Clarks Shoes Business Analysis

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5th Jun 2017 Marketing Reference this

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Clarks Shoes is the manufacturer and retailer of Shoes at UK. This particular area badly needs an upscale shoe store for everyone because the current stores have an inadequate selection.

Clarks Shoes will sell its products on a retail store located at UK. Clarks Shoes will have an unmatched, extensive selection of different shoes. Generally, the size of Clarks Shoes selection is cost prohibitive due to all the different sizes that must be stocked per style. Clarks Shoes has a unique business model that allows this company to have an extensive selection at the cost of only stocking one size per style. This is accomplished through a special relationship with the retailers so Clarks Shoes can deliver a customer’s needed size within two days.

KEYS TO SUCCESS

The key to success is to meet the demand for an upscale shoe store with a wide selection and focused customer attention.

Mission

Our passion is to listen to our customers and deliver a product that allows the consumer to feel the pride, respect and trust of everyone at The Clarks Companies, N.A.

Core Values

Start- Integrity is expected from everyone, without that we have nothing.

Communicate – Feel free to express yourself, but always with respect and humility.

Partner – We make it easy for people to do business with us.

Inspire – We succeed as a team but value the individual. Success enables us to improve the lives of others.

Imagine – Innovation and creative thinking are more important than avoiding risks.

COMPANY SUMMARY

Clarks Companies UK, making great shoes is just the beginning. Our success lies in working together, respecting each other, being open to new ideas and actively and knowledgably taking risks.. Clarks Shoes will be able to offer a wide selection because they will typically only have one size available per style. This one size is used as a demonstrative model. All other sizes are available within two days.

PRODUCTS

Clarks Shoes will sell upscale shoes. They are selling ladies The general categories of shoes that will be sold are:

  • Sandals
  • Stylish work shoes
  • Dress shoes
  • Stylish shoes

Clarks Shoes will strive to have largest selection of shoes at UK. CLARKS SHOES will accomplish this by having one size per style in stock as a demonstration model. Passion Soles will then order the style in the needed size and it will arrive within two days.

PRICE

The price of the Clarks Shoes will be economical so that a person with medium salary can easily buy the Clarks Shoes because the company is providing good quality and fashionable shoes for the middle class people.

PROMOTION

Clarks Shoes will promote its products

On cable TV adds.

By distributing pamphlets on different public places.

Visits to retailers of the adjoining areas.

PLACEMENT

Clarks Shoes will sell its product

On Retail store.

To retailers of adjoining areas.

MARKET ANALYSIS SUMMARY

Clarks Shoes will be targeting two distinct groups -professional workers and housewives. While both groups are interested in dress shoes, the professionals will also be looking for fashionable shoes they are able to wear with their business attire. The housewives might be looking for fashionable but more casual shoes.

MARKET SEGMENTATION

Clarks Shoes is targeting two different population segments.

Professionals: these are full-time working professional people. They typically earn more £. 2000 They will purchase shoes for the workplace, as well as for leisure time.

Housewives: The household income of this group is £ 2500

Business Strategy

Strategy is the art and science of informed action to achieve a speci¬c vision, an overarching objective or a higher purpose for a business enterprise.

Strategy is about creating sustainable and valuable differences for your business in the real marketplace. Strategy, while always bene¬ts from the discipline of formulating well-articulated strategic plans, is really all about action and results, not about detailed documents and glossy presentations.

Strategy is about raising and allocating resources, setting priorities, directing organizations, and demonstrating through decisive behavior what will be done and what will not in the pursuit of a larger vision, goal, mission, or high level set of objectives. Strategy is as much about leadership, communication, and implementation as it is about diagnosis and design of plans of action.

Better strategy can capture many more opportunities for improvement, can help to achieve new excellence in operations, can help to reduce risk, and can help to realize new and more aspirational visions for the future. Better strategy today can also inspire your colleagues and strengthen your organization’s capabilities to respond successfully to future challenges, as well as to focus better on the present day issues and programs of change. In the process of setting strategy, it is essential to extract and apply the lessons of the past, and of the future, in a systematic manner. While there always has to be room for creative inspiration and unstructured conceptual break through thinking, the analysis, design, and execution phases of strategy need to be pursued with the applied disciplines of science as well as the inspiration of an artistic and creative element of unencumbered thought.

Tasks One:

Clarks Shoes Business Strategy

Goals indicate what a business unit wants to achieve; strategy describes the game plan for achieving those goals. Every business strategy consists of a marketing strategy plus a compatible technology strategy and sourcing strategy. Although many types of marketing strategies are available, Michael Porter has condensed them into three generic types that provide a good starting point for strategic thinking: overall cost leadership, differentiation, or focus. Clarks Shoes Strategy is

Overall cost leadership: Here the business works to achieve the lowest production and distribution costs so that it can price lower than competitors and win more market

share. Firms pursuing this strategy must be good at engineering, purchasing, manufacturing, and physical distribution; they need less skill in marketing. Clarks Shoes uses this strategy. The problem is that rivals may emerge with still lower costs, hurting a ¬rm that has rested its whole future on cost leadership.

Differentiation: Here the business concentrates on achieving superior performance in

an important customer bene¬ts area, such as being the leader in service, quality, style, or technology-but not leading in all of these things. Intel, for instance, differentiates itself through leadership in technology, coming out with new microprocessors at breakneck speed.

Focus: Here the business focuses on one or more narrow market segments, getting

to know these segments intimately and pursuing either cost leadership or Differentiation within the target segment. Clarks Shoes, came to fame by focusing on the very narrow extreme-sports segment.

Stakeholders’ involvement

Managers in all types of organizations must consider how the environment affects their direction and activities so that they will be able to react to potential threats, recognize opportunities and plan for future. If they ignore their environment they run the risk of failing to achieve their goals.

The overall organizational environment is composed of several environments. The internal environment contains the forces inside the organization including owners and shareholders, the board of directors, employees and the organization culture. In contrast the external environment contains all the forces outside the organization. These include political, economic technological and socio-culture and international forces. The task environment also known as operating environment or the specific environment contains the external forces that have a more direct impact on the organization including customers, competitors, suppliers, labor supply, regulators and partners. However the forces in the general environment can sometimes have direct influence on the organization and the forces in the task environment can sometimes have less-direct influence. Environmental forces usually act in concert rather than independently, and their combined influence can have a major impact on organizational performance

The external Environment

The forces in the external environment are outside the organization’s boundaries and therefore cannot directly control by management. Yet these forces can have a major effect on the organization’s ability to achieve goals. So that they can analyse their impact and respond appropriately, managers at all levels must be aware of the forces in their general and task environment.

In general, a business unit has to monitor key macro environment forces (demographic economic, technological, political-legal, and social-cultural) and microenvironment actors (customers, competitors, distributors, and suppliers) that affect its ability to earn pro¬ts. Then, for each trend or development, management needs to identify the associated marketing opportunities and threats. A marketing opportunity is an area of buyer need in which a company can perform profitably. Opportunities can be classified according to their attractiveness and their success probability. The company’s success probability depends on whether its business strengths not only match the key success requirements for operating in the target market, but also exceed those of its competitors. Mere competence does not constitute a competitive advantage. The best-performing company will be the one that can generate the greatest customer value and sustain it over time.

An environmental threat is a challenge posed by an unfavorable external trend or development that would lead, in the absence of defensive marketing action, to deterioration in sales or profit. Threats should be classified according to seriousness and probability of occurrence. Minor threats can be ignored; somewhat more serious threats must be carefully monitored; and major threats require the development of contingency plans that spell out changes the company can make if necessary.

Internal Environment Analysis

It is one thing to discern attractive opportunities and another to have the competencies to succeed in these opportunities. Thus, each business needs to periodically evaluate its internal strengths and weaknesses in marketing, ¬nancial, manufacturing, and organizational competencies. Clearly, the business does not have to correct all of its weaknesses, nor should it gloat about all of its strengths. The big question is whether the business should limit itself to those opportunities in which it possesses the required strengths or consider better opportunities to acquire or develop certain strengths. Sometimes a business does poorly because its departments do not work together well as a team. It is therefore critically important to assess interdepartmental working relationships as part of the internal environmental audit. Honeywell, for example, asks each department to annually rate its own strengths and weaknesses and those of the other departments with which it interacts. The notion is that each department is a “supplier” to some departments and a “customer” of other departments. If one department has weaknesses that hurt its internal customers.

Part B

Strategic problems faced

There are several problems that can be faced by the organization. Some of them are listed below.

Unable to Meet low Cost per output: as the company is new and there are many competitor in the market that are selling the goods at a low price, so there is a chance that the company would not be able to meet the low cost per unit as compare to other companies.

Meeting the sale target: due to increase in per unit cost manufactured, the company wont be able to meet the required sale target.

Unable to meet product differentiate : although it is the company target to differentiate its products in respect of product, technology and shapes, but there are chances that the other company may change its product and bring more innovation in its products.

Delivery problems: As the company is newly establish, the company may face a problem regarding the delivery of the goods.

Image Differentiation : As the company is new in the market and there are many companies that are selling shoes so it is quite difficult for the company to differentiate its product from the other companies, although the company had install new technology and going to introduce more flexible and reliable brand in the market. In case if other company bring a new innovation in its products, then in that case it became difficult for the company to differentiate its products from other.

Market Modification: The company might try to expand its market for its market brand by working with the two factors that make up the sales volume that are number of brand users and usage rate per unit. In case there is a need of company modification and the company might be unable to enter into new market segment. This might be possible due to lack of funding or unavailability of required resources.

Analyse the needs of the various stakeholders of Shoeshine Plc. Produce a report on how these needs can be fulfilled in line with the organization’s new business strategy

Stakeholder

A stakeholder is a person or a group of people who are related to the project. It is because they are impact by it or they impact on it. It includes all those people that interface along the route from one place of production till the delivery of the goods to the end user. In general stakeholders want to know that their efforts merit their endorsement, investment or involvement.

Stakeholder Analyse

Every stakeholder have its own needs that the company have to satisfied, i.e some stakeholder want to know that their investment made in the organization will be used in an appropriate manner, other may want to assurance that the product and service made available through his efforts were distributed equitably.

Customers needs

Customers are key forces in the task environment because they buy the product and it will determine the success or failure. The main purpose of the organization is to create and keep a healthy relationship with our customers. Company need to stay close to their customers so that they will be able to understand the needs and wants of them. In order to fulfillment their needs the company had establish a feedback system. One way of gaining favor is involving customers in the design of a product.

Supplier

Suppliers may be an individual or an organization that provide raw material that is used to produce the goods. There is a need of good working relationship with the suppliers. Suppliers also help the organization in achieving its goals and objectives. They help the organization in providing non-physical resources like funding information. There is a need of establishment ok good working relationship with them so that there would be no hurdle in the supply of the raw material to the organization.

Regulators

Regulator include government agencies officials and some other special interest group who create, enforce legal guideline and have some influence in the organization. These are the people that have a direct influence that directly determine what immediate impact of a legislative and regulation would have on the working of the organization. For this purpose the company had tried to follow the ISO standard in making of a product so that it would not harm the environment as well as follow the rules and regulation imposed by such organizations.

Partners

Partners are the people those work together informally or formally so that all would be able to achieve their goals. In an organization Partner play a vital role because they share the risk and they pool their resources and accomplish common goals. In the organization a partner may play its role in making policies and can also play his role in the organization.

Shareholders

In the business the owner or owners are the important influence because they are involved with all aspect either it is related to policy making or introducing a new brand in the market. When the organization requires more financing needs in this case they issue company shares in the market. These people who buy those shares are called shareholders. In order to protect the rights of the shareholders the company will select the directors from them. In order to satisfy the needs of the customers the company will announce a dividend after 3 months and gave more portion of profit to the shareholders and keep a smaller part of the profit as reserve.

Board of Directors

In any organization shareholders elect board of directors so that they would represent them in supervising and managing the organization affairs. In our organization the board of director will have the power in selecting the management. The Board of director will select the major goals and objective of the organization.

Employees

Once managers select individual from the labor supply to work in the organization, these employees become part of the internal environment. In the organization the company will gave they them a high salary as well as some other benefits like medical allowance rent allowance travelling etc.

It is evident that Shoeshine is unable to sustain development if it does not consider the environment in which it operates

There are the following item that’s need to be consider in an environment.

Natural Environment

The company had chosen the natural environment as an area of social responsibility. For this purpose the company will promote the recycling and will reduce the wastage and company will try to switch to recycling material, also the company will try to find ways to capitalize on consumer concerns for the environment through marketing.

Consumer Rights

The company is particularly conscious of the rights of its customers. Company is using new method of production as well as the company will introduce new methods of production in order to ensure high quality safety and trustful advertisement. It is the objective of the organization to protect the right of the customers.

Culture

The company also support the arts believe that this form of social responsibility will promote awareness of the company in a positive ways. The company will help cultural events so that a better quality of life for the community. From this all the customers employees and stakeholders reap a benefit of this community enhancement. The company provides donation to the organization that are working for the enhancement to raise better living standard of life. In this way the company would be able to reach to a generally upscale audience.

Carry out properties research into your chosen organisation’s averment. You must also identify techniques used by the organisation in positioning itself strategically

Strategy Positioning

All marketing strategy is built on segmentation targeting and positioning. Positioning is the act of designing the company’s image and offering in order to occupy a distinctive place in the minds of the buyers.

Company and product name

Target customers

Benefits

Price

Value Proposition

Sneakers, driving shoes, flip flop desert shoes

Teen, adults men women.

Warranty of 1 year, good in quality

£20 – £ 100

These are the models that are widely used and people show more interest in them and for attraction the company is providing on year warranty.

Part B) Using materials collected from your research,

• Carry out an envirmental and organisational audit at Shoeshine Plc

Envirmental Audit:

It is a review of a company’s operations and the process involved in making goods in a factory. The main purpose of assessing compliance with environmental rules and regulations. It covers a broad spectrum of the organization activities like building, factory sites, activities the process involved in making of the goods.

For this purpose the company engages in a periodic inspection of the major faculty of the operations. Here is the list of steps that involve in environmental audit.

Raw material production and exploitation

The company analysis all the potential repercussions of the project very precisely, like the destruction of forests, the pollution of rivers and, the depletion of biodiversity, and the cultural

Industrial processes

The EIA team must at this stage hire a process specialist to predict the various emissions and performances of the proposed processes.

Transportation facilities and constraints

Transport of raw materials, final goods and general supplies causes an increase in traffic around the facilities. Transportation may have repercussions

Impacts resulting from the production and exploitation of the raw material

A prediction of the impact arising from exploitation cannot be done before the redaction of the management plan is achieved.

Impacts of the industrial activity

Processes have been carefully studied in order to find out the environmental Impact depending on the raw material, energy and water supply, type of material use to make shoe. Only small variations can be implemented at this stage to improve the efficiency of given equipment

Impact on air quality, noise and odors

Here the company must avoid the noise and must address in the EIA is the possible proximity of communities and the mitigating measures to be implemented so that the people living near the factory site can have normal living conditions.

Organizational Audit

The length of organizational audit depends upon the size of the organization. It can be completed in a single intervention or make take several weeks or months. The process includes the following steps.

Internal Check:

Examine the detail system of the internal check and test its actual operations

Investment

Verify the investment and check their valuation

Cash Balance

Verify carefully the cash balance and the securities relating to the company’s loan and investment with special regards to their valuation

Depreciation

The auditor must check the proper depreciation has been provided on the assets of the company. The rate and the method of depreciation should be inquired to see that depreciation is proper according to the international accounting standards.

Dividend

The auditor should see that n dividend is paid until al intangible assets have been written off.

Branches

The auditor should examine the certified returns and see that they are properly incorporated.

Bad Debts

See that sufficient bad debts have been provided and also see that all bad debts have been written.

Interest on Loans

The auditor should check the interest on loans given by banks or some other person. He should note amount of interest accrued on such loans at the end of the year.

Bank Balance:

Check the balance of the current account, fixed deposits account and profit and loss sharing accounts with the schedule and it should agree with the total of each schedule with the relative total in the general ledger.

Loan and Advances

The auditor should verify the list of loans advances and overdrafts with the balance of several ledgers checking the total of each schedule with the balance of the relative accounts in the general ledger

Purchases

Verify the purchases of raw material. Special attention should be given to the purchases of capital goods.

Valuation of stock

Examine the accuracy of the methods of the valuing stock of raw material etc.

Salary and Wages

The payments regarding the salaries and wages should be checked with great care and skill. Such payments should be tallied with the salary book and the bank statement thereon.

strategic positioning techniques to shoeshine Plc. Describe how the organisation could establish itself strategically in order to meet its objectives.

In order to meet the objective the company have develop the following strategy

In planning the market offering the company has decide to go through five Level of the product. The core benefit of the product that the company is offering is one-year replaceable warranty to the buyers. In case, during one year if there arise any problem or defect in the product the buyer can return the product and replace it with the new one. At the second level, the company has decided to turn the core benefits into the basic product. For this the company has decided to reduce its prices as compare to the competitors. At the third level the company will add some attributes that the buyers like in the shoe like its packing presentation of shoes at the mall. At the fourth level the company will introduce some innovation in the product or may give one shoe free for the buying of two shoes. At the fifth level when the life cycle of the product reaches to decline the company will bring some innovation in the product or may introduce some other types of shoes, because it is the stage where the company need to satisfy the customers and try to distinguish its product from the other sellers products.

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