Florin Braniste

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School

University of West London *

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Course

PRINCIPLES

Subject

Information Systems

Date

Nov 24, 2024

Type

docx

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Uploaded by CommodoreKudu2300

Student: FLORIN BRANISTE INTRO DUCTI ON TO BUSIN ESS ASSIG NMEN T 2

Contents INTRODUCTION___________________________________________________________________3 Internal and External Information__________________________________________________3 MACRO ENVIRONMENTAL ANALYSIS________________________________________________4 MICRO ENVIRONMENTAL-PORTER FIVE FORCES____________________________________5 CONCLUSION______________________________________________________________________6 REFERENCE LIST__________________________________________________________________6

EXECUTIVE SUMMARY In this report I will talk about a start-up business that I want to make functional in a short time, I will detail the business idea and I will divide it into chapters. I need both internal and external information for my business and I will explain how they will help me make the right decisions in the future. Through the methods of Pestle and Porter I will analyze the microeconomic and macroeconomic factors as well as the factors that affect the market and which are the biggest threats for us. INTRODUCTION Through this report I will select a start-up idea that I hope will be launched as soon as possible, I also need to gather the information that will be useful to me in the future. I chose to open a clothing store for all categories of people regardless of their age and gender. We want to open this business in a partnership because we benefit from several advantages. The name of the store will be NewFashion and the location will be in London due to the large number of potential buyers. UK fashion is well-known for being one-of-a-kind, creative, and innovative. Designers in this city take pride in creating fashion items that set the trend. Furthermore, the UK offers a wide range of fashion items – from high-end brands to casual wear to less-expensive options, there's something for everyone (Alliance Experts, 2018). Customers can select from a variety of options based on their personal styles and preferences. UK fashion brands are known for their unique takes on classic styles, as well as highly creative and innovative looks. Customers have come to expect high quality work as the industry continues to grow and recruit the best and brightest. Individuals working in the UK fashion industry are known for having not only high fashion standards. BODY Internal and External Information Information of any kind is important in this area because it helps us make the right decisions both internally and externally. Decisions are the most important in a business, we need to make sure we make the best decisions and we can do this based on internal and external

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analysis (The Change Consultancy, 2018). Our business will deal with the sale of new clothes with high quality material. We chose London as our location, because it is a developed area from a tourist point of view, which means that we can also attract tourists. EXTERNAL INFORMATION The behavior of buyers in this industry is very important because everyone has their own style, which is why we have to adapt to all requirements. From an external point of view, we managed to get information about the market, about potential customers targeting young people, therefore we know which category of clothes to highlight and the prices we will have. Another external information we need is the competition, being in a crowded and very popular area, we will rely heavily on online marketing and advertising, including our own site, where customers can enter and see and order a certain product. INTERNAL INFORMATION We also need information about the human resources that will take care of the full functionality of the business. We need an accountant to handle all the legal procedures, a salesperson and, most importantly, the person who will take care of the production of the clothes. All this information helps us to be sure that we will make the best decisions (Aronsson et al., 2021). As a new business on the market, we also need information about the human resources that take care of the entire function of the business. When I look at the market, I realize that we need a person who handles all the legal processes, a person who handles the accounting part, a person who handles sales and, most importantly, a person who handles all the legal process. . to take care of the production of clothes. All this information helps me to make the most effective decisions for my business and to share the tasks in the most appropriate way. MACRO ENVIRONMENTAL ANALYSIS From the point of view of the MACRO environment, we need to discover the best methods to investigate the strategic situations in a successful business. To do this we need an analysis and the best is the PESTLE analysis which involves the analysis of certain political, economic, social, technological, legal and environmental factors through which we will understand the market and the potential we have (Campbell and Craig, 2016). POLITICAL FACTORS When we talk about opening a clothing store, we have to keep in mind that most clothes are used from chemically treated cotton, which leads us to the idea of replacing this material with a less treated one, as well as how to pack. these clothes. it comes down to plastic bags that are later thrown away, this is not very good for the environment, which is why we try to come up with biodegradable packaging. ECONOMIC FACTORS From an economic point of view, our customers fall into two categories, those who have a higher income and can afford to buy more clothes and those who have a minimum wage or

are unemployed and who cannot afford to spend a lot of money on clothes. , considering this more of a fad than a necessity. SOCIAL FACTORS From a social point of view, we can talk about influential people, who promote certain brands or clothing styles, which influences other people to look for the same outfit or the same clothing style. A big advantage for us would be to find a known person, such as an artist to promote our clothes, then it would definitely increase our sales, that is part of the marketing strategy. TECHNOLOGICAL FACTORS From a technological point of view, we can distinguish two categories of people, namely those who want to shop online and those who prefer to physically come to the store to check the quality of products. The technology is constantly evolving and has a big impact on us, because of this we will create a virtual store with all the physical products in our store, including the possibility of home delivery. MICRO ENVIRONMENTAL-PORTER FIVE FORCES In my report I will include an analysis that I will perform with the help of the five forces of Porter, because the clothing industry is one of the most profitable industries in the world, I will perform the analysis of the competitive environment for our store to obtain information about possible threats. With the help of this analysis, we want to generate a competitive and sustainable advantage for our clothing store (Grebenshchikova and Yakushev, 2017). THE BARGAINING POWER OF SUPPLIERS If we talk about suppliers, they have a very high bargaining power, especially when raw materials are available in small quantities and this threat increases, if we refer only to a certain product for which the number of suppliers is small (Bargaining power of suppliers, 2014 ). However, we can find raw materials such as cotton or fibre in many places and we can choose who to work with. For a start, we can turn to local suppliers for affordable prices and in the future, when we grow, we will try to negotiate with larger suppliers. THE BARGAINING POWER OF BUYERS The bargaining power of customers differs depending on the competition, if there are many who sell the same products as us, then their bargaining power is high. Unfortunately, they dictate in this market and are the main pawns that we have to thank and therefore we have to

adapt to their requirements and needs. We will try to adopt affordable prices for them, but which in relation to our products to match. RIVALRY The rivalry is very high because there are many famous brands in England, such as Primark, Mark and Spencer and many others, which also have very affordable prices, from this point of view, at first, it will be very difficult for us to come up with something to be able to compete. But nothing is impossible, with the information obtained from market research, we will be able to discover what marketing methods the competitors practice and we will plan to come up with something extra. THREAT OF SUBSTITUTABLE PRODUCTS Replaceable products are a threat, I think, in every business. For everything, there is at least one product that is a spare option. People can call on cheaper stores, SH that sell second-hand clothes, from last season and will not call on us. The threat of substitutable products is high. CONCLUSION In conclusion, all this information is absolutely necessary in order to have a successful business. Good decisions are the basis of a successful business and to be sure that we make the best decisions we need analysis. In my report, I highlighted the way in which competition influences a new business but also the presence of power factors that influence the future of the company. REFERENCE LIST Alliance Experts. (2018). The UK fashion and apparel industry: trends and business opportunities. [online] Available at: https://www.allianceexperts.com/en/knowledge/countries/europe/opportunities-in-the-uk- fashion-industry/ . Aronsson, F., Huusko, A., Wansulin, V. and Ronsson, A. (2021). Internal and External Forces of Organizational Change in Project Management A case study on a collaborative project A XELIA H UUSKO V IKTOR W ANSULIN. [online] Available at: https://www.diva- portal.org/smash/get/diva2:1520935/FULLTEXT01.pdf . Bargaining power of suppliers. (2014). Veterinary Record, 174(Suppl 1), pp.6–6. Campbell, D. and Craig, T. (2016). Organisations and the Business Environment. New York: Routledge. Grebenshchikova, L.S. and Yakushev, N.M. (2017). Definition of Competitiveness of the Enterprise Using the Five Forces of M. Porter. Bulletin of Kalashnikov ISTU, 20(3), p.51.

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The Change Consultancy. (2018). Internal and External Factors That Influence Organisational Change. [online] Available at: https://thechangeconsultancy.co/blog/internal-external-factors- influence-organisational-change/ .

Florin Braniste

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