Case Study Analysis: Pendle Textile
Introduction
The rapid changes in the global market, the growing economic issues and problems and other issues, affect various business enterprise in the global market and textile business enterprise are never an exemption. to be able to cope with these kind of problems within the industry, various business enterprise try to find the most effective approaches to save the business enterprise and one of these is through the consideration of considering changes and continuous improvement. Many companies nowadays are trying to enhance their products as well as services to attract clients and this aim is part of the business and marketing strategy. In their objectives to adjust with the changes happening in the global market, business enterprise tends to come up with a variety of strategic approaches and business plans for being competent.
In developing strategic and competitive approach and positioning of many business enterprises, different marketing and business strategies as well as projects are being developed and initiated. With the use of these strategies and approaches the business enterprise can create a pleasant relationship within and outside their business and support the employment of their employees and also enable the company to consider total quality management approach.
Primarily, the main goal of this paper is to conduct an analysis for the Pendle Textile business enterprise and provide strategic options that the business enterprise can use to stay competitive in the business. In order to analyze the company, Marketing tools will be used such as SWOT analysis, Five Forces Model and strategic options and planning will also be provides, specifically for considering change management.
Overview of the Case
The case was about Pendle Textile which has been established in 1944. Based on the given case the company’s main products include industrial clothing, specifically work wear overalls, jackets, trousers, boiler suits and skirts. Their products are usually wore by employees in retail manufacturing such as supermarket employees and the transport companies. The company sales comes from two business segments; these include the garments which are being sold to linen hire industries and the design work segments
The company is facing various problems and issues and one of these is with regards to their human resource management, specifically the lack of training and managerial development to enhance the performance of the company. In addition, the company is also facing problems in terms of their quantity and quality which do not meet at an optimum level. In addition, the company is also facing issues in terms of their competitors. The company has lack the courage to take the risks for change management due to resistance of employees. In addition the company is also having problems on whether to take continuous improvement or not.
Task 1 SWOT ANALYSIS
It is a common fact that competition in the business world is very tough. Hence, the management of different organization are trying to find the best way in order to be successful and achieve their organizational goal. For example, business, nowadays, have to cut cost to the bone by downsizing, outsourcing, offshore IT development and management. The growth and success of an industry now depends on its ability to innovate to execute new business strategy effectively. Many organizations see that changing the business strategy must become a part of the core competency of every part of the organization and its network of business partners (Thompson & Strickland, 2003). It is noted that management adheres to different changes because of some factors. Like any other organizations or industries, Procter & Gamble has also been able to initiate change in their business strategy. In order to address the company’s problems due to the changes in the industry, P&G tried to develop a new strategy that will basically allow the company to have competitive advantage. The company also wanted a strategy that will improve its ordering and billing systems as well as quality of services for the consumers. This part of the paper provides insightful details regarding the organizational factors that drive or triggers them to initiate Organization 2005 strategy. The organizational factors will be analyzed using SWOT (Strengths, weaknesses, market opportunities and threats.
The strengths and weaknesses actually characterize the internal analysis of the company. Issues such as the reputation of the company, the type and quality of its product, manufacturing costs, the effectiveness of their sales team, profitability, innovativeness on research and development, market share and other issues of the company’s capabilities are recognized as strengths and weaknesses (Johnson & Schools, 1997).
Task 1 SWOT ANALYSIS
It is a common knowledge which competition in the market enterprise very tough. In this regard, the business executives are trying to find the best manner to be able to be successful and obtain their business goal. Like for instance, market enterprise, nowadays, has to cut cost to the bone by consider outsourcing, off-shore development and business executives and downsizing. The growth as well as the achievement of an industry now depends on its capacity to change and increase and boost to execute new market enterprise approaches efficiently, many firms see which changing the market enterprise approaches must become a part of the core competencies on every elements to heir firm and its network of market enterprise partners (Thompson & Strickland, 2003). It is noted which business executives adheres to distinctive changes because of some elements. Like any other organizations or industries, Pendle Textiles has also been able to initiate change in their market enterprise approaches. To be able to address the business firm’s problems in their current situation, Pendle Textiles are trying to develop new approaches which will basically permit the business firm to gain competitive advantage. The business firm also wanted approaches which will develop its management systems as well as quality of products for their clients. This part of the paper provides insightful details regarding the enterprise elements which drive or triggers them to initiate Change management approach approaches. The business elements will be analyzed using SWOT (Strengths, weaknesses, market opportunities and threats.
The company strengths and weaknesses actually characterize the internal analysis of the business firm. Issues such as the reputation of the business firm, the type and quality of its product, manufacturing costs, the efficiency of their sales team, profitability and marketability, quantity and volume, market share creativity and change management on research and development, and other issues of the business firm’s capabilities are recognised as strengths and weaknesses (Johnson & Schools, 1997).
Business Strengths
As mentioned, the main objective of Pendle Textiles is to have management and marketing approaches which will enable them to grow in the mature market (. One of the business strengths which will trigger this change management approach is the capacity of the business executives of Pendle Textiles to develop a new approaches which will make them to outgrow or compete with the surprises of their rival companies and the capacity of the business executives to determine the essential elements of the market enterprise to be changed. In addition, strength of the business firm which will trigger them to pursue change management approach is the capacity to anticipate stakeholder’s needs that can be done by restructuring the business structure. Moreover, Pendle textiles can be considered as an industry that wants to outgrow their rival companies, in this regard, their strengths which will trigger or generates the initiation of Change management approach is the perseverance of the employees and staff to increase and boost the marketing and business approaches of Pendle textiles in the market place. The business firm also possessed a strong brand name in the industry which represents their value to their clients.. This strength emphasizes Pendle Textiles capacity to still attract clients even though they are facing different issues and problems mentioned in the case.
Business Weakness
Although, Pendle textiles has their business strengths which trigger the initiation of Change management to solve the issues and problems in the case, that involved changes in their market enterprise approaches, the business firm also encompasses some weaknesses. One of the weaknesses which can be attributed with peddle is the incapacity to sustain market enterprise approaches change because of some business executive’s issues and problems. Based on the case, the incapacity of the business executives to anticipate issues and problems when it comes to product sales and also service because can also be considered as a weakness for the business firm.
Although, the internal side of the business firm represents its strings as well as weaknesses, the opportunities and also threats on one side is external in nature. Opportunities may be recognised in rising markets, , growing economies or capitalizing on the rival companies’ flaws. Threats on one side, represents issues such as the surprise of rival companies, changing market trends, alliances formed by rival companies as well as the transforming demographics. All of these elements, are interrelated with the business firm’s strengths as well as weaknesses. Opportunities may be considered in the maximization of the business firm’s strengths. Though the business firm is already operating globally; nonetheless, the number of its international branches are only limited to a few countries. This then does not optimize the capacity of the business firm to effectively operate internationally even with its Change management approach In addition, as a diversified organization, the approaches may affect the launch of Change management to solve the issues and problems in the case, especially when the business executives have not been able to integrate the value of change management in their business.
Business Opportunities
Because of the approaches which Pendle Textiles has implemented throughout the years, the business firm has many opportunities ahead that can be considered as elements which will trigger their initiation of Change management to solve the issues and problems in the case. One of the organizational opportunities which Pendle possess is in terms of the growing interest of the business executives with their marketing facilities. The new market enterprise approaches (Change management to solve the issues and problems in the case) requires the use of information technology, especially in acquiring and managing data. This interest on new management system will enable peddle to meet its goal as it implements change management to solve the issues and problems in the case. The integration of the market enterprise units of peddle can also be considered as an opportunity for the implementation of the new approaches. Moreover, the business firm has the resources to support the market enterprise approaches, that includes management system support for better marketing activities are that is included in the market enterprise approaches.
Business Threats
Even if Pendle Textiles have various strengths to pursue Change management to solve the issues and problems in the case, the business firm has also some threats that may affect its implementation. This includes the experience of peddle when it comes to having low sales volume. In addition, it has been mentioned in the case the Pendle Textiles are experiencing product decline due to the emergence of rival companies that have faster creativity and change management abilities and effective business executive’s approaches. As the business firm is starting to alter the entire market enterprise approaches, other threats or conflicts may not be met even after its initiation of Change management to solve the issues and problems in the case.
The business strengths, weakness, opportunities and threats which has been mentioned for Pendle, can be considered as essential elements on identifying the needs of initiating Change management approach within Pendle Textiles. The strengths which have been mentioned in the above analysis can be said to be good elements which will help the business firm have a successful implementation for Change management to solve the issues and problems in the case. On one side, the weaknesses which has emphasized can be noted to be a major obstacle for Pendle Textiles to pursue it their change business executives approach through the Change management to solve the issues and problems in the case.
The opportunities serves as a guiding forces for Pendle Textiles to continuously consider and deem on the benefits of pursuing Change management approach in spite of their weaknesses in some elements, while the threats can also be considered as a guiding elements to be given attention by the business executives of Pendle Textiles to ensure which their initiation of Change management approach will guarantee success and will be able to meet their organizational objective of staying in the stiff competition.
Situational Analysis of the Textile industry
It can be considered that business enterprises are group of business industries which market its goods and products closely substituted from each other. In a classification made by Porter (1980), some business enterprise have a tendency to become more cost-effective and competent than the rivals, thus an existing business enterprise such as the textile business industries like peddle should always remember that their business industries like peddle will only survive by implementing efficient marketing and management approach that would enhance the competence of the business. Using Porter’s Five Forces Framework and context, the analysis of the business industries like peddle sector of the Pendle Textile will be analyzed.
New Market Entrants
Part of the Porter’s Five Forces Framework and context is the threat of entrance of new business enterprise. Primarily the objective of each business industries like peddle is to have a competent edge and stance in the textile market business and to be an enterprise that would always be competent in the market place. It can be said that due to the appearance of these new market entrants which may threatened the competent edge and stance of a business enterprise, the existing industries must be able to ensure that they will be able to sustain their competent edge and stance an advantage in the market place, by adapting to changes or strategic change. The existing industries must be able have the appropriate and efficient marketing and management approach to outgrow these new market entrants. Thus, it can be said that textile business belongs to a higher entry obstruction due to the existence of competent industries like in the market.
Supplier Textile
It is said that the state and situations and the present arrangement in the diverse business enterprise in the market greatly recognizes the extent in which effective competition can be achieved. In this regard, the bargaining textile of a supplier can be considered as major threat for the profit of the industries, like Pendle Textile, and other textile industries in the market. With this, the management of each business industries like peddle is trying to have a good contract and arrangement with its supplier. Herein, industries make it sure that their business is also benefited in the said contract while the suppliers enjoy the said arrangement. It can be said that textile market business has a high level of competition in the textile market supply market. For instance, to be able to avoid direct competition with the other textile industries, some business enterprise has been able to establish and safeguard its local textile market competent edge and stance, which is done by signing long-term contracts with diverse suppliers from local and international business enterprise.
Competitive Rivalry
Most existing business enterprise in the market can be said to still enjoying their competent edge and stance in textile market. Herein, it shows that some industries like other textile companies still dominate the textile market by providing their clients quality goods and products. This means that textile market can be considered on top of the competition among other business enterprise. In the case of Pendle, the textile industry still enjoys their competent advantages and edge and stance in the global market and still trying to sustain and maintain their competent advantage among its rivals.
Buyer Power
Part of the five forces mode is the context of the bargaining power of Buyers. In this regard, the management of diverse industries ensures that their clients in all aspects will be satisfied for the quality textile that they provide. Specifically, industries have focused their marketing approach on the demands and needs of the buyer for a textile market business industries like peddle that satisfies them and largely edge and stance their products in this segment. Most industries also use their corporate responsibility by displaying good public image to make the business enterprise more appealing to their clients. The competent objective these industries is to do significantly a better job of providing what clients are seeking for and, thereby making their business to gain competent advantage and out compete other textile industries within the Global clients (Thompson & Strickland, 2003).
Threats of substitutes
Threats and substitutes is another essential and significant aspect of the five forces framework and context, although industries and business enterprise are aware that there were threats for substitute textile products and goods because the Global client’s greater demands, particularly now that technologically advanced materials are used to gain competent advantage, diverse industries still have the assurance that their quality products and goods as well as the satisfaction that their clients are getting, this will hinder any substitutes to outgrow their rival industries.
Analysis of Issues
Due to the existence of various competitors that provide quality textile goods and products, existing industries from various business enterprise, Pendle textile is in need of strategic change to make sure that they will be able to compete well in the business arena (Hoag, 2002). The strategic change is in line with the perceived development of new products and goods for the global market and for providing quality textile products. Like any other business industries, diverse business enterprise especially in industries like Pendle Textile or goes through a number of entrepreneurial issues, like in terms of providing quality products to their clients and in terms of considering change management. On the business level for instance, these industries are in need of enforcing quality standards that clients look for in a textile industry. These business enterprises at some point lack the ability to deliver uniform and quality customer goods and products.
The communication and coordination within the textile industry are also essential and significant issues for industries such as Pendle Textile. It appears that these essential and significant aspects are limited in some of these industries operating in the market, making it difficult for the textile marketers to handle its subsidiaries. In terms of efficient marketing and management approach development, the textile marketer is also struggling with its marketing and productivity strategies. In particular, some business enterprise also operates on unstable grounds as it fails to meet the needs of its diverse markets. In addition, the textile industry is yet to implement effective strategies appropriate for cost reduction and textile utilization. It is also difficult for the textile industry to assess the outcomes and progress of its business plans as no reliable feedback is being used.
Elements that Pursues Strategic Change
Industries, business enterprise and working companies may implement strategic change in their business strategies due to the internal and external elements (Swenson, 1997; Yee 1998). The external and internal elements or drivers are considered as the elements and aspects that that force strategic change for diverse business enterprises in the market (Yee, 1998). Herein, strategic change may be done at diverse level in the structure of any business industries like peddle (Swenson, 1997) and that change can be considered as limited or universal (Reigeluth, 1994) in nature.
For textile industries, financial or manufacturing business enterprise, the internal elements that enable them to pursue strategic change or renewal include the revision to corporate efficient marketing and management approach objectives, evolving business needs, business enterprise restructuring and business approach change and other elements in the internal environment of the business industries like Pendle. At one side, external elements that enable business enterprise to pursue strategic change include the development and enhancement of new quality control approach, particularly the economic aspects which influence the value for money and cost-efficiency of the relationship as well as the need for modern textile products Strategic change can be considered as a specific business operation in realizing the objectives and mission of an business industries like peddle even as strategic change is the sensible or physical steps of employing a strategic transformation.
Suggested Alternative Strategies
Upon implementing strategic change, business enterprises must be able to determine the most appropriate efficient marketing and management approach to be applied. In textile industries such as Pendle Textile, the main objective of the strategic change is to enhance their means of distributing its textile products and goods. This efficient marketing and management approach will help overcome competition as well as increase profit margins. For this purpose, there are two possible alternatives. The textile industry could either push through with its plan to enhance their products by considering continuous quality improvement or the textile industry could just enhance its current distribution channels. In the first alternative, textile industries may develop their own total quality management approach where product designs or framework and contexts as well as the goods and products it offers will be given enough production time to ensure quality. In this textile industry site, clients can view the features of the products and see whether this meets the standards (David, 2002). Herein, the textile industry may also use the pricing strategic wherein special offers like discounts or product packages may also be displayed as part of their marketing approach.
On the other hand, the second strategic change alternative is focused on the existing distribution channels of the textile industry. Aside from major direct textile marketers of the textile industry, textile industries must have contact with mass merchants like supermarkets and fashion stores. Both of these textile marketers have a textile industry where products are displayed for clients. In this case, rather than creating an entirely new textile industry site, textile industries may contract either distribution channel to display its products on their sites.
Business Level Strategies. Textile product delivery is an interactive and dynamic process that from the client's point of view is much more than a passive exchange of money for a particular textile products characteristics of goods and product often require clients to be actively involved in helping to create the textile product value -- either by serving themselves or by cooperating and often working collaboratively with textile product sales personnel. In high-contact systems clients can influence the time of demand, the exact nature of the textile product, and the quality of textile product (Bejou & Palmer, 1998). If clients somehow become better clients -- that is, more knowledgeable, participative, or productive -- the quality of the textile product experience will likely be enhanced for the customer and the business (Bowers, Martin & Luker, 1990). In this regard, the textile industry needs to strengthen relationship with suppliers and increase market share. This effort will result to parallel business interests that will contribute to the textile industry as well as the suppliers’ business objectives. Contract agreements and other business transactions should present advantages and benefits for both parties. Efficient delivery of products and goods through premeditated and tactical supply chain management initiatives should be prioritized.
Elements affecting the Success of Strategic Change
There are diverse elements that affect the success of strategic change in an business enterprise. One of these is the context of business organizational culture. Accordingly, with an enhanced business organizational culture, and change, both the management and the employees are extremely involved in a constant joint effort to enhance the quality of the business industries’ textile products and goods at every level through strategic change. This then involves an effect similar to that of a chain reaction in which, the main goal of the business to enhance its goods and products will eventually enhance their clients’ satisfaction and minimize the business industries’ total costs. Another factor includes the leadership ability of the management (Appelbaum, St. Pierre & Galvas, 1998). The role of the leaders for instance, is significant in developing entrepreneurial efficiency to successfully implement strategic changes. As mentioned by Bohn (2002), efficient leaders have the ability to view the future. They are equipped with compelling abilities to visualize where things will naturally end or lead to. Unlike other people, individuals with leadership abilities see things that are not noticeable or obvious to others. In addition, leaders have the ability to build and establish confidence to others (Bohn, 2002).
It can also be said that the resources, capabilities and business environment of an business enterprise or business industries like peddle can all contribute to the efficacy or success of implementing strategic change. The textile industry should then design a project plan for this efficient marketing and management approach. Essential and significant resources that will serve as the efficient marketing and management approach’s framework should be prepared. It is also suggested that the textile industry develop a monitoring system, which will regularly evaluate the efficient marketing and management approach’s progress. This will be helpful for detecting problems ahead of time as well as in implementing efficient marketing and management approach changes or enhancements.
For the issue of the lack of quality and quantity of the products the best alternative that Pendle Textile may use is the initiation of Total Quality Management. The context of the TQM is product-oriented which will be suitable for Pendle Textile’s goal. In addition, if the business enterprise will utilize this, all members of a quality management (control) will have the capability to thoroughly and scientifically manage the improvement of the peddle textile through the ongoing participation of all employees in problem solving approaches across functional and hierarchical boundaries. Herein, if Pendle’s management will consider this, it will incorporates the concepts of product quality, quality assurance, process control and quality improvement. Accordingly, it is the control of all strategic change processes of peddle textile to better satisfy clients needs in the most economical way.
Furthermore, the consideration of quality is based on internal or self-control, which is embedded in each work systems unit (technology and people). In this regard, pushing problem solving as well as decision-making down in the peddle textile that will enable all the employees of Pendle Textile to do the work to both measure as well a stake corrective action to be able to deliver a quality product or service that meets the demands of their clients (Schlenker, 1998). In addition, the context of considering total quality in Pendle is infinitely variable and adaptable (Hashmi, 2004).
Conclusion
Pendle Textile is truly considered as one of the established brand in textile industries. Nevertheless, it is undeniable that business enterprise is always entitled of having problems as well as issues. Thus, each business enterprise must always have an alternative plans to be able to solve such problems. In order for Pendle Textile to continuously grow in the business environment and, it is essential and significant that they will be able to learn from their mistakes and be open-minded about having strategic changes in the industry. The business enterprise must be able to let each employee be a part of the business enterprise so that the employees in return will tend to give their best for business enterprise’s success.
In general, the success of any business firms, attributes to how well the management carries all its responsibilities and how well the mission, vision and goal are being set along with the corporate strategy imposed within an industry like the Pendle Textile.
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