Operations Management in PRITCH London - Case Study Example

Operations Management University Student Id Course Date Introduction This report is about the analysis of PRITCH London and recommendations concerning how it can improve its operations. The analysis entails exploring the business environment both internal and external that is affecting the operations of the company. In the process of analysing the business environment affecting the operations of PRITCH London SWOT and PESTEL analysis are used. PRITCH London operates in the fashion industry and it has been in operation for the last five years. It mainly designs and manufactures fashion products for the female globally selling ready to wear products. It is a leather specialist dealing with modern versatile lifestyle in different lines that are innovative in the market (Masson, et al, 2007). The company has been very innovative in its operations with the aim of improving its competitiveness. The materials used in designing its products makes PRITCH London unique in the market and able to offer products that are different from those of the rivals. Considering the fact that leather is natural makes the product of PRITCH London durable and strong hence playing a big role in meeting the needs of the customers. Description and analysis of PRITCH London PRITCH London has been competitive in the market through sourcing the leather used in manufacturing from suppliers who are very innovative. It ensures five materials are combined to design a unique garment. The designing is made in the presence of experts to make sure that the products offered are of high quality (Brun and Castelli, 2008). The management of PRITCH London ensures the company is ethical through sourcing leathers in a way that is ethical and sustainable. The majority of the suppliers of PRITCH London are recognized internationally to ensure that the products are able to meet the vision and taste of individual customers. The leather used in manufacturing the products of PRITCH London makes the company competitive by designing products that are unique. The leather is also sourced from different animals to make sure that the diverse needs of the customers are met by availing various products for the customers. Besides, the company has been very creative leading to new inventions in the process of improving the products. The management ensures that design needs of the garments are achieved through providing free alterations to the clients (Bhardwaj and Fairhurst, 2010). The free alterations have been playing an important role in the process of making sure that the needs and expectations of the customers are met hence making them loyal to the company. PESTLE analysis of PRITCH London Political factors The actions taken by the government have impacts on the operations of PRITCH London in the market. For instance, the UK government has some roles it plays in controlling trade taking place in the country. PRITCH London outsources its materials that are affected by the political factors that can alter regulations concerning business policies like licensing. Besides, the changes taking place in the European Union has affected the operations of the company through affecting the sales (Bhardwaj and Fairhurst, 2010). This has affected the exports of the company to other states hence having impacts in its general operations. For instance, there are some challenges facing EU hence creating some uncertainties sparking some political turmoil across the UK. Political factors Currency fluctuations are among the political factors that have been affecting the operations of PRITCH London in the market. The changes have put pressure on the financial status of London as the main financial hub of Europe. Investors are threatening to pull out their invested funds causing some challenges in the financial market. The financial market in the United Kingdom due to the uncertainties associated with the membership of EU as members are leaving (Brun and Castelli, 2008). However, the weakening sterling has some benefits hence if the current exchange rates continue PRITCH London is likely to improve in its operations. Therefore, the financial market is likely to provide the necessary business environment for PRITCH London to improve and be competitive in the market. Social factors A significant population in the United Kingdom is becoming obese posing some challenges in the designing of the clothes. With the increase in the number of the people who are becoming overweight PRITCH London faces a challenge of providing the appropriate sizes for customers. As a result, many obese shoppers are not shopping in the retailers as there are no plus size fashions (Perry and Towers, 2009). PRITCH London does not have enough plus size fashions hence failing to meet the needs of the obese shoppers. Considering the fact that many people in the United Kingdom are becoming obese the company need to provide oversize clothes. Also, the population of United Kingdom is comprised of many old people hence affecting the kind of products manufactured by the company. The taste of the young is different from those of the aged people hence making the operations of PRITCH London be determined by the targeted customers. However, the aging population comes with many opportunities as the aged consumers have a high disposable income after working for a long duration. Also, there is an increase in the use of online purchases of clothes among the aged population hence the increased number of aged people using online services provides opportunities for PRITCH London. Technological factors There are many technological changes taking place in the market providing an important opportunity for PRITCH London. The accelerating technological changes have led to e-commerce hence changing the way operations are carried out in many organizations. Technology is playing a crucial role in enhancing service delivery and ensuring efficiency in operations. Technology has led to an increase in competition in the market as the firms that fail to adopt the technological changes are considered irrelevant in the market. Many firms in the market are looking for the best ways of making sure that they are competitive in the market (Masson, et al, 2007). As a result, PRITCH London has to ensure it keeps pace with the trend in the market by adopting technological changes. Environmental factors There is an increase in the environmentally and ethically ethical customers in the UK fashion retailing industry. Firms are expected to adopt the practices that ensure the protection of the environment like the use of materials that can be recycled for packaging. For instance, some firms in the industry are making use of clothing lines that are manufactured from organic cotton and other environmentally friendly materials (Brun and Castelli, 2008). The firms venturing and operating in the industry are expected to develop policies that are aimed at ensuring their operation do not harm the environment. Legal factors Some of the legal factors affecting the fashion industry include employment regulations such as the workplace pension legislations. All companies operating in the industry are expected to make contributions of 3% towards the pension of that is eligible for the employees who are citizens (Masson, et al, 2007). These legal factors are likely to negatively affect the profitability of PRITCH London by increasing the costs of operating. SWOT analysis of PRITCH London Strengths PRITCH London has a value proposition that has made it experience an improvement in performance. For instance, its products have been competitive in the market due to high quality and affordable products. It is a cost leader in the market making it possible to offer competitive pricing strategy. Weaknesses The changing consumer taste is among the major weaknesses of PRITCH London. The taste and preferences of the consumers in the market are changing forcing the company to make the necessary adjustments to its operations. Opportunities The increasing number of people who are obese in the United Kingdom is providing an important opportunity for PRITCH London. The company can start designing and manufacturing clothes that are plus size to fill the market gap. Threats The unstable EU is causing many uncertainties in the financial and business environment. The uncertainties are likely to negative affect the success of PRITCH London in the market. Also, the increasing number of firms entering the industry is a threat to the performance of PRITCH London. Recommendations PRITCH London need to invest in market research in the process of making the company better in its operations. Investing in research can be important in the process of improving the ability of PRITCH London to meet the needs of the customers. The management can be aware of the changes taking place in the market concerning the preferences and taste of the consumers. As a result, the company can be in a position to develop the necessary products that can help in meeting the diverse needs of the company (Masson, et al, 2007). Besides, through investing in market research PRITCH London can be in a position to realize the opportunities available in the market. PRITCH London should adopt technological advancements taking place globally. Technological advancements are important in helping the company achieve efficiency in the operations hence able to offer affordable prices and still make profits (Rowley, 2009). Besides, it is through the use of technology that the company can be able to differentiate its products through developing unique product features. This can be possible through innovative designing of the products to eliminate the possibility of substitution. As a result, PRITCH London can be in a better position to offer high-quality products and remain competitive in the market. References Bhardwaj, V. and Fairhurst, A., 2010. Fast fashion: response to changes in the fashion industry. The International Review of Retail, Distribution and Consumer Research, 20(1), pp.165-173. Brun, A. and Castelli, C., 2008. Supply chain strategy in the fashion industry: developing a portfolio model depending on product, retail channel and brand. International Journal of Production Economics, 116(2), pp.169-181. Masson, R., Iosif, L., MacKerron, G. and Fernie, J., 2007. Managing complexity in agile global fashion industry supply chains. The International Journal of Logistics Management, 18(2), pp.238-254. Perry, P. and Towers, N., 2009. Determining the antecedents for a strategy of corporate social responsibility by small-and medium-sized enterprises in the UK fashion apparel industry. Journal of retailing and consumer Services, 16(5), pp.377-385. Rowley, J., 2009. Online branding strategies of UK fashion retailers. Internet Research, 19(3), pp.348-369. Read More