Elena Neculau

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Management

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Nov 24, 2024

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ELENA NECULAU ASSIGN MENT 2 FOR INTROD UCTION TO BUSINES S

1. EXECUTIVE SUMMARY The report I am about to write is about presenting a start-up business idea. I will highlight the importance of internal and external information that a director needs to obtain about the business he is going to implement because from the very beginning he will need information, both financially and External information to the market and the industry in which it is to enter. Also, for the business I have chosen, I will analyze the impact of certain microeconomic and macroeconomic factors, through the two analyzes, namely the analysis of Pestle and Porter, related to my initial idea. 2. INTRODUCTION In this report, I will present the idea of starting a business, which refers to the opening of a clothing store, together with three other partners. The name of our business will be fashion trend and it will operate in London because it is a very popular location and very often visited by tourists, who want to buy a souvenir, and can visit our store. As I mentioned, we are four partners, so our structure is that of partnership. We want to implement this business successfully and we need to do some market research, in order to obtain information that will guide us on this path. (Donaldson, 2016) 3. BODY In order for an employer to carry out its business activities in the best possible conditions, it needs information about the market, about customers, about competitors, about sources of financing, and this information is divided into two categories, namely internal information and external information (What Are Internal & External Environmental Factors That Affect Business?, 2017). All this information helps him to make the right decisions in his business, and to control the different activities as efficiently as possible. In the following, I will present some information about my business and how the information helps me make decisions. From a management point of view, this internal information is important, because it helps me to find out what are the strengths and weaknesses of the business and to do this, I did a SWOT analysis, in which I noted all the strengths and weaknesses. weak and market opportunities and threats. All this information helps me figure out what position my business has in the market, but also how it could evolve. Internal information about how our products and services should be made helped me implement the most appropriate outfits for my clients. Here I mean the choice of raw material, the way we present our clothes and the way we behave with our customers. With the help of the information, I was able to plan the following activities, which I have to carry out in order to adapt to the needs of my clients. (Shop, 2019) From the point of view of external information, I conducted a market research, after which I managed to find out information about the target customers, about the local competitors, but also the top ones, about the size of the market and about the clothing industry. With this information, I was able to plan certain goals and also choose a customer segment to focus on. The competition is quite high in this market and in the clothing industry, companies can operate in many ways and can attract customers through online sales or wholesale. Also, the target group of the company must have enough income to spend on our quality clothing at high prices.

PESTLE ANALYSIS The fashion industry has always been affected by technological change and has influenced the way products are made, sold and delivered to customers. We should see this as a benefit because it allows us to respond more quickly to any changes in the market. Customer demand increases when sales are made online because it is easier for them to see items available in the store (Bush, 2019). Also, the most beneficial methods of promotion are also through the Internet, because we can promote our business much faster and at lower prices, through social media platforms or by implementing a website. Economically, like any other business, the pandemic has been detrimental to the clothing market. Because of the pandemic, people were forced to become unemployed or receive a lower salary, and their buying behaviour changed drastically because they were no longer willing to spend money on clothes or did not agree with the purchase from the environment. online and stores could not engage in physical activity. As mentioned earlier, the industry has been affected by the pandemic and it is important to pay attention to people's needs. In the future, we plan to implement a foundation to help the poorer shops that have been affected. As customers become more aware and have learned to differentiate between us and our competitors, we should give more importance to their needs and be able to adapt to demand. Environmental factors are very important due to the very large shortage of raw materials, pollution, health hazards. More and more people are looking for products that come from recyclable sources and have a positive impact on the environment (Chinwo, 2019). Unfortunately, it would be very difficult to do this, because it would require a much larger investment. In other words, climate change is quite a challenge for us, because it could affect the raw material we need and we would not have the means to make the necessary products. PORTER FIVE FORCES Our store sells goods and services in the clothing industry, and I'm going to evaluate Porter's five strengths to get realistic information about competition and market threats, and to find the best strategies, to maintain the best possible position in the market.( Amelia et al., 2019) Competitive rivalry is high due to social trends and increased demand for clothing. We try to adopt as many styles as possible, to meet the needs of all customers. However, most competitors want to do the same and because of this, there is quite severe competition. The main competitors of our store are luxury companies, such as Calvin Klein or Michael Kors, but also smaller brands such as Zara, Barska. The threat of replacements is usually high in the industry we have entered because each competitor aims to meet the demand and provide clothing at the best possible price for customers. Customers can be attracted to rivals and choose their products and offers. There are many competitors in the market that focus on technology, and this attracts customers even more. The threat of new entrants is usually low, as many brands already exist on the market with the same ideas and it is quite difficult to come up with something that surpasses market leaders. It is difficult to attract new customers if you do not have a good market presence and a

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somewhat popular brand, so product differentiation is the biggest barrier for new entrants. Moreover, the costs associated with production are also an obstacle to market entry. The bargaining power of customers in the clothing industry is high because there are various brands on the market, and customers can buy from any particular brand without being obligated to us. In addition, product offerings and lower prices are the main factors that give them this power. They are also very knowledgeable because they find all kinds of products on the internet and can compare the prices and offers that influence their buying behaviour. Moreover, they have no obligation to buy from us and there are no costs if they want to buy elsewhere. The bargaining power of suppliers is quite small to moderate because there are a large number of suppliers in this industry, so we can choose to buy from any supplier. Suppliers have an interest in keeping us as their customers because that way they will also have income and are aware that they cannot afford to negotiate with us because we can always turn to other companies that supply us with exactly the same raw materials. 4. CONCLUSION In conclusion, as mentioned above, I was able to highlight the importance of information in decision making and also the threats that any company that is at the beginning faces. With the help of Pestle's and Porter's models, we have outlined the microeconomic and macroeconomic factors that influence the profitability of a business. This whole game called business revolves around the most important factor, namely competition. From the competition to take you many aspects and if a company manages to find ways to differentiate itself from its competitors, then it will only gain 5. REFERENCE LIST  Amelia, D., Murni, I., Putri, A., Badri, J. and Johan, H. (2019). A Study of Clothing Industry Competitiveness with Porter’s Five Force Approach in Kabupaten Agam Central Industry (A Preliminary Study of Ampek Angkek, Banuhampu, Sungai Puar). KnE Social Sciences, [online] 3(14), p.169. Available at: https://knepublishing.com/index.php/KnE- Social/article/download/4306/8893 .  Bush, T., 2019. A PESTLE Analysis of Nike. [online] PESTLE Analysis. Available at: <https://pestleanalysis.com/pestle-analysis-of-nike/> [Accessed 3 March 022].  Chinwo, C., 2019. Critical Review OF Pestle, swot, and swot. [online] StuDocs.Com. Available at: <https://www.studocu.com/en-gb/document/aston-university/strategic- management/lecture-notes/critical-review-of-pestle-swot-and-swot/1791912/view> [Accessed 2 March 202].  Donaldson, A. (2016). The power of fashion | British Council. [online] Britishcouncil.org. Available at: https://www.britishcouncil.org/research-policy-insight/insight-articles/power- fashion.  Smallbusiness.chron.com. 2017. What Are Internal & External Environmental Factors That Affect Business?. [online] Available at: <http://smallbusiness.chron.com/internal-external- environmental-factors-affect-business-69474.html> [Accessed 2 Mar. 2022].  www.ecocaffe.com.au. 2019. Shop. [online] Available at: <https://www.ecocaffe.com.au/collections/shop? gclid=EAIaIQobChMIlarprIii5QIVjA4rCh1MEwizEAAYAiAAEgIievD_B

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