticism at play. Wow Wee being a toy manufacturing, not responding to their confirmation requests, and having large orders near the year end did not being enough to signal to the auditors that something suspicious is happening is pure recklessness. Even if it did not seem like fraud simply relying on a faxed confirmation was over and beyond negligence. Coopers and Lybrand auditors should have confirmed West Coast Liquidators’ receivables because they accounted for about 13% of Happiness Espress’s accounts receivable and a confirmation would have been the proper way to ensure the existence of those accounts.

Thursday, January 2, 2020

Eating Disorders Essay - 1109 Words

RUNNING HEAD: EATING DISORDERS Eating Disorders Cassandra M. Alexander Florida State College at Jacksonville Eating Disorders Eating disorders have the highest mortality rate of any mental illness. Three of the most discussed are anorexia, bulimia, and what researchers call EDNOS (eating disorder not otherwise specified). Each of the eating disorders can be fatal in their own way. What are the signs, what do they do to you and your body, and what can be done to treat the problem? Researchers have studied long and hard into these three disorders so that those questions could be answered to the best of their ability. In this paper, the outcomes of the research that was done and the thesis†¦show more content†¦amp; Twaddle, S., 2007). Yes, all these things are dangerous to one’s health. The treatments for anorexia nervosa include short-term weight gain. The overall prognosis for patients with anorexia is dependant of wether treatment is received or not (Morris, J. amp; Twaddle, S., 2007). Some people with eating disorders wait until the very last moment to even attempt to get help because they don’t see that they have a problem. Bulimia nervosa is a second eating disorder that needs attention drawn to it. Bulimia was pretty much unknown before the mid 1970’s (Dippel, N. amp; Becknal, K., 1987). Bulimia consists of binging and purging (eating as much as possible and then throwing it up). In a study that was conducted it was found that after bulimics had attempted several diets without success, they then became aware of vomiting or laxatives as a means to weight loss (Herzog, 1982). The symptoms of bulimia heave to do with preoccupations with food, weight, body image, and ridding themselves of ingested food (Dippel, N. amp; Becknal, K., 1987). Most people throw up because they feel guilty for consuming all the foods they know they shouldn’t have. They vomit not only to get rid of the food but to get rid of any unwanted feelings and emotions. 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