A. Organizational Environment
Tommy Hilfiger is one of the world's leading fashion and clothing line companies in terms of profit and sales volume. The company has also the widest presence among all international companies. This is made possible through a positioning strategy of global networking of distributors.
Tommy Hilfiger uses the name of both the company and its mainstream fashion labels, and this strategy has allowed the company to pursue an integrated marketing approach directly related to the company name. There are also a variety of Integrated Marketing Communication (IMC) tools available that Tommy Hilfiger could make use of in order to control all of their promotional activities. These tools include a combination of advertising, branding and personal selling. When used appropriately, these IMC tools will be able to help Tommy Hilfiger to consistently disseminate the valuable information that they want to convey to their valued consumers.
Tommy Hilfiger has grown and expanded virtually around the entire globe. This was made possible by their strong efforts to acquire smaller luxury goods companies and firms from other countries. Over the years and decades, Tommy Hilfiger has slowly but surely established an empire, with strong segment markets established in Asia and the Middle East, the Western Hemisphere, the Europe and most recently the Asia Pacific.
In Europe for instance, Tommy Hilfiger was able to achieve a broad market leadership through various acquisition deals over the years. The company also exerts efforts to communicate with their customers in every local culture about Tommy Hilfiger products and their impressions. And this is no easy thing because Europeans have different tastes in fashion and technologies. Therefore, Tommy Hilfiger products might not really have an appeal to them. This critical information gathered by Tommy Hilfiger paves the way for them to make the right decision regarding the appropriate strategies to pursue.
B. Strategic Direction
Tommy Hilfiger has been able to maintain its reputation as one of the world's leading fashion companies for more than 130 years now. It is able to face the challenges in many of its markets directly. This is made possible by the effective promotional and positional strategies aimed to deliver not only profit growth, but also on building down the foundation of Tommy Hilfiger’s brands and business.
The promotional campaigns and strategies of Tommy Hilfiger are focused mainly on driving the growth of its brands and improving the company’s financial performance. These campaigns have also helped secure significant acquisitions and partnerships. And more importantly, these campaigns have led to the release of the potentials of the company’s employees, thus building a quality performance- based culture.
The promotional strategies of Tommy Hilfiger’s local products are practically reinforced by the local employees themselves. These moves certainly allow the company to improve even more without the costs of introducing new technologies. These efforts have resulted in increased financial gains for the company and have allowed the establishment of distribution networks for both the local and international Tommy Hilfiger products.
C. Power in the Organization
The management team of Tommy Hilfiger determines the best ways to utilize its basic factors of production. These resources include the company’s people, materials, information, and energy needed in the production. Excellence is the bridge that links the goals of management and operational performance. They are concerned with the increase in productivity through the proper management of people and choosing the appropriate methods of business organization.
The management team of Tommy Hilfiger performs the careful analysis of the company’s products and their requirements. In this process, they make use of various mathematical methods in its operations research to meet the requirements. They also develop systems of management control in order to aid in the planning of finances and cost analysis. These systems are eventually subjected to improvements for the effective distribution of goods and services.
The management team of Tommy Hilfiger performs the tedious task of selecting which among the various Tommy Hilfiger store locations have the best combination of raw materials availability and costs. This time, the management team of Tommy Hilfiger makes use of computers for simulations and robots for controlling various activities and devices.
D. Control in the Organization
The balanced scorecard is a strategic management system that allows Tommy Hilfiger to clearly establish and follow their goals and business strategies and put them into action. This approach also enables the company to issue feedbacks around both the internal business processes and external outcomes, and this undoubtedly helped the organization on its drive to continuously improve in terms of its strategic performance and results. When appropriately implemented, the balanced scorecard will be able to develop strategic planning into the brain of an organization.
The balanced scorecard approach is based on integral concepts of past management ideas such as Total Quality Management (TQM) and measurement-based management and feedback. The balanced scorecard integrates feedback within internal business process outputs, just like in TQM. The only difference is the existence of an additional feedback loop around the results of business strategies. This establishes the existence of a double-loop feedback process in the balanced scorecard. To establish such a process, the entire business processes must be part of a system with feedback loops. The feedback data needs to be thoroughly investigated by the company and organization managers in order to identify the causes of variation.
The balanced scorecard is strategic management process based on facts. It is a universal fact that business entities nowadays rely upon measurement and outputs of performance. Measurements must come from the business entity's marketing strategy and provide accurate and relevant data and information regarding critical processes and results. Critical data and information needed for performance analysis and improvement include service performance, operations, and financial. The careful investigation involves using this critical information to identify trends that might not be obvious without at first without undergoing thorough investigation. Relevant information and thorough investigation are able to support a variety of organizational purposes, such as planning, improvement of operations, as well as the comparison of company performance with those of major competitors.
E. The Use of Technology
Tommy Hilfiger’s dedication to quality for almost three generations now has led to the satisfaction of millions and millions of its customers worldwide. Tommy Hilfiger was created by a group of people who pursued the best quality and craftsmanship in terms of luxury goods designing and production. The various Tommy Hilfiger products that its customers patronize today are still being manufactured using nothing but the original and unparalleled raw materials discovered three generations ago by the Hilfiger family. Tommy Hilfiger’s durability and bright colors are obtained by using only the purest raw materials.
The raw materials used in the production of Tommy Hilfiger products are able to meet the high quality standards and specifications. The packaging materials where Tommy Hilfiger products are sold are also being subjected to strict quality standards.
In line to Tommy Hilfiger 's policies in product safety, appropriate measures are taken in the production process of Tommy Hilfiger and all of its brands to prevent the possible contamination of the products. Tommy Hilfiger manufacturing plants implement the principles of the HACCP (Hazard Analysis and Critical Control Points) system as a testament to their dedication to quality.
F. Organizational Culture
A major factor involved in the improvement of Tommy Hilfiger’s involves the establishment and utilization of performance measures or indicators that in turn measure their customer’s satisfaction. These measures or indicators are measurable characteristics of products and services that the company typically utilizes in order to study and improve performance. The indicators that will be chosen should be able to represent the essential factors that are crucial to the improvement of operational and financial performance. Through the analysis of accurate information brought about by the tracking processes, the measures or indicators themselves can possibly be analyzed and improved to support such goals.
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