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Global Management and Leadership - Essay Example

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PART 1 SWOT Analysis of Pumpkin Patch Limited Pumpkin Patch is primarily a Children’s clothing company founded in 1990 in New Zealand. Today Pumpkin Patch has significant presence in United States, UK and Australia though the products are manufactured in other places as well…
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Global Management and Leadership
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"Global Management and Leadership"

Download file to see previous pages There are various functional departments such as finance, operations, Human Resources, Wholesale, Direct Sales, Information Technology, Marketing, Merchandise, Property, Sales, Supply Chain and Design. The heads of all these departments report to the CEO. The CEO along with other directors forms the board of directors which takes crucial organizational decisions. Such an organizational structure suits a company like Pumpkin Patch whose lines of business are quite few. This organizational structure enables appropriate designation of responsibilities (Organizational Chart Pumpkin patch, 2010). Pumpkin patch has been following an aggressive growth strategy which is not constrained by geographical boundaries. The company has retail stores in 4 countries as well as wholesale association in 16 countries. 80% of company’s revenues come from outside New Zealand. The company is listed on the New Zealand stock exchange and has more than 200 stores worldwide. It has strong financial statements and cash flows. A large part of the company’s sales comes through online sales. This indicates its adaptability to modern technologies, tastes and lifestyles. 2. Weaknesses As Pumpkin Patch grows, relying on a simple organizational structure as present could be risky. There would be a need to include structural components based on geography and lines of business. For example, there could be geographical heads for 4 prime geographical regions the company caters to (Organizational Chart Pumpkin patch, 2010). Pumpkin Patch’s turnover is still a fraction of the top retailers in United States and has a long way to go in spite of its recent scalability. 3. Opportunities Pumpkin Patch has a number of opportunities in all 3 channels of sales it uses i.e. Retail, Wholesale and Direct (Internet). In retail segment, the company has been relying solely on margins rather than volumes. Pumpkin Patch needs to scale up even faster to gain a significant market share in the crowded U.S. market. For this, the company can make use of franchise model. In the wholesale segment, the company needs to have strategic collaborations with top multi-brand retail chains such as Spencer’s and Wal-mart. Internet market is the best opportunity Pumpkin Patch can make use of. This is a relatively new sales channel and Pumpkin already has a significant presence there. It has not been exploited to its potential by competitors. This should be treated as a priority. The aim should be to generate at least half of the sales from this channel in coming years (Pumpkin patch Limited, 2007). 4. Threats Pumpkin has a significant mind space among the customers. However, U.S. children’s clothing market is highly crowded. There are well known reputed brands such as Gap, Next, Mango, Zara, Billabong, Gymboore and others (Pumpkin patch Limited, 2007). Scaling up in wake of this intense competition would be a difficult task and involve marketing and infrastructure spends. With huge store opening costs, the company may not be able to realize economies of scale with small stores. References Organizational Chart Pumpkin patch. (2010). Retrieved online January 18, 2012 from Pumpkin patch Limited. (2007). Macquarie Securities Data Related Information from PART 2 Relevance of Core Competencies Core competency is the unique capability of a firm that cannot be easily imitated and provides it a unique competitive edge. Core competencies ...Download file to see next pagesRead More
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