Strategy Operations and Partnerships: Student Number (S)
Strategy Operations and Partnerships: Student Number (S)
Programme:(e.g. Business
Management)
Module Title: (e.g. Studying for Strategy Operations and Partnerships Seminar
Business) Group
Module Code: SG7001 Word Count 5084
where clearly quoted and referenced, has been copied from material belonging to
any other person e.g. from a book. handout, another student. I am aware that it is
proceedings.
Table of Contents
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Activity 1: An analysis of the implications of the vision of the organisation...................................3
organisation........................................................................................................................................13
Propose a corporate strategy for Atelier Chiang Mai that will apply for the next 10 years........14
Critically assess the competitive advantage of Atelier Chiang Mai stemming from their
Develop issues pertinent to Atelier Chiang Mai in the light of the success factors developed in
component 1...................................................................................................................................15
Priorities the issues and develop corporate strategic options that address at least three of
them. Assess these options using RACES and create a proposal. Include an explanation of the
Assessment of these strategic options using RACES and create a proposal and explanation of the
Defend your proposal and preferred strategic direction by explaining why each stage of the
Reference list:......................................................................................................................................20
Component 1
2
Activity 1: An analysis of the implications of the vision of the organisation.
Analyse the organisation characteristics (4Vs) and the desirable performance attributes
(SQFD&C).
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Vision The Atelier Chiang Mai is a Thailand fashion clothing brand company that is
started by European and Thai fashion industry professionals (Chiang Mai, 2021).
The company’s main vision is to create a complicated part trustable clothing
brand in Asia (LoTempio, 2018) that works with the European standard and
match that mind-set.
Quality Evaluation Description & Justification Implications
Volume Moderate The company is very flexible The company is very
in terms of manufacturing. The flexible and can produce on
company is manufacturing as small scale a well medium-
per the client’s demand and its scale to high-scale. For the
manufacturing is from Small- high-end brand, it is very
scale to Large-scale production unique and it takes time to
(Mai, 2021b). work on a unique design and
to fulfil the demand of
customers.
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whole year.
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beneficial for the company to
formulate eco-friendly high-end
clothing that will attract a specific
consumer base (Mai, 2021b).
Atelier company provides high-end
2. Manufacturing The fashion manufacturing sector is fashion clothes at a reasonable cost
shift shifting towards low-cost manufacturing in comparison to other competitors.
countries, which will impact the As an Asian fashion company, this
competition. will be beneficial for the company
(Mai, 2021b).
3. Technology Fast fashion is in trend, and there is a The company has to develop new
shift/ Digital massive influence of technology on the fashion trends with the help of
platform/ social fashion industry. technology. The company can also
networking develop new material with the help
of science. The company can spread
its reach by using digital platforms
for promotion, marketing, and
selling purposes.
4. Sustainability The company has to comply with the The company is already in favor of
new environmental rules and human human rights and labour laws. The
rights laws. company can use it as a new
opportunity to create a sustainable
fashion. The company can focus
more on reuse, resale and rental
services for their clothes.
5. Celebrity Celebrity fashion might influence the The impact can be either in a good
culture company’s style. or negative way. The company can
approach influenced celebrity or
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public figures and create a fashion
theme, which can become a brand
icon for the company.
Potential Implications. Trends keep changing in the fashion industry and influencing society
(risks & impact on company need to keep coming up with new ideas. Other fashion brands are
stakeholders) already incorporating new technology to manufacture clothes, which might
become a competition for the company. There is another risk of the usage of
digital platforms for promotions and marketing of the brand. The company is
not doing enough in terms of its digital reach with its consumers and
potential clients. Sustainability is the central issue for the company. If a
company approaches resale and rental services, it can address consumers
from different economic classes. Middle-class or lower-middle-class people
cannot afford to purchase high-end fashion. Still, if the company provides
resale and rental clothing services, it will benefit both stakeholders and the
company.
Political factors Taxation and tariff rates add value to the The government might encourage
final price of the product. citizens to buy clothes from local/
Companies like PETA refuse to deal with homemade designers/ companies.
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the companies that use animal fur and PETA can affect the reputation of
leather for their clothes. the company on the International
Politicians and public figures influence platform in a negative way.
the fashion industry (Major and Steele, Their fashion can show a specific
2018). message, and it might leave an
impact on the consumer (Major
and Steele, 2018).
Economic Factors Consumers belong to different economic Middle-class people prefer rental
classes. clothes because of the limited
The fashion industry is seasonal. Not resources (Major and Steele, 2018).
many people can afford to buy trendy
clothes.
Social Factors People get influenced by celebrities and Their style becomes trendy, and
public figures. that outfit/ clothes can become a
brand icon for designers or
companies.
Technological Factors Technology is providing brands to sell People prefer shopping via a digital
and promote their brand on a digital platform. It makes the whole
platform. process easy and provides a more
Designers can promote their clothes via comprehensive range of consumer
digital media in various shows (Major and markets.
Steele, 2018).
Legal Factors The fashion industry has to follow tax Low labour rates can be beneficial
rules, labour laws, inflammation rates, for the fashion brands that
import-export rates, and tariff restrictions. outsource.
Some people might boycott fashion
brands who outsource their
products at cheap labour.
Environment Factors The fashion industry faces many Multiple online orders increase
environmental issues such as emitting numerous shipments, which
chemical fumes and water into the increases fuel consumption more,
atmosphere, chemically treated cloths, which causes air pollution, and if
etc. it’s via Sea, it causes water
Wastage and lack of reuse are causing pollution.
colossal wastage (Major and Steele, The industry has started looking
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2018). for new ways to recycling wastage,
and it is empowering to others.
Identification of the Industry The fashion industry is now a multibillion-dollar enterprise devoted
in question. to designing, manufacturing, and marketing, retailing, advertising,
and selling clothes. It is divided into two parts: the high-end fashion
industry and the other one is the apparel industry related to
ordinary clothes or fashion. At present, because of globalization and
new technologies fashion industry has become highly globalized.
Industry stage in the life The fashion industry has five stages cycle. It starts with introducing new
cycle trends, and the second stage is fashion acceptance, where the movement
is increased, the third stage is the peak where fashion trend is highly
followed, the fourth stage is decline, where trend becomes oversaturated
in the market, and consumer tries to leave the trend who don’t like
generalized fashion. The final stage is obsolescence, where fashion trend
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becomes outdated because mainstream fashion wears move on to
another new trend (OLUDIYA, 2020).
Implications The fashion industry is impacting the world in a positive as well as
negative way. The fashion industry is highly contributing to the global
economy. The industry is providing a high amount of employment to the
people. It is affecting the lifestyle of people and empowering them. But
the Fashion industry is negatively impacting the environment. It is one
of the largest polluter industries.
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Activity 5- A critical evaluation of business to business relationships maintained by the
organisation.
Atelier Chiang Mai Company is a high-end clothing manufacturing company which is based
in Chiang Mai, Thailand. The company take orders in both large and small quantity and
manufacture unique fashionable clothes. The company’s production is divided into small-
scale, medium-scale, and large-scale production. The company provides a small-scale
production option for any client to test the concept, which has lower than 50 pieces per
design in the mix size range. Medium-scale production is for the brands which are still
developing in the market who cannot order for big-scale production. The company provides
Large Scale production for big or established brands. The company is flexible with any scale
production and professional. The company offers respects the Human rights and
environmental laws. The company provides various guarantees to the clients regarding
deadlines, quality control, etc. The company also provides different kinds of services to the
consumers, such as fashion advice, technical fashion patterns, etc. The company also offers
integrated services to their international clients, such as marketing and promotion. The
company provides communication in multiple languages, so it becomes easier for any client/
consumer to communicate their demands, ideas with the company’s representatives. The
company has its workshop in Thailand, which follows strict ethical and environmentally
friendly rules. The company provides European standard guarantee service, including quality
control, environmental responsibility, human rights, deadline guarantee, and shipment and
border compliance (Mai, 2021b).
Component 2
Propose a corporate strategy for Atelier Chiang Mai that will apply for the next 10
years.
Critically assess the competitive advantage of Atelier Chiang Mai stemming from their
strategy, using the tools taught during the term.
Leadership is the main advantage of the company. Creators of this brand are fashion
enthusiasts. The European culture highly influences the company, and it has its unique high-
end quality fashion personality that makes the company superior to other companies. In
addition, the company provides high-end quality clothing services, which are reasonable at a
cost compared to its other competitors (Chiang Mai, 2021a).
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The company has highly qualified stitchers and sketch designers in their workshop, which is
unique. In addition, the company is manufacturing high-end clothing for more than twenty
fashion brands globally which provide the company with an advantage over other companies
(Chiang Mai, 2021a).
The company’s manufacturing range is unique and has diversity. The company has high
morals and uniqueness, which makes it different from others, and it is one of the advantages
for the company. The company provides small-scale production to high-scale production
options for its clients, which shows flexibility in the business (Chiang Mai, 2021a).
The company is providing high category guarantee services, which is beneficial for their
image in the industry. The company has a transparent relationship with its customers and
retailers. The company has a unique workshop, which follows all rules and regulations. The
company is sentimental for the labours and strictly follows the labour laws. The company is
also concern about sustainability and is trying to follow human rights and environmental laws
(Chiang Mai, 2021a).
There are many options for the company to increase benefits and decreasing expenses or
develop that kind of arrangement which might help to subside expenses. The company is
good at its price administration.
Clients can communicate with the executives, which provides multiple language options,
showing a unique commitment. The company provides multiple languages as a medium of
communication which allows a customer to communicate freely. This is one of the main
advantages for the company in comparison to its competitors. The company also provides
various guarantee commitments, including delivery before the deadlines, quality controls,
shipments, etc. (Chiang Mai, 2021a).
Develop issues pertinent to Atelier Chiang Mai in the light of the success factors
developed in component 1.
Increasing risk is the new issue for the present time for the fashion industry. The economy is
going through its weaker phase due to covid-19. It has become difficult for every other
company to keep the customers and clients. The company has to pay the employees and still
has an investment in raw materials. The industry is going through a recession, and the
company might have to opt for it if the situation becomes worst. The fashion industry is
changing because companies are more focusing on the manufacturing rate. Manufacturing is
shifting towards the developing countries for cheap production. International competition is
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also increasing because new companies are entering the market. But the company has to keep
its High-end brand image.
Globalization has affected the environment badly, and there is a need for sustainability.
Although it has always shown its support for human rights and environmental laws,
sustainability is still a big issue. The company is focusing on a high-end fashion brand, and
there is barely any development towards the recycling or reuse of cloths. The company is
flexible in manufacturing, but the company is not looking out for other sustainable options
like rental and resale of clothing. Because fashion is changing drastically and not every
consumer can afford to buy high-end clothes frequently, it limits the overall product sale.
The fashion industry is evolving, and demand for reusable and recyclable fabric is increasing
with time. Look at the present scenario, the market of sustainable fabric increasing, and the
company has to evolve with the trend. There is a need to work with science and develop some
new formulas to produce improvised fabric materials.
Fashion makes more significance when it represents particular culture. Consumers are
interested in a style that is inspired by a specific culture. The company can incorporate the
cultural trends, their significance and attract a particular cultural-based consumer base. The
fashion industry is forgetting about the local culture and its impact on society, and somehow
it is now in demand from the consumer.
This combined-19 situation has changed so many dynamics when it comes to business, and
the fashion industry is also one of them. New companies and designers are entering the
market through digitalization. The digital market provides enough space for any newcomer.
Digital platforms have changed the typical physical market concept. The company lacks
when it comes to digital media usage. There is a lack of branding and digital promotion. Lack
of celebrity or public figures influence is not providing that push or enough recognition
which company deserves.
Priorities the issues and develop corporate strategic options that address at least three
of them. Assess these options using RACES and create a proposal. Include an
explanation of the resultant strategic direction of Atelier Chiang Mai.
Development of corporate strategic options by priorities the issues:
Increasing risk, more sustainability, new materials, an inclusive culture, and digitalisation are
current issues of the company. Some strategic options might help the company to deal with
these issues. These strategic options are developed by keeping in mind to achieve success and
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providing a quick response to the consumer demand. These strategic options are as mentioned
below:
The company’s main aim should be to keep the top place in a competitive market. Risk in the
fashion industry has increased due to various causes such as covid-19, bias towards the
developing company for cheaper manufacturing, international market competition, etc. The
company should focus on lowering the manufacturing cost of products. The company’s
strategy is flexible and the company is ready to manufacture for small scale to high-scale
production demand, but including that company should change its manufacturing rates when
it comes to small scale production. International competition is increasing and western
countries are inclining towards more Asian developing countries for manufacturing. Atelier
should promote its brand on digital platforms for more recognition so that company can catch
the eyes of western companies.
In the new strategic plan, there will be designs that will be inspired by the cultures. The
company will work on Thailand and European cultures and develop new design patterns to
attract local clients and consumers. The company will invest in its R&D department to
develop some kind of new clothing material that might be more eco-friendly and can be
recycled and is reusable.
The company will work on adding more new services for the customers. Rental and resale
options will be available for the customers which will attract more customer towards the
company. Customers cannot afford high-end clothes, they can choose these option for rental
and resale services which will help to gain a new consumer base to the company.
Assessment of these strategic options using RACES and create a proposal and explanation of
the resultant strategic direction of Atelier Chiang Mai.
Reach: This represents the timeline or any type of schedule for media communication. The
company needs more reach in the market to spread that reach, the company will launch a
campaign with the help of technology. People need to see and remember about the brand and
for that repeated advertisement is necessary so that people get to know about the brand and
get familiar with the name. Digitalisation is the best way. The company will need to use
different communication channels. Mapping out a customer journey plan will be very helpful
to understand where the company can put more focus on advertising. To sustain itself in the
market, any company needs creativity. The company will have to work on new ideas and
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creativity to launch its campaign with new ideas and exciting offers. The company will need
to set a budget for all advertising and marketing.
Explanation: At present, the economy is going through the lowest phase because of the
covid-19 situation. One of the best options is to incorporate technology into the business. It is
the best time to digitalise the business. From the broader perspective company needs to find
out new communication channels for better reach. One of the company’s issue is the
company is not that much focused on digital communication. At present company needs that
boost which will be possible with the help of focusing on advertising on digital platforms.
There is a wide range of digital communication platforms and for that company needs to
work on new ideas and new creative way through which the company can launch their
campaigns. To excite the consumer company will need to add some new exciting offers as
well. Budget and campaign limitation is also supposed to predicate.
Act: Company will need to find an attractive way for the audience or potential consumer base
for the interaction. Company will focus on the interactions which can attract a new audience
and potential customer. These interactions such as new videos, infographics, interactive tests,
etc.
Explanation: It is very important for any company specifically for a fashion brand to be able
to connect with the people and for that company needs new ways to connect/ interact with the
potential consumer base and for that communication is the key. The company is already
providing consultation in different languages such as French, English, Thai, etc. but the
company needs to work on spreading its communication reach by using different ideas.
Consumer likes to see and hear new things which are different yet interesting enough to
attract people to know about the brand more.
Convert: Company has to work on conversion. The company can work on its marketing
policies and sustainability.
Engage: Company’s main focus should be on how to engage with the new potential
consumer base without avoiding current/ regular consumers. It is important to retain the
company’s honest and loyal consumer itself. So new change shouldn’t be like anything which
might not go well with the current customers. The company can encourage its current
customers to refer to the brand to share the company’s ideas and philosophy. That way
company might be able to engage with the new potential customer base and for that company
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needs that current customers feel valued by the brand so that they will automatically talk
about the brand to others. This proposal will be helpful for the company to achieve success.
Explanation: Sustainability is the key in the 21st century. Reuse and recycling of clothing
these both thing company needs to adopt for that needed conversion. The company is known
for its high-end fashion clothing and consumer base is limited because of their economic
class. To connect with different consumer base launching services like resale and rental
clothing will be crucial.
Defend your proposal and preferred strategic direction by explaining why each stage of
the analysis was needed to ensure your proposal is robust.
Answer:
Proposal for Atelier Chiang Mai for high-end clothing company is prepared after going
through various stages of analysis which includes different strategic plans company needs to
incorporate. These different stages of analysis were needed in terms to prepare a proper
proposal for the company which would address the issues company is facing.
The analysis started with the competitive advantage company have in the fashion market. In
this analysis, competitive advantages were needed to be represented to identify the
Advantages Company have, and things that are in favour of the company. So that company
can keep up with that acts. It is the criteria where a company don’t need that many changes
because the company is already good at it. However, there is always room for improvements.
The company have pretty good competitive advantages such as the multiple languages used
for communication and flexible high-end clothing manufacturing in the Asian market.
After analysing competitive advantage it was necessary to find out the main issues related to
the company or to areas that need more reflection and modification. Sustainability,
advertising and marketing are one of the main issues for the company. Proposal for the
company is prepared after developing strategic options the company can/should incorporate
by using RACE.
These all stages were needed to be analysed to prepare a genuine proposal for the company.
In this proposal strategic direction is also provided for the company. The company is famous
for its high-end fashion clothing. And it is targeted at a particular economic class and it
excludes other lower and middle-class people who are even interested to buy that fashion. A
proposal has provided more alternatives and ideas which were very necessary for the
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company to gain that success which it is looking for. For any company, it is very necessary to
be able to connect with the potential consumer base and spread its reach. Competition is
increasing and most companies have maximised their digital reach. It is needed to be
incorporated to communicate with the people. People need to at least know about the brand
somehow and that is the first step for any company to be able to know in the market.
Second main point is to come up with new ideas and exciting offers to attract consumers. It is
a general tendency that people click on the button if people find that exciting and interesting
enough. The company needs that strategy to be even noticed by the people.
Sustainability and digitalisation are also added to the proposal. The company needs recreation
in its fashion designs and manufacturing. A company needs to invest in its R&D and create
unique fabric with the help of science. Sustainability is in the trend and is going to affect the
business if the company don’t take any steps towards it. Sustainability in the sense of less
wastage, be able to use the cloths again and recycle them. On the other hand, the company is
only limited to the particular economy-class because of its high-end clothing brand image. It
put a limit on the consumer base. The company needs a strategy that can make more people
to be connected with the company. Resale and rental clothing options are proposed for two
reasons: First is for sustainability and the second to include people from other economic class
also to spread the reach. Many people find the brand attractive and want to purchase the
product but not able to do so because of their economic conditions. Fast fashion is in trend
and not most people can afford to purchase high-end clothes frequently. So for that potential
consumer base resale and rental clothing is the best option to provide. That way company
won’t lose its high-end brand impression but still will be able to attract more consumer from
the different economic classes.
Last is promotion and marketing. For any high-end brand, it is proposed to come up with a
unique style that has some style statement or iconic line which represents the company’s
vision. The company needs to launch a well-known face that can represent multiple cultures
and can attract people towards the brand. Using the digital platform for promotion is very
crucial in the present.
My proposal has covered most of the business aspects in which the company can improvise
and can launch a better strategic plan which will be helpful in the long term and lead the
company towards more success.
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Reference list:
Chiang Mai (2021a). Professional Apparel Manufacturer in Asia. [online] Clothes Production
Partner In Thailand Asia. Available at: https://chiang-mai-clothing.com/.
LoTempio, V. (2018). Interview with production partner for startup brand clothing
devlopers. [online] Vincent LoTempio | Registered Patent Attorney, Trademark, and
Copyright | 1-800-866-0039. Available at:
https://www.lotempiolaw.com/2018/07/interviews/damien-para-clothing-manufacturer-
atelier/.
Major, J.S. and Steele, V. (2018). Fashion industry. In: Encyclopædia Britannica. [online]
Available at: https://www.britannica.com/art/fashion-industry.
OLUDIYA, I. (2020). Understanding The 5 Stages Of Your Fashion Business Life Cycle.
[online] Mauvelli. Available at: https://mauvelli.com/understanding-the-5-stages-of-your-
fashion-business-life-cycle/.
Sridharan, M. (2017). Think Insights | Four Corners Model of competitive strategy. [online]
Think Insights. Available at: https://thinkinsights.net/strategy/four-corners-model/.
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