Role of Cath Kidston ltd in Social and Economic Development of the Region - Essay Example

Enterprise and Entrepreneurship- Cath Kidston Limited Company The role of the enterprise in the social and economic development of the region s name Lecturer’s name Institution Date Introduction Small businesses are the backbone of the UK economy and contribute a great deal in terms of job creation. Small firms contribute creativity, job opportunities, growth and adaptability to local economies. They also take on those workers who may not be employable by larger corporations ( Williams 2007, 351). According to the statistics, by 2014, in the UK, there were over 5.2 million businesses in the UK and 99 percent of these businesses were the small and middle-sized enterprises. These enterprises have employed over 15.2 million people in the UK and according to the performance review estimates; the growth value that they have added in the United Kingdom economy is around 49.8 percent (Wang & Altinay 2012, 8). SMEs also contribute a great deal to larger companies, by providing vital resources and completing business functions that bigger enterprises are unable to complete. Such companies are better able to attract and train new talent to develop innovative products that are better targeted towards the needs of their local communities. However, these enterprises face a number of challenges as they are often overlooked by the policy makers. Information regarding them is often scarce; support and policy targeted to their needs are also a great challenge (Bravo-Biosca & Westlake 2009, Par 1). Many businesses start up as one’s person idea and the creator in most cases is often an entrepreneur who spots a gap in the market or an opportunity that they can engage in business. The entrepreneur will, therefore, seize the opportunity and start a business to fill the gap and will grow to a large enterprise with proper support and management (Barnes & Haskel 2002, par 1). With the a few exceptions, most of the world’s largest companies all started as small business enterprises and through the supportive economy, access to the right people and capital turn to become global corporations. In regards to this, this paper discuss the Cath Kidston limited company that started as a small sized enterprise and over the years the company has grown to be recognized as a global brand. The paper will analyze the company’s products, its targeted social class, growth and productivity, societal impact as well as its role in the social and economic development of the region. The Enterprise- Cath Kidston Limited Company Cath Kidston Limited is a business of home furnishing retail shops that are located in England under the designer Cath Kidson, who opened her first shop in 1994 in London. The enterprise was opened as a small enterprise that initially used to sell hand embroidered brightly renovated furniture and tea towels that targeted the locals in meeting their demands. Cath described the enterprise as just a “glorified junk shop” as it was intended just for the local persons. However, over the years, the business has expanded and by 2014, 170 outlets have been established in various regions such as UK, Hong Kong, Singapore, Ireland, Korea, Japan and China. The founder The founder of the enterprise Cath Kidston Limited is Cath Kidston, who full names are Catherine Isabel Audrey. By profession, Cath is an English fashion designer, an author, and a businessperson as well. Her enterprise that was opened in 1994 is involved in selling home furnishing and other related products either online, through shops and by mail orders. Most of these products are made by Catherine’s floral prints as is particularly recognized as a result of her nostalgic floral patterns and has also been involved in publishing books. The enterprise was established with an aim of meeting the local demands of the people. Since, the enterprise establishment, people have been in love with it and want to be associated with the company’s brand and products. In involving the community and other stakeholders, Cath has sold a majority stake in the company to private investors and has only retained a minority of the enterprise stake (Kidston, 2012, 7). In ensuring a smooth running of the enterprise, Cath Kidston has remained as the company’s Creative Director. Product enterprise and social class After the establishment of the enterprise in 1994, Cath started by selling vintage fabrics, brightly colored junk pieces of furniture and wallpapers that she remembered fondly from her childhood. Thus, the enterprise targeted individuals from the middle and lower social classes as the products were affordable for all to purchase. Her clever, witty working traditional “English country house” style made the enterprise become successful. Over time, she began designing prints add products. Among the first products made was the printed ironing board cover practical with a distinctive floral print that epitomized the Cath Kidston look (Whately, 2005, 18). Over the years, the products base has expanded steadily to include an extensive range of homewares and women accessories and fashion products and in 2008, the Cath Kids brand was launched. Today, the enterprise operates stores that are involved in selling home items, bags, home furnishing, baby items, accessories, kids and fashion items. Some of these products include leather bags, totes, backpacks, shoulder bags, handbags, skirts, tops, shorts, outerwear’s, shoes, purses, gloves, straps, beauty products, umbrellas, travel accessories, jewellery, bikes among other products. These products sold at relatively cheap prices and are thus, affordable for all to purchase. Societal impact Since the opening of the first small vintage shop in 1994, in Notting Hill London, the enterprise brand has been brightening up ever individual’s day life’s with products that are appealing to the customers. The enterprise is recognized for its original, witty, fresh and colorful designs as well as the creation of modern products fit for the society that evokes a sense of fun and nostalgia. This has provided uniqueness for the enterprise that its customers all around the world have come to fall in love with. Therefore, its products have made the individual lives more happier and satisfying (Kidston, 2013, 12). Moreover, the enterprise has led to the creation of job opportunities for a number of individuals through it many outlets that have been opened in various regions in UK and worldwide. In the United Kingdom, small enterprises form the backbone of the economy and are essential as they contribute greatly in terms of job creation, creativity, as well as the growth and adaptability of the local economies. In regards to this the enterprise plays a similar role and thus, it is a major source of employment as it is always looking for talented, commercial and inspirational individuals, who fit the job specification, share the enterprise values and want to be part of the Company’s friendly, warm and creative team. This has played a crucial role in enhancing the growth and development of the local regions that the enterprise outlets have been based on. It has also enhanced creativity among the regions as similar enterprises have been established that has further led to the creation of more job opportunities and the enhancement of the stability (Moyle & Faust, 2011, 31). As one of the most influential and original companies in the United Kingdom over the years, the company attracts and provides opportunities where talented individuals are able to learn the development of innovative products to be able to start their own enterprises. Thus, the company has been involved in training individuals in the production of the associated products as well as on a similar entrepreneurship in meeting the societal requirements. This is in regards to the fact that small enterprises are important in attracting and training new talent to be able to develop innovative products that needs to be targeted towards meeting the demands and needs of the local communities (Mason et al. 2009, par 1). A number of individuals who have been involved in the enterprise have been able to open their own businesses contributing positively to the growth of the society. Growth and financial potential The company is a distinctive lifestyle brand that has iconic and recognizable designs and within 20 years of heritage, the brand has presented as a leading UK brand as well internationally in over 15 countries that include China, Japan, Ireland, Korea, Hong Kong and Singapore. Over the last two decades since the establishment of the enterprise, it collection has expanded and grown overseas and over 170 stores have been opened (Kidston, 2013, 22). The company recognizes it customers for success, and it identifies with them as the greatest assets that define it. In 2009, the estimated company profits rose more than 60 percent from 3 million euros to 4.6 million euros. During this particular period, the sales rose from 19.3 million euros in the previous year to 31.3 million euros with increased number of stores opening. In 2010, the company’s worth was valued at 75 million euros, and the figure is bound to increase with an increased number of stores opened (Kidston, 2012, 4). At the time of opening of the enterprise, Kidston never imagined that the shop would one day grow to become a global phenomenon. As the enterprise was growing, it was important for her to incorporate more individuals in the company who had the experience of running big businesses to help in managing the growth. According to the company’s chief executive, the company has not stopped growing but is preparing carefully for the transition in an effort to ensuring that the business continues to move forward seemingly recognizing its potential as well as the potential that exists in other regions of the world. In regards to this, the company plans to expand it stores in the Middle East and Asia. In China, the company has four stores that have grown by double digits. Thus, this huge level of growth suggests that there is an enormous potential in China and, therefore, the company plans to open over 100 stores in the country. In the Middle East, a store was recently opened after experiencing a strong demand from Middle East customers in the London stores as well as orders to the region that were placed online on the company’s website. Thus, such regions have offered the company an enormous opportunity of further expanding it growth (Kidston, 2013, 17). Enterprise contribution to enterprise and entrepreneurial spirit to the local community Being one of the most original and influential companies in the United kingdom, the enterprise has been involved in attracting and providing opportunities for the talented individuals where they are able to learn the development of innovative products to be able to start up their own similar enterprises. Thus, the company offers support for the establishment of SME’s. Moreover, the company provides a source of employment as it is always looking for talented, commercial and inspirational individuals, who fit the job specification, share the enterprise values and want to be part of the Company’s friendly, warm and creative team (Moyle & Faust, 2011, 15). This has played a crucial role in enhancing the growth and development of the local regions that the enterprise outlets have been based on. Cath Kidston, who is the founder of the enterprise, has been involved in many programs to inspire women and young people to start up their own enterprises. An example is the London’s creativity and enterprise festival commonly referred to as the Make Good Festival where she encouraged people to set up in creative and commercial pursuits. She encouraged women and young individuals through telling her story of how she turned handmade homewares into a globally recognized brand in an effort of offering advice and inspiration to the next generation of entrepreneurs. More, so the company has been involved in such pursuits and, as a result, more people have established their own SME’s especially online store in the United Kingdom. In addition, with appropriate support from already established large enterprises such as Cath Kidston Company, 50 percent of these enterprises have become a success. The company has encouraged these small and medium enterprises to look for online ways of marketing to supplement the offline experiences (Kidston, 2013, 17). The strategy of blending online and offline experience have been masterfully utilized by great companies such as the apple company in attaining success. It has also helped these enterprises in understanding the importance of avoiding competition through the creation of unique products and brands. This is all in an effort of enhancing the understanding of the prerequisite’s as well as the key process that are involved in a small business start-up, the business development and growth to enhance the attainment of success. The company is among Britain’s top 1000 inspiring companies. It provides an example as one of the fast growing and most dynamic small and medium-sized UK business that has progressively emerged to be global trademarks as well as how SME’s can punch their weight in delivering growth in the country and enhancing job creation (Holton et al. 2010, 158). In an effort to ensuring more enterprises development, the government has been involved in backing ambitious and innovative companies like this to grow and export their products overseas by providing financial assistance and wishing them continued success in the future. Conclusion Cath Kidston limited company is a business of home furnishing retail shops that are located in England developed by the designer Cath Kidson, who opened her first shop in 1994. The enterprise was opened as a small enterprise that initially used to sell hand embroidered brightly renovated furniture and tea towels that targeted the locals in meeting their demands. However, over the years the company has grown to be recognized as a global brand and has that opened up over 170 stores in different regions globally such as in China, Japan, Ireland, Korea, Hong Kong and Singapore. The company has a great potential, and it plans to expand its market in Middle East and China region. From a small enterprise to a large company, the enterprise has contributed positively to the creation of job opportunities in the UK. It has also played an essential role in meeting the needs of the community members; it has been involved in supporting the development of other SME’s by encouraging, training and development of young talents as well as acting as a source of innovation motivating other SME enterprises. References Williams, C.C., 2007. Small business and the informal economy: evidence from the UK. International Journal of Entrepreneurial Behaviour & Research, 13, pp.349–366. Barnes, M. & Haskel, J., 2002. Job Creation, Job Destruction and the Contribution of Small Businesses: Evidence for UK Manufacturing. SSRN eLibrary. Bravo-Biosca, A. & Westlake, S., 2009. The vital 6 per cent - How high-growth innovative businesses generate prosperity and jobs, Holton, I., Glass, J. & Price, A.D.F., 2010. Managing for sustainability: findings from four company case studies in the UK precast concrete industry. Journal of Cleaner Production, 18, pp.152–160. KIDSTON, C. (2013). Coming Up Roses The Story of Growing a Business. New York, Quadrille Publishing Ltd. http://public.eblib.com/choice/PublicFullRecord.aspx?p=1212838. KIDSTON, C., KIDSTON, C., KIDSTON, C., KIDSTON, C., & TRYDE, P. (2012). [Cath Kidston collection]. London, Quadrille Publishing. Mason, G., Bishop, K. & Robinson, C., 2009. Business Growth and Innovation - The wider impact of rapidly-growing firms in UK city-regions, MOYLE, E., MOYLE, S., & FAUST, S. (2011). Handmade weddings more than 50 crafts to style and personlize your big day. San Francisco, CA, Chronicle Books. http://www.contentreserve.com/TitleInfo.asp?ID={038DA0C8-28AF-4608-8AE8-A81C88A3D965}&Format=50. Wang, C.L. & Altinay, L., 2012. Social embeddedness, entrepreneurial orientation and firm growth in ethnic minority small businesses in the UK. International Small Business Journal, 30, pp.3–23. WHATELY, A. (2005). Rooms in bloom: contemporary florals for the home. New York, Watson-Guptill Pub. Read More